An FHA loan in California requires a minimum 580 credit score with 3.5% down payment, or 500–579 with 10% down — and is insured by the Federal Housing Administration, making it easier to qualify than conventional loans, with 2026 loan limits up to $1,209,750 in Bay Area counties.
FHA loans in California make homeownership accessible to buyers who don’t have a 20% down payment or perfect credit. Backed by the Federal Housing Administration, FHA mortgages offer lower down payment requirements, more flexible credit guidelines, and some of the most competitive rates available — including in California’s highest-cost counties.
2026 FHA Loan Limits in California
FHA loan limits increased in 2026. California’s high-cost counties qualify for the maximum FHA limit:
| County Type | 1-Unit Limit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| High-cost CA counties | $1,209,750 | $1,548,975 | $1,872,225 | $2,326,875 |
| Baseline CA counties | $806,500 | $1,032,650 | $1,248,150 | $1,551,250 |
High-cost counties (max limit): San Francisco, Marin, San Mateo, Santa Clara, Alameda, Contra Costa, Los Angeles, Orange, San Diego, Ventura, Napa, Sonoma, Santa Barbara, Santa Cruz, Monterey, San Luis Obispo
Baseline counties: Sacramento, Riverside, San Bernardino, Fresno, Kern, Tulare, San Joaquin, Stanislaus
FHA Loan Requirements in California 2026
| Requirement | Minimum | Notes |
|---|---|---|
| Down Payment | 3.5% | With 580+ credit score |
| Down Payment (lower credit) | 10% | With 500–579 credit score |
| Credit Score | 500 | 580+ for 3.5% down |
| Debt-to-Income | Up to 57% | With strong compensating factors |
| Employment History | 2 years | Same field; gaps may be OK |
| Property Type | Primary residence | Must occupy within 60 days |
FHA Mortgage Insurance in California 2026
FHA loans require two types of mortgage insurance:
- Upfront MIP (UFMIP): 1.75% of the loan amount, added to your loan balance at closing
- Annual MIP: 0.55% for most loans (30-year, <$726,200, 3.5% down) paid monthly
Important: If you put less than 10% down, FHA mortgage insurance stays for the life of the loan. If you put 10%+ down, it cancels after 11 years. This is a key reason buyers with 620+ credit scores often do better with a conventional loan where PMI cancels at 20% equity.
FHA vs. Conventional: Which Is Right for You?
| Factor | FHA Loan | Conventional |
|---|---|---|
| Min. Credit Score | 500 (580 for 3.5% down) | 620 |
| Min. Down Payment | 3.5% | 3% (first-time buyers) |
| MI Cancellation | Life of loan (<10% down) | At 20% equity |
| Upfront Cost | 1.75% UFMIP | None |
| Max DTI | 57% with factors | 50% automated |
| Loan Limit (high-cost CA) | $1,209,750 | $1,249,125 |
| Seller Concessions | Up to 6% | 3%–9% by LTV |
Rule of thumb: If your credit score is 620 or above and you can put 3% down, a conventional loan is usually cheaper long-term. If your score is below 620 or your DTI is above 50%, FHA is typically your best path.
FHA Down Payment Assistance in California
FHA loans can be paired with California down payment assistance programs:
- CalHFA MyHome: Silent second loan up to 3.5% for FHA down payment — effectively covers your entire 3.5% requirement
- CalHFA Dream For All: Shared appreciation loan up to 20% (check current availability)
- Local city/county DPA programs: Many California cities offer additional assistance layered on top of FHA + CalHFA
FHA Loan FAQs — California
What is the minimum credit score for an FHA loan in California?
The FHA minimum credit score is 500. With a score of 500–579, you need 10% down. With a score of 580 or higher, you qualify for the minimum 3.5% down payment. DiVita Home Finance works with FHA borrowers down to 580.
What is the FHA loan limit in California in 2026?
In 2026, the FHA loan limit in California’s high-cost counties (including San Francisco, Los Angeles, San Diego, Orange County, Marin, and most Bay Area counties) is $1,209,750 for a single-family home. Baseline counties have a limit of $806,500.
Does FHA mortgage insurance ever go away in California?
FHA annual MIP cancels after 11 years if you put 10% or more down. If you put less than 10% down, FHA mortgage insurance stays for the life of the loan. Many buyers later refinance to a conventional loan once they reach 20% equity to eliminate MIP.
Can I use an FHA loan to buy a multi-unit property in California?
Yes. FHA loans in California can be used for 1–4 unit properties as long as you occupy one unit as your primary residence. The 4-unit FHA limit in high-cost California counties reaches $2,326,875 in 2026 — making FHA an excellent house-hacking tool.
Apply for an FHA Loan in California
DiVita Home Finance has helped thousands of California buyers qualify for FHA loans — including first-time buyers, buyers with past credit challenges, and buyers using CalHFA down payment assistance. We’ll compare FHA vs. conventional for your specific situation and find the cheapest path to homeownership.
Apply online today or call 800-239-1103.
Related Resources
- 2026 FHA vs Conforming Loan Limits California
- 3% Down with a Conforming Loan — HomeReady & Home Possible
- Down Payment Assistance Programs California 2026
- First-Time Homebuyer Programs California 2026
- 2026 Conforming Loan Limits California
2026 FHA Loan Limits in California by County
The Federal Housing Finance Agency sets FHA loan limits annually. California’s high home prices mean most counties qualify for elevated limits.
| Region / County | Single-Family | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| San Francisco, Marin, San Mateo | $1,209,750 | $1,548,975 | $1,872,225 | $2,326,875 |
| Alameda, Contra Costa | $1,209,750 | $1,548,975 | $1,872,225 | $2,326,875 |
| Santa Clara, Santa Cruz | $1,209,750 | $1,548,975 | $1,872,225 | $2,326,875 |
| Los Angeles, Orange | $1,209,750 | $1,548,975 | $1,872,225 | $2,326,875 |
| San Diego | $1,006,250 | $1,288,200 | $1,557,000 | $1,935,150 |
| Sacramento, El Dorado, Placer | $763,600 | $977,575 | $1,181,650 | $1,468,500 |
| Riverside, San Bernardino | $644,000 | $824,450 | $996,550 | $1,238,500 |
| Fresno, Kern, Tulare | $524,225 | $671,200 | $811,275 | $1,008,300 |
FHA Loan Requirements in California — At a Glance
| Requirement | Minimum / Detail |
|---|---|
| Credit Score | 580+ for 3.5% down; 500–579 for 10% down |
| Down Payment | 3.5% (gifts allowed) |
| Debt-to-Income Ratio | Up to 57% with compensating factors |
| Employment History | 2 years same field; self-employed OK with 2-yr tax returns |
| Upfront MIP | 1.75% of loan amount (financed into loan) |
| Annual MIP | 0.55%–0.85% depending on LTV and term |
| Property Condition | Must meet FHA Minimum Property Standards (MPR) |
Frequently Asked Questions — FHA Loans in California
What credit score do I need for an FHA loan in California?
The minimum credit score for an FHA loan in California is 580 to qualify for the 3.5% down payment option. Borrowers with scores between 500 and 579 may still qualify but are required to put 10% down. DiVita Home Finance works with borrowers across the credit spectrum and can often help you reach the 580 threshold with a rapid rescore.
What is the FHA loan limit in California for 2026?
FHA loan limits in California vary by county. High-cost counties — including San Francisco, Marin, Los Angeles, Santa Clara, and Alameda — have a 2026 single-family limit of $1,209,750. San Diego County is $1,006,250. Lower-cost counties like Fresno start at $524,225 for single-family homes.
How much down payment is required for an FHA loan in California?
FHA loans require a minimum 3.5% down payment when your credit score is 580 or higher. On a $800,000 home, that’s $28,000. Down payment funds can come from your savings, a gift from family, or down payment assistance programs like CalHFA.
Can I use an FHA loan to buy a condo in California?
Yes — if the condo project is FHA-approved. California has thousands of approved condo complexes. Note that SB 326 inspection compliance may affect FHA eligibility for some HOAs. DiVita Home Finance can quickly check whether your target condo qualifies before you make an offer.
Is FHA mortgage insurance permanent in California?
FHA mortgage insurance (MIP) stays for the life of the loan if your down payment is less than 10%. If you put 10% or more down, MIP cancels after 11 years. Many California borrowers use FHA to buy with 3.5% down and refinance to a conventional loan once they have 20% equity to eliminate MIP.
How long does FHA loan approval take in California?
With full documentation submitted upfront, FHA approval in California typically takes 21–30 days from application to closing. Complex self-employed files may take 30–45 days. DiVita Home Finance pre-underwrites your file before issuing a pre-approval letter, which can significantly reduce surprises at the closing table.
Can self-employed borrowers get FHA loans in California?
Yes. Self-employed borrowers need two years of personal and business tax returns, a year-to-date profit and loss statement, and consistent or increasing income across the two-year period. California’s large population of freelancers, gig workers, and small business owners makes this a common FHA scenario.
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
