In San Diego County, the 2026 FHA loan limit for a one-unit home is $1,104,000, confirmed in HUD's county loan-limit data. With 3.5% down, that supports a purchase price of about $1.14 million, subject to the appraisal and your lender's approval. The part worth a closer look is mortgage insurance. For a standard 30-year FHA purchase loan with less than 5% down, HUD's annual premium is 0.55% for a base loan of $726,200 or less and 0.75% above that.
A buyer putting 3.5% down on a $900,000 home has a base loan of $868,500, which falls in the higher tier. That makes the starting insurance estimate about $145 a month more than an estimate using 0.55%. FHA may still be the right choice. Just compare the full payment before deciding.
What a $900,000 purchase looks like on FHA
This example uses a hypothetical 7.00% fixed interest rate over 30 years, not a current market average or a lender quote. It assumes the upfront premium is financed. Your rate, fees, appraisal, eligibility, and final payment may differ.
| Line | Illustrative amount |
|---|---|
| Purchase price | $900,000 |
| Down payment, 3.5% | $31,500 |
| Base loan | $868,500 |
| Upfront mortgage insurance, 1.75% of the base loan | $15,198.75 |
| Total loan balance with upfront insurance financed | $883,698.75 |
| Principal and interest at a hypothetical 7.00% | About $5,879 a month |
| Starting annual mortgage insurance estimate at 0.75%, divided by 12 | About $543 a month |
| Comparison only: starting estimate if 0.55% applied | About $398 a month |
Principal, interest, and the starting mortgage insurance estimate total about $6,422 a month before property taxes, homeowners insurance, HOA dues, or special taxes. The annual insurance figures are simple starting estimates based on the base loan, not a promise of the exact billed premium. Your lender calculates the actual premium using HUD's balance and payment rules, and it changes as the loan amortizes.
Use the San Diego buying budget guide to add the other ownership costs. The buy now or wait calculator can help compare scenarios, but it is not an FHA-specific loan quote.
Where the $1,104,000 limit sits
The county limit applies to the base loan before financed upfront mortgage insurance, not the purchase price or the total balance after that premium is added. Dividing $1,104,000 by 0.965 gives approximately $1,144,041. That is a mathematical purchase-price ceiling at 3.5% down, not a preapproval or a guarantee that a particular home qualifies.
Above that price, a larger down payment might keep the base loan within the FHA limit. Alternatively, compare conventional or jumbo options with a lender. FHA county limits and conventional conforming limits are separate rules, so do not assume crossing one automatically means you need a jumbo loan.
HUD's 2026 data resolves the conflicting lender figures in the original draft. Before you apply, use the official FHA mortgage limits lookup and select California, San Diego County, the correct year, and property unit count. This post covers one-unit purchases; two- to four-unit properties have different limits and underwriting requirements.
How the annual mortgage insurance tiers work
HUD's published table for standard loans with a term longer than 15 years uses these tiers. Loan-to-value, or LTV, compares the base loan with the property's adjusted value; the down-payment descriptions below assume price and adjusted value are the same.
| Base loan amount | LTV | Annual MIP rate | Duration |
|---|---|---|---|
| $726,200 or less | 90% or less | 0.50% | 11 years |
| $726,200 or less | Above 90% through 95% | 0.50% | Mortgage term |
| $726,200 or less | Above 95% | 0.55% | Mortgage term |
| Above $726,200 | 90% or less | 0.70% | 11 years |
| Above $726,200 | Above 90% through 95% | 0.70% | Mortgage term |
| Above $726,200 | Above 95% | 0.75% | Mortgage term |
Source: HUD Mortgagee Letter 2023-05 and Appendix 1.0 of the FHA handbook linked below. The $726,200 insurance threshold remains in the published table reviewed for this post. It is not the San Diego county loan limit, and it should not be replaced with the current conventional conforming limit. Loans of 15 years or less and certain special programs have different tables.
How long you pay the insurance
For the standard purchase loans covered here, annual MIP lasts for the mortgage term when the original LTV is above 90%, generally meaning less than 10% down. At an original LTV of 90% or less, it lasts 11 years. Building equity does not automatically cancel FHA MIP the way some conventional private mortgage insurance can be canceled.
Refinancing into a conventional loan can end the FHA loan and its insurance, but approval, appraisal, rates, closing costs, and any new private mortgage insurance still matter. Price the purchase so it works without depending on a future refinance.
Credit scores and lender rules
FHA's published minimum decision credit score tiers allow maximum financing at 580 or above, with a 3.5% minimum required investment on a standard purchase. Scores from 500 through 579 are limited to 90% LTV, generally requiring at least 10% down. A credit score alone does not establish approval.
Lenders may set stricter requirements, often called overlays. Income, debts, documented funds, occupancy, and property eligibility also matter. FHA is generally for an owner-occupied principal residence, not a loan to buy a stand-alone investment property. Have an FHA-approved lender evaluate your actual file before relying on the minimums.
Seller credits and down payment help
FHA permits interested parties, including the seller, to contribute up to 6% of the sales price toward eligible origination fees, closing costs, prepaid items, and discount points. On $900,000, that percentage ceiling is $54,000, but usable credits cannot exceed actual eligible costs. It is not cash back, and a seller is not required to agree to the full amount.
A seller contribution cannot simply replace your required down payment. Have the lender approve the structure before you write the offer. Read the San Diego closing costs post and the seller credit and rate buydown comparison for the costs and tradeoffs to discuss.
Some assistance programs can work with FHA financing, but eligibility, funding availability, repayment, and participating-lender requirements vary. Start with the first-time buyer programs guide, then confirm the program's current rules directly. Do not assume assistance is available or that it is free money.
Condos need a separate eligibility check
A condominium generally needs an FHA-approved project or an eligible single-unit approval. Single-unit approval is not available for every building. The lender must review the project and unit requirements, and the property still needs the applicable FHA appraisal.
A townhome's appearance does not tell you its legal ownership form. Ask whether it is a condominium, a fee-simple property, or another structure. The condo, townhome, and house buying guide covers ownership differences.
If you compare attached homes in Mission Valley, La Mesa, or Rancho Bernardo, verify the exact project's FHA eligibility, HOA finances, insurance, and dues. These are community comparisons, not claims that specific buildings are approved or that today's inventory fits your budget.
Questions to ask your lender
- What annual mortgage insurance tier applies to my base loan and original LTV?
- What is the upfront premium, and how does financing it change my balance and payment?
- What would FHA look like at 3.5%, 5%, and 10% down?
- What credit, reserve, and income requirements does your company add?
- Is the home or condo eligible, and what appraisal or repair conditions could apply?
- How much of a seller credit could I actually use?
- Can you provide a comparable conventional Loan Estimate on the same day?
- What is my full payment, including taxes, insurance, mortgage insurance, HOA dues, and special taxes?
Your next step
Want to see how an FHA payment fits your budget before touring? Email Celeste or call 619-738-0725 to talk through the purchase and connect with a lender who can compare FHA and conventional options. For the full buying sequence, start with the San Diego first-time homebuyer guide.
This post is general education, not lending, tax, or legal advice. Confirm all figures and eligibility with an FHA-approved lender. Loan limits are year-specific; a 2027 purchase needs the applicable 2027 limits.
Official resources
Reviewed November 12, 2026. Confirm the current requirements with your lender before applying.
- HUD 2026 FHA forward mortgage limits, county data
- HUD FHA mortgage limits lookup
- HUD Mortgagee Letter 2025-23: 2026 nationwide loan limits
- HUD Mortgagee Letter 2023-05: mortgage insurance rates and duration
- HUD FHA Single Family Housing Policy Handbook and updates
- HUD condominium and single-unit approval guidance
Frequently asked questions
What is the FHA loan limit in San Diego County in 2026?
HUD's 2026 county data lists a $1,104,000 base loan limit for a one-unit home in San Diego County. Financed upfront mortgage insurance is added after the base loan. Check the correct year and property unit count with HUD and your lender.
How much does FHA mortgage insurance cost on a San Diego home?
Standard FHA purchase loans have an upfront premium of 1.75% of the base loan and an annual premium paid monthly. For a 30-year loan above 95% LTV, annual MIP is 0.55% at a base loan of $726,200 or less and 0.75% above it. On the $868,500 base loan in this example, the simple starting estimate is about $543 a month; your lender calculates the exact billed premium.
How long do I pay FHA mortgage insurance?
For the standard purchase loans covered here, annual MIP lasts for the mortgage term when original LTV is above 90%, generally less than 10% down. At 90% LTV or less, it lasts 11 years. Equity alone does not cancel it. Refinancing may end the FHA loan, but requires new approval and a comparison of costs.
Can I use an FHA loan to buy a condo in San Diego?
A condominium generally needs FHA project approval or an eligible single-unit approval. Not every project qualifies. Have the lender verify the exact project and unit before writing an offer; applicable FHA appraisal requirements still apply.
Can the seller pay my closing costs on an FHA loan?
FHA permits interested-party contributions up to 6% of the sales price toward eligible closing costs, prepaid items, and discount points, limited to actual eligible costs. Seller credits cannot simply replace your required down payment or become cash back. Confirm the structure with your lender.