Short Answer: For 2026, the loan limits in Los Angeles and Orange County have increased significantly. The single-family ceiling for both FHA and Conventional loans is now one million, two hundred forty-nine thousand, one hundred twenty-five dollars. This means home buyers in Buena Park and Cerritos can qualify for larger loans with lower down payment requirements than ever before, avoiding the stricter "jumbo" loan criteria for homes priced up to this new limit.
Is Your Dream Home Finally Within Reach?
Finding the perfect home in Southern California often feels like a race against rising prices. You find a beautiful three-bedroom in Cerritos or a spacious family home in Buena Park, only to realize the price tag pushes you into "Jumbo" territory. Suddenly, you’re looking at higher down payments and much stricter credit requirements.
The good news? The Federal Housing Finance Agency (FHFA) and the Department of Housing and Urban Development (HUD) have updated the loan limits for 2026. Because Buena Park (Orange County) and Cerritos (Los Angeles County) are considered high-cost areas, you now have access to some of the highest borrowing limits in the nation.
At Maya Team Inc., we believe that understanding these numbers is the first step toward ownership. Whether you are a first-time buyer or looking to move up, these new caps are a game-changer for your purchasing power.
What Are Loan Limits and Why Do They Matter?
Before we dive into the specific numbers, let’s clarify what these limits actually do.
A loan limit is the maximum amount a government-sponsored entity (like Fannie Mae or Freddie Mac) or a government agency (like the FHA) will insure or buy.
- Conforming Loans: These follow the limits set by the FHFA.
- FHA Loans: These follow limits set by HUD, typically based on a percentage of the conforming limits.
When a home price (minus your down payment) exceeds these limits, the loan becomes "Non-Conforming" or a "Jumbo Loan." Jumbo loans often require a twenty percent down payment, a higher FICO score, and more significant cash reserves. By raising the limits, the government allows you to use standard financing (with down payments as low as three percent or three and a half percent) for much more expensive homes.
The 2026 Conventional Loan Limits
For 2026, the baseline conforming limit, which applies to most of the country, is eight hundred thirty-two thousand, seven hundred fifty dollars.
However, because we live and work in high-cost markets like Buena Park and Cerritos, we get a "High-Balance" adjustment. For a single-unit property in Los Angeles or Orange County, the new conventional limit is:
One million, two hundred forty-nine thousand, one hundred twenty-five dollars.
This is a substantial increase that reflects the reality of our local real estate market. If you are looking at a home priced at one million, three hundred thousand dollars, and you put down five percent, your loan amount would be one million, two hundred thirty-five thousand dollars. In previous years, this might have been a Jumbo loan. In 2026, this is a standard high-balance conforming loan.
The 2026 FHA Loan Limits
FHA loans are incredibly popular for first-time homebuyers because they allow for a lower credit score and a down payment of only three and a half percent. In high-cost areas like ours, the FHA "ceiling" matches the conventional high-balance limit.
For 2026, the FHA limit for a single-family home in both Los Angeles and Orange County is:
One million, two hundred forty-nine thousand, one hundred twenty-five dollars.
If you are looking at multi-unit properties (house hacking, anyone?), the limits are even higher:
- Two-Unit Property: One million, five hundred ninety-nine thousand, three hundred seventy-five dollars.
- Three-Unit Property: One million, nine hundred thirty-three thousand, two hundred dollars.
- Four-Unit Property: Two million, four hundred two thousand, six hundred twenty-five dollars.
Local Impact: Buena Park and Cerritos
As a Mortgage Loan Originator (MLO) and Real Estate Broker, I, Rony Velasquez, see how these numbers play out on the ground every day.
Buying in Buena Park (Orange County)
Buena Park has seen incredible growth. With its proximity to major entertainment and shopping, it is a top choice for families. The average home price has climbed, but with the new FHA limit of one million, two hundred forty-nine thousand, one hundred twenty-five dollars, many more homes now qualify for low-down-payment FHA financing. This opens the door for buyers who have the income to support a mortgage but haven't saved a massive twenty percent down payment yet.
Buying in Cerritos (Los Angeles County)
Cerritos is known for its world-class schools and beautiful parks. It is a highly competitive market. Having a "conforming" loan up to one million, two hundred forty-nine thousand, one hundred twenty-five dollars gives you a competitive edge. Conforming loans typically have smoother underwriting processes than Jumbo loans, which can make your offer more attractive to sellers who want a guaranteed, on-time closing.
How Higher Limits Increase Your Purchasing Power
When the loan limit goes up, your "ceiling" rises without needing extra cash out of pocket.
Imagine you have fifty thousand dollars saved for a down payment.
- Under old, lower limits: You might have been capped at a purchase price of nine hundred thousand dollars to stay within a standard loan.
- With 2026 limits: You could potentially look at homes over one million, two hundred thousand dollars using the same down payment strategy (depending on your debt-to-income ratio and credit profile).
This allows you to stop settling for "fixer-uppers" and start looking at "turn-key" homes that actually fit your family's needs.
Your 2026 Pre-Approval Checklist
Ready to take advantage of these new limits? As the Realtor® and Office Manager here at Maya Team Inc., Mona Bottros ensures our clients are fully prepared before they ever step foot in an open house. Here is what you need to gather:
- Income Verification: Your two most recent paycheck stubs.
- Tax History: Your last two years of tax returns (the full packages) and W2s.
- Asset Statements: Your two most recent bank statements (all pages) to show your down payment funds.
- Identification: Valid ID for all borrowers on the loan.
- Credit Check: We will need to pull your FICO score to determine which loan program (FHA vs. Conventional) offers you the best rate.
Frequently Asked Questions (FAQ)
What is a High-Balance Loan?
In high-cost counties like Los Angeles and Orange County, a high-balance loan is a conforming loan that exceeds the national baseline but stays under the local ceiling. For 2026, this range is between eight hundred thirty-two thousand, seven hundred fifty dollars and one million, two hundred forty-nine thousand, one hundred twenty-five dollars.
What are the benefits of staying under the loan limit?
Staying under the limit allows you to avoid "Jumbo" requirements. This usually means a lower down payment (as low as three percent for some conventional programs), more flexible credit score requirements, and a faster appraisal and underwriting process.
Can I use these limits for an investment property?
Conventional conforming limits apply to investment properties, but FHA loans are strictly for owner-occupied residences (you must live in one of the units).
Do these limits apply to refinances?
Yes! If you are looking to pull equity out of your home or lower your current rate, these higher limits apply to refinance transactions as well.
Take the Next Step with Maya Team Inc.
Navigating the shift in loan limits can be confusing, but you don't have to do it alone. Whether you are looking in Buena Park, Cerritos, or anywhere else in Southern California, we are here to help you maximize your buying power.
As a Real Estate and Mortgage Broker, Realtor®, and Mortgage Loan Originator (MLO), I have the experience to find the right loan product for your specific financial situation. Together with Mona Bottros, our Realtor® and Office Manager, we provide a seamless experience from the first consultation to the moment you get your keys.
Write a comment if you find this useful! Are you planning to buy in 2026? Let us know what questions you have about the new limits.
Contact Rony Velasquez today:
- Mobile: 562-762-9634
- Email: mayateaminc@gmail.com
- Website: nas.io/mayateaminc
We look forward to helping you move into your dream home!
