Merced FHA Loans

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 104 lenders originated 1,496 FHA loans during 2021. The total origination value was $434,990,000, with an average FHA loan value of $290,769.

    Merced FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Merced averaged 5.31% for the week of 2022-08-05, compared to the national average (all FHA variants) of 5.305% for the same period.

    The average rate for the prior week (2022-07-29) was 5.55% and one month ago for the week of 2022-07-01, the average rate was 5.44%.

    The average rate one year ago was 3.24%.

    For refis of the same type during the week of 2022-08-05, the average rate was 4.96%.

    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 and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Merced level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
    QUICKEN LOANS, LLC 80 2.65% $7,771
    AMERICAN FINANCIAL NETWORK, INC. 71 3.10% $11,048
    FREEDOM MORTGAGE CORPORATION 69 2.76% $5,692
    UNITED WHOLESALE MORTGAGE, LLC 50 2.70% $9,768
    CROSSCOUNTRY MORTGAGE, LLC 49 3.06% $10,087
    CALIBER HOME LOANS, INC. 47 2.84% $8,545
    DHI MORTGAGE COMPANY, LTD. 44 2.80% $9,599
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 41 3.18% $10,635
    AMERICAN PACIFIC MORTGAGE CORPORATION 36 2.85% $10,472
    ENVOY MORTGAGE, LTD 35 3.08% $12,312
    PENNYMAC LOAN SERVICES, LLC 31 2.95% $5,879
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 31 3.12% $10,745
    SCENIC OAKS FUNDING, INC. 31 2.80% $10,025
    Mr. Cooper ( Nationstar Mortgage ) 31 3.06% $5,946
    LAKEVIEW LOAN SERVICING, LLC 24 2.93% $4,861
    SUMMIT FUNDING, INC. 24 3.26% $12,887
    LOANDEPOT.COM, LLC 24 3.13% $12,937
    INSPIRE HOME LOANS INC. 20 3.31% $10,157
    HOMEBRIDGE FINANCIAL SERVICES, INC. 19 2.93% $8,490
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 18 3.15% $11,098
    Amerifirst Financial, Inc. 18 3.17% $8,875
    MOVEMENT MORTGAGE, LLC 18 3.22% $11,237
    Lakeview Community Capital, LLC 18 2.89% $5,239
    HOME POINT FINANCIAL CORPORATION 18 2.73% $8,981
    GUILD MORTGAGE COMPANY 18 3.29% $12,348
    RESIDENTIAL BANCORP. 16 3.33% $11,682
    ROUNDPOINT MORTGAGE SERVICING CORPORATION 16 3.22% $8,185
    Equity Prime Mortgage LLC 15 3.26% $11,873
    Carrington Mortgage Services, LLC 15 3.41% $9,345
    BROKER SOLUTIONS, INC. 13 3.00% $9,245
    Golden Empire Mortgage, Inc. 13 3.41% $12,245
    Commerce Home Mortgage, Inc. 13 2.78% $12,169
    Paramount Residential Mortgage Group, Inc. 12 3.09% $10,516
    LAND HOME FINANCIAL SERVICES, INC. 12 3.16% $11,079
    MOUNTAIN WEST FINANCIAL, INC. 12 3.15% $11,302
    Nations Lending Corporation 12 2.98% $9,724
    FINANCE OF AMERICA MORTGAGE LLC 11 2.94% $10,124
    EAGLE HOME MORTGAGE, LLC 10 3.14% $10,277
    VILLAGE CAPITAL & INVESTMENT LLC 10 2.59% $3,245
    NEWREZ LLC 8 2.89% $6,615
    PRIMARY RESIDENTIAL MORTGAGE, INC. 7 2.98% $12,877
    S1L, Inc. 7 3.12% $9,497
    ALAMEDA MORTGAGE CORPORATION 6 3.17% $9,276
    InterContinental Capital Group, Inc 6 2.58% $8,796
    MASON MCDUFFIE MORTGAGE CORPORATION 6 3.15% $9,358
    AMERISAVE MORTGAGE CORPORATION 6 2.98% $7,841
    SUN WEST MORTGAGE COMPANY, INC. 5 2.85% $7,132
    NATIONS DIRECT MORTGAGE, LLC 5 3.05% $10,764
    First Guaranty Mortgage Corporation 5 2.73% $6,877
    STEARNS LENDING, LLC 5 2.80% $9,913
    EVERGREEN MONEYSOURCE MORTGAGE COMPANY 4 3.37% $8,803
    PRIMELENDING, A PLAINSCAPITAL COMPANY 4 4.00% $10,167
    Hometown Equity Mortgage, LLC 4 3.22% $12,442
    PLANET HOME LENDING, LLC 4 3.25% $8,012
    Platinum Home Mortgage Corporation 4 3.03% $12,388
    JPMorgan Chase Bank 4 2.84% $8,181
    CMG MORTGAGE, INC. 4 3.34% $9,749
    PLAZA HOME MORTGAGE, INC. 3 3.04% $8,968
    EVERETT FINANCIAL, INC. 3 4.13% $8,840
    Sierra Pacific Mortgage Company, Inc. 3 2.54% $9,302
    GUARANTEED RATE, INC. 3 3.21% $11,609
    AmeriHome Mortgage Company, LLC 3 3.08% $4,809
    ACADEMY MORTGAGE CORPORATION 3 2.88% $9,548
    MLD MORTGAGE INC. 2 2.63% $10,058
    COUNTRY CLUB MORTGAGE, INC. 2 3.13% $12,940
    INTELLILOAN, INC. 2 3.69% $13,510
    K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 2 3.06% $13,919
    UNION HOME MORTGAGE CORP. 2 2.44% $9,990
    LENDUS, LLC 2 2.69% $8,143
    MID AMERICA MORTGAGE, INC. 2 2.75% $4,212
    Mortgage Research Center, LLC 2 2.88% $7,480
    MUFG Union Bank 2 2.44% $7,975
    Bank of America 2 2.81% $9,620
    TRAVIS CREDIT UNION 2 2.75% $9,272
    Flagstar Bank, FSB 2 2.72% $9,814
    NP, Inc. 1 2.50% $8,269
    OCMBC, INC. 1 2.63% $8,708
    CAMPOS FINANCIAL CORP. 1 3.00% $8,280
    BEST CAPITAL FUNDING 1 2.88% $9,045
    PHH Mortgage Corporation 1 2.88% $10,878
    Plains Commerce Bank 1 2.63% $11,274
    CELEBRITY HOME LOANS, LLC 1 3.00% $8,572
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 3.00% $15,970
    FBC MORTGAGE, LLC 1 3.13% $4,337
    PNC Bank 1 3.13% $9,052
    PREMIER MORTGAGE RESOURCES, L.L.C. 1 2.88% $10,752
    MEGA CAPITAL FUNDING, INC. 1 2.38% $8,517
    LOANPAL, LLC 1 3.25% $8,672
    BECKAM FUNDING CORP. 1 4.75% $17,738
    BAY EQUITY LLC 1 3.75% $9,850
    GUARANTEED RATE AFFINITY, LLC 1 2.50% $17,462
    CHERRY CREEK MORTGAGE, LLC 1 3.75% $4,043
    LENDING 3, INC. 1 3.13% $4,430
    Citizens Bank 1 2.25% $11,998
    COASTAL FUNDING SLC, INC. 1 3.88% $10,415
    DIRECT MORTGAGE, CORP. 1 2.25% $11,089
    HOME APPROVALS DIRECT, INC. 1 3.13% $14,464
    The Federal Savings Bank 1 2.75% $14,739
    THE GOLDEN 1 1 2.75% $7,034
    TOP FLITE FINANCIAL, INC. 1 3.00% $11,023
    GENEVA FINANCIAL, LLC 1 3.25% $13,887
    NBKC BANK 1 2.75% $8,524
    Neighborhood Loans, Inc. 1 3.75% $13,624
    MUTUAL OF OMAHA MORTGAGE, INC. 1 2.75% $8,920

    The top Merced FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 80 FHA loans originated. Their average total fees are $7,771, which is $3,277 lower than the next largest lender, AMERICAN FINANCIAL NETWORK, INC..

    The lowest fee Merced FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($3,245), LAKEVIEW LOAN SERVICING, LLC ($4,861), Lakeview Community Capital, LLC ($5,239), FREEDOM MORTGAGE CORPORATION ($5,692) and PENNYMAC LOAN SERVICES, LLC ($5,879).

    The lowest rate Merced FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC (2.59%), QUICKEN LOANS, LLC (2.65%), UNITED WHOLESALE MORTGAGE, LLC (2.70%), HOME POINT FINANCIAL CORPORATION (2.73%) and FREEDOM MORTGAGE CORPORATION (2.76%).

    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

    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).