GET QUOTE

FHA Loans in California - Get Qualified Fast and Easy

Federal Housing Administration (FHA) loans are insures mortgages issued by lenders, like banks, credit unions and nonbanks.

Conventional loans

Step in Your Dream Home with an FHA Loan

Are you getting ready to buy a new home with an FHA loan?

About FHA Loans

We understand that all the information you need to secure a mortgage can be overwhelming. We at Sprint Funding will help you through grasping the FHA mortgage lingo, the types of FHA home loans, and the FHA loan requirements.

Sprint Funding is an ever-growing mortgage company that provides a systematic and simple approach in helping you, our borrower, have the best possible experience as you go through the FHA loan process.

You will be assisted by our amazing and experienced loan officers whom you can trust to consult with regarding your FHA loan so that you will make a well-informed decision.

We keep your best interest at heart as you get ready to buy your new home with an FHA loan.

An FHA loan is a loan or mortgage that is insured and regulated by the Federal Housing Administration. The loans are provided by private lenders who meet specific qualifications.

What is an FHA Loan

FHA loans have become a favorite of home buyers because of their affordability and credit requirement leniency.

The Federal Housing Administration is a U.S. government agency that offers mortgage insurance to the approved lenders.

This insurance protects lenders in cases when borrowers are not able to pay loans. FHA pays lenders a specified claim amount when borrowers are unable to pay a mortgage.

Sprint Funding is your best go-to FHA mortgage broker.

We highly recommend FHA loans to first-time buyers and low-to moderate-income homebuyers or those who have limited income and savings for a down payment.

If you are ready to purchase and move into a beautiful home with competitive FHA mortgage rates and terms, connect with us.

Together we will discover if this is the best option for you.

What Is An FHA Loan?

‘FHA’ stands for Federal Housing Administration, a U.S. agency that provides mortgage insurance to FHA-approved lenders.

Established in 1934 by the U.S. government and part of the U.S. Department of Housing and Urban Development (HUD) since 1965, the FHA’s primary goal is to help low-to-moderate-income families buy their first home.

The insurance they offer protects lenders against losses from mortgage defaults, with the FHA paying the lender if a borrower defaults.

With this in mind, an FHA loan is a home mortgage insured by the government and issued by a bank or other lender approved by the Federal Housing Administration.

The FHA doesn’t offer loans. However, the loans they insure help thousands of Americans attain homeownership who would usually struggle to qualify for a mortgage.

How Do FHA Loans Work?

What Are The Rules For FHA Loans?

  • Type Of Home Restrictions

An FHA loan is usually used to buy or refinance the following types of home:

  • Single-family houses
  • 2-4 unit multi-family homes
  • Condominium units

However, certain rules must be followed regardless of the type of property you choose:

  1. The home you consider MUST be appraised by an FHA-approved appraiser.
  2. The home must also be officially inspected, and the home must be found to meet minimum property standards.
  3.  FHA loans can only be used to purchase or refinance a home that will be your PRIMARY RESIDENCE.
    In other words, it can’t be a second home or investment property.
  4. The home must be occupied within 60 days of closing.

Mortgage Insurance

You’ll pay a mortgage insurance premium (MIP) when you obtain an FHA loan.

This is in order to protect the FHA against losses should you default on your loan.

For FHA loans with a down payment of at least 10%, MIP will remain on the loan for 11 years. Otherwise, MIP will be paid for the lifetime of your FHA loan.

Here’s how your mortgage premium is calculated:

  • An upfront premium (normally 1.75% of your base loan amount) is charged.
  • You’ll then pay an annual mortgage premium based on the length of your mortgage, your loan-to-value (LTV) ratio, total mortgage amount, and down payment size.
  • Annual MIP payments work out at approximately 0.45%-1.05% of your base loan amount.

Loan Limits

How much you can borrow with your FHA loan is dependent on where your potential home is located – but there is a maximum limit wherever you are.

In higher-cost areas, such as large metropolitan areas, the maximum you can borrow, according to The Department of Housing and Urban Development (HUD), is up to $1,089,300.

In lower-cost areas, the limit is $472,030.

Please note that this is the limit for one-unit properties. These limits will vary for other types of housing.

What Are The Interest Rates For FHA Loans?

Although every FHA loan is different, you can expect your interest rate to be higher if your credit score and initial down payment are low.

However, even a higher-end interest rate on an FHA loan can still be competitive when compared to conventional mortgages due to government backing.

Nevertheless, it’s important to shop around when searching for FHA loans.

This is because interest rates vary from lender to lender.

In the current economic climate, you should expect to see interest rates hover between 5-7% on average, but this is naturally subject to change.

Most FHA loans are 30-year, fixed-rate mortgages, but there are other options available, including both short-term fixed-rate mortgages and adjustable-rate mortgages (ARM).

The Benefits Of FHA Loans

In a nutshell, it’s much easier to qualify for an FHA loan than a conventional mortgage, which is why they’re such a popular choice for low-to-moderate-income families.

Below, we list the core benefits of choosing an FHA loan in 2023:

  • FHA federal housing administration loans symbol - Sprint FundingLower Credit Score Requirements

    Even if you’ve had credit problems in the past, you could still be eligible for an FHA loan.

    This is because qualifying for an FHA loan can be done with a credit score as low as 500, compared to the minimum score of 620 required for most traditional loans.

  • Flexible Down Payment Options

    Down payments for FHA loans are generally lower than down payments for conventional mortgages.

    Plus, FHA rules allow you to make a down payment using a financial gift from a family member, employer, or charitable organization.

    All the usual obstacles that make a down payment the most difficult part of buying a home are removed!

  • Lower Interest Rates

    FHA loans typically offer better, fixed interest rates when compared with conventional loan options.

  • Lower DTI Ratio Requirements

    FHA loans are much easier to apply for than traditional loans with DTI ratio in mind.

    Lenders offer FHA loans to borrowers with a 43% debt-to-income ratio compared to usually only offering conventional mortgages to borrowers with a ratio of 36% or less.

  • Reduced Closing Costs

    Property taxes, title insurance, lenders fees…

    These can all surprise borrowers with last-minute costs they weren’t expecting or prepared for.

    With FHA loans, these costs can be reduced by rolling them into your loan.

Is Applying for an FHA Loan Difficult?

We can only speak for ourselves, but with Sprint Funding…

Applying and qualifying for an FHA loan is a piece of cake!

Get in touch with a member of our team to talk through your goals and desires, and we’ll help you take your first steps to homeownership – without stress or hassle.

What are the Basic Types of FHA Loans?

FHA loans generally allow down payments that are as low as 3.5% and credit scores that are lower than what is required for most conventional loans.

There is amusing flexibility in the different types of FHA loans you can choose from.

There are a variety of features for each type that may be an answer to your mortgage woes.

These types also lean towards what style of home you desire from condos to townhomes and even fixer-uppers.

Sprint Funding offers assistance on all the basic types of FHA Loans.

We will help you understand which one will best suit your home financing needs.

Fixed rate


If you don’t have a lot of cash on hand or savings in your bank account that you can pull resources from to make a large down payment, we recommend this type of FHA loan available in 15- and 30-year fixed-rate term competitive rates and very inclusive credit-guidelines.

Adjustable Rate


Also called Adjustable Rate Mortgage (ARM) which comes with an interest rate that changes over the life of the loan and is notably lower than the interest rate of a fixed-rate FHA loan.

ARM is further categorized into three types according to the number of years at which the rates increase:

  • 1- and 3-year ARMs
  • 5-year ARMs
  • 7- and 10-year ARMs

You should be extra careful when choosing this type of FHA loan since the rates increase depending on market activity.

This mortgage plan will work best for you if you anticipate a pay increase that can cover an increased mortgage or if you plan to sell your home before a significant increase in your rate occurs.

Section 245 (a) Graduated Payment Mortgage


A technically 30-year loan where you can most likely pay off early depending on your chosen set schedule for your loan payment with a monthly payment increase.

You will have to adjust your monthly budget to be able to pay a little extra every month so that you can pay down the principal faster for an early payoff.

Mobile Home Loan


If you plan to purchase a mobile home or a manufactured home, this FHA loan type can help finance it.

It can be used to purchase a home or a combination of the home and lot. If you will be leasing a lot for your home, the requirement is an initial lease of at least 3 years.

There are maximum loan limits and loan terms for Mobile home loans.

Condo Loans


FHA loans are available for condos that are listed in the FHA approved developments and communities that show these signs of stability including a high percentage of owner-occupied units, few non-residential square footage, low restrictions on buying and selling, and no rent-pooling agreements.

203 (k) Loan


If you want to revamp your new home to increase its sales value, this FHA loan will help finance the cost of home repair or renovation at a competitive rate compared with other credit sources.

Home renovation projects covered by this loan include kitchen and bathroom updates, major systems repairs, flooring and roofing, and home additions.

Energy Efficient Mortgage (EEM)


This is a financing add-on that incorporates the cost of approved energy efficient upgrades into your home loan.

This loan requires an energy assessment to prove that it will be cost-effective.

  • Windows
  • HVAC systems
  • Insulation
  • Solar technology
  • Wind technology

Reverse Mortgage or Home Equity Conversion Mortgage (HECM)


We recommend this to senior homeowners who own a property or a considerable amount of equity that can be converted to cash for a supplement of income.

HECM is the only reverse mortgage insured by the U.S. Federal Government and can only be obtained through an FHA-approved lender.

If you don’t have a lot of cash on hand or savings in your bank account that you can pull resources from to make a large down payment, we recommend this type of FHA loan available in 15- and 30-year fixed-rate term competitive rates and very inclusive credit-guidelines.

Also called Adjustable Rate Mortgage (ARM) which comes with an interest rate that changes over the life of the loan and is notably lower than the interest rate of a fixed-rate FHA loan.

ARM is further categorized into three types according to the number of years at which the rates increase:

  • 1- and 3-year ARMs
  • 5-year ARMs
  • 7- and 10-year ARMs

You should be extra careful when choosing this type of FHA loan since the rates increase depending on market activity.

This mortgage plan will work best for you if you anticipate a pay increase that can cover an increased mortgage or if you plan to sell your home before a significant increase in your rate occurs.

A technically 30-year loan where you can most likely pay off early depending on your chosen set schedule for your loan payment with a monthly payment increase.

You will have to adjust your monthly budget to be able to pay a little extra every month so that you can pay down the principal faster for an early payoff.

If you plan to purchase a mobile home or a manufactured home, this FHA loan type can help finance it.

It can be used to purchase a home or a combination of the home and lot. If you will be leasing a lot for your home, the requirement is an initial lease of at least 3 years.

There are maximum loan limits and loan terms for Mobile home loans.

FHA loans are available for condos that are listed in the FHA approved developments and communities that show these signs of stability including a high percentage of owner-occupied units, few non-residential square footage, low restrictions on buying and selling, and no rent-pooling agreements.

If you want to revamp your new home to increase its sales value, this FHA loan will help finance the cost of home repair or renovation at a competitive rate compared with other credit sources.

Home renovation projects covered by this loan include kitchen and bathroom updates, major systems repairs, flooring and roofing, and home additions.

This is a financing add-on that incorporates the cost of approved energy efficient upgrades into your home loan.

This loan requires an energy assessment to prove that it will be cost-effective.

  • Windows
  • HVAC systems
  • Insulation
  • Solar technology
  • Wind technology

We recommend this to senior homeowners who own a property or a considerable amount of equity that can be converted to cash for a supplement of income.

HECM is the only reverse mortgage insured by the U.S. Federal Government and can only be obtained through an FHA-approved lender.

FHA Loan Requirements and Guidelines

Similar to other types of loans, there are certain requirements that should be met and guidelines to follow for you to be able to qualify for an FHA loan.

This is proof for the lender of your ability and willingness to meet your monthly payments, the down payment, and other loan processing and closing costs.

Sprint Funding will gladly assist you in making sure that all the requirements outlined below that you need for an FHA loan are met:

  1. Minimum Credit Score: 500
  2. Down Payment: 3.5% if your credit score is 580+ and 10% if your credit score is between 500-579
  3. Front-end ratio (mortgage payment, property taxes, Homeowners Association Fees, mortgage insurance, and homeowner’s insurance) needs to be less than 31% of your gross income.
  4. Back-end ratio (mortgage payment plus all other debts that you pay on a monthly basis) must be less than 43% of your gross income.
  5. Loan Terms: 15 or 30 years
  6. Mortgage Insurance: Upfront MIP plus Annual MIP for the entire term of the loan, depending on the LTV (Loan-to-Value ratio) and length of the loan.
  7. Property Status: Property to be financed must be your principal residence and must be owner-occupied.
  8. Property Appraisal should be performed by an approved appraiser.
  9. Detached or semi-detached houses, townhouses, row houses, and condos must be FHA-approved.
  10. Other considerations: steady work history, excellent payment history (utility and rent payments), valid Social Security number, lawful resident in the U.S., of legal age.
  11. Loan Limits or FHA lending limits for 2020:

Low-Cost Area:

  • $314,515 (Single),
  • $403,125 (Duplex),
  • $487,250 (Triplex),
  • $605,525 (Four-plex)

High-Cost Area:

  • $726,525 (Single),
  • $930,300 (Duplex),
  • $1,124,475 (Tri-plex),
  • $1,397,400 (Four-plex)
FHA Loans Contact

Secure an FHA Loan with Sprint Funding: A Trusted FHA Loan Broker

Sprint Funding is the best experienced and trusted FHA broker where you will engage with top talent certified loan officers to help you know if an FHA loan will work best for you as you plan on purchasing your home.

We value your home financing needs and would love to help you move into your dream home quickly and affordably. Let’s sit down and talk about the property you want to buy and we will respectfully see through your financial history, credit score, and other FHA loan requirements.

We guarantee the best service and best competitive rates as we implement the best mortgage practices in the simplest way.

©2023 Sprint Funding, Inc. All Rights Reserved | NMLS ID: 348300