First, What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. You borrow through an FHA-approved lender, and FHA insurance helps protect that lender if the loan isn't repaid. That backing allows for a smaller down payment and more flexible credit guidelines than many conventional loans.
For you, that may mean a chance to buy with less saved or while you're still strengthening your credit. FHA serves qualifying first-time and repeat buyers purchasing a home they plan to live in. It is a home loan you repay, not a grant.
Bring your questions, even if you aren't sure you're ready. My team and I will listen to your goals and help you understand your next step.
Could FHA Be a Good Fit for Your Family?
- You're saving for your first home. A smaller down payment can help you get started while keeping money available for life after moving in.
- Your credit is a work in progress. FHA allows lower credit scores than many conventional options. We look at your whole application, not just one number.
- You need help with upfront costs. Eligible FHA loans can pair with approved down payment assistance programs.
- You've owned before. FHA itself does not require you to be a first-time buyer, although some assistance programs do.
FHA may make qualifying more manageable, but we'll still review your income, employment, monthly debts, savings, credit history, and the property. Our job is to help you find a payment that fits your family and compare the loan choices available to you.
How Much Down Payment Do You Need?
Eligible FHA buyers can put as little as 3.5% down. For example, on a $400,000 purchase with an appraised value that supports the price, 3.5% is $14,000. This illustration covers the down payment only; closing costs and other upfront expenses are separate.
Your own savings, eligible gift funds, or approved assistance may help meet the down payment requirement. My team and I explain how to document the funds and what you will need before closing.
What Credit Score Do You Need for an FHA Loan?
FHA's baseline guidelines allow 3.5% down with a qualifying credit score of 580 or higher. For scores from 500 to 579, FHA's minimum down payment is generally 10%. Lenders and assistance programs can require higher scores or additional qualifications, so these FHA minimums are not a promise that a particular loan is available.
If your score has you worried, let's talk before you count yourself out. My team and I can review where you are today, explain the requirements that apply to you, and discuss practical next steps if you need more time.
From Amy's blog | Understanding credit
What Credit Score Do You Need to Buy a Home?
Learn why the score you see in an app may differ from a mortgage credit score, and which questions to bring to our conversation.
Read the credit score guide →Can Down Payment Assistance Work With FHA?
Yes. The FHA loan finances your home, and a separate assistance program may help with the down payment or closing costs. You must qualify for both, and the assistance must be approved for the FHA loan you're using.
CalHFA MyHome
For eligible California first-time buyers using a CalHFA FHA first mortgage, MyHome offers a deferred-payment second loan of up to 3.5% of the purchase price or appraised value, whichever is less. It can help with down payment and closing costs. Deferred means payments are postponed; it is not a gift. Explore CalHFA assistance.
From Amy's blog | Down payment help
Your Guide to CalHFA Assistance
Get familiar with California's first-time buyer programs, then let's review which options may work with your FHA loan.
Explore the CalHFA guide →GSFA Platinum
GSFA Platinum offers down payment and closing cost assistance that can pair with an eligible FHA first mortgage for a California primary residence. First-time and repeat buyers may qualify. The assistance amount, repayment terms, and eligibility depend on the option used. We'll review those details together. Read the official GSFA Platinum overview.
AccessZero | FHA Assistance You Repay Over Time
AccessZero offers up to 3.5% assistance with a qualifying credit score of at least 600, or up to 5% with at least 660, subject to loan approval. Assistance is based on the lower of the purchase price or appraised value. It is a second mortgage with monthly payments over 10 years. My team and I will show you how both payments fit your spending plan. Explore AccessZero.
Arcasa Solar Zero | Solar and Assistance With FHA
An eligible FHA loan can pair with a solar project and assistance structured as a grant or forgivable second mortgage. The solar project cost is added to your first mortgage, with installation after closing. We'll compare the assistance, project cost, and payment together. Explore Arcasa Solar Zero.
Also Worth Comparing: AccessOne
loanDepot AccessOne uses conventional HomeReady financing, so it does not pair with FHA. It offers a loanDepot grant of up to $3,000, with an additional $2,500 Fannie Mae credit for eligible buyers. Income and other requirements apply. See whether AccessOne may fit your situation.
Dream For All is a different option: it pairs with a Dream For All conventional first mortgage, not FHA. If you're considering it, we'll compare that path separately.
Learn more about down payment assistance →
Let's Look at Your Whole House Spending Plan
A down payment is only one piece. Together, we'll review your monthly payment, closing costs, prepaid expenses, any required reserves, and early expenses such as an appraisal and inspections. We'll account for eligible assistance, gifts, or credits so you understand what you still need to bring.
Your full payment includes principal and interest, property taxes, homeowners insurance, FHA mortgage insurance, and any homeowners association dues. We'll help you choose a price range that leaves room for everyday life, savings, and settling into your home.
What Is FHA Mortgage Insurance?
FHA loans include mortgage insurance, often called MIP. There is generally an upfront premium, which can usually be added to the loan balance, and an ongoing premium paid with your mortgage payment. Financing the upfront premium increases what you borrow.
For a typical new FHA purchase loan with less than 10% down, ongoing mortgage insurance generally stays for the loan term. With at least 10% down, it generally lasts 11 years. It does not automatically disappear when you reach 20% equity. We'll show you the cost for your loan and compare it with conventional financing.
From Amy's blog | Compare your options
FHA or Conventional: Which Fits Your Next Chapter?
Look beyond the interest rate. Explore differences in mortgage insurance, upfront costs, and qualification before we compare your options together.
Read the loan comparison →Does the Home Qualify, Too?
FHA is intended for a primary residence. The home must meet FHA property requirements, and the loan must fit the applicable county and property-size limit. Condominiums have additional eligibility requirements.
When a home catches your eye, send My team and I the address. We'll check financing details early and coordinate with your agent. The FHA appraisal helps assess value and property eligibility; a separate home inspection helps you understand the home's condition.
FHA Guidance Close to Home
From our Roseville office, Amy DeBusk and our team help buyers throughout Greater Sacramento and Placer County, including Sacramento, Rocklin, Lincoln, and nearby communities. We'll check the current FHA loan limit for the county where you're buying and connect your home search to a comfortable price range.
Whether you're comparing homes, wondering about assistance, or ready to apply, we're here to work through the details with you.
From your first questions to shopping for a home
- Start with a conversation. Tell me about your goals, timing, and questions.
- Apply and gather your documents. Apply with me by phone or online. Our team explains which income and asset documents to provide securely.
- Review your options together. Meet by Zoom or in person to compare loans, potential assistance, upfront costs, and payments for your price range.
- Shop with a plan. When you're ready, we help you work toward pre-approval and coordinate with your real estate agent.
Follow the road to homeownership →
Your FHA Questions, Answered
Do I have to be a first-time buyer?
No. FHA can work for eligible repeat buyers too. A down payment assistance program paired with FHA may have a separate first-time buyer requirement.
Can I qualify if I'm self-employed?
Yes, self-employed buyers can qualify for FHA. We'll review your business history and documented income and explain which tax returns and other records are needed. Bring us your questions so we can look at your situation together.
Does assistance cover everything I need to buy?
Not necessarily. It depends on the assistance amount and eligible uses, your down payment, and other purchase costs. We'll calculate what the program may cover and what you still need to bring, including upfront expenses.
Is FHA always better than conventional?
No single loan is best for everyone. We'll compare FHA and conventional options using your credit, savings, and goals, including mortgage insurance and the full payment. If you're eligible for a VA loan, we can include that in the conversation.
Should I find a home before talking with Amy?
Let's talk first. Understanding your financing and comfortable price range helps you focus your search. You can start with a conversation even if buying is still months away.
Explore the official guidance: CFPB FHA overview, HUD mortgage insurance, CalHFA MyHome, and GSFA Platinum program guidance.