FHA Loan Limits and USDA Eligibility in California

Minimum is 3.5% (580+ score) or 10% (500–579). FHA allows the full amount to come from a gift: family, employer, labor union, or an approved program. A signed gift letter is required.

580+ qualifies for 3.5% down. 500–579 generally requires 10% down. Lenders often set their own floor above the FHA minimum.

Guidelines target a housing ratio around 31% and total DTI around 43%. Automated underwriting can approve stronger files above those thresholds. Manual underwriting uses tighter caps.

The home must be your main residence, not a second home or investment property. You must move in within the timeline FHA and your contract require.

One-to-four unit homes, FHA approved condos, and some manufactured homes that meet FHA rules. For 2–4 units you must live in one unit. The home must pass an FHA appraisal.

2026 one-unit limits start at $541,287 in most counties and go up to $1,249,125 in high-cost areas. 2–4 unit limits are higher. Enter a ZIP to see every FHA county on that ZIP.

The home must be in a USDA designated rural or suburban area. Over 97% of U.S. land qualifies, including many suburbs near major cities. Use the eligibility map to check any address.

USDA caps household income at 115% of the area median, with a national floor of $122,800 for 1–4 person households. Every adult in the home counts, not just borrowers. Deductions for dependents and childcare can help.

The home must be your full-time primary residence. Investment properties and second homes are not eligible. You must intend to occupy the home within 60 days of closing.

USDA Guaranteed loans cover single-unit homes only. Duplexes and multi-unit properties do not qualify, even with owner occupancy. Condos and manufactured homes are eligible under specific conditions. For house-hacking a 2–4 unit property, FHA and VA are the right tools. USDA is not.

You must be a U.S. citizen, U.S. non-citizen national, or qualified alien. Permanent residents with a green card generally qualify. Your lender will verify documentation.

USDA does not set a hard credit floor, but most lenders require 640+ for streamlined approval. Some lenders go lower with compensating factors. Your full credit profile (payment history, DTI, reserves) matters as much as the score.