FHA Loans for California Home Buyers

In 2026 the standard FHA loan limit in most California counties is $524,225 for a one-unit home. In 17 high-cost counties — including Los Angeles, Orange, San Diego, San Francisco, Santa Clara, San Mateo, Alameda, and Ventura — the FHA ceiling rises to $1,209,750. The number scales up for two-, three-, and four-unit properties.

For most FHA loans originated today, annual MIP is paid for the life of the loan when you put less than 10 percent down. With 10 percent or more down, MIP drops off after 11 years. Many borrowers refinance into a conventional loan once they reach 20 percent equity to eliminate MIP entirely. Upfront MIP of 1.75 percent is paid once and typically rolled into the loan amount.

Yes. FHA allows 100 percent of the 3.5 percent down payment to come from a gift. Acceptable sources include family members, an employer, a labor union, a close friend with a documented interest in you, or an approved nonprofit. The donor signs a gift letter confirming no repayment is expected, and we document the funds with bank statements.

Condos qualify if the project is on the FHA-approved list or gets approved through single-unit approval (SUA). The HOA, owner-occupancy ratio, insurance coverage, and budget all factor in. Many California condo projects are already approved — we run the address before you write an offer to avoid surprises.

On loans with less than 10 percent down, MIP stays for the life of the loan. The standard path to remove it is refinancing into a conventional loan once you have at least 20 percent equity. With strong appreciation in California markets, many FHA borrowers reach that threshold within a few years and refinance to drop MIP and lower their payment.

HUD stands for the U.S. Department of Housing and Urban Development. The Federal Housing Administration (FHA) is part of HUD. FHA insures loans made by approved lenders, which lets those lenders accept lower credit scores and smaller down payments. HUD sets FHA loan limits, property standards, and program rules.

Yes. FHA finances two-, three-, and four-unit properties as long as you live in one of the units as your primary residence. Loan limits scale up — in high-cost California counties the four-unit FHA limit exceeds $2.3 million. Rental income from the other units can help you qualify, which makes FHA a popular tool for house hackers.

Yes, and it's a common move once you build 20 percent equity. Refinancing to a conventional loan removes the lifetime MIP, which often drops the monthly payment even when interest rates haven't fallen. We track FHA borrowers and reach out when the equity math starts working — no obligation to refinance with us.

An FHA streamline refinance lets current FHA borrowers refinance into a new FHA loan with reduced documentation — no full income verification, no new appraisal in most cases, and faster underwriting. The benefit is a lower rate or payment with minimal hassle. The trade-off is you stay on FHA, which means MIP continues.