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Nick Nagy · FHA loans

Nick Nagy Structures FHA Loans for California Buyers

A minimum down payment of 3.5 percent of the purchase price, per HUD, on 1 to 4 unit properties.

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The answer

The direct answer

An FHA loan lets a California buyer put down as little as 3.5 percent of the purchase price, per HUD. Nick Nagy structures FHA files at Loan Factory, Inc., available on 1 to 4 unit properties.

What I tell people first

FHA gets treated like a fallback loan, and it should not be. It is often the strongest program for a buyer with a smaller down payment or a credit history that is still building. I check it against conventional on every file where the down payment is under 20 percent.

Who this page is for

This page is for a California buyer weighing an FHA loan against a conventional loan, especially with a smaller down payment. That includes a buyer considering a 1 to 4 unit purchase for the first time, and one whose credit history is still building.

The fact this page stands on
An FHA loan allows a down payment as low as 3.5 percent of the purchase price, on properties with 1 to 4 units.
Source
HUD.gov, Helping Americans, read September 6, 2026.
Last verified
September 6, 2026
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Nick Nagy, mortgage broker and loan officer at Loan Factory
Nick Nagy NMLS #314880 · CA DRE #01444600 · Loan Factory, Inc. · 23 years About Nick · Licences, verified at source · Text 916-805-1933

Part of the Nick Nagy pages on go.homeaccesslist.com, and of the California Mortgage Answer Desk.

How it works

What FHA actually requires

An FHA loan lets a buyer put down as little as 3.5 percent of the purchase price, per HUD. It is available on properties with 1 to 4 units, not just a single-family home.

FHA carries mortgage insurance for most of the loan term. Whether that changes for your file depends on your specific loan terms, which a lender confirms directly.

FHA also allows a lower credit profile than many conventional programs require. That flexibility is one reason it fits a buyer whose credit history is still building.

The detail that matters

Why FHA fits a 1 to 4 unit purchase

A buyer purchasing a 1 to 4 unit property can use FHA on the whole building, then live in one unit and rent the others.

That structure is different from a standard single-family purchase, and it changes how income from the other units gets counted on the file.

This approach lets a buyer start building ownership in a small multi-unit property with the same minimum down payment as a single-family purchase.

How it works

How Nick Nagy structures an FHA file

Nick Nagy runs FHA files through Loan Factory, Inc., a broker with 237 lenders. If one FHA-approved lender’s overlay does not fit a file, a different lender on the same shelf might.

This matters most for a file with a recent credit event or a nonstandard income source, where one lender’s extra rules can knock out an otherwise qualified buyer.

Not every FHA-approved lender applies the same extra rules on top of the base FHA guidelines, which is why the broker structure matters even within one loan program.

The detail that matters

Pairing FHA with down payment assistance

California’s MyHome Assistance Program offers eligible FHA buyers a deferred junior loan up to 3.5 percent of the purchase price or appraised value, whichever is lower, per CalHFA.

That second loan can cover some or all of the down payment on top of the FHA first mortgage, depending on the buyer’s eligibility.

Eligibility for MyHome depends on income limits and first-time buyer status, both confirmed early in the process rather than assumed.

How it works

Where FHA is used most in Southern California

FHA shows up often in Murrieta, Temecula, and Menifee, where new construction and starter-home resale prices fit comfortably under FHA’s loan limits.

It also fits many first purchases in the San Gabriel Valley and San Fernando Valley, where a smaller down payment matters more given local prices.

The FHA loan limit is set per county, so the same program can look different depending on which Southern California market a buyer is shopping in.

The detail that matters

FHA versus conventional, side by side

FHA and a conventional loan can land at a similar down payment once assistance programs get layered in, so the real comparison usually comes down to credit profile and mortgage insurance terms.

Nick Nagy runs both options on the same file before recommending one, rather than defaulting to whichever program is easier to explain.

A buyer with a stronger credit profile often leans conventional once the numbers are laid out side by side, while a buyer whose credit is still building often leans FHA.

Check my FHA options 237 lenders, one file, no second application.
Files like these

Three files, and what changed the answer

A buyer with a smaller down payment in Menifee

A buyer has enough saved for a smaller down payment but not a full 20 percent. An FHA file gets structured around the 3.5 percent minimum, per HUD.

A buyer purchasing a duplex to house hack

A buyer wants to purchase a 1 to 4 unit property and live in one unit. FHA allows this, and the file gets structured to account for rental income from the other units.

A buyer combining FHA with a CalHFA junior loan

A buyer’s FHA file gets paired with California’s MyHome Assistance Program to cover part of the down payment, subject to CalHFA’s own eligibility rules.

None of these is a promise about your file. They are shapes. The number on your own file comes from running it, which is the point of the form on this page.

Where it goes wrong

The mistakes, and none of them is the buyer

More about Nick

The rest of the Nick Nagy pages

Every question on the desk sits at the California Mortgage Answer Desk. Run your own numbers at nickfunds.com.
Nick Nagy, mortgage loan originator, Loan Factory, Inc.
Who answers

Nick Nagy

23 years in California lending · NMLS 314880 · CA DRE 01444600 · Loan Factory, Inc.

Dual licensed, so the loan side and the real estate side of a move get looked at as one problem instead of two. Most of what goes wrong in a move is a timing problem wearing a financing costume, and it is cheaper to catch it before you write an offer than after.

Financing is placed through Loan Factory, Inc. Real estate work is under CA DRE 01444600. More about Nick.
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The desk behind the file

One file, 237 lenders competing for it, and a broker who has done this for 23 years.

Loan Factory, Inc. is the brokerage. These are its published figures.

20,907+Loan Factory Google reviews
5.0Loan Factory average rating
237Lenders available through Loan Factory
48States Loan Factory is licensed in

A retail bank has one guideline book. A broker shops the same file across the shelf and finds the lender whose box it already fits.

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Straight answers

Questions people here actually ask

The follow-on questions, answered in the order they get asked.

Does Nick Nagy do FHA loans?

Yes. Nick Nagy structures FHA loans for California buyers through Loan Factory, Inc., a broker with 237 lenders.

What is FHA’s minimum down payment?

FHA allows a down payment as low as 3.5 percent of the purchase price, per HUD, read September 6, 2026.

Can FHA be used on a duplex or fourplex?

Yes. FHA is available on properties with 1 to 4 units, not only a single-family home, per HUD.

Can FHA be paired with down payment assistance in California?

Yes. California’s MyHome Assistance Program offers eligible FHA buyers a deferred junior loan up to 3.5 percent of the purchase price or appraised value, per CalHFA.

Does FHA carry mortgage insurance?

FHA carries mortgage insurance for most of the loan term. How that applies to your file depends on your specific loan terms.

Ask a question that is not on this page
The person, not a call center

Talk to Nick Nagy directly

Text 916-805-1933, or send the situation through the form below. I read every one myself.

Mortgage loan originator, NMLS 314880, and licensed real estate salesperson, CA DRE 01444600, both under Loan Factory, Inc. 20,907+ Google reviews · 5.0 average · 237 lenders, the company's own published figures.

Text Nick at 916-805-1933 Or use the form below. No credit pull to start.
Your own file

Ask Nick directly, not a call center

Tell me the situation in plain English. If your file changes anything on this page, I will run it on your actual numbers. Private, no obligation, and nothing is published or shared.

    What happens after you send it
  1. You send the situation. Your question, a number to reach you, and one line about where you are. No credit pull, no documents, nothing published.
  2. Nick reads it himself. Your file goes against the programs that apply, shopped across 237 lenders through Loan Factory, not one bank's guideline book.
  3. You get the number and keep it. A straight answer on what your file supports and what it does not. If waiting is the better move, that is the answer you get, and the numbers are yours either way.
Where are you right now?

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FHA loan basics at HUD.gov www.hud.gov/helping-americans/loans