FHA loan limits reset every year, and 2026 is no exception. The Federal Housing Administration published its new limits in Mortgagee Letter 2025-23 on December 11, 2025, and they apply to FHA case numbers assigned on or after January 1, 2026.
The part most buyers get wrong is not the number itself. It is the assumption that FHA uses the same limit as a conventional loan. It does not. FHA limits are set by HUD on a different schedule, using different data, and in San Diego County the two programs have not always landed on the same figure. This article covers what changed, how the county figure is built, and where to look up the number that governs your file.
What changed nationally for 2026
FHA does not publish one national limit. It publishes a range, and every county sits somewhere inside it.
| Boundary | 2026 one-unit amount | What it means |
|---|---|---|
| National “floor” | $541,287 | The lowest FHA limit in the country. Applies in lower-cost counties. |
| National “ceiling” | $1,249,125 | The highest FHA limit in the country. Applies in the highest-cost counties. |
Both boundaries are tied to the conforming loan limit that the Federal Housing Finance Agency sets each year. FHFA set the 2026 conforming baseline at $832,750 for one-unit properties. The FHA floor is 65 percent of that baseline, and the FHA ceiling is 150 percent of it. Because the conforming baseline rose for 2026, the FHA floor and ceiling rose with it.
How a county figure like San Diego’s gets set
Between the floor and the ceiling, FHA sets a limit for each county based on local home sale prices. The general structure works like this:
- FHA looks at median sale prices for the area.
- The county limit is generally set at 115 percent of that median.
- If that calculation lands below the national floor, the county gets the floor.
- If it lands above the national ceiling, the county gets the ceiling.
- Counties in between get their calculated figure.
San Diego County is a high-cost area, so its FHA limit sits well above the national floor. Whether it lands at the ceiling or below it depends on the median sale price data HUD used for the year, which is why the figure moves from year to year.
Where to get the San Diego County number that governs your loan
FHA limits change annually, and the figure that applies to your file is the one in effect when your FHA case number is assigned. Use the source rather than a summary:
- Go to HUD’s FHA Mortgage Limits lookup.
- Select the limit year, state California, and county San Diego.
- Read the one-unit through four-unit figures returned for the county.
- Confirm with your loan officer which figure applies to your case number date.
HUD also publishes the complete county list as an attachment to each year’s Mortgagee Letter, available through HUD’s Mortgagee Letters library. For 2026, that is Mortgagee Letter 2025-23.
Treat any figure you find on a lender website, including this one, as a summary that can go stale. HUD’s lookup is the authority.
Why the FHA limit and the conforming limit are different numbers
This is the single most common mistake in San Diego FHA searches. The two programs are set by two different agencies under two different rules.
| Factor | Conforming (conventional) | FHA |
|---|---|---|
| Who sets it | Federal Housing Finance Agency | HUD, through the Federal Housing Administration |
| Published in | Annual conforming loan limit values | Annual Mortgagee Letter, ML 2025-23 for 2026 |
| National baseline or floor | $832,750 baseline | $541,287 floor |
| National ceiling | $1,249,125 | $1,249,125 |
| San Diego County one-unit figure | $1,104,000 | Look it up at HUD’s FHA Mortgage Limits tool |
| Timing that governs | Loan origination in the calendar year | Date the FHA case number is assigned |
The last row matters more than it looks. Conforming eligibility follows the loan. FHA eligibility follows the case number assignment date. If you are buying across a year boundary, ask your loan officer when the case number was or will be pulled.
What the limit does and does not decide
An FHA loan limit sets the maximum mortgage amount FHA will insure for that county and property size. It does not decide any of the following:
- Whether you qualify. Credit, income, debts, the property, and the appraisal all get reviewed. Every loan is subject to underwriting approval.
- What the home can cost. The limit caps the insured mortgage amount, not the purchase price.
- Whether FHA is the right program. FHA carries mortgage insurance premiums, and the property must meet FHA appraisal standards. A conventional or VA option may fit better depending on the file.
- Your costs. Those depend on the program, the market, and your profile. Get them in writing on a Loan Estimate.
Buying a two- to four-unit property in San Diego
FHA publishes separate, higher limits for two, three, and four unit properties, and FHA financing is available for an owner-occupied multi-unit property when program requirements are met. San Diego County’s multi-unit figures appear alongside the one-unit figure in the same HUD lookup.
Occupancy rules apply, and the specifics depend on current FHA guidelines. If a multi-unit purchase is on the table, ask your loan officer to confirm the current occupancy and self-sufficiency requirements for the unit count you are considering before you write an offer.
Common mistakes
- Assuming the FHA limit matches the conforming limit. Two agencies, two rulebooks, two schedules. Check each separately.
- Using a statewide California figure. There is no statewide FHA limit. Limits are county by county, and San Diego County’s differs from Los Angeles County’s and from Riverside County’s.
- Quoting last year’s number. Limits reset annually and are keyed to your case number assignment date.
- Reading the limit as an approval. It is a program cap. Qualification is decided by underwriting.
- Forgetting mortgage insurance. FHA loans carry mortgage insurance premiums. Ask how they apply to your file and for how long.
- Skipping the property standards. FHA appraisals apply minimum property requirements. A property that needs work may need repairs before closing or may not be eligible.
Frequently Asked Questions
What are the 2026 FHA loan limits nationally?
For one-unit properties, HUD set the 2026 national floor at $541,287 and the national ceiling at $1,249,125. These were published in Mortgagee Letter 2025-23 on December 11, 2025.
What is the FHA loan limit in San Diego County?
San Diego County is a high-cost area, so its FHA limit sits well above the national floor. The exact county figure changes each year and is published by HUD. Look it up on HUD’s FHA Mortgage Limits tool by selecting the limit year, California, and San Diego County, and confirm it with your loan officer against your case number date.
Is the FHA limit the same as the conforming loan limit?
No. FHFA sets conforming limits and HUD sets FHA limits, using different data and different rules. For 2026, San Diego County’s conforming one-unit limit is $1,104,000. The FHA figure for the county is published separately by HUD and should be looked up directly.
When did the 2026 FHA limits take effect?
They apply to FHA case numbers assigned on or after January 1, 2026, per Mortgagee Letter 2025-23.
Why did FHA limits go up for 2026?
The FHA floor and ceiling are tied to the conforming loan limit baseline that FHFA sets each year. FHFA raised the 2026 baseline to $832,750 for one-unit properties, and the FHA floor and ceiling, which are 65 percent and 150 percent of that baseline, rose accordingly.
Can I buy a duplex or fourplex with an FHA loan in San Diego?
FHA publishes higher limits for two, three, and four unit properties, and FHA financing is available for owner-occupied multi-unit properties when program requirements are met. Occupancy and other program requirements apply, so confirm the current guidelines with your loan officer before writing an offer.
What happens if I need more than the FHA county limit?
Options generally include a larger down payment to bring the loan amount within the limit, a conventional loan, or, for eligible veterans and service members, a VA-backed loan. Which options are available depends on your profile and the property, and all financing is subject to underwriting approval.
Does the FHA limit apply to refinances?
FHA publishes limits for forward mortgages, which include both purchases and most refinances. Specific requirements vary by refinance type, so confirm the applicable limit and program rules for your transaction.
Sprint Funding, Inc. publishes this article and offers the loan products described in it. Treat it as educational content from a company with a commercial interest, not as independent advice. Nothing here is a loan offer, a commitment to lend, or legal, tax, or financial advice. Loan options vary by borrower qualifications, and all financing is subject to underwriting approval. No rates, payments, or loan terms are quoted here. Ask a licensed loan professional for a written quote, and review your Loan Estimate and note before you commit.
