FHA LOANS - LOW DOWN PAYMENT, FLEXIBLE CREDIT
Designed to help more Californians buy with as little as 3.5% down (with qualifying credit)
What is an FHA loan?
FHA Loans are insured by the Federal Housing Administration. They allow flexible credit standards, lower down payments, and gift funds for downpayment /closing costs.
PROS
- 3.5% down with qualifying credit
- More flexible credit history and allowable debt ratios
- Gift funds permitted
- Streamline refinance options for existing FHA borrowers
CONSIDERATIONS
Upfront and monthly mortgage insurance (UFMIP + MIP)
Property must meet FHA safety and conditions standards
FHA loans limits apply and vary by CA county
BASIC ELIGIBILITY
- Verifiable income/employment and acceptable credit profile
- Debt-to-income within FHA guidelines
- Minimum required down payment sourced/verified; gifts allowed per FHA rules
RATES & COSTS
ates are usually competitive; total cost includes UFMIP and monthly MIP. We’ll compare FHA vs Conventional for your profile.
CALIFORNIA NOTES
- Popular with first-time buyers in high-cost metros when MI is acceptable
- Some condos require FHA-approved projects or spot approvals
- Appraisal may flag health/safety repair items common in older CA homes
Frequently Asked Questions
Yes, from eligible donors
Depends on down payment and rules
FHA 203(K) may help.