FHA Loans
Your Path to Homeownership Starts Here — Even If You Thought You Could Not Qualify
Low down payment. Flexible credit requirements. Government-backed protection. FHA loans exist to make owning a home possible for real people with real lives.
See If I Qualify for an FHA LoanAs Low as 3.5% Down | Credit Scores from 580 | Seller Can Pay Closing Costs
← All Loan OptionsThere Is a Way Into Your First Home
I hear it all the time. People who have been told they cannot buy a home yet. Not enough saved. Credit score not quite there. Too much debt. If that is you, I want you to hear something clearly: there is a way.
An FHA loan exists specifically for buyers who do not fit the perfect mold. It was created by the federal government to open the door to homeownership for people who deserve it just as much as anyone else. And in Southern California, where prices are high, it is one of the most powerful tools I have to help change somebody's life.
That is what I do. And if you are still reading, I think you deserve to understand exactly how FHA works, what it costs, and whether it is the right fit. Let us walk through it together.
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration (HUD). FHA does not lend money directly. Instead, it provides insurance to approved lenders, protecting them against losses if a borrower defaults. Because lenders carry less risk, they can offer FHA loans with more flexible qualification standards.
FHA loans have been around since 1934 and have helped over 50 million Americans purchase or refinance homes. They are not a niche product or a last resort. They are a mainstream path to homeownership. FHA loans are not a sign that you are behind. They are a sign that you are smart enough to use the right tool for your situation.
Why FHA Works for So Many Southern California Buyers
Minimum down payment: as low as 3.5% with a 580+ credit score. Credit: 580 minimum for 3.5% down; 500–579 with 10% down. Debt-to-income: up to 57% DTI allowed with compensating factors. Gift funds: entire down payment and closing costs can come from gift funds. Seller concessions: sellers can contribute up to 6% of purchase price toward closing costs. Co-borrowers: non-occupant co-borrowers allowed. Loan limits: up to $1,249,125 in Los Angeles and Orange County (2026). FHA is compatible with down payment assistance and CalHFA programs.
FHA Loan Requirements
Credit: 580+ for 3.5% down; 500–579 for 10% down. Below 500 not eligible. Lenders look at the full picture, not just the score.
Down payment: Minimum 3.5% for 580+ score. Can come from savings, gift, employer assistance, or down payment assistance. FHA allows 100% of the down payment to be gifted.
DTI: Front-end up to 31% (40% with compensating factors); back-end up to 43% (50–57% with strong compensating factors).
Employment: Two-year history required (same field or higher pay okay). Self-employed: two years tax returns and YTD P&L.
Property: Must be your primary residence. SFR, 2–4 unit (owner occupy one), FHA-approved condos, qualifying manufactured homes. Property must meet FHA minimum property standards. FHA 203(k) renovation loans can finance purchase plus repairs in one loan.
2026 FHA Loan Limits — Southern California
| County | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| Los Angeles County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Orange County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| San Diego County | $1,104,000 | $1,413,350 | $1,708,400 | $2,123,100 |
| Riverside County | $832,750 | $1,066,250 | $1,288,800 | $1,601,750 |
| San Bernardino County | $832,750 | $1,066,250 | $1,288,800 | $1,601,750 |
| Ventura County | $1,035,000 | $1,325,000 | $1,601,600 | $1,990,450 |
Multi-unit limits apply when you occupy one unit as primary residence. Contact me for current figures.
FHA Mortgage Insurance (MIP)
Upfront MIP (UFMIP): 1.75% of the base loan amount at closing (can be financed into the loan).
Annual MIP: Charged monthly. For 30-year loans with less than 10% down, rate is 0.55% and MIP stays for the life of the loan. With 10%+ down, 0.50% for 11 years then cancels. For 15-year loans, rates are lower.
If you put less than 10% down, MIP does not cancel automatically (unlike conventional PMI at 80% LTV). Many buyers plan to refinance to conventional once they have 20% equity. I will help you think through that strategy.
Closing Costs & How to Reduce Them
FHA closing costs typically run 2% to 5% of the loan amount: UFMIP (1.75%, can finance), origination, appraisal, title/escrow, recording, prepaid items. Seller concessions: FHA allows the seller to contribute up to 6% of the purchase price toward your closing costs—one of the most buyer-friendly features. Gift funds: All down payment and closing costs can come from eligible gift funds. Down payment assistance: FHA is compatible with CalHFA MyHome and other county/city programs. I will check every program you might qualify for.
FHA 203(k) Renovation Loan
The FHA 203(k) lets you purchase a home that needs work and finance both the purchase and the cost of repairs in a single mortgage. Standard 203(k): Major structural work, additions, full renovations. Limited 203(k) (Streamline): Up to $35,000 in non-structural repairs, updates, cosmetic work. In Southern California, fixer-uppers often sell for less; a 203(k) can let you buy at a lower price and build immediate equity. I can guide you through the process step by step.
FHA Streamline Refinance
If you already have an FHA loan and rates have dropped, the FHA Streamline Refinance is one of the simplest options: no new appraisal in most cases, reduced income documentation, lower upfront MIP (0.01%). You must be current on payments and the refinance must provide a net tangible benefit. Contact me and I will run the numbers for your situation.
FHA vs. Conventional: Which Is Right for You?
If your credit score is below 680 or your DTI is above 45%, FHA is almost always the better option. If your credit is strong and you can put at least 5% down, conventional will likely save you more long-term because mortgage insurance cancels at 80% LTV. I will always run both scenarios for you side by side with real numbers.
The FHA House Hack: 2–4 Units
FHA allows you to purchase a 2, 3, or 4-unit property with as little as 3.5% down as long as you live in one unit. Rental income from the other units can count toward qualifying income, often allowing you to qualify for a larger loan. You build equity while tenants help pay the mortgage. Loan limits for 2–4 units are higher than for single-family (see table above).
How the FHA Process Works with Me
Step 1: Free consultation—I look at your credit, income, debt, and savings and tell you honestly where you stand. Step 2: Credit review and planning if needed. Step 3: Pre-approval (2–5 business days) with W-2s or tax returns, pay stubs, bank statements, ID, gift letter if applicable. Step 4: Find your home with your agent. Step 5: FHA appraisal (value + minimum property standards). Step 6: Underwriting. Step 7: Clear to Close and closing day. From accepted offer to closing, FHA loans typically take 30–45 days.
Is an FHA Loan Right for You?
FHA is likely a strong fit if: Credit 580–679; limited savings; DTI 45–57%; you want gift funds or seller concessions (up to 6%); first-time buyer with down payment assistance; fixer-upper (203(k)); or multi-unit with rental income.
FHA might not be best if: Credit 680+ and 5%+ down (conventional may cost less); investment or second home; veteran (VA is often better); property does not meet FHA standards and seller will not repair.
Not sure? That is what the consultation is for. I will give you a real answer, not a guess.
Why Work with Me on Your FHA Loan
I help change the trajectory of someone's financial life—not just process a file. I will never put you in the wrong loan; if conventional or another product serves you better, I will tell you. I know how to solve FHA complications (appraisal issues, credit, employment gaps). I work with multiple FHA-approved lenders to find the best rate and lowest cost. I am with you from first talk to keys—one point of contact, clear communication, no surprises.
FHA Loan FAQ
Can I get an FHA loan with bad credit? FHA allows 580+ for 3.5% down and 500–579 for 10% down. I look at your full credit picture.
Bankruptcy or foreclosure? Chapter 7: 2 years from discharge. Chapter 13: 1 year on-time payments with court approval. Foreclosure: 3 years. Extenuating circumstances can shorten in some cases.
Can I use FHA for a condo? Yes, if the project is on the FHA-approved condo list. I can check status and spot-approval options.
Not a first-time buyer? Yes. FHA is for primary residence only; you can use it again for a new primary home.
Can the seller pay my closing costs? Yes. Up to 6% of the purchase price toward closing costs—one of the most buyer-friendly FHA features.
Stuck with MIP forever? If you put less than 10% down, MIP stays unless you refinance. Once you have 20% equity, you can refinance to conventional and eliminate it. Many buyers plan for that.
Non-occupant co-borrower? Yes. FHA allows non-occupant co-borrowers; their income counts toward qualification.
Your First Home Is Closer Than You Think
If you have been told you cannot buy a home, or you have been waiting until things are more perfect—for a lot of people, that day is already here. The right loan, the right preparation, and the right advisor can turn a situation that feels stuck into a closing day. There is a way. Let us find it. Your consultation is free. No pressure.
Book Your Free FHA Loan ConsultationAlso explore: Conventional · DSCR · Reverse Mortgages · Self-Employed · Hard Money · Commercial