FHA Loan Limits Los Angeles County 2026
Los Angeles County is one of the largest and most expensive housing markets in the country. With a median home price around $933,000, many buyers need every dollar of borrowing power they can get. FHA loans let first-time buyers and those with lower credit scores get into the market with just 3.5% down. GM Funding is a licensed mortgage broker based in San Clemente, serving homebuyers throughout Los Angeles County.
The 2026 FHA loan limit for Los Angeles County is $1,249,125 for a single-family home. This is the maximum FHA ceiling set by HUD, which LA County qualifies for as a high-cost area. The conventional conforming limit is also $1,249,125 (high-balance). VA loans with full entitlement have no loan limit.
2026 FHA loan limits for Los Angeles County
FHA loan limits are set annually by HUD based on median home prices in each county. For 2026, Los Angeles County qualifies for the maximum FHA ceiling of $1,249,125 for a single-family home. FHA loans between $832,750 and $1,249,125 are classified as high-balance FHA loans and may carry slightly higher interest rates.
| Loan Type | 2026 Limit (LA County) | Notes |
|---|---|---|
| FHA (single family) | $1,249,125 | 3.5% down, 580+ credit |
| FHA high-balance threshold | $832,750 | Loans above this may have higher rates |
| Conventional conforming | $1,249,125 | High-balance, 3-20% down, 620+ credit |
| VA (full entitlement) | No limit | 0% down for eligible veterans |
LA County’s median home price sits around $933,000, which means a large portion of available homes fall within the FHA limit. This is especially true in areas like Pomona, Hawthorne, Downey, Lancaster, Palmdale, and parts of the San Fernando Valley where median prices run well below the $1,249,125 ceiling.
FHA limits for multi-unit properties in LA County
FHA loan limits increase for multi-unit properties, and Los Angeles County qualifies for the maximum ceiling on all property types. You must live in one unit as your primary residence for at least one year, but you can rent out the other units.
| Property Type | 2026 FHA Limit (LA County) |
|---|---|
| 1-unit (single-family) | $1,249,125 |
| 2-unit (duplex) | $1,599,375 |
| 3-unit (triplex) | $1,933,200 |
| 4-unit (fourplex) | $2,402,625 |
Los Angeles County has one of the highest concentrations of multi-unit properties in Southern California. Neighborhoods across South LA, East LA, the San Fernando Valley, and the San Gabriel Valley have duplexes and fourplexes that fall within FHA limits. Buying a multi-unit property with 3.5% down and renting out the other units is one of the most effective ways to offset your housing costs in an expensive market.
FHA allows you to count 75% of projected rental income from the non-owner units toward your qualifying income. Keep in mind that triplexes and fourplexes must also pass the FHA self-sufficiency test: the gross rental income from all units must cover the full monthly mortgage payment before a 25% vacancy deduction.
Key things to know about FHA loans in LA County
FHA financing has specific rules and costs that matter in a high-cost market like Los Angeles County. Understanding these details helps you plan your purchase and avoid surprises.
- The $1,249,125 FHA limit covers most homes in LA County outside of the Westside, beach cities, and premium neighborhoods like Beverly Hills, Brentwood, and Manhattan Beach
- FHA requires just 3.5% down with a 580+ credit score. On a $900,000 home, that’s $31,500 down. On a $1,200,000 home, that’s $42,000
- FHA high-balance loans (between $832,750 and $1,249,125) may carry slightly higher interest rates than standard FHA loans under $832,750. If your target home lets you stay under $832,750, ask your loan officer about the rate difference
- FHA mortgage insurance (MIP) stays for the life of the loan if you put less than 10% down. If you put 10% or more down, MIP drops off after 11 years
- FHA requires the home to be your primary residence. No investment properties or second homes
- FHA appraisals are stricter than conventional. The property must meet HUD’s minimum standards for safety, structural soundness, and livability
FHA vs conventional vs VA in Los Angeles County
Each loan type has different limits, requirements, and costs. The right choice depends on your credit score, savings, and military service eligibility.
| Factor | FHA | Conventional | VA |
|---|---|---|---|
| Down payment | 3.5% | 3-20% | 0% |
| Credit minimum | 580 | 620+ | 620 (guideline) |
| Mortgage insurance | MIP for life of loan | PMI removable at 20% | None |
| 2026 limit (LA County) | $1,249,125 | $1,249,125 (high-balance) | No limit (full entitlement) |
| Best for | Lower credit, small down payment | Strong credit, 20% down | Eligible veterans/military |
For buyers with credit scores between 580 and 620, FHA is often the only practical option. Conventional loans require 620+ and work best at 700+ where you get the most competitive rates and can avoid expensive PMI with 20% down.
If you’re a veteran or active-duty service member, VA loans are almost always the better choice. Zero down payment and no mortgage insurance saves tens of thousands over the life of the loan. LA County has a significant military and veteran population, and GM Funding specializes in VA loans for Los Angeles.
FHA mortgage insurance costs in LA County
FHA loans require two types of mortgage insurance: an upfront premium paid at closing and an annual premium added to your monthly payment.
| Insurance Type | Cost | How It’s Paid |
|---|---|---|
| Upfront MIP (UFMIP) | 1.75% of loan amount | Rolled into loan or paid at closing |
| Annual MIP | 0.55% of loan amount (typical) | Added to monthly payment |
On a $900,000 FHA loan, the upfront MIP would be about $15,750 (usually rolled into the loan balance). The annual MIP adds roughly $412 per month to your payment. Over five years, that’s nearly $25,000 in mortgage insurance alone.
This is the biggest long-term cost difference between FHA and conventional. Many LA County buyers use FHA as a stepping stone: get into the home with 3.5% down, build equity and improve credit over a few years, then refinance into a conventional loan to eliminate MIP entirely.
LA County cities where FHA works best
FHA financing is most practical in LA County cities where median prices fall well below the $1,249,125 ceiling. The lower the purchase price, the smaller your down payment and MIP costs.
- Pomona, Lancaster, and Palmdale typically have median prices in the $500,000 to $650,000 range, making FHA with 3.5% down extremely affordable at $17,500 to $22,750 down
- Hawthorne, Downey, Inglewood, and Burbank offer inventory in the $700,000 to $950,000 range where FHA covers most available homes
- Pasadena, Calabasas, and Tarzana have homes that may approach or exceed the FHA ceiling, depending on the neighborhood and property type
- Santa Monica, Beverly Hills, Manhattan Beach, and other premium Westside communities frequently exceed the $1,249,125 limit, requiring conventional or jumbo financing
If you’re buying a condo with FHA in LA County, confirm the complex is on HUD’s approved condo list before making an offer. Not all buildings are FHA-approved, and getting approval after the fact can delay or derail a purchase.
What if the home exceeds the FHA limit?
If the home you want in LA County is priced above $1,249,125, FHA financing won’t cover the full amount. You have a few alternatives:
- Make a larger down payment to bring the loan amount at or below $1,249,125
- Use conventional high-balance financing (same $1,249,125 limit, requires stronger credit)
- Use a jumbo loan for amounts above $1,249,125 (typically 700+ credit and 10-20% down)
- If you’re an eligible veteran, use a VA loan with no limit and no down payment
GM Funding offers FHA, conventional, VA, and jumbo loans across Los Angeles County. We’ll compare every option and find the loan that gives you the best rate and lowest total cost for your situation.
Get pre-approved for an FHA loan in Los Angeles County
The 2026 FHA loan limit of $1,249,125 gives LA County buyers strong purchasing power with just 3.5% down. Whether you’re a first-time buyer looking at homes in Pomona, moving up in Downey, or house-hacking a duplex in the San Fernando Valley, FHA financing can get you into a home without waiting years to save a large down payment.
GM Funding is an FHA-approved lender based in San Clemente, serving all of Los Angeles County. We handle FHA, conventional, VA, jumbo, and HELOC loans so we can find the right fit for your budget and goals.
Talk to a GM Funding loan officer today or call (800) 345-2044 to get pre-approved.
Frequently asked questions
What is the FHA loan limit for Los Angeles County in 2026?
The 2026 FHA loan limit for Los Angeles County is $1,249,125 for a single-family home. This is the maximum FHA ceiling, which LA County qualifies for as a high-cost area. FHA loans between $832,750 and $1,249,125 are classified as high-balance FHA loans and may carry slightly higher interest rates.
What are the FHA loan limits for a duplex in Los Angeles County?
The 2026 FHA loan limit for a duplex in Los Angeles County is $1,599,375. For a triplex, the limit is $1,933,200, and for a fourplex it is $2,402,625. You must live in one unit as your primary residence for at least one year to use FHA financing on multi-unit properties.
What credit score do I need for an FHA loan in Los Angeles County?
You need a minimum credit score of 580 to qualify for an FHA loan with 3.5% down payment. Borrowers with scores between 500 and 579 may still qualify but must put 10% down instead. There are no income limits for FHA loans, but your debt-to-income ratio generally cannot exceed 43%.
Is FHA or conventional better for buying in Los Angeles County?
FHA is typically better for buyers with credit scores between 580 and 620, or those with limited savings for a down payment. Conventional loans work better for buyers with strong credit (700+) and 20% down, since they can avoid mortgage insurance entirely. If you’re an eligible veteran, VA loans are almost always the best option.
Does FHA mortgage insurance go away?
FHA mortgage insurance (MIP) stays for the life of the loan if you put less than 10% down. If you put 10% or more down, MIP drops off after 11 years. The only other way to remove it is to refinance into a conventional loan once you have enough equity and a strong enough credit score to qualify.
Can GM Funding help me get an FHA loan in Los Angeles County?
Yes. GM Funding is a licensed mortgage broker based in San Clemente that serves all of Los Angeles County. We offer FHA, conventional, VA, jumbo, and HELOC loans and can compare options to find the best fit for your situation. Call (800) 345-2044 or contact us online to get started.