Merced FHA Loan Rates, Closing Costs & Stats

MERCED, CA

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    • 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 97 lenders originated 884 FHA loans during 2024. The total origination value was $329,360,000, with an average FHA loan value of $372,579.

    Merced FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Merced averaged -0.14% for the week of 2025-06-20, compared to the national average (all FHA variants) of 0% for the same period.

    Merced's average FHA mortgage closing costs are $10,680.

    The average rate for the prior week (2025-06-13) was 6.44% and one month ago for the week of 2025-05-16, the average rate was 6.4%.

    The average rate one year ago was 6.55%.

    For refis of the same type during the week of 2025-06-20, the average rate was -0.29%.

    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 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    UNITED WHOLESALE MORTGAGE, LLC 153 6.01% $14,468
    DHI MORTGAGE COMPANY, LTD. 72 5.37% $11,917
    QUICKEN LOANS, LLC 57 6.20% $13,505
    LEADERONE FINANCIAL CORPORATION 52 6.42% $15,737
    Century Mortgage Company DBA Century Lending Company 27 6.17% $14,656
    CROSSCOUNTRY MORTGAGE, LLC 27 6.24% $15,745
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 25 6.32% $14,953
    Performance Financial, Inc. 24 6.23% $15,288
    GUILD MORTGAGE COMPANY 20 6.40% $16,508
    LAND HOME FINANCIAL SERVICES, INC. 19 6.75% $17,843
    INSPIRE HOME LOANS INC. 18 5.51% $12,991
    Equity Prime Mortgage LLC 15 6.35% $17,964
    Sierra Pacific Mortgage Company, Inc. 14 6.32% $17,811
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 13 6.20% $19,483
    GUARANTEED RATE, INC. 13 6.10% $15,131
    MASON MCDUFFIE MORTGAGE CORPORATION 12 6.24% $15,075
    OCMBC, INC. 11 6.40% $16,631
    AMERICAN PACIFIC MORTGAGE CORPORATION 10 6.58% $15,587
    Paramount Residential Mortgage Group, Inc. 10 6.28% $16,531
    LOANDEPOT.COM, LLC 10 6.02% $13,190
    CARDINAL FINANCIAL 9 6.58% $15,868
    Golden Empire Mortgage, Inc. 9 6.39% $17,283
    SUN WEST MORTGAGE COMPANY, INC. 9 5.71% $15,964
    Mr. Cooper ( Nationstar Mortgage ) 9 6.67% $16,909
    FREEDOM MORTGAGE CORPORATION 9 6.39% $14,275
    PENNYMAC LOAN SERVICES, LLC 8 6.01% $12,785
    BROKER SOLUTIONS, INC. 7 6.19% $17,808
    SCENIC OAKS FUNDING, INC. 7 6.07% $15,755
    MORTGAGEONE, INC. 7 6.45% $13,129
    PLAZA HOME MORTGAGE, INC. 6 6.54% $16,983
    Northpointe Bank 6 6.25% $11,757
    PREMIER MORTGAGE RESOURCES, L.L.C. 6 6.38% $15,103
    S1L, Inc. 6 6.60% $15,811
    PRIMARY RESIDENTIAL MORTGAGE, INC. 6 6.98% $7,358
    CHURCHILL MORTGAGE CORPORATION 4 6.47% $15,908
    LAKEVIEW LOAN SERVICING, LLC 3 6.33% $8,476
    NATIONS DIRECT MORTGAGE, LLC 3 6.08% $20,136
    NEWREZ LLC 3 6.17% $15,983
    EVERETT FINANCIAL, INC. 3 6.71% $17,375
    Prosperity Home Mortgage, LLC 3 5.83% $20,048
    Flagstar Bank, FSB 3 6.25% $12,243
    AMERISAVE MORTGAGE CORPORATION 3 6.54% $13,177
    Lakeview Community Capital, LLC 3 6.00% $9,236
    LOANPAL, LLC 3 6.08% $10,607
    CALCON MUTUAL MORTGAGE LLC 2 6.69% $17,708
    Umpqua Bank 2 6.56% $12,352
    TOWNE MORTGAGE COMPANY 2 6.06% $13,492
    INTELLILOAN, INC. 2 5.94% $6,283
    Carrington Mortgage Services, LLC 2 6.94% $13,664
    RESIDENTIAL BANCORP 2 6.69% $17,887
    DIRECTIONS EQUITY, LLC 2 5.75% $15,916
    Commerce Home Mortgage, Inc. 2 6.56% $11,028
    BAY-VALLEY MORTGAGE GROUP 2 6.19% $14,072
    PACIFIC RESIDENTIAL MORTGAGE, LLC 2 6.38% $12,319
    Bank of America 2 5.44% $8,121
    AMERICAN FINANCIAL NETWORK, INC. 2 7.50% $18,639
    MUTUAL OF OMAHA MORTGAGE, INC. 2 5.75% $16,577
    ALLIED MORTGAGE GROUP, INC. 2 6.44% $12,395
    VILLAGE CAPITAL MORTGAGE 2 6.06% $16,134
    ML Mortgage Corp. 1 7.75% $20,344
    ALAMEDA MORTGAGE CORPORATION 1 7.13% $15,799
    ALTITUDE FINANCIAL CORPORATION 1 5.13% $7,093
    AMERICAN FINANCIAL RESOURCES, INC. 1 6.13% $14,479
    AMERICAN FINANCING CORPORATION 1 5.63% $18,106
    American Mortgage & Equity Consultants, Inc. 1 5.75% $14,765
    AmeriHome Mortgage Company, LLC 1 6.50% $14,724
    AMERITRUST MORTGAGE CORPORATION 1 6.25% $12,847
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 5.63% $15,164
    AXIA FINANCIAL, LLC 1 6.13% $14,397
    BETTER MORTGAGE CORPORATION 1 5.25% $17,907
    BMO Harris Bank 1 5.63% $12,252
    CITY FIRST MORTGAGE SERVICES, L.L.C. 1 7.38% $10,913
    Cornerstone First Mortgage, Inc 1 6.25% $13,176
    ENVOY MORTGAGE, LTD 1 6.63% $13,965
    FIRST COLONY MORTGAGE CORPORATION 1 5.75% $5,203
    Franklin Loan Corporation 1 5.50% $27,681
    GENEVA FINANCIAL, LLC 1 6.13% $20,692
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 5.25% $11,524
    HOMESIDE FINANCIAL, LLC 1 6.25% $12,143
    Hometown Equity Mortgage, LLC 1 6.00% $11,073
    JMAC LENDING, INC. 1 6.63% $13,977
    JPMorgan Chase Bank 1 6.25% $13,316
    MICHIGAN MUTUAL, INC. 1 7.13% $17,851
    MID AMERICA MORTGAGE, INC. 1 7.13% $5,591
    MK LENDING CORP. 1 6.50% $22,788
    AHL FUNDING 1 5.63% $25,988
    Mortgage Research Center, LLC 1 6.63% $7,251
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 7.25% $19,395
    MOUNTAIN WEST FINANCIAL, INC. 1 6.25% $18,181
    Nations Lending Corporation 1 6.63% $12,432
    NETWORK CAPITAL FUNDING CORPORATION 1 6.25% $19,344
    OPEN MORTGAGE, LLC 1 6.99% $19,678
    PLANET HOME LENDING, LLC 1 5.99% $6,146
    PNC Bank 1 5.75% $17,821
    THE GOLDEN 1 1 7.25% $5,762
    The Loan Store, Inc. 1 5.63% $21,676
    TruHome Solutions, LLC 1 5.63% $17,796

    The top Merced FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 153 FHA loans originated. Their average total fees are $14,468, which is $2,551 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. ($11,917), INSPIRE HOME LOANS INC. ($12,991), LOANDEPOT.COM, LLC ($13,190), QUICKEN LOANS, LLC ($13,505) and UNITED WHOLESALE MORTGAGE, LLC ($14,468).

    The lowest rate Merced FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.37%), INSPIRE HOME LOANS INC. (5.51%), UNITED WHOLESALE MORTGAGE, LLC (6.01%), LOANDEPOT.COM, LLC (6.02%) and GUARANTEED RATE, INC. (6.10%).

    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).