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What Does FHA Fees Mean For a First Time Home Buyer in San Diego?

FHA announced that they have increased both the monthly and upfront fee 25 BPS, effective April 18, 2011.

Even though the 3.5% low down payment still exists through FHA, the monthly and upfront fees will cost a homeowner a little more these days.

So what does that mean for a First Time Home buyer in San Diego? For a typical $300,000 priced home, you will still be able to put the required 3.50% down payment, but the monthly fee will increase $48 and the upfront fee will increase $750.

An FHA loan is still highly recommended for a First Time Home buyer in San Diego because of the other benefits that come with the loan program:

  1. 3.5% low down payment can be a gift
  2. Debt to income ratios are allowed up to 50%
  3. The seller can pay for all of the closing costs
  4. Lower credit scores
  5. Non-occupant co borrower allowed
  6. No prepayment penalty

More FHA Guidelines.