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FHA Loans in Folsom
What credit score do I need for an FHA loan in Folsom?
FHA requires a 580 FICO minimum to qualify. Most lenders prefer 640 or higher to get the best rates and terms.
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Folsom sits near Sacramento's downtown Railyards redevelopment, where new residential projects are reshaping the region. At 5.875%, an FHA loan on a $777,202 purchase carries a $4,437 monthly payment for principal and interest.
The county's median household income of $88,724 supports homes in the mid-range comfortably. FHA's 3.5% down minimum means buyers can close with less cash upfront than conventional loans require.
5.875%
Interest Rate
$4,437
Monthly PI Payment
3.5%
Down Payment Minimum
580
FICO Minimum
02
FHA requires a 580 FICO minimum, though lenders often prefer 640 or higher for better terms. This scenario shows a 740 FICO with 3.5% down on a $777,202 home—well within FHA's reach for most Folsom buyers.
Mortgage insurance (MIP) runs for the life of the loan when down payment is under 10%. The upfront MIP of 1.75% rolls into your loan amount, so no separate payment at closing.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Folsom.
Folsom sits near Sacramento's downtown Railyards redevelopment, where new residential projects are reshaping the region. At 5.875%, an FHA loan on a $777,202 purchase carries a $4,437 monthly payment for principal and interest.
The county's median household income of $88,724 supports homes in the mid-range comfortably. FHA's 3.5% down minimum means buyers can close with less cash upfront than conventional loans require.
FHA requires a 580 FICO minimum, though lenders often prefer 640 or higher for better terms. This scenario shows a 740 FICO with 3.5% down on a $777,202 home—well within FHA's reach for most Folsom buyers.
Rate check
Tell us the price range, down payment and credit range you are working with. We compare every lender we work with and show you the options side by side.
03
California lenders compete heavily on FHA pricing because the government guarantee removes much of the credit risk. Brokers typically offer tighter rates than retail banks because they shop multiple wholesale lenders.
Most FHA closings take 17-21 days in California. Appraisals and title work move at standard pace, but FHA's property standards can add a week if repairs are flagged.
04
FHA makes sense in Folsom when you have solid credit (640+) but limited savings. At 96.5% LTV, the rate sits at 5.875%—competitive for the loan-to-value, and the 3.5% down keeps cash in your pocket.
Conventional becomes cheaper above 10% down because PMI eventually cancels. If you can save for a 15% down payment, run both numbers—conventional may win over the full loan term.
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Conventional loans require 5% down minimum and carry PMI until you hit 78% LTV. FHA's 3.5% down and lifetime MIP trade off—you save upfront but pay insurance longer.
At this price point, FHA's lower down payment opens the door faster. Conventional rates typically run 0.25–0.5% lower, but that advantage shrinks when you factor in PMI on a high-LTV conventional loan.
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The Railyards District in downtown Sacramento is adding residential towers and a medical center just 15 minutes from Folsom. That kind of regional investment supports home values and makes the commute easier for buyers working downtown.
Aftershock music festival returns to Discovery Park in October 2026, drawing tens of thousands to the Sacramento area. Local events and infrastructure growth signal a region that's attracting people and money.
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Sacramento County sees steady FHA lending because the median household income of $88,724 aligns well with mid-range home prices. Lenders actively compete for FHA business here, keeping rates and fees competitive.
FHA volume in California remains strong even as rates rise. Buyers with limited down payment savings and solid credit find FHA the fastest path to closing.
FAQ
FHA requires a 580 FICO minimum to qualify. Most lenders prefer 640 or higher to get the best rates and terms.
FHA's minimum is 3.5% down. On a $777,202 purchase, that's $27,202 at closing—much less than conventional's 5% minimum.
Principal and interest run $4,437 per month. Add property taxes, insurance, and MIP to get your full payment estimate.
Yes, if you put 10% or more down, MIP cancels after 11 years. Below 10% down, MIP continues for the life of the loan.
Most FHA closings take 17-21 days in California. FHA property inspections can add time if repairs are needed.
Programs for first-time buyers that allow lower down payments and more forgiving credit and income rules.
Explore refinancing options to lower your rate, tap equity, or switch loan terms.
SRK CAPITAL in Sacramento County
Our team of licensed mortgage brokers works Sacramento County every week. Tell us where you are in the process and we will map out the loan, the timeline and the money you need at closing, with no obligation.
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You talk with a broker, not a call center, from the first question to closing day.
17-21 day typical close
Most purchase loans close in 17-21 days once your paperwork is in.
Every county in California
We work across the state, including Sacramento County, so local limits and rules are already familiar.
Financing solutions for rental properties, fix-and-flip projects, and real estate portfolios.
Mortgage programs with alternative income documentation for business owners and freelancers.
Federally insured or guaranteed programs (FHA, VA, USDA) that let lenders accept lower credit scores and smaller down payments.
Traditional mortgage options meeting standard lending guidelines with various term structures.
Alternative lending programs for borrowers who need flexible documentation or unique loan structures.
Side-by-side comparisons to help you choose the right mortgage program.
This page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, terms, and program availability can change and vary by borrower and property. Consult a licensed mortgage professional for guidance on your scenario.