FHA Loans in California & Hawaii | Buy a Home with 3.5% Down

FHA loans are one of the most popular home financing options for first-time buyers, those with less-than-perfect credit, and anyone looking to purchase a home with a lower down payment. Fund USA Corp specializes in FHA loans throughout California and Hawaii, helping buyers close with confidence.

WHAT IS AN FHA LOAN?

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD). Because the loan is government-backed, lenders can offer more flexible qualification requirements including lower down payments and more lenient credit standards, compared to conventional loans.

FHA LOAN BENEFITS

• Down payment as low as 3.5% (with 580+ credit score)
• More flexible credit requirements (scores as low as 500 considered)
• Competitive interest rates
• Available for purchase and refinance
• Can be used for primary residences only
• Seller can contribute up to 6% toward closing costs

FHA LOAN REQUIREMENTS (2026)

• Minimum credit score: 580 for 3.5% down; 500 for 10% down
• Debt-to-income ratio: Generally 43% or lower (exceptions possible)
• Property must be your primary residence
• Property must meet FHA minimum property standards
• Mortgage insurance premium (MIP) required

2026 FHA LOAN LIMITS IN CALIFORNIA

FHA loan limits vary by county. In high-cost California counties (including Orange County, Los Angeles, San Francisco, and San Diego), the 2026 FHA loan limit for a single-family home is $1,149,825. In standard-cost counties, the limit is $524,225.

2026 FHA LOAN LIMITS IN HAWAII

Hawaii is classified as a high-cost area. The 2026 FHA loan limit for single-family homes in Hawaii is $1,149,825 across most counties.

IS AN FHA LOAN RIGHT FOR YOU?

FHA loans are ideal if you:

• Are a first-time homebuyer with limited savings for a down payment
• Have a credit score between 580–679
• Are rebuilding credit after financial difficulties
• Want to keep more cash in reserve after closing

Ready to see if you qualify for an FHA loan in California or Hawaii?
Get pre-qualified in minutes no credit pull required.