FHA LOANS in California
What is an FHA loan?
FHA loans help buyers who need a low down payment or more flexible credit rules. The goal is simple. Get you into a safe, affordable loan with clear next steps.
Who this fits
You want to buy with a small down payment. Your credit has a few marks or you are building it back up. You want straightforward guidelines and a payment you can live with.
What makes it different
FHA is insured by the Federal Housing Administration. That insurance allows flexible credit and debt to income rules and keeps rates competitive. It also comes with mortgage insurance that is built into the payment.
Common Questions and Answers
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. It’s designed to help more people become homeowners with lower credit scores, smaller down payments, and flexible guidelines compared to most conventional loans.
Who are FHA loans best for?
They work well for first-time buyers, people with limited savings, or buyers with a lower credit score who still want to purchase a home.
Are FHA loans good?
The minimum down payment is 3.5 percent for qualifying buyers. Down payment assistance can sometimes be combined with FHA if you are eligible.
What credit score do I need for FHA?
Most lenders require at least a 580 score for the minimum down payment. Higher scores can get better rates and lower costs.
Are FHA loans good?
Yes. For the right buyer. FHA loans make homeownership possible for many people who cannot meet conventional requirements. They offer low down payments, competitive rates, and flexible credit guidelines.
Why are FHA loans popular?
They allow down payments as low as 3.5%, accept credit scores starting at 580, and have more lenient debt-to-income requirements.
Are FHA loans bad?
Not necessarily. The trade-off is that you’ll pay mortgage insurance, which adds to your monthly payment. For some buyers, that cost is worth the easier qualification.
How do FHA loans work?
The FHA doesn’t lend money directly. You get a mortgage from an approved lender, and the FHA insures it. This reduces the lender’s risk and allows them to offer better terms to the borrower.
Can FHA loans be assumed?
Yes. If you sell your home, the buyer can take over your FHA loan, including your interest rate, if they qualify.
Can FHA loans be refinanced?
Yes. FHA loans can be refinanced into another FHA loan through a streamline process or into a conventional loan if you want to remove mortgage insurance.
Can FHA loans be used for mobile homes?
Yes. FHA loans can be used for manufactured or mobile homes if they meet HUD requirements and are on a permanent foundation.
Can FHA loans be used for land?
Not on their own. FHA loans must be tied to a property with a home. However, they can finance land as part of a construction-to-permanent loan if you’re building a home on it.
Can FHA loans be used for condos?
Yes, but the condo project must be FHA-approved. You can check the HUD website to see if your condo is on the approved list.
How many FHA loans can I have?
In most cases, you can only have one FHA loan at a time. Exceptions exist for relocation, family size changes, or if you’re more than 100 miles from your current FHA-financed home.
Can I buy a fixer-upper with an FHA loan?
Yes. The FHA 203(k) program lets you roll the cost of repairs and improvements into your loan. Check out Renovation Loans for more info!
Do FHA loans have income limits?
No. There are no maximum income limits, but you must show you can afford the payments.
Do FHA loans have mortgage insurance?
Yes. FHA loans include an upfront mortgage insurance premium and a monthly premium. The monthly premium is part of your payment.
Can I remove FHA mortgage insurance?
It usually stays for a set period or the life of the loan depending on your down payment. Many people remove it later by refinancing into a conventional loan
FHA vs conventional — which is better?
It depends on your credit, down payment, and goals. FHA offers more flexibility. Conventional can be cheaper if you have strong credit and allows mortgage insurance to be removed.
Min FICO
550 with DTI limits
580 high balance with limits
Down Payment
3.5% min with FICO over 580
10% min with FICO under 580
Occupancy
Primary
Other
UPMIP financed
Monthly MI required
100% gift funds allowed
Up to 6% seller contributions
Links
Contact
Armando Novelo
NMLS 237243
Super Mortgage Bros
1900 W. Garvey Ave S. #100
West Covina, CA 91790
Phone: (626) 200-1838
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