Lending

FHA Loans in the Sacramento Region

Government-insured loans with flexible credit standards and down payments as low as 3.5%.

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Talk to Maggie directly: cell (916) 549-3131 (text or call) · maggie@loveyoursurroundings.coMaggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307

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What is an FHA loan?

An FHA loan is a mortgage from a private lender that the Federal Housing Administration insures. The CFPB says (FHA loans page, last modified June 30, 2025) that FHA doesn't lend the money itself. It insures the lender against loss if a borrower can't repay. FHA is part of the U.S. Department of Housing and Urban Development (HUD).

The CFPB's answer on FHA loans (last reviewed February 2, 2024) adds two points. Qualifying standards are generally more flexible than for conventional loans. The cost of the mortgage insurance is passed along to you.

Because private lenders make FHA loans, pricing differs from one to the next. Maggie B. Hopkins is a mortgage broker who compares FHA offers across a network of approved lenders for the same home.

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Who is an FHA loan a good fit for?

The CFPB says FHA loans allow lower credit scores than most conventional loans. It also says that with lower credit scores or smaller down payments, FHA is often the least expensive option. With good credit and 10% to 15% down, FHA tends to cost more than conventional. The CFPB recommends comparing the total cost of both.

That's often the deciding question. If your credit is still recovering from a hard stretch, FHA may open the door sooner. If your credit is strong, a conventional loan may cost less over time. We price both for you so you're not guessing.

FHA loans are for a home you'll live in. HUD's FHA answers page (published June 22, 2015) says at least one borrower must move in within 60 days of closing and plan to stay at least one year.

What credit score do you need for an FHA loan?

HUD sets credit score tiers in its Mortgagee Letter 2026-11 (dated October 8, 2026), which keeps the existing thresholds in place:

580 or higher: eligible for maximum financing.
500 to 579: the loan is limited to 90% of the home's value, so you'd need at least 10% down.
Below 500: not eligible for an FHA loan.

HUD's letter also says borrowers with little or no traditional credit can still qualify for maximum financing. Their files must be underwritten by hand. Lenders can add their own rules on top of HUD's, so one lender's no isn't every lender's no. That's where shopping lenders helps.

How much do you need for a down payment?

The CFPB says FHA loans allow down payments as low as 3.5%. That applies when your credit score is 580 or higher. Between 500 and 579, HUD limits the loan to 90% of the value.

A low down payment keeps cash in your pocket for moving, repairs and the first year in the home. It also means a larger loan and mortgage insurance for longer. Run both sides in our mortgage calculator. First-time buyers can also look at state down payment help on our first-time buyer loan page.

How does FHA mortgage insurance work, and does it ever end?

The CFPB says mortgage insurance is required on all FHA loans. It comes in two parts. There's an upfront premium at closing and an annual premium paid monthly with your payment. HUD sets both amounts, and we use the current figures for your exact loan.

How long the annual premium lasts depends on your down payment. HUD's Mortgagee Letter 2023-05 (dated February 22, 2023) sets the rule for most loans:

Loan at or below 90% of the value (10% or more down): the annual premium runs 11 years.
Loan above 90% of the value (less than 10% down): the annual premium runs for the life of the loan.

That's a key difference from conventional PMI, which can come off as you build equity. Some FHA borrowers later refinance into a conventional loan once their equity and credit allow it. We show you that path up front.

What are the FHA loan limits in 2026?

FHA limits are set by county from local home sale data. HUD announced the 2026 limits on December 11, 2025. For a one-unit home, the low-cost floor is $541,287 and the high-cost ceiling is $1,249,125. Each county falls somewhere in that range.

FHA also has limits for two- to four-unit homes, which can work if you'll live in one unit. The limits change each year, so we check the current limit for your county before you write an offer.

What does the FHA appraisal check?

An FHA appraisal estimates the home's value and checks its condition. HUD's Handbook 4000.1 glossary (checked October 22, 2026) says FHA's Minimum Property Requirements call for every insured home to be "safe, sound, and secure." Items like a damaged roof, peeling paint on an older home or missing handrails can come up.

An appraisal isn't a home inspection. You'll still want your own inspection. On older Sacramento-area homes we look at the condition before you write the offer, so a repair request doesn't surprise you late in escrow. Our purchase loan page covers the full timeline.

How do you start an FHA loan?

Fill out the loan options form with your plans and timing, or call Maggie's cell at (916) 549-3131. Maggie will look at your situation and get back to you within 2 hours.

We'll price FHA next to a conventional loan so you can see the difference in dollars. You're always free to use any lender you like. We'd like the chance to compete for your loan.

Frequently Asked Questions

What is the minimum credit score for an FHA loan?

HUD's rules say a score of 580 or higher is eligible for maximum financing. Scores from 500 to 579 are limited to 90% of the home's value. Below 500 isn't eligible. Lenders may set their own higher minimums.

How much do I need to put down on an FHA loan?

As little as 3.5% with a credit score of 580 or higher, according to the CFPB and HUD. With a score from 500 to 579, you'd need at least 10% down.

Does FHA mortgage insurance ever go away?

It depends on your down payment. Under HUD's rule for most loans, the annual premium lasts 11 years if you put 10% or more down. With less than 10% down, it lasts for the life of the loan unless you refinance.

What is the FHA loan limit in 2026?

It's set by county. HUD's 2026 range for a one-unit home runs from $541,287 in lower-cost areas to $1,249,125 in high-cost areas. We check the current limit for your county.

Can I buy a duplex with an FHA loan?

Yes, if you'll live in one of the units. FHA has loan limits for two- to four-unit homes, and at least one borrower must move in within 60 days and plan to stay at least a year.

Is FHA better than conventional?

Neither is better for everyone. The CFPB says FHA is often less expensive with lower credit or a small down payment, and conventional often costs less with good credit and 10% to 15% down. We price both for you.