FHA Loans for California Home Buyers

3.5% down payment. Flexible credit. Government-backed loans that help more buyers get into a California home.

3.5% down payment with 580+ credit score

More flexible qualifying standards than conventional loans

Gift funds allowed for down payment and closing costs

No credit impact Free, no obligationNMLS #2787839CA DRE #01212512

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FHA Loan Requirements

580+ credit score for 3.5% down; 500-579 requires 10% down

Debt-to-income ratio typically 43% or below (exceptions exist)

Primary residence only — not for investment properties

FHA-approved property required (most single-family homes qualify)

Upfront MIP of 1.75% + annual MIP (varies by term and LTV)

Two years of employment history preferred

Not sure if you qualify? Call 888-421-1117 — we'll review your situation at no cost.

Understanding FHA Mortgage Insurance (MIP)

All FHA loans carry mortgage insurance — this is how the government backs the loan and allows lenders to offer more flexible terms. There are two components:

Upfront MIP

1.75%

Of the loan amount — typically rolled into the loan balance, not paid out of pocket.

Annual MIP

0.45–1.05%

Paid monthly. Rate depends on loan term, LTV, and loan amount. With <10% down, MIP stays for the life of the loan.

If you put 10% or more down, FHA MIP automatically cancels after 11 years. Many buyers refinance into a conventional loan once they reach 20% equity to eliminate MIP entirely.

Frequently Asked Questions

Get into your California home with 3.5% down

FHA loans open the door to homeownership for buyers across California. Let's find the right lender for your situation.

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