FHA loans: the easier door in.
FHA loans are insured by the Federal Housing Administration, which lets lenders approve buyers with smaller down payments and less-than-perfect credit. In LA County you can borrow up to $1,249,125 on a single-family home in 2026.
Who FHA is built for
- First-time buyers with limited savings.
- Credit scores in the 580 to 680 range.
- Higher debt-to-income ratios from car payments or student loans.
- Buyers getting gift money from family for the down payment.
The key rules
- Down payment: 3.5% with a 580+ credit score. 10% with a score between 500 and 579.
- Mortgage insurance: an upfront premium of 1.75% of the loan (usually financed into the loan) plus an annual premium paid monthly. With less than 10% down it generally stays for the life of the loan unless you refinance.
- Occupancy: must be your primary residence. 1 to 4 units allowed, so you can live in one unit and rent the others.
- Loan limit: $1,249,125 for a single-family home in LA County for 2026. Other counties are lower.
- Condos: the project generally needs FHA approval or a single-unit approval.
FHA vs. conventional
If your credit is 700+ and you have 5% or more down, conventional often wins because mortgage insurance is cheaper and can be removed later. Below that, FHA frequently comes out ahead on payment. I price both and show you the side-by-side. See conventional loans.
Common questions
What is the minimum credit score for an FHA loan?
FHA allows 580 for 3.5% down and 500 to 579 with 10% down. Individual lenders may set higher minimums.
What is the FHA loan limit in Los Angeles County for 2026?
$1,249,125 for a one-unit property.
Can I remove FHA mortgage insurance?
If you put down 10% or more, annual MIP ends after 11 years. With less than 10% down it lasts for the life of the loan, so many borrowers refinance into a conventional loan once they reach 20% equity.
Can I use gift funds for an FHA down payment?
Yes. Gifts from family and certain other sources are allowed with a signed gift letter and documentation of the transfer.
Every kind of home loan, one straight answer.
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