California loan guide · FHA

FHA loans, calculated clearly.

We explain California’s complete 2026 county limits, qualifying-score rules, mortgage-insurance math, closing funds, DTI, and special situations so you can ask better questions about your file.

Discuss a FHA scenario Review market context

Educational guidance only. Current agency, investor, and lender requirements may be stricter and a complete application controls eligibility.

At a glanceCalifornia · 2026

Down payment: 3.5%At a qualifying score of 580 or higher; 500–579 is limited to 90% LTV.
Lowest county limit: $541,287The most FHA will insure on a one-unit home in 28 California counties.
Highest county limit: $1,249,125The one-unit maximum in 10 high-cost counties.
Mortgage insurance: 1.75% UFMIPPlus annual MIP based on term, base loan and LTV.

01 · The definition

FHA insures the mortgage; it does not lend the money.

An FHA loan is made by an approved lender and insured through the Federal Housing Administration. The insurance framework supports a low minimum investment, but it also brings property, occupancy and mortgage-insurance rules.

FHA is not a first-time-homebuyer-only program. An eligible repeat buyer may use it too. The important questions are whether the new property will be a principal residence, whether existing FHA financing fits an exception, whether the property and transaction qualify, and whether the complete application receives an acceptable underwriting result.

FHA permits 96.5% maximum financing when the file’s qualifying score is 580 or higher, and 90% maximum LTV for a qualifying score from 500 through 579. A lender or investor may require a higher score after reviewing the complete file.

California adds another layer: FHA uses 58 county limits with three tiers. Ten counties use the $1,249,125 ceiling, 20 fall between the $541,287 floor and that ceiling, and 28 use the $541,287 floor. Those limits are not the same as FHFA’s conforming limits, even where the national ceiling happens to match.

02 · Requirements

Each requirement answers a different underwriting question.

A short checklist hides the parts that matter. Each requirement below explains what the number means and what the rest of the file still needs to show.

Credit score: the lowest borrower median controls

FHA calls this the minimum decision credit score (MDCS)—the single score it uses for your file: the middle of your three scores, the lower of two, or your only score. With co-borrowers, the lowest borrower’s qualifying score controls. At 580+, FHA permits 96.5% maximum financing; 500–579 is limited to 90% LTV; below 500 is ineligible. Lender rules may be stricter. Handbook

Down payment: 3.5% minimum required investment

A 96.5% maximum LTV creates a 3.5% MRI. Seller contributions cannot fund it; verified borrower funds or permitted gifts may. The 500–579 tier is capped at 90% LTV.

Income and employment: documented, not guessed

There is no single salary minimum or gross-income multiple that decides qualification. Underwriting weighs documented income and employment against debts and other obligations. Housing expense includes principal, interest, taxes, insurance, MIP and other applicable obligations.

Occupancy: move in within 60 days

The home is generally a principal residence, occupied within 60 days with intent to remain at least one year. FHA is not the ordinary second-home or investment-purchase path.

Property standards: collateral still has to qualify

The appraisal supports value and FHA property eligibility and may identify required conditions. It is not the buyer’s own evaluation or a property warranty.

An FHA appraisal is not a home inspection

HUD says an appraisal differs from a home inspection. The appraiser does not perform an inspector’s comprehensive examination. Buyers should make an informed inspection decision. HUD notice

These are FHA’s program rules. Your lender or investor may require more after reviewing your credit, income, debts, property and complete application.

03 · 2026 California limits

Ten California counties—not six—reach the $1,249,125 FHA ceiling.

Compare all 58 California counties, every one- to four-unit 2026 limit, the 2025 one-unit limit and year-over-year change. Twenty-eight counties use the $541,287 floor, 20 fall between $541,287 and $1,249,125, and 10 use the $1,249,125 ceiling.

Floor counties

$541,287 one-unit limit

Middle counties

Between floor and ceiling

Ceiling counties

$1,249,125 one-unit limit

Search any of 3,235 U.S. counties and county equivalents.

Showing 10 of 58 California counties

2026 FHA loan limits for all 58 California counties
County	Tier	2025 · 1 unit	2026 · 1 unit	2 units	3 units	4 units	YoY
Alameda	Ceiling	$1,209,750	$1,249,125	$1,599,375	$1,933,200	$2,402,625	+3.25%
Alpine	Middle	$524,225	$736,000	$942,200	$1,138,900	$1,415,400	+40.40%
Amador	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Butte	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Calaveras	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Colusa	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Contra Costa	Ceiling	$1,209,750	$1,249,125	$1,599,375	$1,933,200	$2,402,625	+3.25%
Del Norte	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
El Dorado	Middle	$763,600	$764,750	$979,000	$1,183,400	$1,470,700	+0.15%
Fresno	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Glenn	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Humboldt	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Imperial	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Inyo	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Kern	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Kings	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Lake	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Lassen	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Los Angeles	Ceiling	$1,209,750	$1,249,125	$1,599,375	$1,933,200	$2,402,625	+3.25%
Madera	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Marin	Ceiling	$1,209,750	$1,249,125	$1,599,375	$1,933,200	$2,402,625	+3.25%
Mariposa	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Mendocino	Middle	$546,250	$546,250	$699,300	$845,300	$1,050,500	+0.00%
Merced	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Modoc	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Mono	Middle	$776,250	$776,250	$993,750	$1,201,200	$1,492,800	+0.00%
Monterey	Middle	$970,600	$994,750	$1,273,450	$1,539,350	$1,913,000	+2.49%
Napa	Middle	$1,017,750	$1,017,750	$1,302,900	$1,574,900	$1,957,250	+0.00%
Nevada	Middle	$644,000	$649,750	$831,800	$1,005,450	$1,249,550	+0.89%
Orange	Ceiling	$1,209,750	$1,249,125	$1,599,375	$1,933,200	$2,402,625	+3.25%
Placer	Middle	$763,600	$764,750	$979,000	$1,183,400	$1,470,700	+0.15%
Plumas	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Riverside	Middle	$672,750	$690,000	$883,300	$1,067,750	$1,326,950	+2.56%
Sacramento	Middle	$763,600	$764,750	$979,000	$1,183,400	$1,470,700	+0.15%
San Benito	Ceiling	$1,209,750	$1,249,125	$1,599,375	$1,933,200	$2,402,625	+3.25%
San Bernardino	Middle	$672,750	$690,000	$883,300	$1,067,750	$1,326,950	+2.56%
San Diego	Middle	$1,077,550	$1,104,000	$1,413,350	$1,708,400	$2,123,100	+2.45%
San Francisco	Ceiling	$1,209,750	$1,249,125	$1,599,375	$1,933,200	$2,402,625	+3.25%
San Joaquin	Middle	$678,500	$678,500	$868,600	$1,049,950	$1,304,850	+0.00%
San Luis Obispo	Middle	$967,150	$1,000,500	$1,280,850	$1,548,250	$1,924,100	+3.45%
San Mateo	Ceiling	$1,209,750	$1,249,125	$1,599,375	$1,933,200	$2,402,625	+3.25%
Santa Barbara	Middle	$913,100	$941,850	$1,205,750	$1,457,450	$1,811,300	+3.15%
Santa Clara	Ceiling	$1,209,750	$1,249,125	$1,599,375	$1,933,200	$2,402,625	+3.25%
Santa Cruz	Ceiling	$1,209,750	$1,249,125	$1,599,375	$1,933,200	$2,402,625	+3.25%
Shasta	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Sierra	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Siskiyou	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Solano	Middle	$685,400	$685,400	$877,450	$1,060,600	$1,318,100	+0.00%
Sonoma	Middle	$897,000	$897,000	$1,148,350	$1,388,050	$1,725,050	+0.00%
Stanislaus	Middle	$535,900	$545,100	$697,800	$843,500	$1,048,300	+1.72%
Sutter	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Tehama	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Trinity	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Tulare	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Tuolumne	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%
Ventura	Middle	$1,017,750	$1,035,000	$1,325,000	$1,601,600	$1,990,450	+1.69%
Yolo	Middle	$763,600	$764,750	$979,000	$1,183,400	$1,470,700	+0.15%
Yuba	Floor	$524,225	$541,287	$693,050	$837,700	$1,041,125	+3.25%

04 · Mortgage insurance

FHA mortgage insurance has an upfront charge, an annual tier, and a duration.

The complete answer depends on the base loan amount, mortgage term and original LTV. The often-quoted 0.55% applies to only one band.

Upfront MIP

1.75%

UFMIP is calculated on the base mortgage. It may be financed entirely or paid entirely in cash; HUD does not permit partial financing. It is excluded from the county-limit and LTV tests.

Duration

Original LTV at or below 90%: 11 years.
Original LTV above 90%: the mortgage term. A 3.5%-down purchase is 96.5% LTV.

FHA annual mortgage insurance premium schedule
Mortgage term / base loan	Original LTV	Annual MIP
More than 15 years · $726,200 or less	Original LTV90% or less	Annual MIP50 bps · 0.50%
More than 15 years · $726,200 or less	Original LTVAbove 90% through 95%	Annual MIP50 bps · 0.50%
More than 15 years · $726,200 or less	Original LTVAbove 95%	Annual MIP55 bps · 0.55%
More than 15 years · above $726,200	Original LTV90% or less	Annual MIP70 bps · 0.70%
More than 15 years · above $726,200	Original LTVAbove 90% through 95%	Annual MIP70 bps · 0.70%
More than 15 years · above $726,200	Original LTVAbove 95%	Annual MIP75 bps · 0.75%
15 years or less · $726,200 or less	Original LTV90% or less	Annual MIP15 bps · 0.15%
15 years or less · $726,200 or less	Original LTVAbove 90%	Annual MIP40 bps · 0.40%
15 years or less · above $726,200	Original LTV78% or less	Annual MIP15 bps · 0.15%
15 years or less · above $726,200	Original LTVAbove 78% through 90%	Annual MIP40 bps · 0.40%
15 years or less · above $726,200	Original LTVAbove 90%	Annual MIP65 bps · 0.65%

Why FHA insurance can cost more in Los Angeles than Fresno

The annual-MIP threshold is still $726,200.

HUD did not re-index this base-loan threshold when county limits rose. On a more-than-15-year, above-95%-LTV mortgage, a base loan at or below $726,200 uses 55 basis points; above $726,200 it uses 75. On the $820,250 base loan from the $850,000 high-cost-county example below, that 20-basis-point difference is about $1,640.50 per year, or roughly $136.71 per month. This isolates the MIP difference only; it is not a full payment quote. Appendix 1.0

05 · Worked examples

Put the insurance rules into California-sized dollars.

These examples use a 3.5% down purchase and calculate only down payment, UFMIP and annual MIP. They make no financing-price, tax, insurance, closing-cost or approval assumption.

Illustration in a county with a $541,287 floor

$550,000 purchase

3.5% down payment: $19,250
Base mortgage: $530,750
1.75% UFMIP: $9,288.13
If UFMIP is fully financed: $540,038.13
Annual MIP: $2,919.13
Monthly MIP portion: $243.26

Annual tier: 55 bps · above 95% LTV · base loan at or below $726,200. Illustrative arithmetic only; not a Loan Estimate or payment quote.

Illustration in a county with a $1,249,125 ceiling

$850,000 purchase

3.5% down payment: $29,750
Base mortgage: $820,250
1.75% UFMIP: $14,354.38
If UFMIP is fully financed: $834,604.38
Annual MIP: $6,151.88
Monthly MIP portion: $512.66

Annual tier: 75 bps · above 95% LTV · base loan above $726,200. Illustrative arithmetic only; not a Loan Estimate or payment quote.

06 · Cost to close

A 6% contribution cannot replace the 3.5% investment.

FHA separates interested-party contributions from the borrower’s minimum required investment. Gift funds follow another documentation path.

Eligible gift sources

HUD identifies five donor classes: a family member; employer or labor union; close friend with a clearly defined, documented interest; charitable organization; or government/public entity operating an assistance program.

The gift letter states the donor and borrower names, donor contact information, relationship, amount and that repayment is not expected. Transfer evidence is required. “Cash on hand” is not an acceptable source of donor gift funds.

07 · Debt-to-income ratio

31% / 43% is a starting point for manual underwriting—not the universal FHA maximum.

The contradictory numbers online often mix manual underwriting and the TOTAL Mortgage Scorecard. HUD’s compensating-factor ladder covers manual files; TOTAL has no single published maximum.

FHA manual underwriting debt-to-income ratio ladder
Manual file	Housing / total DTI	Required support
No compensating factors	31% / 43%	No compensating factor required.
One factor	37% / 47%	Verified reserves, minimal payment increase, or qualifying residual income.
No discretionary debt	40% / 40%	Established credit lines show no discretionary debt under the Handbook test.
Two factors	40% / 50%	Two qualifying compensating factors.
Qualifying score below 580 or no score	31% / 43%	Hard manual limit; energy-efficient housing may permit 33% / 45%.

08 · FHA loan types

Purchase is one lane inside a larger FHA framework.

The right lane depends on whether someone is buying, improving energy efficiency, changing an existing FHA mortgage, or accessing equity.

203(b) purchase

The standard forward FHA purchase framework summarized across this page: principal-residence occupancy, county limits, minimum investment, underwriting and mortgage insurance.

Streamline refinance

For an existing FHA loan. At case assignment: at least six payments, six full months since the first due date, and 210 days since closing. The net-tangible-benefit test uses the combined interest rate plus MIP; fixed-to-fixed generally requires a 0.5-point combined-rate reduction.

Cash-out refinance

A separate FHA path for an eligible owner-occupied property, subject to its own equity, seasoning, payment-history and underwriting rules. Purchase-page limits do not describe the complete cash-out test.

Energy Efficient Mortgage

A framework for eligible energy-related improvements when the property, work and file satisfy current FHA requirements. The permitted amount and process require a current program review.

203(k) rehabilitation

FHA also offers rehabilitation financing through 203(k). The available structure and requirements need a current program review, so ask for the current details before budgeting around it.

09 · Special situations

The exceptions have exceptions.

Non-occupying co-borrowers, an existing FHA mortgage and assumptions each have narrow rules that deserve more than a yes-or-no answer.

Non-occupying co-borrower

Maximum LTV is generally 75%. It may rise to 96.5% when the borrowers are family members—except a family-to-family sale with a non-occupying family co-borrower and every two- to four-unit property remain at 75%.

More than one FHA loan

The four exception paths are qualifying employment relocation over 100 miles; family-size increase with the existing property at 75% LTV or less; vacating a jointly owned property while a co-borrower remains; and acting as a non-occupying co-borrower.

Assumability

FHA mortgages are assumable under the applicable rules. A post-1989 assumer generally needs credit approval and principal-residence occupancy. The seller’s release requires the formal HUD-92210.1 process; notice alone is not a release. Form

10 · Side-by-side

FHA and conventional trade different flexibilities.

Compare the complete file, not a single score or down-payment percentage. Mortgage-insurance duration, occupancy and county limits can change the long-term result.

FHA and conventional loan comparison
Feature	FHA	Conventional
Minimum down payment	3.5% at a qualifying score of 580+; 10% at 500–579.	Named programs may begin at 3%; a standard path may begin at 5%.
Credit score	FHA qualifying-score tiers begin at 580 and 500–579.	DU has no published minimum; manual minimums are 620 fixed / 640 ARM.
Mortgage insurance	UFMIP plus annual MIP; 11 years at 90% LTV or below, term above 90%.	PMI can have HPA original-value and investor current-value cancellation routes.
Occupancy	Principal residence with limited exceptions.	Principal residence, qualifying second home, or investment property.
2026 Sacramento limit	$764,750 · one unit.	$832,750 · one unit.

See how these rules interact across both programs in our complete FHA vs. conventional comparison.

11 · Frequently asked

California FHA questions that deserve a sourced answer.

Visible answers matter more than a thin list of keywords. These cover the myths, county differences and program mechanics borrowers routinely encounter.

Do I have to be a first-time homebuyer to use FHA?

No. Eligible repeat buyers may use FHA too; occupancy, existing FHA financing and the full file still matter.

Is 31% / 43% the maximum FHA debt-to-income ratio?

No. Those are starting figures for manual underwriting. Compensating-factor combinations go higher, and TOTAL has no published fixed maximum. Lender rules may be stricter.

Why is Sacramento’s FHA limit different from its conforming limit?

HUD and FHFA publish different systems. Sacramento is $764,750 FHA versus $832,750 conforming for one unit in 2026.

Can the seller pay my 3.5% FHA down payment?

No. The 6% cap covers permitted costs, not the MRI. Excess reduces the price used for FHA calculations.

Does FHA mortgage insurance fall off at 20% equity?

No. At original LTV of 90% or less, annual MIP lasts 11 years; above 90%, it lasts the mortgage term.

Can I have more than one FHA loan?

Usually one. Four exceptions address relocation, family-size increase, vacating a jointly owned home, and non-occupying co-borrowers.

Can someone assume an FHA loan?

Yes, subject to occupancy and credit approval. Seller liability ends only through the formal release process, not mere notice.

12 · Next step · low commitment

Turn the FHA rules into a complete set of questions.

Bring the county, unit count, occupancy, estimated price, available funds, existing FHA loans and borrower credit profiles. We can help identify which current rules need a closer review without treating this guide as a preapproval.

Talk with a loan officer

Sources (6) — the official documents behind every figure on this page

This page provides general education, not an offer, approval, commitment to lend, or complete statement of any program. Agency guidance can change, and investor or lender requirements may be stricter. Eligibility, costs, terms, and available programs depend on a complete application and current rules.