FHA Loans
Government-insured financing for buyers whose credit or savings do not yet stretch to a conventional loan. The insurance is what lets a lender accept a smaller down payment and a lower credit score than it otherwise would.
Available in California only. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.
At a glance
- Backing
- Government-insured
- Mortgage insurance
- Up front and monthly
- Occupancy
- The home you live in
- Lender panel
- 20+
Who this fits
You are buying your first home and your savings are limited
Your credit is recovering rather than pristine
Your debt-to-income ratio is tighter than conventional underwriting allows
You are pairing the loan with a down payment assistance program
A family member is gifting part of your down payment
Who this does not fit
You have strong credit and a solid down payment. Conventional is usually cheaper, because FHA carries mortgage insurance for the life of most loans.
You are buying an investment property. FHA is for the home you live in. DSCR or Investor Financing is the route for a rental.
The property needs substantial work. FHA has condition standards, and a house that fails them has to be repaired before closing or financed another way — see Hard Money.
You are buying outside California.
How qualification works
The file
Standard income documentation — W-2s, pay stubs, tax returns — with a debt-to-income calculation, credit review, and an appraisal by an FHA-approved appraiser who assesses condition as well as value.
We are a brokered business. Your file is placed with an FHA-approved lender from a panel of 20+, and the documentation is the same as any full-documentation file.
Mortgage insurance
The trade-off to understand before you commit: FHA charges mortgage insurance both up front and monthly, and on most loans it stays for the life of the loan rather than falling away as equity builds. That is the price of the lower entry bar, and refinancing out later is the usual way people leave it behind.
Work out the monthly payment
Estimated monthly payment
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Fill in the home price, the rate and the term. The payment updates as you type.
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For illustrative and educational purposes only. Results produced by this calculator perform arithmetic based solely on numbers you enter and do not reflect actual loan offers, interest rate quotes, or commitments to lend. Actual loan terms, payments, interest rates, and approval depend on complete underwriting, credit review, property valuation, and lender guidelines. Loankey.io arranges loans through third-party lenders; loans are not funded directly by Loankey.io.
Frequently Asked Questions
Is FHA only for first-time buyers?
No. It is available to repeat buyers too, though it is most often used on a first purchase.
Can I use gift funds?
Generally yes, with a gift letter and documentation of where the money came from. The donor will be asked for a bank statement.
Can I combine FHA with down payment assistance?
Yes — that pairing is common, and we place CalHFA and FHA programs. See Down Payment Assistance.
Does the property have to pass an inspection?
The appraisal includes a condition review against FHA standards. Health, safety and structural issues generally have to be resolved before closing.
Can I buy a condominium?
Only if the project is FHA-approved, which many are not. We check that early, because discovering it late wastes an escrow.
Can I refinance out of FHA later?
Often, once your credit and equity support a conventional loan. That is the usual route out of the mortgage insurance.
What happens next
How the underwriting actually runs, in detail.
You are here
FHA Loans
Government-insured financing for a smaller down payment.
Request a Scenario Analysis
Tell us your credit position and what you have saved. If conventional would serve you better, that is what we will say.
Nothing on this page or website constitutes an offer of credit, a rate quote, or a commitment to lend. All loans are arranged through third-party lenders and are subject to full application, credit approval, income/asset verification, property appraisal, and underwriting. Terms and availability are subject to change without notice. Loankey.io is a licensed real estate broker; loans are arranged, not made. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.