In California, an FHA loan requires 3.5% down with a credit score of 580 or higher, or 10% down for scores from 500–579. On a $500,000 home that's $17,500 at 3.5%. FHA allows the down payment to be a gift from family, and you can pair FHA with programs like CalHFA Dream For All to cover it.
How much down payment for an FHA loan?
- 3.5% down with a credit score of 580+ — the standard FHA minimum.
- 10% down for scores between 500 and 579.
Example: a $500,000 California home needs about $17,500 down at 3.5%. FHA also has its own county loan limits (separate from conforming limits), which are higher in high-cost California counties.
Where the down payment can come from
FHA is flexible on down-payment source. You can use gift funds from a family member (with a gift letter), and you can combine FHA with California down payment assistance. Many first-generation buyers pair FHA-style financing with CalHFA Dream For All or other assistance programs to reduce cash needed at closing.
The trade-off: mortgage insurance
FHA loans carry mortgage insurance premiums (an upfront premium plus an annual premium built into your payment). That's the cost of the low down payment. For buyers with 5% or more down and stronger credit, we compare FHA against conventional to see which is actually cheaper over your expected time in the home.
Is FHA right for you?
FHA shines for lower down payments and more forgiving credit. Conventional can win when you have 5%+ down and good credit. We run both side by side — try the FHA loan calculator or call us.
Frequently asked questions
What is the minimum FHA down payment in California?
3.5% of the purchase price with a credit score of 580 or higher. Buyers with scores between 500 and 579 need 10% down.
Can the FHA down payment be a gift?
Yes. FHA allows 100% of the down payment to come from an acceptable gift, typically from a family member, documented with a gift letter.
Can I use down payment assistance with an FHA loan?
Often, yes. California buyers frequently combine low-down-payment financing with assistance programs like CalHFA to cover the down payment and some closing costs. We'll confirm what you qualify for.
Are FHA loan limits the same as conforming limits?
No. FHA sets its own county loan limits, which are usually lower than the Fannie/Freddie conforming limits. Ask us for the FHA limit in your county.