Merced FHA Loan Rates, Closing Costs & Stats

MERCED, CA

FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

For additional requirements as defined by the FHA, click here.

Merced's 88 lenders originated 758 FHA loans during 2023. The total origination value was $269,740,000, with an average FHA loan value of $355,858.

Merced FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Merced averaged 6.04% for the week of 2024-10-11, compared to the national average (all FHA variants) of 6.1% for the same period.

Merced's average FHA mortgage closing costs are $10,123.

The average rate for the prior week (2024-10-04) was 5.86% and one month ago for the week of 2024-09-06, the average rate was 5.89%.

The average rate one year ago was 6.92%.

For refis of the same type during the week of 2024-10-11, the average rate was 5.68%.

Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

Merced FHA Loan Lenders by Rates & Fees

The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Merced level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
UNITED WHOLESALE MORTGAGE, LLC 144 6.18% $15,342
DHI MORTGAGE COMPANY, LTD. 55 5.46% $11,272
QUICKEN LOANS, LLC 50 6.20% $14,124
AMERICAN FINANCIAL NETWORK, INC. 44 6.45% $14,123
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 22 6.38% $15,059
LOANDEPOT.COM, LLC 21 5.67% $14,037
CROSSCOUNTRY MORTGAGE, LLC 20 6.64% $13,209
Century Mortgage Company DBA Century Lending Company 18 6.40% $14,491
RESIDENTIAL BANCORP 18 6.38% $16,473
AMERICAN PACIFIC MORTGAGE CORPORATION 18 6.37% $15,883
SCENIC OAKS FUNDING, INC. 16 6.55% $17,053
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 16 6.49% $16,215
ENVOY MORTGAGE, LTD 15 6.11% $17,253
GUILD MORTGAGE COMPANY 12 6.47% $17,323
INSPIRE HOME LOANS INC. 11 5.57% $16,374
CARDINAL FINANCIAL 11 6.34% $16,058
Sierra Pacific Mortgage Company, Inc. 11 6.76% $17,195
SUMMIT FUNDING, INC. 10 6.36% $20,105
GUARANTEED RATE, INC. 10 6.56% $16,822
Golden Empire Mortgage, Inc. 10 6.92% $19,182
LEADERONE FINANCIAL CORPORATION 8 6.87% $15,334
SUN WEST MORTGAGE COMPANY, INC. 8 6.82% $15,295
OCMBC, INC. 8 7.08% $14,287
MASON MCDUFFIE MORTGAGE CORPORATION 7 6.43% $17,578
NEWREZ LLC 7 5.92% $17,495
PLAZA HOME MORTGAGE, INC. 6 6.02% $14,358
PENNYMAC LOAN SERVICES, LLC 6 6.31% $16,096
FREEDOM MORTGAGE CORPORATION 5 6.85% $15,735
LAND HOME FINANCIAL SERVICES, INC. 5 7.23% $16,583
Flagstar Bank, FSB 4 6.28% $12,442
PRIMARY RESIDENTIAL MORTGAGE, INC. 4 7.16% $9,803
Paramount Residential Mortgage Group, Inc. 4 7.00% $12,661
AXIA FINANCIAL, LLC 3 6.71% $12,707
Equity Prime Mortgage LLC 3 7.13% $12,842
Prosperity Home Mortgage, LLC 3 6.00% $15,347
BROKER SOLUTIONS, INC. 3 7.33% $9,187
CALCON MUTUAL MORTGAGE LLC 3 6.46% $19,858
HOMEOWNERS FINANCIAL GROUP USA, LLC 3 6.71% $18,391
Carrington Mortgage Services, LLC 3 6.29% $16,214
S1L, Inc. 2 5.63% $18,753
Performance Financial, Inc. 2 7.13% $13,901
HOMEBRIDGE FINANCIAL SERVICES, INC. 2 6.50% $18,191
MOUNTAIN WEST FINANCIAL, INC. 2 5.81% $17,847
ALAMEDA MORTGAGE CORPORATION 2 7.56% $19,676
PACIFIC RESIDENTIAL MORTGAGE, LLC 2 5.81% $14,210
EVERETT FINANCIAL, INC. 2 6.94% $19,081
CHURCHILL MORTGAGE CORPORATION 2 6.94% $20,120
Northpointe Bank 2 6.38% $12,159
Mr. Cooper ( Nationstar Mortgage ) 2 6.25% $15,316
MOVEMENT MORTGAGE, LLC 2 7.00% $17,666
ACADEMY MORTGAGE CORPORATION 2 6.06% $16,474
AMERISAVE MORTGAGE CORPORATION 2 6.00% $11,526
VERITAS FUNDING, LLC 2 6.69% $14,877
Wyndham Capital Mortgage, Inc. 1 5.75% $14,215
AHL FUNDING 1 6.13% $16,614
ARC HOME LLC 1 5.99% $8,132
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 5.75% $10,843
Axos Bank 1 6.63% $16,461
Barrington Bank & Trust Company, N.A. 1 6.75% $10,398
BAY EQUITY LLC 1 6.13% $10,075
BAY-VALLEY MORTGAGE GROUP 1 6.13% $12,913
BECKAM FUNDING CORP. 1 7.25% $22,321
BETTER MORTGAGE CORPORATION 1 6.13% $17,111
CITY FIRST MORTGAGE SERVICES, L.L.C. 1 6.00% $12,143
CMG MORTGAGE, INC. 1 7.75% $11,658
DIAMOND RESIDENTIAL MORTGAGE CORPORATION 1 6.99% $14,473
EMM LOANS LLC 1 6.88% $16,940
FBC MORTGAGE, LLC 1 5.75% $13,671
Franklin Loan Corporation 1 5.88% $15,881
GUARANTEED RATE AFFINITY, LLC 1 6.75% $14,114
GUARANTY HOME MORTGAGE CORPORATION 1 5.63% $12,708
Hometown Equity Mortgage, LLC 1 6.75% $16,080
Lakeview Community Capital, LLC 1 6.63% $17,715
LAKEVIEW LOAN SERVICING, LLC 1 5.75% $13,880
LOANPAL, LLC 1 6.38% $12,224
MK LENDING CORP. 1 6.00% $13,773
MLD MORTGAGE INC. 1 7.38% $12,925
MORTGAGEONE, INC. 1 7.25% $14,831
MORTGAGE SOLUTIONS OF COLORADO, LLC 1 6.13% $17,537
MUTUAL OF OMAHA MORTGAGE, INC. 1 6.75% $8,242
NETWORK CAPITAL FUNDING CORPORATION 1 5.00% $11,397
NEXERA HOLDING LLC 1 6.63% $8,453
ONY GLO, INC. 1 6.88% $10,443
PLANET HOME LENDING, LLC 1 5.50% $8,386
PREMIER MORTGAGE RESOURCES, L.L.C. 1 7.13% $11,939
The Loan Store, Inc. 1 7.63% $20,331
TruHome Solutions, LLC 1 6.88% $11,755
VILLAGE CAPITAL MORTGAGE 1 5.25% $21,502

The top Merced FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 144 FHA loans originated. Their average total fees are $15,342, which is $4,071 higher than the next largest lender, DHI MORTGAGE COMPANY, LTD..

The lowest fee Merced FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. ($11,272), CROSSCOUNTRY MORTGAGE, LLC ($13,209), LOANDEPOT.COM, LLC ($14,037), AMERICAN FINANCIAL NETWORK, INC. ($14,123) and QUICKEN LOANS, LLC ($14,124).

The lowest rate Merced FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.46%), INSPIRE HOME LOANS INC. (5.57%), LOANDEPOT.COM, LLC (5.67%), ENVOY MORTGAGE, LTD (6.11%) and UNITED WHOLESALE MORTGAGE, LLC (6.18%).

Merced FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
MERCED, CA MERCED 2022 $420,680 $538,650 $651,050 $809,150
MERCED, CA MERCED 2023 $472,030 $604,400 $730,525 $907,900

FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).