FHA Loans in California
First Capital Mortgage Inc. is a California mortgage broker headquartered in Modesto, with a branch in Indio, serving buyers and homeowners across the state, from the Central Valley to the Coachella Valley and everywhere in between. FHA loans are one of the most common ways our California clients buy their first home, and one of the most misunderstood.
How an FHA Loan Works
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government backs the lender against loss, lenders can approve buyers with smaller down payments and less-than-perfect credit than a conventional loan would allow. You pay for that flexibility through mortgage insurance: an upfront premium that is usually rolled into the loan and a monthly premium that is part of your payment.
Who FHA Fits Best in California
- First-time buyers with 3.5% down (a gift from family is allowed for the whole down payment)
- Buyers with credit scores in the 580s to 660s, where conventional pricing gets expensive
- Buyers with higher debt-to-income ratios, which FHA reviews case by case
- Anyone buying a home that needs work, through the FHA 203(k) renovation option
FHA loan limits are set by county. Most Central Valley counties, including Stanislaus, use the standard limit; Riverside County and coastal counties are higher. We check the limit for the exact property before you make an offer.
The FHA Loan Process
- Start Here. The online application takes about 15 minutes. Basic personal info, income, and permission to review credit.
- We shop it. One file goes to 25+ wholesale lenders, and we come back with the options that actually fit your scenario.
- Compare in plain English. Rate, payment, cash to close, and the trade-offs between them, side by side.
- Close on time. Most purchases fund in under 30 days, with a weekly update so you and your agent always know where things stand.
FHA Questions We Hear Every Week
Is FHA only for first-time buyers?
No. Any owner-occupant can use FHA, and you can use it more than once in your life. You do have to live in the home as your primary residence.
Can I remove the mortgage insurance later?
With 3.5% down, FHA mortgage insurance stays for the life of the loan. The usual path is to refinance into a conventional loan once you have 20% equity, and we watch for that point with you.
FHA or conventional with 3% down?
It depends on your credit score and how long you will keep the home. We run both side by side and show you the real monthly difference before you choose.
Start Here: 15-Minute FHA Application
Not Sure FHA Is the Right Fit?
That is exactly the conversation to have before you apply. Call (209) 522-7100 or send us a note, and we will tell you straight whether it fits or whether a different program serves you better. You can also compare every option on our California loan programs page.