FHA is the go-to program for first-time California buyers with credit under 700 or limited down payment. 3.5% down with 580+ FICO. DTI up to 56.9% with compensating factors.
Trade-off: FHA charges an upfront mortgage insurance premium (UFMIP) of 1.75% — typically financed into the loan — plus a monthly MIP that stays for the life of the loan on most current FHA files. Many borrowers refinance into conventional once they hit 20% equity to drop the lifetime MIP.
2026 FHA loan limit in Los Angeles County is $1,249,125 for a one-unit property. There is no separate "FHA floor" — every county has its own HUD-set limit indexed to local home prices. Other high-cost SoCal counties (Orange, Ventura, San Diego) carry similar high-cost limits; lower-cost counties scale down by area median home price.