805-527-6000
Bold New Vision. Same Trusted Mortgage Expertise. Serving homeowners across California, Texas & Idaho.
KNB Capital · Loan Programs
FHA Home
Loan
The most accessible path to homeownership in California. Low down payment, flexible credit standards, and government backing — ideal for first-time buyers and those rebuilding credit.
The Basics
What Is An FHA Loan?
An FHA loan is insured by the Federal Housing Administration, allowing lenders to offer lower down payments and more flexible credit guidelines than conventional loans. Because the government insures the lender against default, borrowers who don’t yet have 20% saved — or who have had past credit challenges — can still qualify.
FHA loans are popular with first-time buyers, move-up buyers, and anyone using California down payment assistance programs like CalHFA. They’re available for purchases and refinances on primary residences.
Do You Qualify?
FHA Loan Requirements
Down Payment
As low as 3.5% with a 580+ credit score. Borrowers with scores between 500–579 can still qualify with a 10% down payment. Down payment can come from gifts or DPA programs.
Credit Score
580 minimum for 3.5% down. KNB Capital works with multiple FHA-approved lenders — some with overlays as low as 500 FICO with compensating factors.
Property Standards
Must be your primary residence and meet FHA minimum property standards (MPS). Appraiser will flag safety/habitability issues that must be resolved before closing.
Mortgage Insurance
FHA requires an upfront MIP (1.75% rolled into loan) plus annual MIP (0.45–0.85%). On a 30-year loan with under 10% down, MIP stays for the life of the loan.
Common Questions
What FHA Borrowers Ask Us Most
Can I Remove FHA Mortgage Insurance?
If you put down less than 10%, MIP stays for the life of the loan. The typical exit strategy is refinancing into a conventional loan once you have 20% equity — which KNB Capital can help you plan for.
FHA vs Conventional — Which Is Better?
FHA wins on credit flexibility and low down payment. Conventional wins once your credit is 700+ and you can avoid PMI. We run side-by-side numbers for every client so you can make an informed choice.
Can I Use FHA With Down Payment Assistance?
Yes — FHA is specifically designed to layer with CalHFA and other DPA programs. We can stack DPA on top of FHA financing to get your out-of-pocket cost to near zero in some cases.
Ready To See Your FHA Rate?
No hard pull. No obligation. Find out how much home you can afford today.