FHA Loans in Southern California
FHA loans make homeownership possible for more people. Whether you have a small down payment or less-than-perfect credit, an FHA loan might be your best path to owning a home.
GM Funding’s team in San Clemente specializes in FHA loans across Southern California. We make the process simple and fast.
What Is an FHA Loan?
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. Because the government backs it, lenders can offer more flexible terms than conventional loans.
That means lower down payments and easier credit requirements for you.
Why Choose an FHA Loan?
- 3.5% down payment — One of the lowest available
- Flexible credit requirements — Scores as low as 580 can qualify
- Competitive interest rates — Government backing keeps rates low
- Seller can contribute — Up to 6% of closing costs paid by seller
- Gift funds allowed — Down payment can come from family
Who Is an FHA Loan Right For?
| Buyer Type | Why FHA Works |
|---|---|
| First-time homebuyer | Low down payment, easier to qualify |
| Buyer with past credit issues | More flexible credit requirements |
| Buyer with limited savings | 3.5% down vs 20% conventional |
| Self-employed buyer | More flexible income documentation |
FHA vs Conventional — What’s the Difference?
| Feature | FHA Loan | Conventional Loan |
|---|---|---|
| Down payment | 3.5% | 3–20% |
| Minimum credit score | 580 | 620+ |
| Mortgage insurance | Required | Required under 20% down |
| Loan limits | Set by county | Higher limits available |
| Best for | Lower credit, less savings | Strong credit, more savings |
FHA Loan Limits in Southern California
FHA loan limits vary by county. Here are the 2025 limits for our primary service areas:
| County | FHA Loan Limit |
|---|---|
| Orange County | $1,149,825 |
| San Diego County | $1,006,250 |
| Los Angeles County | $1,149,825 |
| Riverside County | $644,000 |
| San Bernardino County | $644,000 |
How Do You Qualify for an FHA Loan?
- Credit score of 580+ for 3.5% down payment
- Steady income — 2 years employment history preferred
- Debt-to-income ratio under 43%
- Primary residence only — FHA loans are for homes you live in
- Property must meet FHA standards — Home appraisal required
FHA Loans by City
We help buyers across Southern California. Find your city here.
Red Flags to Avoid
- Don’t apply for new credit before or during your loan process
- Don’t change jobs mid-application without telling your loan officer
- Don’t assume you don’t qualify — credit requirements are more flexible than you think
- Don’t wait — FHA loan limits and rates change annually
Ready to Get Started?
Call GM Funding today at (800) 345-2044 or text us at (949) 385-3007 to find out if an FHA loan is right for you. Get pre-approved in minutes and know exactly what you can afford before you start shopping.