An FHA loan can open the door when a big down payment can't.

FHA loans are built for buyers with smaller savings or a thinner credit history. We'll show you whether the lower down payment and flexible guidelines add up for your family — and explain every cost in Spanish or English.

Young couple holding the keys to their first home

Who this is for

How to apply for an FHA loan

  1. Check the basics together

    We review your income, credit, and savings to see whether FHA is the strongest fit — or whether another program would serve you better.

  2. Map out your down payment

    We confirm how much you'll need at 3.5% down and whether gift funds from family can help cover it.

  3. Get pre-approved

    With your documents in hand, we issue a pre-approval so you can shop for a home in your range with confidence.

  4. Close with the costs explained

    We walk you through the mortgage insurance and every fee before signing, so there are no surprises.

Just 3.5% down

FHA's low down payment makes buying possible long before you've saved 20%.

Flexible credit guidelines

FHA is more forgiving of past credit bumps than many conventional programs.

Gift funds welcome

Down payment money can come as a gift from a relative — a real help for many first-time buyers.

Costs explained in plain words

We break down the upfront and monthly mortgage insurance so you know the full picture before you commit.

Today's sample FHA loan rates

Common questions

Which FHA programs are available for buying or refinancing?

FHA insures different mortgages rather than offering one free-assistance program. A standard purchase may use FHA 203(b); certain purchases or refinances involving rehabilitation may use 203(k), subject to work and lender requirements. Homeowners can explore refinance options, including Streamline for certain existing FHA mortgages. Down-payment assistance is a separate program, and not every lender offers every FHA option. Confirm availability, mortgage insurance, costs and property requirements before choosing.

What changes when looking for FHA lenders with a 600 credit score instead of 580?

Both scores can meet FHA's minimum for maximum financing on an eligible purchase, but 600 does not guarantee approval or a better rate. A lender may require a higher score and will review income, debts, late payments, funds and the property. Ask whether it accepts your mortgage credit score for the specific program before paying fees. Home Central Financial compares participating lenders; availability for your file must be confirmed, not inferred from FHA's minimum.

Are there FHA lenders who accept credit scores under 580?

FHA rules generally allow a minimum decision score of 500–579 with a maximum 90% loan-to-value: on an eligible purchase, at least 10% down, plus closing costs and prepaids. That does not establish that a lender is available for your file or that HCF currently offers this option. Ask for confirmation of the lender's minimum score and other requirements. If no workable option is available, review credit-report errors and a credit-improvement plan before applying again.

What alternatives to FHA can I consider when buying with low credit?

Compare a conventional loan if your file meets its criteria; do not assume it is easier to qualify for than FHA. If you have military eligibility, VA may be an alternative subject to lender underwriting. For self-employed borrowers, bank-statement or non-QM programs may evaluate income differently, but do not remove credit requirements and may require more down or cost more. Down-payment assistance is approved separately and does not erase credit requirements. Improving credit and saving before buying may also be preferable to accepting an expensive loan.

Can I get an FHA home loan with a 580 credit score?

A minimum decision credit score of 580 or higher can allow maximum FHA financing, usually a 3.5% down payment on an eligible purchase. It is not approval: the lender reviews income, debts, payment history, funds and the property, and may require a higher score. A free credit-app score may differ from the score the lender uses. From 500 to 579, FHA generally limits financing to 90% loan-to-value, equivalent to at least 10% down on a purchase; not every lender offers that option.

Are HUD mortgage lenders and FHA mortgage providers the same thing?

In a home-purchase search, both terms often refer to lenders approved to participate in FHA programs. HUD oversees FHA, and FHA insures loans rather than lending directly to homebuyers. HUD's lender list helps verify participating institutions, but does not guarantee an offer, availability of every program or approval of your file. Home Central Financial is a broker comparing options from participating lenders.

What can I buy with an FHA property loan?

A residential FHA mortgage can finance an eligible one- to four-unit primary residence, certain condos and manufactured homes meeting program rules. The property must meet applicable condition, safety, title and appraisal requirements. Vacant land, a vacation-only home or an investment you will not occupy is not treated like an FHA primary-residence purchase.

Can I use FHA for a multifamily home with two to four units?

Yes, if you qualify and occupy one unit as your primary residence. The lender reviews FHA limits for the county and unit count, appraisal, income and applicable reserves. Three- and four-unit properties must also pass a rental self-sufficiency test using adjusted rents; you cannot count all advertised rent as available income. A building with five or more units needs financing other than this residential FHA mortgage.

Does an FHA loan require mortgage insurance?

Yes. FHA loans include an upfront mortgage insurance premium plus an annual premium paid monthly. We'll show you exactly what those cost so you can compare an FHA loan against your other options.

Can I use gift money for the down payment?

Yes. With proper documentation, your 3.5% down payment can come as a gift from a family member. We'll explain the simple paperwork the lender needs.

Can I use an FHA loan if I'm not a first-time buyer?

Yes. FHA loans aren't limited to first-time buyers — they're available to any qualifying borrower buying a primary residence.

What property types can I buy with an FHA loan?

FHA covers single-family homes, FHA-approved condominiums (or a single-unit approval), townhomes, and 2–4 unit properties as long as you live in one of the units. Manufactured homes can qualify when they're on a permanent foundation and meet FHA's rules. The home also has to pass an FHA appraisal for condition and safety — we check the property type early so nothing stalls your closing.

Can I ever get rid of FHA mortgage insurance?

On most FHA loans the mortgage insurance stays for the life of the loan — but you're not stuck with it forever. Once you've built enough equity, many homeowners refinance into a conventional loan to drop it. We'll keep an eye on that milestone with you and run the numbers when the time comes.

Is there a limit on how much I can borrow with an FHA loan?

Yes. FHA sets a maximum loan amount that changes by county each year, so what you can borrow in one California county may differ from the next. We check the current limit for the area you're buying in before you start shopping.

I'm self-employed — can I get an FHA loan without tax returns?

Standard FHA underwriting asks self-employed borrowers for tax returns, and write-offs can make those returns look smaller than the business really is. Certain lenders offer an FHA Self-Employed P&L program where a profit-and-loss statement prepared by your CPA or licensed tax preparer takes the place of tax returns — while keeping FHA's low down payment and flexible credit guidelines. We work with lenders who offer it and can tell you quickly whether your file fits.

How to compare FHA home lenders and their requirements

When looking for low-credit FHA lenders, separate program minimums from lender requirements. A 580 score can allow 3.5% down, but does not remove the review of debts, income, payment history and property. A larger down payment does not automatically solve an eligibility problem either. Ask what needs to improve before paying fees or submitting multiple applications.

FHA home lenders do not necessarily offer the same rates, fees or approval criteria. FHA sets program rules, but individual lenders may add credit, debt or reserve requirements. Home Central Financial acts as a broker, comparing options from participating lenders rather than the entire market. A lender's approval to make FHA loans does not mean your application is approved.

Request Loan Estimates for the same price, down payment, term and date. Compare the interest rate, APR, points, lender fees, mortgage insurance and cash to close; also confirm the rate-lock period. If one lender declines your file, ask which requirement was not met before applying elsewhere. A different lender policy may change your options, but does not guarantee approval.

Looking for FHA mortgage brokers near you? Our office is in Downey and we serve California borrowers in English and Spanish. Compare experience, licensing and a complete estimate, not just proximity or an advertised rate. Ask for upfront and monthly FHA mortgage insurance, down payment and cash-to-close figures; working with a local broker does not guarantee approval.

FHA is a government-insured mortgage, not a grant or a direct government loan. The 3.5% down payment depends on meeting credit and lender rules. Income, debts, primary occupancy and property eligibility also need review.

If you need help with cash to close, evaluate assistance separately. Compare a conventional option too: a lower FHA rate does not guarantee a lower total cost once insurance and fees are included.

Meeting a minimum requirement is not approval. The lender reviews the whole file and may apply additional credit, debt or reserve standards. Prequalification is an initial estimate; approval depends on documentation, property review and loan conditions.

Illustrative example: on a $500,000 home, 3.5% down is $17,500, leaving a $482,500 base loan before any financed upfront insurance. Closing costs and prepaids are separate. Upfront mortgage insurance and the annual premium collected monthly are different charges; homeowners insurance replaces neither.

Where do I apply for an FHA loan? Apply through an FHA-approved lender, directly or through a mortgage broker; FHA insures the loan rather than approving you through a HUD assistance form. Request an initial review and use a secure portal for documents. A calculator or inquiry is not a complete application or an approval.

FHA is not exclusively for first-time buyers. Previously owning a home does not by itself disqualify you, although occupancy and program rules still apply. A no-down-payment FHA advertisement may refer to permitted assistance or gifts: the required down payment does not disappear, and assistance is approved separately. Low credit also does not guarantee eligibility.

If the property needs renovation, ask whether a rehabilitation program such as FHA 203(k) is appropriate, with specific review of the work, contractors and disbursements. Do not assume a standard FHA purchase mortgage finances any repair. Confirm availability and requirements before making an offer.

FHA loan review preparation checklist
Review areaWhat to prepare or confirm
Income and employmentIncome and employment records; tax returns or business documentation where required. Income must be verifiable, not merely stated.
Credit and debtsMonthly payments for cars, credit cards, loans and other obligations. Credit score alone does not determine how much you can borrow.
Down payment and cash to closeBank statements and documentation for permitted gifts. Confirm source of funds, costs, prepaids and any reserves.
Property and occupancyEligible primary residence, appraisal and property condition. An FHA appraisal does not replace an independent home inspection.
Total paymentPrincipal, interest, taxes, homeowners insurance, mortgage insurance and HOA where applicable. Do not compare principal and interest alone.