FHA Loans in California: Your Spouse's Credit Counts, and 30 Counties Have Higher Limits

California is one of the community property states on the IRS's list of nine. HUD's FHA underwriting handbook has a rule written for exactly those states: a spouse who is not on the loan still gets a credit report pulled.

On an FHA loan in California, the lender must pull a credit report on a spouse who is not on the loan and count that spouse's debts unless state law excludes them, because California is a community property state. The 2026 FHA loan limit then depends on the county, from $541,287 in 28 counties up to $1,249,125 in ten.

I'm Jeff Moran, NMLS #483943, licensed to originate mortgages in California through C2 Financial Corporation. The national FHA explainer covers the program. The rest of this page is about what California changes.

Why your spouse's credit matters even when they are not on the loan

The IRS lists California among its nine community property states in Publication 555. HUD's FHA handbook covers this in sections II.A.4.b and II.A.5.a. When a client lives in a community property state, or the property is in one, the lender must get a credit report on a spouse who is not on the loan. State law can exclude it.

The same sections spell out what the lender does with that report:

• The spouse's debts go into the client's debt ratios, except obligations that state law specifically excludes. The lender writes down the state law behind any exclusion.
• A court judgment against the spouse has to be resolved or paid in full, again except where state law excludes it.
• The spouse's collection accounts are counted along with the client's when the lender reviews all collections on the file.
• The spouse's credit history is not a reason to deny the application.

In a community property state the spouse does not have to be on the loan or sign as a co-signer, but the mortgage still has to be signed by everyone needed to make the lender's lien valid under state law. If your spouse has debt or a judgment, it changes your debt ratio, so you'll want to bring it up when we first talk. How debt ratios work explains the arithmetic.

FHA loan limits by California county in 2026

HUD's Mortgagee Letter 2025-23, dated December 11, 2025, sets limits for case numbers assigned on or after January 1, 2026. Of California's 58 counties, 28 are at the floor of $541,287 for a one-unit home. The other 30 are above it:

One-unit FHA limit	California counties
$1,249,125	Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Clara, Santa Cruz
$1,104,000	San Diego
$1,035,000	Ventura
$1,017,750	Napa
$1,000,500	San Luis Obispo
$994,750	Monterey
$941,850	Santa Barbara
$897,000	Sonoma
$776,250	Mono
$764,750	El Dorado, Placer, Sacramento, Yolo
$736,000	Alpine
$690,000	Riverside, San Bernardino
$685,400	Solano
$678,500	San Joaquin
$649,750	Nevada
$546,250	Mendocino
$545,100	Stanislaus

In the ten counties at $1,249,125, the limit for two units is $1,599,375, for three $1,933,200 and for four $2,402,625, according to HUD's county file. The other 28 counties, including Fresno, Kern and Shasta, are at the floor.

FHA never exceeds the conforming limit in a California county. In 17 counties the two are equal. In the other 41, including Riverside and Sacramento, the FHA limit is lower, and a loan above it moves to conventional. The Federal Housing Finance Agency's 2026 announcement sets the conforming baseline at $832,750 and the ceiling at $1,249,125. The limit applies to the loan amount, and the upfront mortgage insurance premium can be financed without counting against it.

The down payment and credit score FHA looks for

FHA asks you to put in at least 3.5 percent of the adjusted value, which is the lower of the purchase price and the appraised value. With a credit score of 580 or higher (the middle of three scores, or the lower of two), you can borrow up to 96.5 percent of that value on a purchase. On a California price, 3.5 percent is a meaningful amount of cash, which is why the closing costs below matter.

Escrow, title and transfer tax on a California FHA file

California closes through a neutral escrow holder rather than an attorney, and the escrow officer cannot give legal advice. Who pays for the owner's title policy follows a regional custom, with sellers customarily paying in Southern California and buyers customarily paying or splitting in Northern California, according to the Department of Insurance. The contract controls either way, and FHA lets sellers and other interested parties contribute up to 6 percent of the sales price toward your closing costs. The California page explains the north-south split.

The documentary transfer tax is adopted by counties and cities rather than the state, and some cities add their own, so the figure depends on the address. An ordinary refinance does not trigger it. The California refinance page covers that case.

California notaries cannot yet do remote online notarization, so a client buying from out of state plans to sign in person.

Run your numbers

Run your numbers to see FHA priced against conventional for your county, with California closing costs included. A pre-approval comes next, and Which mortgage fits you puts the programs side by side.

Nothing here is a loan approval, a denial, or a commitment to lend. A specific file is confirmed at application, and the community property rules depend on the facts of the marriage and the debts.

Common questions

Does an FHA lender pull my spouse's credit in California?

Yes, when the spouse is not on the loan. California is a community property state under IRS Publication 555, and HUD Handbook 4000.1 requires a credit report on a spouse who is not on the loan in a community property state, except when excluded by state law. The spouse's debts are then included in the qualifying ratios.

Does my spouse's credit score affect my FHA approval in California?

The FHA handbook says the credit history of a spouse who is not on the loan is not a reason to deny the application. What counts is the spouse's debt, which goes into the debt ratio, and any unpaid judgment, which must be resolved.

What is the FHA loan limit in Los Angeles County?

Los Angeles County is at HUD's 2026 ceiling for a one-unit home, the same as Orange, San Francisco, Santa Clara and six other counties. Two-, three- and four-unit homes have higher limits there too.

Which California counties have the lowest FHA limit?

Twenty-eight counties are at the national floor, and a few others are only slightly above it, such as Mendocino and Stanislaus. HUD's county file has the exact figure for each county.

Can a California FHA loan be bigger than the conforming limit?

No. In every California county the FHA limit is equal to or lower than the conforming limit. Loans above the FHA limit are conventional or jumbo.

Can I close an FHA loan in California remotely?

Not by remote online notarization, which California notaries cannot yet perform. The signer appears in person before a notary, and out-of-state signers settle that early.