If you’ve been scrolling through Zillow or tracking home prices in Southern California, you already know the market doesn't stand still. But here is the good news: the "buying power" rules just caught up.
In late 2025, the Federal Housing Finance Agency (FHFA) and HUD announced the new loan limits for 2026. For those of us here in Los Angeles, Orange County, Riverside, and San Bernardino, these numbers are the difference between landing your dream home or getting stuck in "pre-approval limbo."
I’m Rony Velasquez, Real Estate and Mortgage Broker, Realtor®, and Mortgage Loan Originator (MLO). Along with Mona Bottros, our Realtor® and Office Manager, we’ve helped thousands of families navigate these changes.
Here is the "short answer" you need to know before we dive into the details.
The 2026 Loan Limit "Short Answer"
- LA and Orange Counties: The single-family limit for both Conforming and FHA loans has officially hit $1,249,125.
- Riverside and San Bernardino Counties: The baseline Conforming limit has jumped to $832,750, while FHA limits have seen a significant boost to approximately $690,000.
- The Bottom Line: You can now borrow more money with a lower down payment than you could last year.
What is a Conforming Loan?
When we talk about "Conforming" loans, we are talking about mortgages that "conform" to the funding rules set by Fannie Mae and Freddie Mac.
These are your standard conventional loans. They generally require a higher credit score (usually a FICO of 620+) and have specific DTI (Debt-to-Income) requirements. The benefit? Once you hit that 20% equity mark, you can cancel your private mortgage insurance (PMI), which saves you hundreds of dollars every month.
What is an FHA Loan?
FHA loans are backed by the Federal Housing Administration. These are the "gold standard" for first-time homebuyers because they allow for a down payment as low as 3.5%.
FHA is often more forgiving with credit scores and higher DTI ratios. However, keep in mind that FHA loans require MIP (Mortgage Insurance Premium) for the life of the loan if you put down less than 10%. It’s a trade-off: easier entry into the market, but a slightly higher monthly cost in the long run.
2026 Limits: LA, Orange, Riverside, and San Bernardino
Southern California is split into "High-Cost" and "Baseline" areas. Here is how the 2026 numbers break down for a single-unit (standard house or condo) property:
| County | Conforming Limit (1-Unit) | FHA Limit (1-Unit) |
|---|---|---|
| Los Angeles | $1,249,125 | $1,249,125 |
| Orange County | $1,249,125 | $1,249,125 |
| Riverside | $832,750 | $690,000 |
| San Bernardino | $832,750 | $690,000 |
Why the difference?
The FHFA looks at median home prices in each county. Because Los Angeles and Orange Counties have some of the highest real estate prices in the country, they are granted the "High-Cost" ceiling. This allows buyers to use "conforming" financing on homes well over $1 million, avoiding the stricter requirements of a Jumbo Loan.
In Riverside and San Bernardino, the limits are lower because the median home price is lower, but the 2026 jump to $832,750 is a massive win for families looking in the Inland Empire.
Why these limits matter for YOU
If you are a first-time buyer, these limits determine your ceiling.
- Avoid Jumbo Loans: Anything above these limits is considered a "Jumbo Loan." Jumbo loans often require 10-20% down payments and massive cash reserves. By staying under the 2026 limit, you can buy a $1.2M home in LA with as little as 3.5% to 5% down.
- Better Interest Rates: Conforming and FHA loans typically offer more competitive interest rates than Jumbo products.
- Appraisal Room: If you find a home you love but the price is right on the edge of the old 2025 limits, these new 2026 numbers give you the "breathing room" to make a competitive offer without needing extra cash out of pocket.
A Warning on "Buying Power"
Just because the government says you can borrow $1,249,125 doesn’t always mean you should.
Underwriting is the process where a lender looks at your tax returns, pay stubs, and bank statements to make sure you can actually afford the monthly payment. High interest rates can eat into your DTI quickly. Even if the loan limit is high, your personal "limit" is based on your income and current debt.
Your 2026 Homebuyer Checklist
Before you head out to an open house with Mona, make sure you’ve checked these boxes:
- Check your FICO: Is it above 620? (Ideally 740+ for the best conforming rates).
- Calculate your DTI: Total monthly debt payments divided by gross monthly income. Most programs want to see this under 43-50%.
- Verify Your County: Are you looking in a High-Cost area (LA/OC) or a Baseline area (Riverside/SB)?
- Get Pre-Approved: Don’t rely on a "Pre-Qualification." Get a full pre-approval where an MLO like myself actually reviews your documents.
- Factor in Closing Costs: Remember, you need your down payment PLUS roughly 2-3% for closing costs.
Ready to make a move?
Understanding loan limits is just the first step. The real magic happens when you have a team that knows how to structure your offer to win in a competitive market.
Whether you are looking for your first home in the Inland Empire or selling a luxury property in Orange County, we are here to guide you.
Let’s get you home.
Rony Velasquez
Real Estate and Mortgage Broker | Realtor® | Mortgage Loan Originator (MLO)
Mona Bottros
Realtor® | Office Manager
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