Andrade Real Estate Services

The FHA Loan Program is a government-backed mortgage designed to make homeownership more accessible, especially for first-time buyers, borrowers with limited savings for down payment, or those with less-than-perfect credit. FHA financing allows low down payments, flexible credit standards, and approval of multiple property types. Because the loan is insured by the Federal Housing Administration, lenders can approve buyers who may not meet stricter conventional loan guidelines.

This program is ideal for buyers who:

Want to buy a home with as little as 3.5% down.
Have a credit score of 580 or higher (500–579 with 10% down).
Need flexible income, credit, and DTI guidelines.
Are purchasing a primary residence only.

Property Type	Credit Score	Min Down	Notes
SFR	580+	3.5%	*CLTV per allowable secondary financing sources. 3–4 units must meet HUD self-sufficiency requirements.
2-4 units	580+	3.5%	*CLTV per allowable secondary financing sources. 3–4 units must meet HUD self-sufficiency requirements.
Condo	580+	3.5%	DTI > 50% or payment shock > 50% requires 2nd signature from Team Lead/Underwriting Manager. Manual UW requires 2nd level review.
Manufactured Home	580+	3.5%	Higher FICO may be required for buydown eligibility.

Occupancy Requirement
Primary residence Required — owner-occupied only. Investment or second homes are ineligible.
Military stationed > 100 miles away May qualify if a family member occupies the home, or the borrower intends to occupy upon discharge.

Residency Eligibility
Eligible Valid SSN — must have a valid Social Security Number (SSN). Permanent residents — must provide a valid, unexpired Green Card.
Ineligible ITIN borrowers are not eligible. Non-permanent residents are ineligible. Foreign nationals are ineligible. Individuals with EAD (Employment Authorization Document) are not eligible. Individuals with work permits are not eligible.

Income Consistency Requirements
Employment History Two years of employment history required with the same employer or with different employers in the same line of work, Education or training may be used to fill gaps in history, If on temporary disability, income used will be the lower of the disability pay or the regular employment income.
Notes Frequent job changes are allowed if they are within the same line of work and the income is stable or increasing, provided this is supported by documentation, Gaps over 6 months require explanation + current 6 months continuous employment, Education and training must be documented with transcripts, diploma, certificate, professional license, or official school/training program documentation, An employer’s letter is required and must confirm the return-to-work date. If the return-to-work date is before the first mortgage payment, use regular income; if the return-to-work date is after the first mortgage payment, use the lower of disability income or regular income.

Income Type	Requirement	Documentation
Wage Earner	2 years employment history; gaps >6 months require explanation + 6 months current employment.	30 days paystubs + 2 years W-2s; VOE if required.
Self-Employed	2 years self-employment (1 year acceptable with ≥2 years prior related work and strong file).	2 years tax returns; YTD P&L; business bank statements if requested.
Part Time	2-year history required; must be likely to continue.	W-2s, paystubs, VOE verifying hours and history.
Seasonal	2-year history required; must be likely to continue.	W-2s, paystubs, VOE or employer letter confirming rehire pattern.
Social Security, Disability, and Retirement Income	Must be expected to continue ≥ 3 years.	Award/benefit letter (SSA, pension, disability) + proof of receipt (bank statements, 1099s, or deposits).
Alimony / Child Support	Must be court-ordered or written agreement; ≥ 3 years continuance.	Divorce decree, separation agreement, or order + 6 months proof of receipt.

Down Payment Funds
Eligible Sources Borrower’s own funds, Large deposits, Gift funds, CalHFA MyHome / ZIP / other DPA, GSFA Platinum / OpenDoors / other DPAs, Retirement (401k / IRA), Sale of assets.
Requirements 2 months of bank statements required to verify assets, Large deposits must be sourced if not payroll-related, Gift funds allowed with gift letter + proof of transfer (no seasoning required). DPA programs permitted if approved, Retirement funds require withdrawal terms + statements. Asset sales require bill of sale + proof of deposit.

Gift Funds
Eligible Donors Allowed for down payment and/or closing costs from acceptable sources such as: Spouse or domestic partner, Parent, step-parent, or foster parent, Child, step-child, foster child, or adopted child, Brother or sister, step-sibling, foster sibling, or adopted sibling, Grandparent, step-grandparent, foster grandparent, or grandchild, Aunt, uncle, niece, nephew, or cousin, In-laws, future in-laws, fiancé or fiancée, or ex-spouse, Charitable organization, Employer or Labor union, Government agency or public program, Seller only for a gift of equity and only when the seller is a family member.
Ineligible Donors Not allowed as sources of down payment or closing cost funds: Real estate agent, Loan originator or loan officer, Builder or contractor, Developer, Seller (except for family gift of equity).

Temporary Interest Rate Buydowns
Types Allowed 3–2–1, 2–1, and 1–0 buydowns are allowed.
Scope 30-year fixed principal residence purchases only.
Restrictions & Qualification Not allowed on refinances. Minimum FICO: 600. Borrower must qualify at the full note rate (not the buydown rate).

Loan Amounts
Minimum Loan Amount $50,000 minimum (case-by-case exceptions possible).
County Loan Limits Must meet FHA county loan limits.

Non-Occupant Co-Borrowers
Eligibility Allowed for purchase and rate/term transactions.
LTV Limits & Exceptions If the non-occupant co-borrower is a family member and the property is a 1-unit home, the buyer can qualify with just 3.5% down. For all other non-occupant co-borrowers, a 25% down payment is required.

Property Types
Eligible SFR, 2–4 units, PUDS, FHA-approved condos, Manufactured Homes (doublewide or larger, built after 6/15/76, on a permanent foundation; moved homes allowed if DMV title is retired).
Ineligible Second homes, Investment properties, Manufactured Homes (Singlewide, or built before 6/15/76, or no permanent foundation, or parks with lot rent.), Condo Hotels or Motels (projects operated as hotel/motel, hotel/motel conversions), Commercial property, Vacant land or land development properties.

Self-Sufficiency (3–4 Units)
Requirement Net rental income from all units (including the borrower’s unit) must meet or exceed the property’s monthly PITIA.
Calculation Determined using HUD’s prescribed vacancy factor and rental income rules.

Multiple FHA Loans
General Policy Generally limited to one FHA loan at a time.
Exceptions Relocation to a new area, Increase in family size, Vacating a jointly-owned property, Disability needs, Employment transfer, Borrower is a non-occupant co-borrower on another FHA loan.

Seller Contributions
Maximum Contribution Up to 6% of the sales price.
Allowed Uses Closing costs, Prepaid items, Discount points, Origination fees.

Disclaimer – This matrix was published on 09/20/2025. Program guidelines may have changed since then. Please contact Alexis to confirm the most current requirements. For complete details, refer to the Partner Matrices PDF or reach out directly to Alexis for program-specific guidance.

Primary Residence

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