An FHA loan is a mortgage insured by the Federal Housing Administration, part of HUD. Because FHA insures the lender against loss, these loans allow lower down payments and more flexible credit than many conventional loans. They are popular with first-time buyers.

FHA basics

• 3.5% down with a credit score of 580 or higher.
• 10% down with a credit score from 500 to 579.
• Gift funds from family can be used toward the down payment.
• The home must be your primary residence.

FHA mortgage insurance

FHA loans have an upfront mortgage insurance premium of 1.75% of the loan amount (it can be financed) plus an annual premium paid monthly. For most loans the annual premium is 0.55%.

2026 FHA loan limits

For 2026, the FHA limit for a one-unit home in Los Angeles County is $1,249,125, the national high-cost ceiling. Nationally, FHA limits range from $541,287 to $1,249,125 for a one-unit home depending on the county.

Is FHA right for me?

FHA can be a great fit if you have a smaller down payment or a credit score that is still being rebuilt. Compare it with a conventional loan, and if you served, a VA loan.

← All Home Loan Options

Talk to Andy About Your Loan

Have questions or want to see what you qualify for? Call or text Andy at 661-877-4162.

Andy Martinez Jr., Mortgage Loan Originator | NMLS #2171006 · Entity Mortgage and Realty, Company NMLS #2371431 · CA DRE #01978202 · 26254 Prima Way, Santa Clarita, CA 91350 · Equal Housing Opportunity. General information only, not a commitment to lend. Approval, rates and terms depend on credit, income, property and program guidelines and can change.