Question 1

What's the monthly payment on a $750K FHA loan at today's rate?

Accepted Answer

Principal and interest run $4,200/month at 5.375% on a $750K loan. Add property taxes, insurance, and mortgage insurance — roughly $5,500-$5,800 total. This assumes the scenario as of April 8, 2026: 740 FICO, 96.5% LTV, 30-year fixed.

Question 2

Do I need 20% down to avoid mortgage insurance on FHA?

Accepted Answer

No. FHA mortgage insurance (MIP) runs for the life of the loan if you put down less than 10%. With 10% or more down, MIP cancels after 11 years. At 3.5% down, you carry MIP forever — that's the tradeoff for buying with less cash.

Question 3

Can I qualify for FHA with a 620 FICO in Los Altos Hills?

Accepted Answer

Technically yes — FHA's floor is 580. But California lenders overlay 640+ FICO on high-LTV loans like this one. At 96.5% LTV in a high-cost area, expect 640 minimum. Below that, you'll struggle to find a lender willing to close.

Question 4

How much does the upfront mortgage insurance cost?

Accepted Answer

FHA charges 1.75% upfront — that's $13,125 on a $750K loan. It's rolled into your balance, so you don't pay it at closing. Your actual loan amount becomes $763,125, which is why your LTV stays high.

Question 5

Is FHA or conventional better for a $777K home in Los Altos Hills?

Accepted Answer

FHA wins if you have $27K-$80K down and 640+ FICO. Conventional 20% down ($155K) eliminates insurance but costs more upfront. Conventional 10% down ($77K) requires more cash than FHA and carries PMI. Your situation determines the winner.

FHA 30-Year Fixed in Los Altos Hills: Lower Credit, Higher Leverage