FHA Loans — Low Down Payment, More Lenient Qualifying

Great for first-time buyers and those rebuilding credit. We make homeownership achievable.

📋 28+ Yrs Experience
⭐ 250+ Zillow Reviews
⚡ 21-Day Close

What Is an FHA Loan?

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. Unlike conventional mortgages, FHA loans are forgiving about credit requirements, employment history, and down payment size. We work with borrowers who have credit challenges, limited savings, or a non-traditional work history.

The HUD-insured structure means we can offer flexible terms that other lenders won't touch. Alex has spent 28+ years helping first-time buyers and credit rebuilders unlock homeownership through FHA programs—it's a cornerstone of what we do.

Key Benefits of FHA Loans

Why we love FHA programs for borrowers ready to own.

3.5% Down Payment

No need to save 20% or even 10%. We help you build home equity starting with just 3.5% down. That $500 in savings counts toward your down payment—you decide what we use.

Credit Scores from 580

Yes, you can qualify with a 580 FICO score. We don't punish credit rebuilders. With 3.5% down at 580+, or 10% down for scores 500–579, we open doors conventional lenders keep shut.

Gift Funds Allowed

Family gifts toward your down payment are welcome. No strings. We just need a letter from the gifter confirming it's a gift, not a loan. That's it.

Seller Concessions

Sellers can cover up to 6% of your closing costs. This reduces your out-of-pocket spend and makes homeownership more affordable from day one.

FHA Loan Requirements

What we look at to approve your FHA mortgage.

Credit & Down Payment

  • 580+ FICO: 3.5% down
  • 500–579 FICO: 10% down
  • No 2-year waiting period after bankruptcy (yes, recently bankrupt borrowers qualify)

Employment & Debt

  • 2-year documented employment history
  • Debt-to-income ratio typically ≤43%
  • We're flexible on recent job changes if income is stable

Property & Occupancy

  • Must be your primary residence
  • Property must pass FHA appraisal (safety & habitability standards)
  • No investment properties or second homes

FHA Loan Limits

  • Vary by county and property type
  • Orange County, CA: up to ~$839K (2024)
  • We'll confirm your county limit during pre-approval

Understanding Mortgage Insurance Premium (MIP)

FHA mortgages include insurance. Here's what that costs and why it matters.

FHA Mortgage Insurance Premium

Upfront MIP: 1.75% of the loan amount, typically rolled into your mortgage.

Annual MIP: 0.35–0.80% per year (varies by loan amount and down payment), paid monthly in your mortgage payment.

Total cost is transparent and built into your payment from day one.

vs. Conventional PMI

PMI: Typically 0.5–1.5% annually, but you can remove it once you hit 20% equity or meet other milestones.

FHA MIP: Stays for the life of the loan if you put down <3.5%; can be removed after 11 years at 10% down.

The trade-off: lower down payment + more forgiving credit = insurance stays longer.

Who Is FHA Best For?

If this sounds like you, let's talk.

First-Time Buyers

No owner-occupied history? No problem. We guide you through the process and help you build equity from day one with a 3.5% down payment.

Credit Rebuilders

A 580+ FICO score opens doors. Bankruptcy, foreclosure, late payments—they don't disqualify you. We focus on your current strength, not your past.

Limited Savings

Waiting to save 20% down can take years. With FHA, you move into your home now. Build equity while you build savings.

The FHA Loan Process

Simple, clear, fast. We handle the heavy lifting so you focus on finding your home.

1

Pre-Approval

We review income, credit, and employment. You get a pre-approval letter within 24–48 hours. No cost, no obligation.

2

Home Search

Armed with your pre-approval, you shop with confidence. We advise on FHA appraisal-friendly properties and negotiate terms.

3

FHA Appraisal

We order the appraisal. The property must meet FHA safety standards. Rare issues are flagged; we solve them alongside your agent and the seller.

4

21-Day Close

Final underwriting, title, and escrow review. Closing day: sign docs, get keys. You're home in ~21 days from offer to closing.

FHA Loan FAQs

Questions we hear every day—answered straight.

Yes. Once you've built equity (usually 20% or more) and your credit improves, we can refinance you to a conventional mortgage and remove PMI entirely. Many of our clients do this within 3–5 years of their FHA close.

If the appraisal is lower than your offer price, you have options: renegotiate with the seller, increase your down payment, or walk away. We'll help you understand the numbers and make the right call. Low appraisals are rare with proper pre-offer inspection guidance.

We issue pre-approvals within 24–48 hours. Bring pay stubs, tax returns (past 2 years), bank statements, and ID. Once we have those, the clock starts. Most of our clients are pre-approved by their next morning.

Absolutely. We specialize in self-employed and 1099 borrowers. We need 2 years of tax returns and documentation of stable income. Many of our happiest clients are business owners and freelancers who found conventional lenders wouldn't work with them.

Let's Get You Pre-Approved

No pressure, no fees. Just a conversation about your homeownership goals.