California FHA Loans 2026
FHA loans offer California homebuyers a path to homeownership with just 3.5% down payment and flexible credit requirements. With loan limits up to $1,249,125 in high-cost areas, FHA financing works for everything from starter homes to Bay Area properties.
California FHA Loan Limits by County (2026)
FHA loan limits in California vary significantly by county. Most coastal and metro areas qualify for the maximum high-cost limit, while inland counties have standard limits.
| County / Metro Area | 2026 FHA Limit | Classification |
|---|---|---|
San Francisco | $1,249,125 | High-Cost |
Santa Clara (San Jose) | $1,249,125 | High-Cost |
Los Angeles | $1,249,125 | High-Cost |
Orange County | $1,249,125 | High-Cost |
San Diego | $1,104,000 | High-Cost |
Alameda (Oakland) | $1,249,125 | High-Cost |
San Mateo | $1,249,125 | High-Cost |
Contra Costa | $1,249,125 | High-Cost |
Sacramento | $764,750 | High-Cost |
Riverside | $690,000 | High-Cost |
Verified as of July 2026 (FHFA/HUD)
Note: FHA loan limits are set by HUD and updated annually. The limits shown are for single-family residences. Higher limits apply for 2-4 unit properties. Learn more about FHA loan requirements →
Why California Buyers Choose FHA Loans
Low Down Payment
Just 3.5% down on a $700,000 home = $24,500. Compare to 20% conventional ($140,000). FHA makes California homeownership achievable.
Flexible Credit Standards
Credit score as low as 580 for 3.5% down. More forgiving of past credit issues like bankruptcies (2+ years) and foreclosures (3+ years).
High-Cost Area Limits
FHA limits up to $1,249,125 in SF, LA, and Bay Area counties mean FHA works for California's expensive markets.
Gift Funds Allowed
100% of your down payment can come from family gift funds. No minimum borrower contribution required for FHA loans.
Higher DTI Allowed
FHA allows debt-to-income ratios up to 50% with compensating factors. More flexibility for California's high housing costs.
DPA Compatible
FHA loans work with CalHFA and county down payment assistance programs. Stack programs for maximum savings.
California FHA Down Payment Assistance Programs
Combine FHA financing with state and local assistance to reduce your out-of-pocket costs.
CalHFA MyHome Assistance Program
Up to 3.5% of purchase price as a deferred-payment junior loan. Covers your entire FHA down payment.
- No monthly payments until sale/refinance
- Works with FHA, VA, USDA loans
- First-time buyer requirement
CalHFA Zero Interest Program (ZIP)
Up to 3% of loan amount at 0% interest, deferred until sale or refinance.
- Zero interest rate
- Can combine with MyHome
- Income limits apply by county
Calculate Your California FHA Payment
Use our FHA mortgage calculator to see your estimated monthly payment including mortgage insurance.
California FHA Loan FAQs
What is the FHA loan limit in California for 2026?
California FHA loan limits for 2026 range from $541,287 in standard counties to $1,249,125 in high-cost areas like San Francisco, Los Angeles, and Orange County. Most Bay Area and Southern California metro counties have the maximum limit.
What credit score do I need for an FHA loan in California?
For a California FHA loan, you need a minimum credit score of 580 for 3.5% down payment, or 500-579 for 10% down. However, many lenders prefer scores of 620+ for better rates and easier approval.
How much is FHA mortgage insurance in California?
FHA mortgage insurance in California includes an upfront premium of 1.75% of the loan amount (can be financed) plus annual MIP of 0.55% for most loans. For a $600,000 loan, this equals approximately $275/month in mortgage insurance.
Can I combine FHA with California down payment assistance?
Yes! California offers several FHA-compatible down payment assistance programs including CalHFA MyHome Assistance (up to 3.5% as a silent second), CalHFA ZIP (zero interest program), and various county-specific programs in LA, San Diego, and the Bay Area.
Still weighing FHA against a conventional loan for your California purchase? Our ultimate 2026 guide to conventional vs. FHA loans compares down payments, mortgage insurance, and long-term costs side by side so you can choose with confidence.
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From the blog & learning center
FHA Loan Guides & Articles
Gift Funds: The Rules for Down Payment Gifts
A family member can give you money for your down payment, and on most loan types the entire down payment can be a gift. The key rules: it has to be a true gift with no repayment expected, it must come from an acceptable source, and it has to be documented with a gift letter and a clear paper trail.
Read moreSeller Concessions: How Much Can the Seller Pay?
A seller concession is when the seller agrees to pay part of your closing costs as a term of the sale. It's a legitimate, common way to reduce your cash to close, and depending on the loan type and your down payment, a seller can contribute anywhere from 2% to 9% of the purchase price toward your costs.
Read moreWhat Credit Score Do You Need for Each Loan Type?
The minimum credit score depends entirely on the loan program: FHA goes as low as 500-580, VA and USDA have no federal minimum (lenders typically want 580-640), conventional generally starts around 620, and jumbo loans want 700 or higher. Here's the breakdown by program.
Read more
How to Buy a House With Bad Credit
You can buy a house with bad credit, it just takes the right loan program and some strategy. FHA loans accept scores as low as 500, and there are concrete steps to strengthen your application even when your credit isn't where you'd like it.
Read more
FHA Loans Plus a Down Payment Grant: How Little You Can Actually Bring to Closing
Combining an FHA loan with a down payment assistance grant can reduce what you bring to closing to as little as 0% to 1% of the purchase price, nationwide, not just in select states.
Read more
Can I buy a house after a recent late payment, collection, or charge-off?
Yes, you can often buy a home soon after a late payment, a collection, or a charge-off, as long as the rest of your file is strong and you can explain the event, because none of these carry a fixed waiting period the way a bankruptcy or foreclosure does.
Read more