FHA Loans: Low Down Payment, Flexible Credit
Great for first-time buyers or anyone who wants competitive terms with as little as 3.5% down.
FHA Loans Make Homeownership Accessible
Low Down Payment Options
Flexible Credit Requirements
Fast Approval Process
What Is an FHA Loan?
FHA loans are mortgages insured by the Federal Housing Administration, a division of HUD. They're designed to help low-to-moderate income borrowers achieve homeownership with more flexible qualification requirements than conventional loans.
Why Choose FHA with ABF
Eligibility & Requirements
- Credit score of 580+ for 3.5% down (500-579 may qualify with 10% down)
- Debt-to-income ratio typically up to 57% (case-by-case basis)
- Property must be primary residence
- Mortgage insurance required (UFMIP + annual premium)
- Property must meet FHA appraisal standards
- Steady employment history (2+ years preferred)
FHA vs Conventional
Understanding when FHA loans offer advantages over conventional financing.
| Aspect | FHA | Conventional |
|---|---|---|
| Down Payment | 3.5% minimum | 3-5% minimum |
| Credit Score | 580+ (500+ with 10% down) | 620+ typically |
| Mortgage Insurance | Required for life of loan | Can be removed at 20% equity |
| Loan Limits | Lower limits in most areas | Higher conforming limits |
Our FHA Process
Pre-Approval
Quick qualification and pre-approval letter
Property Search
Find your home with confidence
Underwriting
Smooth processing with regular updates
Closing
Keys in hand, dream achieved
Ready for Your FHA Loan?
Get your free FHA loan quote and see how much home you can afford with as little as 3.5% down.
FHA Loan FAQ
Get Your FREE FHA Loan Quote
See your FHA loan options with no impact to your credit score.
FHA Loans: Myths vs Reality
FHA loans have helped millions of Americans achieve homeownership, yet misconceptions persist about these government-backed mortgages. At American Bay Financial, we specialize in FHA lending and help borrowers understand the real advantages these loans offer.
Common FHA Loan Myths Debunked
Myth: FHA loans are only for first-time buyers. Reality: Anyone who meets the eligibility requirements can use an FHA loan, regardless of whether they've owned a home before.Myth: FHA loans take longer to close. Reality: With proper preparation and an experienced lender like ABF, FHA loans close just as quickly as conventional loans.
How ABF Structures Competitive FHA Offers
In competitive markets like California, having the right lender makes all the difference. We help structure your FHA offer to be as attractive as possible to sellers, including strategies for appraisal gaps, seller credits, and quick closing timelines. Our relationships with real estate professionals ensure your FHA offer gets the respect it deserves.
Your FHA Loan Preparation Checklist
- Gather 2 years of tax returns and W-2s
- Collect recent pay stubs and bank statements
- Document any gift funds with proper gift letters
- Review credit report and address any issues
- Calculate debt-to-income ratio
- Research FHA loan limits in your target area