FHA Loans
The first-timer's front door.
Backed by the Federal Housing Administration, FHA loans accept lower credit scores and smaller down payments than conventional lending, and they forgive a financial past that banks won't.
Who this is for
Is this your loan?
First-time buyers, credit rebuilders, and anyone whose savings or score sits below the conventional bar.
Not sure? That's what we're here for. We price every eligible program against this one, so the comparison is done for you.
Why FHA exists, and who it's for
FHA loans are the government's answer to a stubborn problem: plenty of people can afford a monthly mortgage payment but can't clear conventional lending's credit and savings hurdles. The FHA insures the loan, which lets lenders like us say yes to buyers other banks turn away, with down payments from 3.5% and credit scores considered as low as 550.
It's the single most popular path for first-time buyers in America, and in our Orange County and LA practice it's often the difference between renting another five years and owning now.
What makes FHA genuinely flexible
- 3.5% down, and every dollar of it can come from a documented family gift or an approved down-payment assistance program.
- Credit forgiveness. Past bankruptcy, short sale, or foreclosure? FHA has defined waiting periods after which you can qualify again, often shorter than you fear.
- Closing-cost flexibility. Sellers can contribute toward your closing costs, and some costs may be rolled into the loan.
- FHA Streamline refinance. Already have an FHA loan? When rates drop, the streamline program can cut your rate with minimal documentation and no new appraisal in many cases.
The trade-off to understand: mortgage insurance
FHA's flexibility is funded by mortgage insurance premiums: an upfront premium plus a monthly one that, with minimum down payment, lasts for the life of the loan. That's not a dealbreaker; it's a stepping stone. The play we run constantly: buy with FHA now, build equity, then refinance into a conventional loan once you reach 20% equity and drop the insurance entirely. We'll sketch that exit plan with you on day one. That's the #TUME difference between selling you a loan and building you a strategy.
FHA Loans FAQs
Asked constantly. Answered honestly.
What credit score do I need for an FHA loan?
FHA guidelines allow scores as low as 500 with 10% down, and 580+ for the 3.5% minimum down payment. We consider scores from 550. Individual factors matter, so the honest answer comes from a five-minute review of your actual credit, not a chart.
How much is FHA mortgage insurance?
There is an upfront premium of 1.75% of the loan amount (usually rolled into the loan) plus an annual premium paid monthly, commonly around half a percent. We will quote your exact figures, and map when a conventional refinance could remove them.
Can I use FHA for a condo in Orange County?
Yes, if the condo project is FHA-approved. Many SoCal complexes are, and we check approval status for you before you write an offer. Where a project is not approved, we will suggest workable alternatives.
I had a bankruptcy. How long until I can buy?
FHA generally requires two years after a Chapter 7 discharge, sometimes less with documented extenuating circumstances, and as little as one year of on-time payments in an active Chapter 13. Foreclosures generally carry three years. Bring us the dates; we will map your eligibility to the month.
FHA or conventional with 3% down, which is better?
It usually comes down to your credit score. Stronger scores often win with conventional (cheaper, cancellable insurance); scores in the 500s to low 600s usually price better with FHA. We run both quotes on every eligible file, so you never have to guess.
Compare programs
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Every file gets a real comparison across programs. That's The Ultimate Mortgage Experience.
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