FHA Loan

FHA Loans are a popular choice for first-time buyers and those with less-than-perfect credit. Backed by the Federal Housing Administration, these loans are designed to make homeownership more accessible—with low down payment options and flexible qualification requirements.

At HomeBound Lending, we help California homebuyers navigate the FHA loan process with ease, from pre-approval to closing day.

Why Choose an FHA Loan?

• Low Down Payment — Buy your home with as little as 3.5% down
• Flexible Credit Requirements — Qualify with credit scores as low as 580 (or even lower with a higher down payment)
• Competitive Interest Rates — FHA loans often feature lower rates compared to many conventional options
• Easier Qualification — Great for first-time buyers or those with past credit challenges
• Gift Funds Allowed — Down payment and closing costs can come from family gifts or assistance programs

Who Can Qualify?

FHA Loans are open to a wide range of buyers, including:

• First-time homebuyers

• Buyers with credit scores between 500–579 (with 10% down) or 580+ (with 3.5% down)

• Individuals with higher debt-to-income (DTI) ratios (up to 56.9% in some cases, with strong compensating factors)

• California residents purchasing a primary residence

What’s Required?

To apply for an FHA Loan in California, you’ll typically need:

• Valid ID and Social Security number

• Proof of employment and income (W-2s, tax returns, pay stubs)

• Bank statements and proof of assets

• Residential history

• Minimum 3.5% down payment (which can come from gift funds)

• Property must meet FHA appraisal and safety standards

What About Mortgage Insurance?

FHA loans require Mortgage Insurance Premiums (MIP):

• Upfront MIP: Typically 1.75% of the loan amount (can be rolled into the loan)

• Annual MIP: Included in monthly payments, usually lasts the life of the loan unless you refinance into a conventional mortgage later

Let’s Make It Happen

Our team is here to walk you through the FHA loan process step by step. We’ll help you explore your eligibility, compare rates, and get pre-approved with confidence.

📍 Based in Southern California, we work with homebuyers across the state.

What You’ll Need to Apply

To streamline your application process, be ready to provide:

• Recent pay stubs, W-2s, and/or tax returns

• Bank statements and documentation of other financial assets

• Residential history for the past two years

• Valid government-issued ID and Social Security number