FHA LOANS
A Loan Designed To Get You Into A Home
What is an FHA loan?
FHA loans are insured by the Federal Housing Administration, and with the government guarantee, lenders are more willing to lend with more lenient qualifying guidelines. FHA loans have been specifically designed to help borrowers get into homes.
First Time Buyers can often benefit from the more lax guidelines of a FHA loan, including a lower down payment. Typical down payments can range between 10% – 20%*, but with a FHA loan the down payment can be as low as 3%*. This lower down payment can even be provided to you from a family member as a gift fund.
With more lenient qualifying guidelines, FHA loans make homeownership more accessible to more people. Credit scores to 640, lower debt ratios, and seller contributions are all allowed with a FHA loan. A few ups and downs in your credit history may be ok with the FHA.
First Time Buyers are not the only ones who can benefit from a government guaranteed loan. You can refinance with an FHA loan, even if you don’t currently have an FHA loan. FHA loans come with a few requirements. Because the program intends to help buyers get into a home, you must live in it as your primary residence. (Don’t worry investors, we have plenty of other loan programs that are perfect for you.) Flip properties are allowed, however, as long as it is owner occupied.
FHA Loan Benefits
Ideal for First Time Buyers
Lower down payments and gift funds allowed
More flexible qualifying guidelines
Available for purchase or refinance, fixed or adjustable rate
We’re here to help.
Some FHA programs will require you to have the home appraised by an FHA- approved appraiser, and for you to pay mortgage insurance premiums. Plan on paying Up Front Mortgage Insurance (UFMI) and a Monthly Mortgage Insurance Premium, unless you qualify for the FHA streamlined* finance program. Our American Pacific Mortgage expert Roseville mortgage lenders can tell you what you qualify for and what to expect for your total payments, including mortgage insurance.* Qualifying factors may apply
FHA Loan FAQs
Q: What is an FHA loan?
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. It’s designed to help first-time and lower-income buyers qualify for a home loan with a lower down payment and flexible credit requirements.
Q: How much do I need for a down payment on an FHA loan?
FHA loans typically require a minimum down payment of just 3.5% if your credit score is 580 or higher. Borrowers with lower credit scores may still qualify but may need to put more down.
Q: Can I use an FHA loan to buy a home in California?
Yes! FHA loans are available throughout California, including areas like Roseville, Rocklin, Loomis, and Sacramento. Loan limits vary by county, so it’s important to check current limits for your area before applying.
Q: Does an FHA loan require mortgage insurance?
Yes. FHA loans require mortgage insurance premiums (MIP) — both an upfront premium and an annual premium paid monthly. In most cases MIP stays for the life of the loan, though refinancing into a conventional loan once you have enough equity can remove it. A local lender can help you weigh this cost.
Q: Should I choose an FHA loan or a conventional loan?
FHA loans are often the better fit for buyers with lower credit scores or smaller down payments, while conventional loans can be more cost-effective for buyers with stronger credit who want to avoid lifetime mortgage insurance. The right choice depends on your specific situation, and a local lender can compare both for you.