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.
Yes, California buyers can get an FHA loan with just 3.5% down and a credit score as low as 580, and FHA limits reach $1,249,125 in high-cost counties like San Francisco, LA, and Orange, making FHA viable even in expensive markets. FHA pairs with CalHFA assistance, and through our own FHA grant, eligible buyers can cover the down payment with no repayment. As a broker licensed in California (CA-DRE #01408122) with access to 240+ wholesale lenders, I match buyers to the FHA structure and assistance that fit. Explore the national FHA program, learn about manual underwriting for tricky files, or compare California conventional loans.
What are today's FHA rates in California?
Today’s 30-Year Fixed FHA Rate
FHA – Primary Residence
Rate Assumptions
30 year fixed, $300k loan amount, $400k value, purchase, FICO Credit Score 759, Zipcode 95111
APR & Disclosures
The Annual Percentage Rate (APR) shown reflects the cost of credit over the loan term, including applicable fees, and is based on the assumptions above. Your actual rate and APR depend on your credit profile, loan amount, property, occupancy, and other factors. For information purposes only and does not constitute a loan approval or commitment to lend. Rates are subject to change without notice.
Can you buy a home in California with no down payment using an FHA loan?
Our FHA Down Payment Grant — No Repayment
Yes, for eligible borrowers. FHA loans normally require 3.5% down, but our down payment assistance grant covers it entirely, either 2% or 3.5% of the purchase price, with no repayment and no second lien on your home. It is a true grant, not a loan you pay back later, so for many California buyers it means bringing no money to the table for the down payment.
The grant is available to a wide range of California buyers. You may qualify if your income is at or below 140% of your area's median, or if you are a first-time buyer, first responder, educator, medical professional, civil servant, or military member, or if the home is in an underserved area. A 620 credit score and a short homebuyer education course are required, and the grant works on standard FHA purchases as well as FHA renovation loans. This is different from CalHFA's MyHome and ZIP assistance, which are deferred junior loans repaid later; our grant never has to be paid back.
What are the FHA loan limits in California for 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 do 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.
What down payment assistance can you pair with an FHA loan in California?
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
Estimate Your FHA Payment
See your complete FHA payment—including both parts of mortgage insurance—and how your down payment changes the math over time.
Understanding your FHA payment
An FHA payment has a piece conventional and VA loans don't: mortgage insurance, and it comes in two parts. The upfront premium is a one-time charge of a percentage of your loan amount, almost always rolled into the loan rather than paid at closing, which is why the total loan above can exceed your purchase price. The annual premium is charged monthly and appears as its own line in the breakdown.
The 11-year rule, and why your down payment matters more than you'd think
Here's the part that changes the math over time. If you put less than 10% down, FHA mortgage insurance stays on the loan for as long as you have it. It doesn't fall off at 20% equity the way conventional PMI does. If you put 10% or more down, it drops off after 11 years.
That's a meaningful long-term difference, and it's worth modeling both ways above if you have the savings to reach 10%. It also means FHA isn't automatically the cheaper option just because the down payment is lower. For a buyer with solid credit and some savings, a conventional loan with removable PMI often costs less over the years you actually hold the loan, even though it asks for more up front. I run that comparison for every borrower who could qualify either way, because the right answer genuinely differs by situation.
FHA loan limits are set by county
FHA limits vary county by county, and they're lower than conforming limits in most places. If your loan amount exceeds your county's FHA limit, FHA isn't available for that purchase and you'd be looking at conventional or jumbo financing. The calculator flags this automatically when it happens.
What this calculator doesn't include
It covers principal, interest, mortgage insurance, property taxes, homeowners insurance, and HOA dues. It doesn't include title, escrow, appraisal, recording, or prepaid costs, which vary by state and transaction, and it uses the rate you enter rather than one you've been quoted. Use it for the monthly number, then let me run your actual scenario.
California FHA Loan FAQs
Does FHA mortgage insurance ever go away?
It depends entirely on your down payment. Under 10% down, it stays for the life of the loan. At 10% or more down, it drops off after 11 years. Unlike conventional PMI, it does not automatically cancel when you reach 20% equity, which is one of the most misunderstood parts of FHA financing.
Is FHA cheaper than conventional?
Not always. FHA gets you in with less money down and more flexible credit, but its mortgage insurance is more expensive long-term and often permanent. For a buyer with good credit and 5% or more saved, conventional frequently wins on total cost. It's worth running both before you decide, and I'll do that for you.
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.
Explore More California Loan Options
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Emmett Clark | CA-DRE #01408122
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From the blog & learning center
FHA Loan Guides & Articles
What 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
Can I get approved through manual underwriting when the AUS says no?
Yes, manual underwriting is a real second path to approval when the automated system returns a refer or a denial, on the condition that you have compensating factors strong enough to offset whatever the software flagged.
Read more
Down Payment Assistance Programs by State
Most states offer some form of down payment assistance, and many buyers qualify without realizing it.
Read more