FHA Loans in California: 2026 Requirements & Limits

An FHA loan in California requires 3.5% down with a 580+ credit score (or 10% down with 500–579), is insured by the Federal Housing Administration, and in 2026 can go up to $1,249,125 for a single-family home in the state’s highest-cost counties. It’s usually the easiest loan to qualify for if your credit is in the 500s or 600s or your debt-to-income ratio is high.

I’m Michael DiVita (DRE #01372066 | NMLS #241655), owner of DiVita Home Finance (DRE #01818285 | NMLS #323700) in Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. I’m known as a creative mortgage broker: when a bank says no, I find the lender and the loan structure that can say yes. FHA is one of the most useful tools I have for first-time buyers and for buyers the bank turned down. Call (800) 239-1103.

FHA Loan Requirements in California (2026)

Requirement	FHA guideline	Notes
Credit score	580+ for 3.5% down; 500–579 for 10% down	Many lenders add overlays (often 600–620); as a broker I can shop lenders that go to FHA’s minimums
Down payment	3.5% or 10%	Can be 100% gifted by an eligible donor, or come from approved assistance programs
Debt-to-income	Set by automated underwriting	Automated approvals often reach the mid-50s; manually underwritten loans are held to lower ratios
Employment	Generally a 2-year history	Self-employed borrowers typically need 2 years of tax returns
Occupancy	Primary residence	Move in within 60 days; 1–4 units allowed
Residency	U.S. citizen or lawful permanent resident	Non-permanent residents became ineligible for new FHA case numbers on or after May 25, 2025
Property	Must meet FHA minimum property standards	The FHA appraisal flags safety and soundness issues
Seller concessions	Up to 6% of the sales price	Toward closing costs, prepaids and buydowns

2026 FHA Loan Limits in California

HUD sets FHA limits for each county. For 2026, the national floor is $541,287 and the high-cost ceiling is $1,249,125 for a single-family home — the same ceiling as the conforming limit.

County	1-Unit	2-Unit	3-Unit	4-Unit
Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Clara, Santa Cruz	$1,249,125	$1,599,375	$1,933,200	$2,402,625
San Diego	$1,104,000	$1,413,350	$1,708,400	$2,123,100
Ventura	$1,035,000	$1,325,000	$1,601,600	$1,990,450
Napa	$1,017,750	$1,302,900	$1,574,900	$1,957,250
San Luis Obispo	$1,000,500	$1,280,850	$1,548,250	$1,924,100
Monterey	$994,750	$1,273,450	$1,539,350	$1,913,000
Santa Barbara	$941,850	$1,205,750	$1,457,450	$1,811,300
Sonoma	$897,000	$1,148,350	$1,388,050	$1,725,050
Sacramento, Placer, El Dorado, Yolo	$764,750	$979,000	$1,183,400	$1,470,700
Riverside, San Bernardino	$690,000	$883,300	$1,067,750	$1,326,950
Solano	$685,400	$877,450	$1,060,600	$1,318,100
San Joaquin	$678,500	$868,600	$1,049,950	$1,304,850
Stanislaus	$545,100	$697,800	$843,500	$1,048,300
Fresno, Kern, Tulare, Merced, Kings, Madera, Butte, Shasta and other floor counties	$541,287	$693,050	$837,700	$1,041,125

Source: HUD Mortgagee Letter 2025-23 and HUD’s FHA limits lookup. A few smaller counties (Mono, Alpine, Nevada, Mendocino) have their own figures. For how these compare with conforming limits county by county, see my FHA vs. conforming limits guide.

The limit applies to the loan amount, not the price. Buying above the limit is fine if you put enough down to bring the loan under it — for example, a $1,350,000 Marin purchase needs about $100,875 down to fit the $1,249,125 limit.

FHA Mortgage Insurance (MIP)

• Upfront premium: 1.75% of the base loan, usually financed.
• Annual premium (30-year loans): 0.55% for most borrowers with less than 5% down; 0.50% with 5% or more down. On base loans above $726,200 it’s 0.75% and 0.70%. Fifteen-year loans have lower rates.
• How long it lasts: for the life of the loan with less than 10% down; 11 years with 10% or more down.

Example: a $700,000 purchase with 3.5% down is a $675,500 base loan. The upfront premium is about $11,821, and the 0.55% annual premium starts around $310 a month. The usual way out of MIP is to refinance into a conventional loan once you have about 20% equity.

FHA vs. Conventional: Which Is Cheaper for You?

Factor	FHA	Conventional
Minimum credit	580 for 3.5% down (500 with 10%)	About 620 at most lenders
Minimum down	3.5%	3% (first-time buyer or income-eligible)
Mortgage insurance	Upfront 1.75% plus annual MIP; life of loan with under 10% down	Monthly PMI; removable at 78–80% of original value
Credit sensitivity	Pricing changes little with score	PMI and rate get much cheaper with higher scores
Seller concessions	Up to 6%	3%, 6% or 9% depending on down payment
Chapter 7 bankruptcy wait	2 years from discharge	4 years
Foreclosure wait	3 years	7 years

My rule of thumb: with credit in the 500s or 600s, a high debt ratio or a recent credit event, FHA is often the better (or only) option. Around 700 and up, conventional usually wins because PMI is cheaper and it goes away. In between, I price both on the same day and compare total cost over the years you expect to keep the loan.

FHA Condos in California

A condo must be in an FHA-approved project, or the unit must qualify for FHA’s Single-Unit Approval. Many California associations aren’t on the list, and approvals expire. Associations with deferred maintenance or incomplete balcony inspections under SB 326 can be harder to approve. I check the project before you write an offer.

FHA on 2–4 Units

You can buy a duplex, triplex or fourplex with 3.5% down if you live in one unit. Projected rent from the other units can help you qualify, and 3- and 4-unit properties must also pass FHA’s self-sufficiency test (75% of the rent must cover the full housing payment). In the $1,249,125 counties, FHA’s 4-unit limit is $2,402,625 — one of the few ways to buy income property in the Bay Area with a small down payment.

FHA 203(k) Renovation Loans

FHA’s 203(k) program rolls the purchase and the cost of repairs into one loan, which helps with fixers that wouldn’t pass a standard FHA appraisal. See my renovation loan guide for how it compares with conventional options.

Down Payment Assistance with FHA

• CalHFA MyHome Assistance: a deferred-payment second loan of up to 3.5% of the price with a CalHFA FHA first mortgage. First-time buyers only, with income limits.
• CalHFA Dream For All: a shared-appreciation second loan offered in limited funding rounds; check current availability on my Dream For All page.
• Local programs: many California cities and counties offer their own assistance that can pair with FHA.

Local Notes

• Orange County and Los Angeles: at the $1,249,125 limit, FHA covers a large share of entry-level and mid-market homes and condos. Condo approval is usually the deciding issue.
• Sacramento region: the FHA limit is $764,750 versus $832,750 for conforming, so buyers between those prices need a larger down payment for FHA or should use conventional.
• San Diego: $1,104,000. Veterans should compare FHA with a VA loan, which is usually better.
• Marin (Novato, San Rafael): FHA works well on condos and townhomes under $1,249,125; above that, see my Marin mortgage guide for jumbo and creative options.

Frequently Asked Questions

What is the minimum credit score for an FHA loan in California?

FHA allows 580 for 3.5% down and 500–579 with 10% down. Many lenders set higher minimums, often 600 to 620, so it matters which lender you use. As a broker I can place your file with a lender whose guidelines fit.

What is the FHA loan limit in California for 2026?

It ranges from $541,287 in lower-cost counties to $1,249,125 in high-cost counties such as San Francisco, Marin, San Mateo, Santa Clara, Alameda, Contra Costa, Los Angeles and Orange. San Diego is $1,104,000 and Sacramento is $764,750.

Does FHA mortgage insurance ever go away?

With 10% or more down, annual MIP ends after 11 years. With less than 10% down, it lasts for the life of the loan. Most borrowers remove it by refinancing into a conventional loan once they have about 20% equity.

Can my whole down payment be a gift?

Yes. FHA allows the entire down payment to come from an eligible gift, such as from a family member, with proper documentation. Approved down payment assistance programs can also be used.

Can I use FHA to buy a condo?

Yes, if the project is FHA-approved or the unit qualifies for FHA’s Single-Unit Approval. Check before making an offer, because many California condo projects aren’t approved.

Can self-employed borrowers get FHA loans?

Yes. You’ll generally need two years of personal and business tax returns and a year-to-date profit and loss statement, with stable or rising income. If your tax returns don’t show enough income, a bank statement loan may be the better route.

How long does an FHA loan take to close?

Typically about 30 days with complete documentation, depending on the appraisal and any repairs it requires.

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