FHA Loans 3.5% Down Payment


FHA Loans 3.5% down payment required.  We have down payment assistance programs that can reduce your down payment to 1/2 of 1.00% or even no down payment!!!!
Check out the FHA home loan requirements and benefits, and apply below!

(For Purchase and Refinance Including
Streamline Refinance)

Note that if your credit score is over 720, we have non-FHA programs that only require a 3.00% down payment up to $453,100, some with no mortgage insurance.  That’s right, California borrowers, 97% loan to value with no mortgage insurance.

Ask about our FHA Alternatives.

FHA 3,5% Down Payment Loans were designed to provide assistance with home ownership for anyone who don’t have a high enough credit score, or down payment associated with a conventional loan. FHA Loans are great for young adults or families looking to puchase their first home who might not have a large amount of money saved or do not have the best credit. If you’re looking to purchase a home you can have a down payment at 3.5% with a loan amount up to $679,650 for a single family residence throughout California (higher for a 2-4 unit property).

Be aware that there are several FHA alternative loans that require as little as a 3.00% down payment with no mortgage insurance. These loans require a higher credit score and for many people are a superior alternative to FHA loans.

Here are a few FHA Loans 3.5% Down Payment highlights available to California Residents:

  • 3.5% down payment-can be a gift from a family member or long term family friend, which must be documented;
  • Automated underwriting can allow for higher ratios– major consideration is cash reserves, credit and down payment;
  • No post closing reserve requirement;
  • Seller can provide up to 6% recurring and/or non-recurring closing costs;
  • Non-occupant co-borrowers allowed to aid qualifying for the loan;
  • No Fico Score OK, non traditional credit, for example rental, cell phone, utility bills
  • 620 targeted Fico score for purchase or rate and term– potentially lower as FHA has no minimum and we have programs for very low Fico scores, but as a practical matter, 620;
  • Variable rates available where you can qualify at the start rate, enabling a borrower to more easily qualify—CRA incentives might make qualifying easier. ;
  • CRA incentives available in low to moderate income census tracts;
  • 2 to 4 unit properties OK so long as one unit is an owner occupied primary residence, and these limits for 2018 are:
    • Conforming, 1 unit maximum (single family residence): $453,100 nationwide, with High Balance up to $679,650; County specific
    • Conforming 2 unit (duplex) maximum: $580,150 nationwide,  with High Balance up to $870,225; County specific
    • Conforming 3 unit (triplex) maximum: $701,250 nationwide, with High Balance up to $1,051,875; County specific
    • Conforming 4 unit (quadplex) maximum: $871,450 nationwide, with High Balance up to $1,307,175; County specific
  • 85% of rental income from these units is used in qualifying;  
  • Green card NOT required, H1-B Visa is OK– if not US citizen, you need either a Green card or an H1-B Visa;
  • 2 years from discharge of Chapter 7 bankruptcy, 1 year from a Chapter 13, and 3 years on a foreclosure

Get Fast FHA Approvals and Preapprovals

Call us today and let us help you buy the California home of your dreams.  818-704-5626.

Don’t Hesitate. The California FHA Express could be your ticket to a better future!