Loan Programs

FHA Loans

Low down payment. Flexible credit. The most popular loan for first-time homebuyers.

What Is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration. It's designed for borrowers who may not qualify for a conventional loan due to lower credit scores or limited savings for a down payment.

As your independent mortgage broker, Phi shops FHA rates across 40+ lenders to find you the lowest rate — not just one bank's offer.

Key Benefits

3.5% Down Payment

One of the lowest down payment options available — just 3.5% with a 580+ credit score.

Flexible Credit

Credit scores as low as 500 may qualify (10% down). 580+ qualifies for 3.5% down.

Gift Funds Allowed

Your entire down payment can come from a gift — parents, family, or employer assistance.

Competitive Rates

FHA rates are often lower than conventional because the loan is government-insured.

Requirements

Minimum Credit Score580 (3.5% down) or 500 (10% down)
Down Payment3.5% minimum
Debt-to-Income RatioUp to 57% in some cases
Property TypePrimary residence only (1-4 units)
Mortgage InsuranceRequired (upfront + monthly MIP)
Employment2 years of steady employment history

Things to Know

  • Mortgage Insurance Premium (MIP) — FHA loans require both an upfront MIP (1.75% of loan amount, rolled into the loan) and an annual MIP (paid monthly). This is the tradeoff for the lower down payment.
  • Loan Limits — FHA loan limits vary by county. In Sacramento County, the limit is updated annually. Phi will confirm the current limit for your area.
  • Refinancing — FHA Streamline Refinance lets you lower your rate with minimal documentation if you already have an FHA loan.
See If You Qualify

Get pre-approved in 24 hours. No obligation, no hard credit pull to start.

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