By Ken Clark Jr. ยท Certified Mortgage Advisor & Branch Manager ยท NMLS #225375 Last updated:
Ken Clark Jr.
#ChampionsofLoansยทPowered By PRMG Mortgage
#ChampionsofLoans

FHA Loans

โœ“ Last verified against available program guidelines: May 17, 2026

The most flexible major loan program in the country. 3.5% down minimum, credit scores from 580, and stackable with California DPA and Hometown Heroes-style programs. We close FHA every week for first-time buyers, move-up buyers, and refinance clients.

FHA Programs

Every FHA program we offer.

FHA Purchase

3.5% down, flexible credit guidelines. Up to 6% seller-paid closing costs allowed. Layers cleanly with state and county DPA programs. Often the most affordable path for first-time buyers in California and New Jersey.

FHA Streamline Refinance

Lower your FHA rate fast. No appraisal in many scenarios, reduced documentation, and credit qualification overlays are minimal. Available for existing FHA borrowers with on-time payment history.

FHA Cash-Out Refinance

Up to 80% LTV cash-out. Convert equity to cash for renovation, debt consolidation, or investment. Available even on a non-FHA first mortgage to refinance into FHA financing.

FHA 203k Limited (Streamline)

Up to ~$35,000 in renovation rolled into the purchase. Cosmetic and minor repairs (paint, flooring, kitchens, baths, roofing, HVAC). Cleanest path for first-time buyers who want a move-in-ready home with light updates.

FHA 203k Full (Standard)

Major renovation, structural work, additions. No dollar cap (within loan limits). Required for major rehabs, foundation work, room additions, or properties that don't meet FHA Minimum Property Standards as-is.

FHA Energy Efficient Mortgage (EEM)

Roll energy improvements into the loan. Solar, insulation, windows, HVAC. EEM cost is typically excluded from DTI calculations because energy savings offset the payment.

FHA + DPA Stacks

FHA layers with almost every state DPA. CalHFA MyHome, GSFA Platinum, Forgivable Equity Builder, NJHMFA First-Time Homebuyer DPA, NCHFA, IHDA, Texas TDHCA, Florida Hometown Heroes, all stack on FHA.

Flexible FHA Credit Guidelines

Manual underwrite paths. When the automated approval comes back with conditions, we have manual underwriting paths that look at the full picture, compensating factors (reserves, rent history, stable employment).

FHA Manufactured Home

FHA financing for permanently affixed manufactured homes. Single and double-wide eligible with proper foundation, HUD tags, and engineering certification. Subject to property-specific overlays.

The catch with FHA: mortgage insurance is required for the life of most FHA loans. We model this into your payment estimate and walk through when conventional + DPA may save you money over FHA + DPA, especially as your credit and equity improve.

Who FHA is best for

  • First-time buyers with limited down payment savings
  • Borrowers with flexible credit profiles
  • Move-up buyers using gift funds for down payment
  • Buyers stacking DPA programs to minimize cash to close
  • Renovation buyers using 203k for fixers
  • Borrowers with prior credit events (BK, foreclosure) that are 2-3 years seasoned
  • Buyers in higher-cost California / New Jersey markets up to county loan limits

How FHA compares to Conventional

  • Lower credit floor: FHA tends to be more lenient on credit than Conventional
  • Lower down payment: 3.5% FHA vs. 3-5% Conventional
  • More flexible debt-to-income: FHA up to 56.99% with compensating factors
  • Lower base rate spread on lower credit: FHA often beats Conventional below 700 score
  • But: FHA mortgage insurance is for the life of the loan in most cases (Conventional PMI drops at 78% LTV)
#ChampionsofLoans

Run an FHA scenario with a real advisor.

We'll compare FHA + DPA against conventional 3% down side by side so you can see which actually wins for your situation.

Schedule Time With Ken
๐Ÿ“ž Call Ken Schedule Time With Ken
๐Ÿ“…Schedule with Ken20-min strategy call