The loan that gets first-time buyers in the door.

An FHA loan is a mortgage insured by the Federal Housing Administration, part of HUD. The government does not lend you the money — a lender does — but the FHA insurance lets that lender approve borrowers with a lower down payment and a more flexible credit profile than a conventional loan usually allows. It has been the standard first-time-buyer path in the United States since 1934.

No. FHA is famous as a first-time-buyer loan because that is who uses it most, but there is no first-time requirement. Anyone who meets the guidelines and is buying a primary residence can use it, including a repeat buyer who is rebuilding credit or coming back from a bankruptcy or foreclosure after the required waiting period.

For 2026 the FHA one-unit loan limit is $764,750 in Placer, Sacramento, El Dorado, and Yolo counties — they share the Sacramento-Roseville-Folsom metro limit set by HUD. Limits are higher for two-, three-, and four-unit properties and are updated annually. Above the FHA limit you would look at a conventional or jumbo loan instead. Aaron confirms the current limit for your specific property.

This is the honest trade-off and the thing most sites skip. FHA charges an upfront mortgage insurance premium plus an annual premium collected monthly. On most low-down-payment FHA loans, that annual premium stays for the life of the loan — it does not automatically drop off once you reach twenty percent equity the way conventional private mortgage insurance does. That does not make FHA a bad deal. It makes FHA a door: many buyers use it to get in, then refinance to conventional later once credit and equity have caught up. Aaron builds that plan with you at the start instead of leaving you to discover it years in.

Yes. FHA allows the down payment to come from a documented gift from an eligible source, typically a family member. There is a paper trail the underwriter needs — a gift letter and evidence of the transfer — and doing it in the wrong order is one of the most common ways a file gets delayed. Talk to Aaron before the money moves, not after.

Yes, and this surprises people. An FHA appraisal also checks the property against FHA minimum property standards — things like a working heat source, safe electrical and plumbing, a sound roof, no peeling paint on pre-1978 homes, and safe access. A fixer that a cash buyer would take as-is can fail. If the home you love needs work, ask Aaron about FHA 203(k) renovation financing rather than walking away.

It depends on your credit profile, how much you have to put down, and how long you plan to keep the loan. Conventional can be cheaper over time when your credit is strong because the mortgage insurance eventually falls off. FHA can be cheaper up front and easier to qualify for. There is no universal answer, which is why Aaron runs both against your actual numbers instead of pushing one.

Because you are typically the buyer with the least cushion. Two homes at the same price a few miles apart in Placer and Sacramento counties can differ by thousands of dollars a year once you add Mello-Roos, the supplemental tax bill, the utility territory, and fire-zone insurance. Getting approved for the payment is not the same as being able to live in the house comfortably. Run the address at hiddenhomecost.com before you write the offer, then size the pre-approval around the real number.

Cali Mortgage works with buyers across Placer and Sacramento counties — Roseville, Rocklin, Lincoln, Folsom, Citrus Heights, Antelope, North Highlands, Auburn, and the surrounding communities. Call 916-365-2661 and Aaron will walk through your situation.