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FHA Loans in California

FHA loans are government-backed mortgages insured by the Federal Housing Administration. They are designed to make homeownership more accessible — offering low down payments, and flexible credit requirements for buyers who may not qualify for conventional financing.

At Lendia, we help California homebuyers navigate the FHA process from pre-approval through closing. Whether you’re a first-time buyer in Orange County, rebuilding after a financial setback, or looking to purchase a multi-unit property in Southern California, FHA financing may be the right path.

FHA Loan At a Glance

Feature Details
Minimum Down Payment 3.5% (with 580+ credit score)
Minimum Credit Score 580 standard; 500 with 10% down
Maximum Loan Term 30 years fixed
2026 Loan Limit (1-unit, high-cost CA) $1,249,125
Seller Concessions Up to 6% of purchase price
Mortgage Insurance Upfront (1.75%) + monthly MIP
Prepayment Penalty None
Eligible Properties 1–4 unit primary residences, condos, PUDs, manufactured homes

FHA Loan Education — Full Q&A Library

Use the links below to explore every aspect of FHA financing, sourced from current lender guidelines and written in plain language for homebuyers and real estate professionals.

Ready to Get Started?

Connect with a Lendia loan advisor to review your options and get pre-approved. We’ll walk you through every step.

What to expect when you pursue an FHA loan

An FHA purchase follows the same basic path as other mortgages, with a few program-specific steps. You start with a conversation about your income, debts, savings and credit so we can tell whether FHA, conventional or another program fits. Once you have a property under contract, an FHA case number is assigned and an FHA appraisal reviews both value and condition. Underwriting then verifies your income, assets and credit, and you receive a Closing Disclosure before you sign. The TRID guide explains those two federal forms line by line.

Who this category tends to fit

  • Buyers with limited savings who want to keep the down payment near 3.5%.
  • Buyers whose credit is still being rebuilt, including after a bankruptcy or foreclosure once the waiting period has passed.
  • Buyers who will use gift funds or down payment assistance for part or all of the cash to close.
  • Owner-occupants of a duplex, triplex or fourplex who plan to live in one unit.
  • Current FHA borrowers looking at a streamline or other refinance.

FHA is for primary residences only. If you are buying an investment property or a second home, a different program is the better starting point.

Where to start, by situation

Frequently asked questions

Do I have to be a first-time buyer to use FHA?

No. FHA is open to repeat buyers as long as the home will be your primary residence and you meet the credit, income and property requirements.

Can I buy a condo with an FHA loan?

Often yes, but the condo project must be on the FHA-approved list or the unit must qualify under Single Unit Approval. It is worth asking about the project early, before you write an offer.

How do I decide between FHA and conventional?

Compare the same purchase both ways: monthly payment including mortgage insurance, cash to close, and cost over the years you expect to keep the loan. We compare options across the lenders we work with and show you both side by side.

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