Loading
Loading
Davis is a university town with tight inventory and strong demand. FHA loans give first-time buyers a real shot at competing here.
Yolo County's market skews toward owner-occupants. FHA's low down payment requirement helps buyers move faster when listings hit.
580 (3.5% down)
Min Credit Score
3.5%
Min Down Payment
Primary residence only
Occupancy Requirement
Yes — upfront + monthly
MIP Required
Fixed or adjustable
Rate Type
FHA Loans in Davis
You need a 580 credit score for 3.5% down. Drop below 580 and you'll need 10% down — but approval is still possible.
FHA requires the home to be your primary residence. Investment properties and vacation homes don't qualify.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Davis.
Davis is a university town with tight inventory and strong demand. FHA loans give first-time buyers a real shot at competing here.
Yolo County's market skews toward owner-occupants. FHA's low down payment requirement helps buyers move faster when listings hit.
You need a 580 credit score for 3.5% down. Drop below 580 and you'll need 10% down — but approval is still possible.
Most retail banks offer FHA, but their overlays — extra requirements on top of FHA minimums — can kill borderline deals.
At SRK CAPITAL, we shop FHA across 200+ wholesale lenders. That means we find who's actually approving your credit profile right now.
Davis sellers see multiple offers. A clean pre-approval letter on FHA — showing solid down payment funds — matters as much as your rate.
FHA appraisals are stricter than conventional. Homes with deferred maintenance can trigger repair conditions before closing. Know this before you make an offer.
Conventional loans beat FHA once you hit 620+ credit and can put 5-10% down. You avoid the lifetime MIP that FHA charges on low-equity loans.
VA and USDA are worth checking first if you qualify. Both have zero down options and no monthly mortgage insurance.
Yolo County FHA loan limits cap how much you can borrow. Prices in Davis can push against those limits — confirm your target price range before starting.
UC Davis drives steady rental demand. But FHA won't finance a property you plan to rent out. You must move in within 60 days of closing.
FHA sets county-level loan limits each year. Confirm the current Yolo County cap with us before targeting a price range.
Yes. FHA allows the full down payment to come from a documented gift. The donor cannot be the seller.
On loans with less than 10% down, FHA MIP stays for the life of the loan. Putting 10%+ down drops it after 11 years.
Age and condition matter more than location. Older homes with deferred maintenance are more likely to trigger FHA repair requirements.
Yes, FHA allows 2-4 unit properties if you live in one unit. This can be a smart move in a high-rent market like Davis.
Some sellers prefer conventional offers. A strong pre-approval and larger earnest money deposit can offset that perception.