FHA Loans in San Diego and Across California

What is an FHA loan?

An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government backs part of the risk, lenders can offer lower down payments and more forgiving credit guidelines than many conventional loans. It's one of the most popular paths to a first home, and you don't have to be a first-time buyer to use one.

Key FHA loan benefits

• As little as 3.5 percent down with a credit score of 580 or higher.
• Flexible credit. FHA guidelines allow scores below 580 with 10 percent down, though individual lenders may set higher minimums.
• Gift funds allowed. Family members can help with your down payment.
• Pairs with down payment assistance. FHA works with many state and local programs, including CalHFA options.
• 2 to 4 unit properties are allowed if you live in one unit.

2026 FHA loan limits in California

FHA sets a maximum loan amount by county. For 2026, the FHA limit for a single-family home in San Diego County is $1,104,000. In the highest-cost California counties, such as Los Angeles, Orange, and much of the Bay Area, it's $1,249,125. Lower-cost counties have lower limits. Need more than your county's limit? Look at a jumbo loan.

The trade-off: FHA mortgage insurance

FHA loans include mortgage insurance, called MIP. There's an upfront premium, which is usually rolled into the loan, plus a monthly premium. With less than 10 percent down, the monthly premium typically stays for the life of the loan. Many buyers use FHA to get in the door, then refinance into a conventional loan later once they've built equity.

We'll compare FHA side by side with conventional options so you can see which actually costs less for your situation.

Who FHA loans are a great fit for

• First-time buyers with limited savings
• Buyers with a credit score that's still recovering
• Buyers using gift funds or down payment assistance
• House hackers buying a 2 to 4 unit property to live in

Your loan and your agent under one roof

The Loan Me Company is both a mortgage brokerage and a real estate brokerage. FHA buyers sometimes face sellers who prefer conventional offers. When your agent and your loan team are the same people, we can write a stronger offer, explain your financing to the listing agent with confidence, and keep the deal moving through appraisal and closing.

Related programs

First-time buyer? See our first-time homebuyer programs page for down payment help you can stack with FHA. Veteran or active military? A VA loan may be even better, with $0 down and no monthly mortgage insurance.

Talk it through with Conor

Book a free 15-minute consultation with no credit impact and no commitment. We'll look at FHA next to your other options and map out a realistic plan. Book your free consultation or call 925-708-7991.

FHA loan FAQ

What credit score do I need for an FHA loan?

FHA guidelines allow 3.5 percent down with a 580 score, and 10 percent down for scores between 500 and 579. Many lenders set their own higher minimums, so shopping lenders matters.

What is the FHA loan limit in San Diego for 2026?

$1,104,000 for a single-family home in San Diego County. Limits are higher for 2 to 4 unit properties and vary by county.

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

No. FHA loans are open to repeat buyers too, as long as the home will be your primary residence.

Can I get rid of FHA mortgage insurance?

With less than 10 percent down, FHA mortgage insurance usually lasts for the life of the loan. Many homeowners remove it by refinancing into a conventional loan once they have enough equity.

Can I combine FHA with down payment assistance?

Often, yes. Programs like CalHFA MyHome can be paired with FHA loans for eligible buyers.

Related loan programs

• First-Time Homebuyer Programs: Down payment help and grants

• VA Loans: $0 down for eligible veterans and service members

• 1099 Loans: For contractors and freelancers paid on a 1099

The Loan Me Company (Loan Me, Co.) · NMLS #2497863 · CA DRE #02220434 · Conor Cappa, NMLS #1450916 · CA DRE #02100091. Not affiliated with or endorsed by HUD or the FHA. This is not a commitment to lend. All loans are subject to credit approval, income and property qualification, and lender guidelines. Loan limits shown are for 2026 and can change. Contact us for a current rate quote. Equal Housing Opportunity.