FHA Loans
A popular path for first-time and credit-building buyers - as little as 3.5% down, flexible credit, and gift funds and down payment assistance allowed. The #ChampionsofLoans Team makes FHA simple.
Why FHA works for so many Sacramento buyers
FHA loans are insured by the Federal Housing Administration, which lets lenders offer lower down payments and more flexible credit requirements than many conventional programs.
- 3.5% down with credit scores as low as 580 (some niche options go lower).
- Gift funds allowed for the down payment from family members.
- Down payment assistance friendly - stack FHA with CalHFA or GSFA programs.
- Higher debt-to-income flexibility than many conventional loans.
- Assumable - a future buyer may be able to take over your FHA rate.
FHA requirements at a glance
FHA requires the home to be your primary residence, a qualifying appraisal, and mortgage insurance (an upfront premium plus a monthly premium). We'll walk you through the full cost picture - no surprises.
FHA vs conventional - which is better?
It depends on your credit, down payment, and how long you'll keep the loan. With strong credit you may prefer conventional; with lower credit or minimal down payment, FHA often wins. We run both side by side. Try the payment calculator to compare.
FHA loan questions
What credit score do I need for an FHA loan?
FHA can start as low as 580 with 3.5% down. Below 580, some programs allow 10% down. We can review your credit and suggest quick improvements.
Can I use gift funds for the down payment?
Yes - FHA permits gift funds from family members for the down payment and closing costs, with proper documentation.
Does FHA require mortgage insurance?
Yes, FHA includes an upfront mortgage insurance premium plus a monthly premium. We'll show you the exact figures for your scenario.