Loan Programs · 7 min read
FHA Loans in California (2026): Requirements, Down Payment & Limits
An FHA loan lets California buyers purchase with as little as 3.5% down and a 580 credit score (or 10% down with a 500–579 score). For 2026, California's FHA loan limits run from a floor of $541,287 in lower-cost counties up to a $1,249,125 ceiling in high-cost counties like Los Angeles and Orange. FHA loans require mortgage insurance and must be used for a primary residence.
What are the FHA requirements in California for 2026?
| Down payment | 3.5% with 580+ FICO; 10% with 500–579 |
| Credit score | 580+ for 3.5% down |
| DTI | Generally up to ~43–50% with compensating factors |
| Occupancy | Primary residence only |
| Mortgage insurance | 1.75% upfront (UFMIP) + annual MIP |
See the full FHA loan program.
What are the 2026 FHA loan limits in California?
FHA limits are set county by county. For 2026 they range from the national floor of $541,287 in lower-cost counties to the ceiling of $1,249,125 in high-cost counties — including Los Angeles, Orange, San Francisco, San Mateo, and Santa Clara. San Diego and several other metros fall in a "between" tier near $1.1M. For the conventional side, see our conforming loan limits guide.
How does FHA mortgage insurance work?
FHA loans carry two insurance costs: a 1.75% upfront premium (UFMIP), usually financed into the loan, and an annual MIP paid monthly. With the minimum 3.5% down, MIP generally stays for the life of the loan — so many buyers later refinance into a conventional loan to drop it once they reach ~20% equity. Learn how to remove mortgage insurance.
FHA vs. conventional: which should you choose?
FHA wins for lower credit scores and small down payments; conventional wins if you have 5–20% down and good credit (its PMI is cancellable and can be cheaper). Veterans should compare a VA loan first. Use our mortgage calculator to compare real payments.
Frequently asked questions
What credit score do I need for an FHA loan in California?
580 or higher lets you put down the minimum 3.5%. Scores of 500–579 can still qualify but require 10% down. Higher scores improve your rate but don't change FHA's down-payment tiers.
What are the 2026 FHA loan limits in California?
They range from a floor of $541,287 in lower-cost counties to a ceiling of $1,249,125 in high-cost counties like Los Angeles and Orange. Many metros, including San Diego, sit in a middle tier. Confirm your specific county before making an offer.
Can I use an FHA loan for an investment property?
No — FHA loans are for primary residences only. However, you can buy a 2–4 unit property with 3.5% down, live in one unit, and rent the others ('house hacking'), which is FHA-eligible.
Does FHA mortgage insurance ever go away?
With the minimum 3.5% down, the annual MIP generally lasts the life of the loan. The common strategy is to build ~20% equity and refinance into a conventional loan to eliminate mortgage insurance.
About this guide: Save Financial is a California-licensed mortgage broker (NMLS #377740, DRE #01875766) serving all 58 counties. Get a custom quote or call 888-703-1840.