FHA Loans for First Time Buyers & Lower Credit

FHA loans are designed for first time homebuyers and borrowers with lower credit scores. With down payments as low as 3.5 percent and credit scores starting at 580, FHA makes homeownership accessible when conventional loans do not fit.

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FHA Snapshot

Min Credit Score 580+

Down Payment 3.5%

Max Loan (LA/OC) $1,209,750

Upfront MIP 1.75% of loan amount

Annual MIP 0.55% on balance

Max DTI Ratio 50%

Key Features

Why FHA Loans Work for Many Borrowers

FHA loans remove barriers that prevent qualified buyers from entering the market. Lower credit requirements, minimal down payment, and flexible income verification make FHA the accessible path to homeownership in Southern California.

Credit Score Flexibility

580+ Credit

Scores starting at 580 qualify for the 3.5 percent down program. Better pricing is available at 620 and above. Past credit events are acceptable with time and a clear explanation of circumstances.

Down Payment

3.5% Minimum

Only 3.5 percent required at closing. Gift funds from immediate family members are fully allowed and do not count as borrower debt, which helps buyers who need outside support.

Mortgage Insurance

FHA MIP Required

An upfront premium of 1.75 percent is added to the loan balance at closing. Annual MIP of 0.55 percent runs for the life of the loan on most FHA transactions, which is the key trade-off vs conventional.

Debt to Income Flexibility

Up to 50% DTI

FHA allows higher debt ratios than conventional. Total housing costs plus monthly obligations can reach 50 percent of gross income, opening doors for buyers carrying student loans or other existing debt.

Ready to Explore FHA Financing?

FHA loans open doors for first time buyers, credit recovery situations, and borrowers with less traditional financial profiles. Connect with Troy directly to review your file and determine if FHA is the right fit for your situation.

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