FHA Loans with 520-580 Credit Score in Los Angeles
Big banks have overlays. We don't. We manually underwrite FHA loans down to 500 FICO when 99% of lenders won't touch you.
Joe Pisa
Founder & Senior Loan Officer
NMLS #139369
"If Rocket, Chase, or your local credit union just crushed your dreams because of your credit score, self-employed income, or because you want to count your Airbnb income — you're in the right place."
Hey, if Rocket, Chase, or your local credit union just crushed your dreams because of your credit score — you're in the right place. I'm Joe Shalaby, NMLS #139369. I've been doing this for 19 years, and last month alone we closed a $687k FHA purchase in Frisco TX with a 514 middle score. Los Angeles is one of our biggest markets because the median home price makes sense for our $300k-$2M sweet spot, and there are plenty of borrowers here who've been told 'no' by banks with ridiculous overlays.
Why We Close What Banks Deny
- We manually underwrite FHA loans down to 500 FICO — most lenders stop at 620 or even 640
- No overlays on credit scores, bankruptcy seasoning, or collections
- We understand LA's unique market — high prices, self-employed borrowers, complex income
- Close in as fast as 21 days when you need to move quickly
- Direct access to me — not a call center, not a junior processor
Recent Closings in Los Angeles, CA
These are real deals we closed. Banks denied them. We didn't.
FHA purchase — borrower had medical collections, denied by 3 banks
FHA refinance — manual underwrite, 2 years post-bankruptcy
FHA high-balance — self-employed with bank statements
FHA Loans Questions for Los Angeles, CA
Real questions we get daily — with straight answers
Can I get an FHA loan in Los Angeles with a 538 credit score?
Yes. We go down to 500 with manual underwriting. Most lenders stop at 620 because they have overlays. We don't.
What's the maximum FHA loan amount in Los Angeles County?
For 2025, the FHA high-balance limit in LA County is $1,149,825 for a single-family home. We do these all day.
How long after bankruptcy can I get an FHA loan?
Chapter 7: 2 years from discharge. Chapter 13: 1 year with court approval. We've closed both scenarios in LA.
Do you require tax returns for FHA loans?
For standard FHA, yes. But if you're self-employed, we can combine FHA with bank statement documentation in some cases, or switch you to a NON-QM product.
What's the minimum down payment for FHA in California?
3.5% down with a 580+ score. 10% down with 500-579. Gift funds are allowed for the entire down payment.
Can I have collections and still get approved?
Yes. Medical collections are ignored. Non-medical collections under $2,000 don't need to be paid. We know the guidelines inside and out.
NorthStar Funding is a licensed mortgage broker. NMLS #139369. Equal Housing Lender. All loans subject to credit approval. Rates and terms subject to change without notice.