FHA Loans · Conforming Limits · Southern California 2026
What Are the 2026 FHA Loan Limits in Southern California?
Justin Borges, DRE #01940318 · 10 min read
For 2026, Los Angeles County and Orange County both have an FHA loan limit of $1,249,125 for a single-unit home, which is also the conforming ceiling for those counties. Inland Empire buyers in Riverside County and San Bernardino County face a lower FHA limit of $690,000, with conforming loans allowed up to $832,750. These figures took effect January 1, 2026, and reflect a 3.26% increase from 2025, per HUD Mortgagee Letter 2025-23 and the FHFA's official announcement.
What You Will Learn
- 2026 FHA and Conforming Limit Table for Southern California Counties
- What Does the $1,249,125 Limit Mean for Los Angeles and Orange County Buyers?
- How Do FHA Limits in Riverside and San Bernardino Counties Affect IE Buyers?
- Down Payment Examples at the Limit: FHA vs. Conventional in LA/OC
- Does CalHFA Dream for All Work Within These Limits?
- How Much Did the 2026 Limits Increase from 2025?
- FHA vs. Conforming vs. Jumbo: Which Loan Type Applies to Your Price Point?
- Frequently Asked Questions
2026 FHA and Conforming Limit Table for Southern California Counties
The table below covers the four most searched counties in Southern California. Every figure was pulled from HUD Mortgagee Letter 2025-23 and the FHFA's official 2026 conforming loan limit announcement, both effective January 1, 2026. Jumbo loans begin immediately above the conforming ceiling for each county.
| County | FHA 1-Unit Limit | Conforming 1-Unit Limit | Jumbo Starts At | YoY Change (FHA) |
|---|---|---|---|---|
| Los Angeles County | $1,249,125 | $1,249,125 | N/A (both at ceiling) | +$39,375 (+3.26%) |
| Orange County | $1,249,125 | $1,249,125 | N/A (both at ceiling) | +$39,375 (+3.26%) |
| Riverside County (IE) | $690,000 | $832,750 | $832,751+ | +$21,930 (+3.28%) |
| San Bernardino County (IE) | $690,000 | $832,750 | $832,751+ | +$21,930 (+3.28%) |
Sources: HUD Mortgagee Letter 2025-23 (Dec 2025, effective Jan 1, 2026); FHFA News Release "FHFA Announces Conforming Loan Limit Values for 2026" (Nov 2025). Data as of July 2026.
Key takeaway: Los Angeles County and Orange County are designated high-cost areas under HUD guidelines. That designation allows both FHA and conforming loans to reach the national ceiling of $1,249,125. Riverside and San Bernardino counties are not designated high-cost, so FHA stays at the baseline calculation of $690,000 while conforming sits at $832,750 (FHFA, 2026).
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Reserve Your Free Seat →What Does the $1,249,125 Limit Mean for Los Angeles and Orange County Buyers?
The $1,249,125 figure is the national high-cost ceiling for FHA and conforming loans. HUD sets it at 150% of the conforming baseline ($832,750 x 1.5 = $1,249,125), and every county where home values warrant it, including Los Angeles and Orange, receives this maximum. What this means in practice: an LA buyer using an FHA loan can finance a purchase price right up to $1,295,985 with 3.5% down (a $1,249,125 loan plus $46,860 down payment). A conventional buyer in the same county faces no jumbo premium until the loan exceeds $1,249,125.
From a practical standpoint, most first-time buyers in Los Angeles are not purchasing at $1.25 million. The limit matters most in the $700,000 to $1.1 million range where buyers are deciding between FHA's lower down payment and conventional's lower insurance costs. At those price points, both loan types are available and the choice comes down to credit score, down payment savings, and long-term cost comparison. Buyers shopping in Pasadena, Glendale, Burbank, and the Westside typically benefit the most from knowing the full ceiling, because median prices in those markets consistently land between $900,000 and $1.2 million.
One nuance worth flagging: Orange County buyers searching in communities like Irvine, Newport Beach, or Huntington Beach will find median prices that push well above $1 million, and the $1,249,125 limit still applies. In those cities, the decision calculus shifts quickly toward conventional financing or jumbo loans, especially since FHA carries lifetime mortgage insurance at the 3.5% down tier. For any purchase above $1.249 million in LA or OC, a jumbo loan becomes the only financing path (Fannie Mae, 2026 guidelines).
In thirteen-plus years of working with LA buyers, the question I hear most often is whether FHA will cover their target price. In LA and Orange County, the short answer for 2026 is yes, up to $1.249 million.
Justin Borges, CA DRE #01940318Searching for homes within the 2026 FHA limit in Los Angeles County?
Browse LA County Listings →How Do FHA Limits in Riverside and San Bernardino Counties Affect IE Buyers?
Inland Empire buyers face a different constraint. Riverside County and San Bernardino County are not designated high-cost areas, which means the FHA limit stays at $690,000 for a 1-unit home and the conforming limit is $832,750 (FHFA, 2026). Above $690,000, an FHA loan is no longer available and buyers must shift to conventional financing. Above $832,750, the only option is a jumbo loan, which typically requires a higher credit score, a larger down payment, and carries a rate premium of 0.5% to 1.0% above conforming rates.
The gap between IE and LA/OC limits creates a real financing cliff for Inland Empire buyers pursuing newly built homes in communities like Eastvale, Murrieta, or Menifee, where base prices on new construction routinely land between $650,000 and $850,000. A buyer at $720,000 in Riverside County cannot use FHA and must qualify conventionally, which typically requires at least 5% down ($36,000) and a credit score above 660. A buyer shopping the same price point in Los Angeles County would have full FHA access with 3.5% down ($25,200). That $10,800 difference in required savings is meaningful for first-time buyers who are still building their down payment.
IE vs. LA: Who Has FHA Access at Different Price Points?
Based on 2026 county limits per HUD ML 2025-23 and FHFA Nov 2025 announcement. IE = Riverside County and San Bernardino County.
For IE buyers, the practical guidance is to keep targets under $650,000 if staying in FHA territory, or to build a conventional financing plan if targeting $650,000 to $832,750. Buyers targeting new construction above $750,000 in the Inland Empire should speak with a jumbo lender specifically, because the rate and qualification differences are substantial enough to affect monthly payment planning by several hundred dollars per month. Reach out at (213) 262-5092 or text us at sms:+12132625092 to talk through your specific price target in the IE.
Searching within the 2026 FHA limit in the Inland Empire?
Browse IE Listings Under $690K →Down Payment Examples at the Limit: FHA vs. Conventional in LA/OC
The most common question among first-time buyers is not "what is the limit" but "how much cash do I actually need?" The examples below use a $1,000,000 purchase price in Los Angeles County, which is squarely within the 2026 FHA limit, to show the real cost difference between FHA and conventional financing at that price point.
FHA Route: $1M Home in Los Angeles
Conventional Route: $1M Home in Los Angeles
FHA saves $65,000 in up-front cash ($35K vs. $100K down). Conventional costs about $800/month less once MIP vs. PMI is compared directly. The break-even between FHA and conventional for a $1 million LA home falls roughly at 10 to 12 years, assuming average home appreciation continues. Buyers who plan to refinance or sell within that window often find FHA's lower down payment requirement is worth the higher monthly cost; buyers who expect to stay long-term typically benefit from the conventional path if they can assemble the larger down payment.
Orange County Example: 3.5% FHA Down at $950,000
Orange County buyers at $950,000 would need $33,250 in down payment under FHA (3.5%). The loan amount of $916,750 stays well under the $1,249,125 county ceiling. Under a conventional 3% down scenario, down payment drops to $28,500 but the PMI structure changes and credit score requirements are typically stricter. Both options are available within the Orange County 2026 conforming limit (Fannie Mae, 2026 guidelines).
Orange County: FHA at $950K vs. Conventional 3% Down
FHA down payment rate from FHA official guidelines; Fannie Mae 3% down guidelines from singlefamily.fanniemae.com (Fannie Mae, 2026). Rate assumptions approximate; contact a licensed lender for current pricing.
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Get My Free Home Valuation →Does CalHFA Dream for All Work Within These Limits?
CalHFA's Dream for All program provides up to 20% of the purchase price in down payment assistance, with a maximum of $150,000 per household. The program uses conventional first mortgages only, not FHA loans, which means the purchase must be within the conforming limit for the county, not the FHA limit (CalHFA, 2026).
In practical terms, Dream for All works as follows: LA County and Orange County buyers can use the program on purchases up to the $1,249,125 conforming ceiling. Inland Empire buyers in Riverside and San Bernardino counties are capped at $832,750 because that is the conforming baseline for non-high-cost areas. Above those thresholds, the first mortgage would need to be a jumbo loan, which CalHFA does not support for the Dream for All program.
Dream for All Example: First-Time LA Buyer at $500,000
The 2026 Dream for All application window opened in February 2026 and closed mid-March. Future windows are expected, but the California Housing Finance Agency has not yet confirmed dates for additional 2026 openings. Buyers interested in the program should add their name to CalHFA's interest list and connect with a CalHFA-approved lender. For a full breakdown of how Dream for All interacts with the first-time buyer process in Los Angeles, see our CalHFA Dream for All 2026 guide.
CalHFA also offers other programs, including the MyHome Assistance Program and ZIP (Zero Interest Program), that can layer on top of conventional loans within the conforming limits above. Buyers in Los Angeles who qualify for both FHA and conventional financing should model both paths alongside available assistance programs before committing to either loan type. The right answer depends on credit score, income, available savings, and how long the buyer plans to stay in the home. Text us at sms:+12132625092 if you want a side-by-side comparison for your specific situation.
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Search Available Homes →How Much Did the 2026 Limits Increase from 2025?
Both FHA and conforming limits increased 3.26% from 2025 to 2026, driven by home price appreciation measured between Q3 2024 and Q3 2025 (FHFA, Nov 2025; HUD No. 25-145, Dec 2025). For Los Angeles and Orange County buyers, the FHA limit moved from $1,209,750 to $1,249,125, a gain of $39,375. For conforming loans in the Inland Empire, the baseline rose from $806,500 to $832,750, a gain of $26,250.
| Limit Type / Area | 2025 Limit | 2026 Limit | Dollar Increase | Pct Change |
|---|---|---|---|---|
| FHA High-Cost (LA/OC) | $1,209,750 | $1,249,125 | +$39,375 | +3.26% |
| Conforming High-Cost (LA/OC) | $1,209,750 | $1,249,125 | +$39,375 | +3.26% |
| FHA Baseline (IE Counties) | ~$667,000 | $690,000 | +~$23,000 | +3.26% |
| Conforming Baseline (IE Counties) | $806,500 | $832,750 | +$26,250 | +3.26% |
Sources: FHFA News Release Nov 2025; HUD Mortgagee Letter 2025-23 and HUD News Release No. 25-145. IE FHA 2025 baseline figure is calculated backward; primary source confirmed 2026 at $690,000 and stated 3.26% increase driver.
A 3.26% increase sounds meaningful in isolation. The critical context is that California home prices appreciated 5% to 7% in the same period in many LA and OC submarkets. This means the loan limits are not keeping pace with actual price appreciation, which is a persistent affordability challenge for first-time buyers. Put differently: the loan ceiling rises more slowly than home values, so buyers competing for homes priced between $900,000 and $1.2 million in Los Angeles are not gaining proportional borrowing capacity year over year. The limits help, but they are not solving the underlying affordability gap in high-demand LA neighborhoods.
For Inland Empire buyers, the $26,250 conforming increase (from $806,500 to $832,750) provides modest additional borrowing room on conventional loans. New construction in Corona, Murrieta, and Temecula regularly pushes past $800,000, so the additional $26,250 in conforming access does give some buyers more room before hitting jumbo territory. That said, the IE market has also seen price growth of 4% to 6% in those same cities, which again means affordability improves only marginally from limit changes alone. For a detailed look at how much income you need to buy in the LA market at current prices, see our income needed to buy a home in Los Angeles in 2026 guide.
FHA vs. Conforming vs. Jumbo: Which Loan Type Applies to Your Price Point?
Each loan type carries different eligibility rules, down payment requirements, and insurance costs. The right choice depends on where you are buying, your credit score, and how much you have saved.
FHA Loans (Federal Housing Administration)
FHA loans are insured by the U.S. Department of Housing and Urban Development and are designed for buyers who have lower down payments or credit scores below 660. The minimum down payment is 3.5% for credit scores of 580 or higher, or 10% for scores between 500 and 579. Every FHA loan carries two layers of mortgage insurance: an upfront premium of 1.75% of the loan amount and an annual premium of 0.55% of the remaining balance, paid monthly (FHA, 2026 rates). The annual MIP was reduced from 0.85% in prior years, which lowered monthly costs for buyers. At 3.5% down, the MIP lasts the life of the loan. At 10% or more down, it cancels after 11 years.
Conforming Loans (Fannie Mae and Freddie Mac)
Conforming loans follow guidelines published by Fannie Mae and Freddie Mac and stay within the county-specific limits set by the FHFA each year. Private mortgage insurance applies if the down payment is below 20%, but unlike FHA's lifetime MIP, PMI cancels automatically once equity reaches 20% of the original purchase price. Rates on conforming loans are typically lower than FHA by 0.25% to 0.5% because the risk profile is different and there is no lifetime insurance requirement. Buyers with a 660+ credit score and at least 5% saved are typically better served by conventional financing for any purchase where FHA and conforming limits overlap.
Jumbo Loans
Any loan that exceeds the conforming limit for the county is a jumbo loan. In LA and Orange County, that threshold is $1,249,125. In Riverside and San Bernardino counties, it is $832,750. Jumbo loans are approved by portfolio lenders, not sold to Fannie Mae or Freddie Mac, which means stricter qualification standards: typically a 700+ credit score, a down payment of 10% to 20%, and demonstrated cash reserves. Rates run 0.5% to 1.0% above conforming, and there is no PMI since the lender holds the risk on-book. In the Inland Empire, buyers targeting new construction above $850,000 almost certainly need a jumbo lender and should factor the rate premium into affordability calculations. For the full picture on buying a home as a first-time buyer in Southern California, see our first-time home buyer guide for Los Angeles 2026 and how to buy a house in the Inland Empire as a first-time buyer.
VA Loans (Veterans)
Veterans with full VA loan entitlement are not subject to county conforming limits and can borrow above the $1,249,125 or $690,000 thresholds with zero down payment. Veterans with partial entitlement must either respect the county conforming limit or put 25% down on the amount above it. VA loans carry a one-time funding fee but no ongoing PMI, making them among the most cost-effective financing tools available in Southern California for qualifying buyers. For more detail, see our buyer guide or call us at (213) 262-5092.
Browse homes under the 2026 conforming limit in Orange County:
Browse Orange County Listings →Quick Reference: Which Loan Type for Your Price Point?
| If you are buying in... | At this price range... | Your likely loan type is... |
|---|---|---|
| Los Angeles or Orange County | Under $690K | FHA or conventional (both available) |
| Los Angeles or Orange County | $690K to $1.249M | FHA or conforming (both available) |
| Los Angeles or Orange County | Above $1.249M | Jumbo loan required |
| Riverside or San Bernardino | Under $690K | FHA or conventional (both available) |
| Riverside or San Bernardino | $690K to $832.75K | Conventional only (FHA limit exceeded) |
| Riverside or San Bernardino | Above $832.75K | Jumbo loan required |
| Any SoCal county (veteran) | Any price | VA loan (no limit with full entitlement) |
Frequently Asked Questions
What is the FHA loan limit in Los Angeles County for 2026?
The 2026 FHA loan limit for a single-unit home in Los Angeles County is $1,249,125. This is the national high-cost area ceiling, set by HUD in Mortgagee Letter 2025-23, effective January 1, 2026. The conforming limit for Los Angeles County in 2026 is also $1,249,125, meaning both FHA and conventional loans reach the same maximum in this county.
What is the FHA loan limit in Orange County for 2026?
Orange County has the same $1,249,125 FHA and conforming loan limit as Los Angeles County for 2026. Both counties are designated high-cost areas, which qualifies them for the 150% ceiling under FHFA and HUD guidelines. Buyers in cities like Irvine, Newport Beach, or Anaheim all benefit from this limit (FHFA, 2026).
What is the FHA loan limit in Riverside County and San Bernardino County for 2026?
Riverside County and San Bernardino County both have a 2026 FHA limit of $690,000 for a single-unit home and a conforming limit of $832,750. These counties are not designated high-cost areas, so they fall below the LA/OC ceiling. Any loan above $690,000 in the Inland Empire must be conventional, and any loan above $832,750 requires jumbo financing (HUD ML 2025-23; FHFA, 2026).
How much do I need for a down payment on an FHA loan in Southern California in 2026?
FHA requires a minimum 3.5% down payment for buyers with a credit score of 580 or higher. For a $1,000,000 home in Los Angeles, that equals $35,000 down. Buyers with credit scores between 500 and 579 need 10% down. Every FHA loan also requires an upfront mortgage insurance premium of 1.75% of the loan amount, which can be rolled into the loan. Annual MIP is 0.55% in 2026, reduced from prior rates (FHA, 2026).
Can I use CalHFA Dream for All with an FHA loan in California?
No. CalHFA Dream for All requires a conventional first mortgage, not an FHA loan. The program provides up to $150,000 or 20% of the purchase price in down payment assistance, with a shared appreciation repayment when you sell or refinance. LA and OC buyers can use Dream for All on purchases up to $1,249,125; IE buyers are capped at $832,750 because their counties use the conforming baseline, not the high-cost ceiling (CalHFA, 2026).
Did the FHA loan limits increase from 2025 to 2026?
Yes. FHA and conforming limits both increased 3.26% for 2026, driven by home price appreciation measured between Q3 2024 and Q3 2025 (FHFA; HUD No. 25-145). LA and OC limits rose $39,375, from $1,209,750 to $1,249,125. IE conforming limits rose $26,250, from $806,500 to $832,750. The increase is below typical California home price appreciation of 5% to 7%, so borrowing power did not keep pace with values.
What happens if the home I want costs more than the FHA limit?
If the purchase price requires a loan larger than the county's FHA limit, FHA financing is not available for that transaction. You can still buy the home using a conventional conforming loan (if the loan amount stays within the conforming limit) or a jumbo loan. In Los Angeles County, FHA ends at $1,249,125 in loan size. In Riverside and San Bernardino counties, FHA ends at $690,000. Above those amounts, conventional or jumbo are your paths forward. Call (213) 262-5092 to talk through your specific scenario.
Is it better to use an FHA loan or a conventional loan in Southern California in 2026?
FHA wins on access: lower credit score requirements, 3.5% minimum down, and availability through the $1.249M ceiling in LA/OC. Conventional wins on long-term cost: PMI cancels once equity reaches 20%, while FHA's MIP at 3.5% down lasts the life of the loan. Buyers with 660+ credit and at least 5% to 10% saved typically benefit from conventional. Buyers with lower credit or tighter savings often need FHA to qualify at all. The break-even for a $1M LA home is roughly 10 to 12 years. For a full breakdown of the decision, visit how much house can I afford in Los Angeles.
Ready to Use the 2026 FHA Limits?
Knowing the limit is step one. Getting pre-approved and finding the right home within your target county is what comes next. Justin Borges has guided Southern California first-time buyers through this process since October 2013.
- Licensed CA DRE REALTOR since October 2013, DRE #01940318
- $200M+ in career closed sales across Los Angeles and Southern California
- Helps veteran buyers use VA loans, including the CA VA Amendatory Clause protection most agents do not know exists
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