FHA Loans in Fresno & the Central Valley
An FHA loan is a mortgage insured by the Federal Housing Administration and issued by approved lenders. FHA loans are designed to help low-to-moderate-income borrowers and first-time homebuyers qualify for financing with more flexible credit requirements and a low down payment.
Who FHA Loans May Be Right For
First-time homebuyers, borrowers with less-than-perfect credit, and those with limited down payment funds — especially when down payment money will come as a gift from family.
Advantages
- Down payments as low as 3.5%
- More flexible credit requirements (often down to a 580 score)
- Down payment funds can come entirely from a gift
- Allows for higher debt-to-income ratios than many conventional loans
- Competitive interest rates even with lower credit scores
Things to Consider
- Requires both an upfront and annual mortgage insurance premium (MIP)
- MIP typically lasts for the life of the loan on most FHA loans
- The home must meet FHA property condition standards
Credit Considerations
FHA loans often allow credit scores as low as 580 with a 3.5% down payment. Scores between 500 and 579 may qualify with a 10% down payment, subject to lender overlays.
Down Payment Considerations
The minimum down payment is 3.5% with a qualifying credit score. The entire down payment can come from a gift by an eligible donor, such as a family member.
How the Application Works
- 1
Get pre-qualified
We review your credit, income, and goals to see if an FHA loan fits your situation.
- 2
Find your home
Shop for a home that meets FHA property standards with your pre-qualification in hand.
- 3
Submit and verify
Provide documentation and complete the FHA appraisal as part of underwriting.
- 4
Close and move in
Sign your final documents, pay closing costs, and receive your keys.
Typical Documentation
- 30 days of recent pay stubs
- Two years of W-2s and federal tax returns
- Two months of recent bank statements
- Photo ID and Social Security number
- Gift letter if down payment funds are gifted
FHA Loans Frequently Asked Questions
What credit score do I need for an FHA loan in Fresno?
FHA loans often allow credit scores as low as 580 with a 3.5% down payment. Scores between 500 and 579 may qualify with a 10% down payment, though lender requirements can vary.
Can my down payment be a gift on an FHA loan?
Yes. The entire FHA down payment can come as a gift from an eligible donor, such as a family member, employer, or approved nonprofit — one reason FHA loans are popular with first-time buyers.