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Redwood City's downtown is shifting with the Bespoke mixed-use project approved at the former Talbot's site. That kind of investment signals confidence in the area's future.
At 5.875%, an FHA loan on a $750,000 purchase runs $4,437 monthly for principal and interest. San Mateo County's median household income of $156,000 supports homes in this range comfortably.
5.875%
FHA Interest Rate
$4,437
Monthly Payment (P&I)
3.5%
Minimum Down Payment
580
Minimum FICO
1.75% of loan
Upfront Mortgage Insurance
FHA Loans in Redwood City
FHA requires a 580 FICO minimum, though lenders often prefer 640+. At 740 FICO, you're well above the floor.
Down payments range from 3.5% to 10%, and the lower your down payment, the longer mortgage insurance stays. On a $750,000 purchase, San Mateo County's $156,000 median income covers the monthly payment with room left.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Redwood City.
Redwood City's downtown is shifting with the Bespoke mixed-use project approved at the former Talbot's site. That kind of investment signals confidence in the area's future.
At 5.875%, an FHA loan on a $750,000 purchase runs $4,437 monthly for principal and interest. San Mateo County's median household income of $156,000 supports homes in this range comfortably.
FHA requires a 580 FICO minimum, though lenders often prefer 640+. At 740 FICO, you're well above the floor.
FHA loans in California move through both retail banks and mortgage brokers. Brokers often close faster because they shop multiple lenders instead of routing everything through one institution.
Expect 30–45 days from application to funding. The 2026 FHA limit here is $1,249,125, so most Redwood City purchases qualify.
FHA makes sense in Redwood City when you have solid income but limited savings. At $156,000 county median income, the 3.5% down path opens doors that conventional 5% down would close.
Above $750,000, FHA still works if you can hit 10% down—that cancels MIP after 11 years. Below that threshold, the insurance never leaves unless you refinance.
Conventional loans at this price point typically require 5% down and 740+ FICO—you'd meet both. The rate runs higher than FHA, but you skip the upfront mortgage insurance.
FHA wins if your down payment is under 5% or your FICO is below 700. Conventional wins if you have 10%+ saved and want to avoid insurance entirely.
The Bespoke project at the former Talbot's downtown location signals real investment in Redwood City's core. Mixed-use development with commercial and affordable housing typically drives foot traffic and property values.
San Mateo County school districts placed bond measures on the June ballot for funding boosts. Schools matter to long-term buyers, and voter support for education spending usually correlates with stable neighborhoods.
On a $750,000 purchase at 5.875% with 3.5% down, principal and interest is $4,437. Add property taxes, insurance, and mortgage insurance for total housing cost.
No. FHA requires only 3.5% down. Mortgage insurance applies for life if down payment is under 10%. At 10%+ down, MIP cancels after 11 years.
Yes. FHA's floor is 580 FICO. Most lenders prefer 640+, but 650 puts you in solid territory. Your debt-to-income ratio matters equally.
Yes. FHA 30-year fixed means your rate stays at 5.875% for the full loan term. No adjustments after year one or year five.
FHA charges 1.75% of the loan amount upfront. On a $750,000 loan, that's roughly $13,125, rolled into your loan balance.