Salinas FHA Loans

SALINAS, 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.

Salinas's 78 lenders originated 850 FHA loans during 2021. The total origination value was $397,380,000, with an average FHA loan value of $467,506.

Salinas FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Salinas averaged 5.2% for the week of 2022-05-20, compared to the national average (all FHA variants) of 5.352% for the same period.

The average rate for the prior week (2022-05-13) was 5.2% and one month ago for the week of 2022-04-15, the average rate was 4.99%.

The average rate one year ago was 3.07%.

For refis of the same type during the week of 2022-05-20, the average rate was 5.03%.

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

Salinas 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 Salinas level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
UNITED WHOLESALE MORTGAGE, LLC 80 2.73% $13,619
QUICKEN LOANS, LLC 64 2.61% $10,424
CALIBER HOME LOANS, INC. 52 2.79% $12,975
PREMIER MORTGAGE RESOURCES, L.L.C. 45 2.96% $15,794
ENVOY MORTGAGE, LTD 39 3.10% $15,462
HOME POINT FINANCIAL CORPORATION 35 2.87% $15,058
FREEDOM MORTGAGE CORPORATION 30 2.70% $8,667
MASON MCDUFFIE MORTGAGE CORPORATION 26 2.66% $15,558
PENNYMAC LOAN SERVICES, LLC 22 2.82% $9,384
Lakeview Community Capital, LLC 18 2.79% $8,137
Mr. Cooper ( Nationstar Mortgage ) 16 3.03% $6,980
Paramount Residential Mortgage Group, Inc. 15 3.07% $14,577
SUMMIT FUNDING, INC. 13 3.51% $16,127
Carrington Mortgage Services, LLC 13 3.33% $13,442
AMERICAN PACIFIC MORTGAGE CORPORATION 12 3.09% $15,939
KBHS HOME LOANS, LLC 12 3.00% $21,286
AMERICAN FINANCIAL NETWORK, INC. 12 3.02% $21,483
FINANCE OF AMERICA MORTGAGE LLC 11 2.63% $13,710
STEARNS LENDING, LLC 10 2.59% $12,449
MOUNTAIN WEST FINANCIAL, INC. 10 2.99% $18,261
Sierra Pacific Mortgage Company, Inc. 10 2.75% $13,808
VILLAGE CAPITAL & INVESTMENT LLC 9 2.46% $4,547
LOANDEPOT.COM, LLC 8 3.47% $16,705
LAKEVIEW LOAN SERVICING, LLC 8 2.80% $7,658
GUARANTEED RATE, INC. 8 3.14% $15,058
NEWREZ LLC 7 2.91% $9,383
HOMEBRIDGE FINANCIAL SERVICES, INC. 7 2.66% $11,949
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 6 2.96% $15,478
BROKER SOLUTIONS, INC. 5 2.95% $9,693
SUN WEST MORTGAGE COMPANY, INC. 4 2.66% $10,531
CMG MORTGAGE, INC. 4 3.03% $13,738
Equity Prime Mortgage LLC 4 3.06% $18,567
GUILD MORTGAGE COMPANY 4 2.78% $15,605
PRIMELENDING, A PLAINSCAPITAL COMPANY 3 3.50% $20,975
S1L, Inc. 3 3.16% $15,057
OCMBC, INC. 3 3.04% $16,843
AmeriHome Mortgage Company, LLC 3 2.87% $7,360
AMCAP MORTGAGE, LTD. 3 3.12% $15,786
PLANET HOME LENDING, LLC 3 2.75% $12,073
Hometown Equity Mortgage, LLC 3 3.46% $13,336
CROSSCOUNTRY MORTGAGE, LLC 2 2.75% $14,270
PLAZA HOME MORTGAGE, INC. 2 2.62% $9,385
MOVEMENT MORTGAGE, LLC 2 2.75% $14,826
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 2 3.00% $18,829
LAND HOME FINANCIAL SERVICES, INC. 2 2.75% $15,649
First Guaranty Mortgage Corporation 2 2.81% $10,411
CAPSTONE DIRECT, INC. 1 2.75% $16,526
ACADEMY MORTGAGE CORPORATION 1 3.38% $17,876
Prosperity Home Mortgage, LLC 1 2.63% $14,267
BAY EQUITY LLC 1 2.99% $15,007
RMS & Associates 1 2.75% $8,082
SECURITYNATIONAL MORTGAGE COMPANY 1 4.38% $16,023
AMERISAVE MORTGAGE CORPORATION 1 2.75% $8,191
SNAPFI, INC. 1 2.63% $14,056
SOUTHWEST STAGE FUNDING, LLC 1 2.75% $7,437
Amerifirst Financial, Inc. 1 3.00% $21,750
The Federal Savings Bank 1 2.75% $20,046
U.S. Bank 1 2.99% $16,940
VERITAS FUNDING, LLC 1 2.99% $11,966
AHL FUNDING 1 2.88% $11,875
HOME APPROVALS DIRECT, INC. 1 3.13% $9,879
VISION ONE MORTGAGE, INC. 1 3.88% $16,632
Hometown Lenders, Inc. 1 3.25% $27,694
INTELLILOAN, INC. 1 3.38% $4,874
InterContinental Capital Group, Inc 1 2.25% $9,882
Golden Empire Mortgage, Inc. 1 2.63% $10,061
Flagstar Bank, FSB 1 2.88% $11,283
LOANLEADERS OF AMERICA, INC. 1 2.88% $14,855
Manufacturers and Traders Trust Company 1 2.75% $9,461
MEGA CAPITAL FUNDING, INC. 1 2.25% $8,573
DIGNIFIED HOME LOANS, LLC 1 2.63% $13,225
NATIONS DIRECT MORTGAGE, LLC 1 3.00% $14,723
NATIONWIDE MORTGAGE BANKERS, INC. 1 3.75% $23,162
NETWORK CAPITAL FUNDING CORPORATION 1 2.88% $24,165
Commerce Home Mortgage, Inc. 1 3.63% $20,527
NEXERA HOLDING LLC 1 2.63% $11,503
OCEANSIDE MORTGAGE COMPANY 1 2.25% $10,055
ONY GLO, INC. 1 2.50% $10,915

The top Salinas FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 80 FHA loans originated. Their average total fees are $13,619, which is $3,195 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Salinas FHA lenders (with over 10 loans originated) are Mr. Cooper ( Nationstar Mortgage ) ($6,980), Lakeview Community Capital, LLC ($8,137), FREEDOM MORTGAGE CORPORATION ($8,667), PENNYMAC LOAN SERVICES, LLC ($9,384) and QUICKEN LOANS, LLC ($10,424).

The lowest rate Salinas FHA lenders (with over 10 loans originated) are STEARNS LENDING, LLC (2.59%), QUICKEN LOANS, LLC (2.61%), FINANCE OF AMERICA MORTGAGE LLC (2.63%), MASON MCDUFFIE MORTGAGE CORPORATION (2.66%) and FREEDOM MORTGAGE CORPORATION (2.70%).

Salinas FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
SALINAS, CA MONTEREY 2022 $854,450 $1,093,850 $1,322,200 $1,643,200

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).