FHA Loans in California
FHA loans are the most flexible path to homeownership for first-time buyers, credit-challenged borrowers, and anyone who needs gift funds to close. The program is insured by the Federal Housing Administration, which lets us approve buyers with smaller down payments and lower FICO scores than conventional loans allow.
FHA at a glance
• Down payment as low as 3.5% with a 580+ FICO
• FICO scores as low as 500 may qualify with 10% down
• 100% of the down payment can come from family gift funds
• Seller can pay up to 6% of closing costs on your behalf
• 15- or 30-year fixed-rate terms
• Loan limits vary by California county (higher in Bay Area / SoCal)
Who FHA is best for
First-time buyers with limited savings, buyers recovering from a past credit event (bankruptcy, foreclosure, or short sale that has seasoned), and anyone whose DTI is too tight for conventional. FHA also has lighter income-documentation rules for non-traditional credit.
Two costs to know
FHA charges an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, which is rolled into the loan, plus an annual MIP that’s split into your monthly payment. We’ll show you the all-in monthly side-by-side against conventional so you know which is cheaper for your file.
How we make it easier
UWL is approved as an FHA lender and shops your file across multiple FHA-eligible wholesale lenders to find the lowest rate and fees. We’ve been closing FHA loans for Sacramento buyers since 2009. Most files pre-qualify same-day.
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