Merced FHA Loans

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 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).