Question 1

What's the FHA loan limit for Redwood City in 2024?

Accepted Answer

The FHA loan limit for San Mateo County is $1,089,300 for single-family homes in 2024. This high-cost area limit reflects the Peninsula's elevated housing prices and allows FHA financing on moderately priced properties.

Question 2

Can I use an FHA loan for a condo in Redwood City?

Accepted Answer

Yes, FHA loans work for condos if the building appears on FHA's approved condo list. Your lender can verify approval status quickly. Non-approved buildings require a lengthier approval process that may delay closing.

Question 3

How much down payment do I need for FHA in Redwood City?

Accepted Answer

FHA requires just 3.5% down with a credit score of 580 or higher. With a score between 500-579, you'll need 10% down, though most lenders require higher minimums around 620 in practice.

Question 4

What credit score do I need for an FHA loan?

Accepted Answer

FHA's minimum is 580 for 3.5% down, but most lenders set their own minimums between 600-640. Lower scores still qualify with compensating factors, though you'll face more limited lender options.

Question 5

How does FHA mortgage insurance work?

Accepted Answer

FHA charges 1.75% upfront mortgage insurance plus monthly premiums. Monthly premiums continue for 11 years with 10%+ down, or for the loan's life with less down. Refinancing to conventional eliminates this cost once you build equity.

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