You will pay 1.75% up front fee for an FHA loan.
$8750 for a $500K loan.
You have mandatory mortgage insurance for at least 5 years, regardless of LTV.

With 10% down and high credit score, I would love for anyone to explain to me why they want a FHA loan.

For FNMA.
Max loan amount $546,250 in SD county.

You missed the lowest mortgage rates in history this morning, rates closed the day up quite a bit.
>HLS