FHA Loan Requirements
To qualify for an FHA loan in California you generally need a credit score of 580 or higher for 3.5% down (or 500 to 579 with 10% down), steady documented income, a manageable debt-to-income ratio, a primary residence and a home that passes the FHA appraisal. This guide walks through each requirement and the documents to gather.
Key Takeaways
- Credit: 580+ for 3.5% down; 500 to 579 requires 10% down. Lenders may set higher scores.
- Debt-to-income: a common guideline is 31% housing and 43% total, with higher ratios possible with strong compensating factors.
- Income: lenders typically want a two-year history of steady work, documented with pay stubs, W-2s or tax returns.
- The home must be your primary residence, be one to four units, and meet FHA minimum property standards.
What credit score do I need for an FHA loan?
FHA sets two tiers. These are the program minimums. An individual lender can require more, which is called an overlay.
| Credit score | Minimum down payment |
|---|---|
| 580 or higher | 3.5% |
| 500 to 579 | 10% |
| Below 500 | Not eligible |
At Lendia, we compare options from multiple lenders, so a score that is too low for one lender may still work with another. Pricing usually improves as scores rise. See FHA credit score requirements for more detail.
How much down payment is required?
The minimum is 3.5% of the purchase price with a 580+ score and 10% with a score of 500 to 579. The funds can come from your savings, a gift from an approved donor, or an eligible assistance program. The lender will want to see where the money came from. Details are in FHA down payment requirements.
What debt-to-income ratio is allowed?
Debt-to-income (DTI) compares your monthly debts with your gross monthly income. A common FHA guideline is 31% for housing costs and 43% for total debts. With strong compensating factors, such as cash reserves or a solid credit history, and an automated approval, ratios can go higher, sometimes above 50%.
What income and employment do I need?
FHA wants income that is stable and likely to continue. Lenders typically look for about two years of work history, though gaps, a change of jobs in the same field, or recent graduates can often be explained. Common documents:
- Pay stubs covering the most recent 30 days
- W-2s for the last two years
- Federal tax returns for self-employed borrowers, usually two years
- Profit and loss statement or business documents when needed
- Award letters for Social Security, pension or disability income
See FHA employment and income requirements. If your tax returns do not show the income you really earn, a bank statement loan may fit better. Read about bank statement loans.
What are the occupancy rules?
FHA is for primary residences. You are expected to move in within a reasonable time after closing and to live there as your main home. You can buy one to four units if you occupy one. Second homes and investment properties do not qualify. See FHA loans for multi-unit properties.
What property standards apply?
An FHA-approved appraiser confirms the market value and checks that the home meets FHA minimum property standards. The home must be safe, structurally sound and secure. Typical repair items include a leaking roof, peeling paint on an older home, missing handrails, exposed wiring and lack of working utilities. Condos must be in projects that meet FHA requirements. See FHA property requirements.
Is the loan amount limited?
Yes. The 2026 one-unit FHA limit in California runs from $541,287 to $1,249,125, depending on the county. See the 2026 FHA loan limits and the loan limit lookup.
Can I qualify after a bankruptcy or foreclosure?
Often yes, after a waiting period. The wait depends on the type of event, how long ago it happened and your circumstances since. A bankruptcy or foreclosure does not close the door permanently. Rebuilding credit and showing on-time payments helps. Because waiting periods and exceptions can change, we check the current rule for your case. See FHA after bankruptcy and FHA after foreclosure or short sale.
What documents should I gather?
- Government-issued photo ID and Social Security number
- Two years of W-2s and recent pay stubs, or two years of tax returns if self-employed
- Two months of bank and asset statements
- A gift letter and donor bank statement if someone is helping with your down payment
- Landlord contact or rental history, and explanations for any large deposits, credit events or work gaps
- Purchase contract once you are in escrow
How do these requirements compare with conventional?
Conventional loans usually want a 620 score or higher, and PMI that can be canceled. See conventional loan requirements and FHA vs. conventional: which costs less? Back to the FHA loans chapter or how an FHA loan works.
At Lendia, we help you check each requirement
At Lendia, we review your credit, income and assets up front so you know where you stand before you make an offer. Contact us to talk with a Licensed Lendia California Loan Officer, or get a rate quote now. Rates and terms depend on your situation; approval requires qualification.
Frequently Asked Questions
Can I get an FHA loan with a 550 credit score?
Possibly, with 10% down, subject to lender requirements and the rest of your file. Many lenders set a higher minimum, so options vary.
What debt-to-income ratio does FHA allow?
A common guideline is 31% housing and 43% total, but higher ratios may be approved with compensating factors and an automated approval.
Do I need two years at the same job?
Not necessarily. Lenders look for a stable two-year history, and a job change within the same field is often fine. Gaps need an explanation.
Can I use FHA if I am self-employed?
Yes. Expect to provide tax returns, usually two years, and possibly a profit and loss statement.
Can I buy a fixer-upper with FHA?
The home must meet property standards. Some buyers use renovation financing to fund repairs. Ask us whether it fits your project.
Do I need to be a first-time buyer?
No. FHA is available to repeat buyers who will live in the home.
Talk to a Licensed Lendia California Loan Officer
At Lendia, we review your situation and show you the programs you qualify for.