FHA Home Loans in California
California is where FHA’s high-cost limits matter most: $1,249,125 in Los Angeles, Orange, the Bay Area counties and San Benito, $1,104,000 in San Diego, and more than $900,000 across the Central Coast and wine country. With 3.5 percent down and a 580 credit score, FHA is often the only loan that fits a first purchase here. We hold a California DFPI Financing Law License and are licensed statewide, in all 58 counties.
California DFPI Financing Law License 60DBO-117390. NMLS #1925352.
FHA in California, 2026
Los Angeles, Orange, Bay Area counties
$1,249,125
San Diego
$1,104,000
Much of the Central Valley
$541,287
Down payment
3.5% with a 580 score
Closing
Escrow company; funds release when the deed records
$1,249,125
FHA limit in California’s coastal high-cost counties
3.5%
Down payment from a 580 credit score
58
California counties, licensed statewide
4.9
Average of 5,300+ Google reviews
Why FHA does more work in California than anywhere else.
In most states FHA is a starter-home loan. In California it is a $1 million loan with 3.5 percent down, because HUD sets limits from local prices and the coastal counties sit at the national ceiling of $1,249,125. A buyer in Long Beach, Santa Clara or Oakland with a 640 score, a solid income and $40,000 saved can often qualify for FHA where a conventional loan would want twice the down payment. San Diego County is at $1,104,000, Ventura, Napa, San Luis Obispo, Monterey, Santa Barbara and Sonoma run between $897,000 and $1,035,000, and much of the Central Valley sits at the floor of $541,287.
California adds its own layers. Closings run through an escrow company, and funds release when the deed records. The county charges a documentary transfer tax of $1.10 per $1,000, customarily paid by the seller, and cities such as Los Angeles, San Francisco and Oakland add their own. Property taxes reset to about 1 percent of the purchase price plus local assessments under Proposition 13, and a supplemental bill follows the purchase. And in wildfire zones, a bound homeowners policy, sometimes through the FAIR Plan, has to be in place before the loan can fund.
This page covers FHA as it works in California. For the state as a whole, including closing customs and every loan we offer here, see our California page; for the program itself, see the FHA hub. Veterans should read VA loans in California first; with Camp Pendleton, San Diego, Twentynine Palms, Edwards, Vandenberg, Travis and Lemoore, many California FHA applicants qualify for the better program.
Three ways to use FHA in California.
Buying, lowering the payment on an FHA loan you already have, or pulling equity out. Each one closes through escrow.
Buying
FHA purchase
3.5 percent down from a 580 score, or 10 percent from 500, with a documented gift from family allowed for the down payment. Sellers can pay up to 6 percent of the price toward closing costs, which in California can cover escrow fees, the lender’s title policy and prepaid taxes and insurance.
Lower payment
FHA Streamline refinance
Replace an existing FHA loan at a lower rate with no appraisal and, in most cases, no income verification, as long as the new loan passes HUD’s net tangible benefit test. California charges no tax on the new mortgage, so the costs are the lender’s, the escrow company’s and the upfront premium.
Use equity
FHA cash-out refinance
Borrow up to 80 percent of the home’s value and take the difference in cash on FHA credit terms. With California’s equity levels, owners use it for an ADU, a renovation or debt consolidation.
FHA rules, and how they play out in California.
HUD sets the program rules; lenders add overlays; California adds the escrow, the transfer taxes and Proposition 13. Your pro tells you where your file lands. The loan limits on this page are HUD’s 2026 figures; they vary by county and unit count and are updated each year.
| Item | FHA rule | In California |
|---|---|---|
| Minimum down payment | 3.5% with a 580 credit score; 10% from 500 to 579 | A documented gift from family can supply all of it |
| Upfront mortgage insurance | 1.75% of the loan, usually financed into it | Financed into the loan; California charges no tax on the mortgage, so financing it costs nothing extra at closing |
| Annual mortgage insurance | 0.55% a year on a 30-year loan with less than 5% down (0.50% with 5% or more); for the life of the loan below 10% down, 11 years otherwise | Escrowed monthly with property taxes at about 1 percent of the purchase price plus local assessments, and homeowners insurance, which in wildfire zones can be the largest line |
| Debt-to-income ratio | Up to about 50% with compensating factors | HOA dues on condos and planned communities count in the ratio and are high in coastal counties; we ask for them on the first call |
| Down payment source | Savings or documented gift funds from family | Gift funds need a gift letter and a paper trail before closing |
| Seller contributions | Up to 6% of the price toward closing costs | The seller customarily pays the county transfer tax and, in Southern California, the owner’s title policy; in Northern California the buyer often pays title, so concessions matter more there |
The 2026 one-unit FHA limit is $1,249,125 in Los Angeles, Orange, San Francisco, San Mateo, Santa Clara, Alameda, Contra Costa, Marin and San Benito counties; $1,104,000 in San Diego; between $897,000 and $1,035,000 in Ventura, Napa, San Luis Obispo, Monterey, Santa Barbara and Sonoma; and the national floor of $541,287 in much of the Central Valley. Your pro checks the county you are buying in.
What FHA’s $1,249,125 ceiling means in a coastal county.
With 3.5 percent down, a $1,249,125 FHA loan supports a purchase price of about $1,294,000 before the upfront mortgage insurance is financed. That covers a large share of the single-family market in Los Angeles, Orange and the East Bay and a meaningful share in Santa Clara and San Mateo, where conventional buyers routinely put down 20 percent or more. The trade-off is mortgage insurance: on a loan this size the annual premium is a real line in the payment, and it stays for the life of the loan with less than 10 percent down.
Two- to four-unit limits are higher still, which makes FHA a common route to a duplex or triplex in Los Angeles, Oakland or San Diego, where rent from the other units can count toward qualifying and the owner-occupied unit gets FHA’s low down payment.
Statewide, remotely
FHA loans closed through a California escrow office near you, wherever in the state the home is.
Six California details that decide an FHA approval.
None of these are in the national FHA guide. All of them come up on California files.
01
Condo approval and HOA dues
The building must be on HUD’s approved list or pass a single-unit approval, and the dues count in your debt ratio. Coastal HOAs can run several hundred dollars a month, which changes what you qualify for; we check the building before you offer.
02
Insurance in wildfire zones
A bound policy is required to fund. In high-risk areas the FAIR Plan plus a wrap policy may be the only option, and the premium is escrowed and counted in your qualifying payment, so we get a quote early.
03
Transfer taxes
The county charges $1.10 per $1,000, customarily paid by the seller. Cities add their own: Los Angeles, San Francisco, Oakland, Berkeley, San Jose and others, some tiered by price. Who pays is negotiable and written into the contract.
04
Proposition 13 and the supplemental bill
Your taxes reset to about 1 percent of the purchase price plus local assessments, not the seller’s old bill. A supplemental bill for the difference arrives after closing and is not in the escrow, so plan for it.
05
The FHA appraisal
FHA appraisers check condition as well as value: roof life, working systems, peeling paint on homes built before 1978, safety items. On older housing in Los Angeles and the Bay Area that often means the roof, the electrical and unpermitted additions; we tell sellers what to expect.
06
Mortgage insurance for life
With less than 10 percent down the annual premium stays for the life of the loan. The usual exit is a conventional refinance at 20 percent equity, which California’s price growth has delivered to many recent FHA buyers within a few years.
What would an FHA payment be in California?
Choose FHA as the loan type and set the down payment to 3.5 percent. Use about 1.2 percent for property tax, add insurance and any HOA dues; the mortgage insurance line is the cost you are weighing against buying now.
The U.S. FHA market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. FHA note rates often look lower than conventional, but mortgage insurance is part of the real payment, so compare the whole payment rather than the rate.
FHA 30-year fixed, U.S. average
7.18%
Conventional 30-year fixed, U.S. average
7.40%
VA 30-year fixed, U.S. average
7.09%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date.
How an FHA loan works with us in California.
Four steps, one licensed pro, and a closing through a California escrow office near you.
1
Check the fit
A short call about your credit, savings and where you are buying. We tell you whether FHA, a conventional 3 percent down loan or a VA loan is the better route, and what the county limit allows.
2
Pre-approval with real numbers
Income, assets and credit verified, with Proposition 13 taxes, insurance and HOA dues already in the payment.
3
Building and insurance checks
Condo approval confirmed, insurance quoted early in wildfire zones, and likely appraisal items flagged, so nothing stalls after you are under contract.
4
Close through escrow
Signing happens at a California escrow office near you or with a mobile notary. Funds release when the deed records.
Ready to see what FHA gets you in California?
A licensed pro quotes your FHA options with the county limit, taxes, insurance and HOA dues already in the numbers. Free, and it starts without a hard credit pull.
FHA in California, answered.
The questions California buyers ask us about FHA loans most. If yours is not here, a licensed pro will answer it directly, with no obligation.
What is the FHA loan limit in Los Angeles, the Bay Area and San Diego?
For 2026, $1,249,125 for a one-unit home in Los Angeles, Orange, San Francisco, San Mateo, Santa Clara, Alameda, Contra Costa, Marin and San Benito counties, the national ceiling. San Diego County is at $1,104,000. Ventura, Napa, San Luis Obispo, Monterey, Santa Barbara and Sonoma run between $897,000 and $1,035,000, and much of the Central Valley is at the floor of $541,287. Two- to four-unit limits are higher.
Can I really buy a $1 million home with 3.5 percent down?
In a county at the ceiling, yes, if your income and credit support the payment. A $1,249,125 FHA loan at 3.5 percent down supports a price of about $1,294,000. The payment includes FHA’s annual mortgage insurance, which on a loan that size is significant, so we show you the FHA payment beside a conventional one before you decide.
Will an FHA loan work on a California condo?
Only if the building qualifies: on HUD’s approved list or through a single-unit approval, which looks at reserves, insurance, owner-occupancy and litigation. The HOA dues also count in your debt ratio. We check the building before you are under contract.
How do property taxes work after I buy?
Under Proposition 13 your assessed value resets to the purchase price, so taxes run about 1 percent of the price plus local assessments and bonds, regardless of what the seller paid. A supplemental bill for the difference arrives a few months after closing and is not covered by your escrow, so plan for it. Taxes are due in two halves, November 1 and February 1.
Does the mortgage insurance ever go away?
With 10 percent or more down, after 11 years. With less than 10 percent down, no: it stays for the life of the loan. The usual exit is refinancing into a conventional loan once you have 20 percent equity, and we plan for that from the start.
Do I have to come to Michigan?
No. Your licensed pro handles the loan by phone, email and e-signature, and the closing runs through a California escrow office near you or with a mobile notary. Our California DFPI licence is what allows us to lend here.
Talk to a California-licensed pro about FHA.
Tell us what you are looking to do and where in California. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
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