First-Time Buyer Loan Options in California

In Los Angeles County, the 2026 conforming loan limit sits at $1,249,125, and that single number defines every financing decision a first-time buyer in North Hollywood will make. Homes priced at or below that ceiling can use FHA or conventional high-balance loans with down payments as low as 3-3.5 percent. Homes priced above it require jumbo financing, a combo loan structure, or a VA loan. California state assistance programs are available up to the conforming ceiling only. Here is how each path works, and where it stops, in the current market.

How High-Cost Area Limits Define First-Time Buyer Loan Options

Los Angeles County sits at the federal ceiling for conforming and FHA loan limits, and that matters enormously for first-time buyers. For 2026, the Federal Housing Finance Agency set the conforming loan limit for Los Angeles County at $1,249,125 for a single-family home, 150 percent of the national baseline, and the FHA loan limit matches that ceiling exactly.

What this means in practice: if your purchase price is at or below $1,249,125, you can potentially use an FHA loan or a conventional conforming loan, programs with lower credit-score thresholds, smaller required down payments, and more straightforward underwriting than jumbo products. For homes priced above that ceiling, you move into jumbo territory regardless of any state program.

North Hollywood's price range varies a good deal by pocket. The neighborhood's overall median tends to sit meaningfully below the county ceiling, but updated single-family homes in sought-after corridors like Valley Village often transact between $1.1 million and $1.35 million, right around the conforming and FHA threshold. That means many first-time buyers here are sitting right at or just above the conforming ceiling, making the choice between high-balance and jumbo financing one of the first decisions they need to resolve.

FHA Loans: The Most Accessible Path Near the $1M Threshold

FHA loans are the most forgiving first-time buyer option at this price tier. For a home priced at or below $1,249,125 in Los Angeles County, FHA's floor is straightforward: 3.5% down with a 580+ credit score, or 10% down with a score between 500 and 579.

Key FHA loan features to understand:

Down payment: 3.5% on a $1,249,125 purchase = approximately $43,700 Mortgage Insurance Premium (MIP): 1.75% upfront (typically rolled into the loan) plus an annual MIP of around 0.55%, paid monthly Credit score floor: 580 for the 3.5% down option Property types: Single-family homes, 2-4 unit properties (if you occupy one unit), condos, and townhomes that meet FHA standards

The critical caveat for North Hollywood buyers: FHA financing only reaches the $1,249,125 ceiling. If you are competing for a home priced at $1.35 million or $1.5 million, which is common in sought-after pockets of the neighborhood, you would need to bring additional cash to close the gap, or move to a jumbo loan structure.

FHA loans also pair well with CalHFA's MyHome and CalPLUS ZIP assistance programs, discussed below, but only for purchases at or below the conforming ceiling.

Conventional High-Balance Loans: Lower Long-Term Costs at the Conforming Ceiling

For first-time buyers with stronger credit, typically 680 and above, a conventional high-balance loan is often the better long-term choice over FHA at this price range. The 2026 conforming ceiling of $1,249,125 applies to Fannie Mae and Freddie Mac products in Los Angeles County, meaning lenders can offer conventional financing with more flexible mortgage insurance structures than FHA's built-in MIP.

Programs worth knowing:

Fannie Mae HomeReady / Freddie Mac Home Possible: These conventional products allow down payments as low as 3 percent for qualifying income levels, with private mortgage insurance (PMI) rather than FHA's MIP, and PMI can be cancelled once you reach 20 percent equity, unlike FHA's ongoing structure. Standard conventional: 5 percent down is common; 10-20 percent eliminates PMI entirely. Credit score requirements: Generally 620-640 minimum, with better rates and terms at 720 and above.

For a first-time buyer in North Hollywood whose purchase price lands right at the conforming ceiling, a conventional high-balance loan with 5-10 percent down is often the most cost-effective structure over a 30-year hold when compared side by side with FHA's ongoing MIP.

Jumbo Loans: The Reality for Most $1M+ North Hollywood Purchases

When a purchase price exceeds $1,249,125, the financing no longer has Fannie Mae, Freddie Mac, or FHA backing, and lenders take on that credit risk directly. That shift produces stricter qualification requirements across the board.

What lenders typically require for jumbo loans in 2026:

For a first-time buyer financing a $1.4 million home in North Hollywood, a 10 percent down payment means $140,000 at closing plus reserves, a significant bar. Some lenders now offer 5 percent down jumbo programs for borrowers with credit scores of 680 or above, though rates and reserve requirements are typically more demanding on those products.

The combo loan option, a worked example. If your target home is priced $100,000-$200,000 above the conforming ceiling, it is worth modeling a "combo loan" structure against a standalone jumbo. For a $1.35 million purchase, a combo structure might pair a $1,249,125 conforming high-balance first mortgage with a second loan of approximately $100,000-$135,000 (depending on your down payment), potentially at a blended rate lower than a standalone jumbo at the full loan amount. Which structure wins depends on the rate differential and how long you plan to hold. A local lender familiar with the North Hollywood market can run both scenarios side by side.

Important: CalHFA assistance programs, MyHome, CalPLUS ZIP, and Dream For All, cannot be layered onto purchases above the $1,249,125 conforming ceiling. Once your purchase price crosses that threshold, jumbo or combo loan structures are the only available paths.

You can run preliminary payment scenarios using a mortgage calculator before you engage a lender.

CalHFA Programs: State Assistance That Works in High-Cost LA Markets

The California Housing Finance Agency (CalHFA) runs several programs fully available in Los Angeles County, and the 2026 income limits are generous enough to include many buyers in the North Hollywood market.

CalHFA's income limits for all CalHFA first mortgages and subordinate mortgages set the qualifying household income ceiling for Los Angeles County at $211,000, effective June 30, 2026. This limit governs standard CalHFA first mortgages and the MyHome assistance program.

MyHome Assistance Program

MyHome is a deferred-payment junior loan, no monthly payments until you sell, refinance, or pay off the first mortgage, that covers:

Up to 3.5% of the purchase price on FHA-backed CalHFA loans Up to 3% on CalHFA conventional loans

At the $1,249,125 ceiling, the FHA version of MyHome is worth roughly $43,700 toward your down payment or closing costs. For a buyer already stretching to reach a $1.2 million price point, that is meaningful help. MyHome is a simple-interest deferred loan, not a grant; the balance comes due at sale or refinance.

CalPLUS with ZIP (Zero Interest Program)

CalPLUS pairs a fixed-rate first mortgage with ZIP, a zero-interest deferred loan of 2-3 percent of your first mortgage amount, restricted to closing costs. Stacking MyHome (down payment) with ZIP (closing costs) on a CalPLUS loan means a first-time buyer can arrive at closing with significantly less cash than a conventional path requires, though the CalPLUS rate runs slightly above CalHFA's standard rate by design.

California Dream For All: Status as of August 2026

Dream For All offers up to 20 percent of the purchase price (capped at $150,000) as a shared-appreciation down payment loan for first-generation homebuyers. One important constraint: Dream For All pairs only with a CalHFA Dream For All Conventional first mortgage; it cannot be layered onto an FHA loan. Additionally, MyHome assistance cannot be combined with a Dream For All Conventional first mortgage; borrowers using Dream For All arrive with the shared-appreciation loan as their sole CalHFA assistance.

The income limit for Los Angeles County is $168,000, as confirmed in CalHFA's income schedule effective June 30, 2026. Always verify current limits directly at the CalHFA income limits page before applying, as these figures are updated periodically.

The 2026 application window opened February 24 and closed March 16, 2026; vouchers from the randomized drawing were released May 20, 2026. As of late August 2026, no new round has been announced. If you were not selected in the 2026 round, the practical step is to gather parent documentation now, complete the free Dream For All education course, and be lender-ready before the next window opens.

First-generation eligibility also requires that neither the applicant nor their parents currently own, or owned at death, a home in the United States.

VA Loans: Zero Down for Eligible Service Members

VA loans are the most powerful first-time buyer tool available at any price range, including above $1.25 million. For borrowers with full entitlement, VA loans require no down payment, no private mortgage insurance, and carry no set loan limit from the VA itself. A veteran purchasing a $1.4 million home in North Hollywood could, in principle, finance the full amount with no down payment, subject to lender overlays and income qualification.

Key VA loan eligibility benchmarks:

Service requirement: Generally 90 days active duty (wartime) or 181 days (peacetime); National Guard/Reserve members may qualify with 90 days of active service under qualifying Title 32 provisions Credit score: Typically 620 minimum, though lenders may impose higher overlays Funding fee: Replaces mortgage insurance; waived for veterans with qualifying service-connected disabilities

VA loans also pair with CalHFA's VA loan program, which offers a fixed-rate first mortgage with CalHFA's rate structure for eligible borrowers in California.

USDA Loans: Not Applicable in North Hollywood or the Core LA Market

USDA loans do not apply to North Hollywood or the broader Los Angeles urban market; these areas fall outside USDA's eligible rural zones entirely. The program offers zero-down financing for qualifying rural and some suburban areas, so if you are open to purchasing in more outlying parts of Los Angeles County or adjacent counties, it is worth checking the USDA's eligibility map. For buyers focused on the core LA market, this program is not on the table.

How to Layer First-Time Buyer Loan Options for a $1M+ Purchase

For a first-time buyer targeting a home in North Hollywood, the right loan structure depends entirely on where your purchase price lands relative to the $1,249,125 conforming ceiling. Here is how the main paths compare:

Reading the table: a buyer at $1.2 million with a 620 credit score and $211,000 household income has real access to the FHA + MyHome path, potentially arriving at closing with a fraction of what a conventional purchase at this price would require. A buyer at $1.35 million moves into the jumbo or combo column regardless of income or credit; no state program bridges that gap. Dream For All, the most powerful assistance available, is reserved for first-generation buyers using a conventional loan only and at the lower income ceiling.

If you're also weighing whether a condo makes more sense than a single-family home at this price point, this comparison of the two paths works through the financing differences in more depth.

Getting pre-approved before you begin your search is the single most important step for first-time buyers comparing loan options for $1M+ homes in North Hollywood. Homes in this price range attract multiple offers, and a verified pre-approval demonstrates to sellers that you have already resolved the income, credit, and program eligibility questions.

FAQ

Can I use an FHA loan to buy a $1.3 million home in North Hollywood?

Not with FHA financing alone. The 2026 FHA loan limit for Los Angeles County is $1,249,125 for a single-family home. At a $1.3 million purchase price, you would need to either bring enough cash to cover the $50,875 gap between the FHA ceiling and the purchase price, or structure the transaction as a jumbo loan. A combo loan, a conforming high-balance first mortgage at $1,249,125 paired with a second loan for the remainder, is another route worth modeling against a full jumbo product.

What is the income limit for CalHFA programs in Los Angeles County in 2026?

The standard CalHFA income limit for Los Angeles County, effective June 30, 2026, is $211,000 in qualifying household income. This limit applies to the MyHome assistance program and all standard CalHFA first mortgages. The California Dream For All program uses a separate, lower income table, $168,000 for Los Angeles County, effective the same date. Verify the latest figures at calhfa.ca.gov before applying, as CalHFA updates these limits periodically.

Do I have to be a first-generation homebuyer to use CalHFA programs?

No, but the answer depends on which program you mean. The MyHome assistance program and CalHFA's standard first mortgages (FHA, conventional, and VA) require only first-time buyer status, meaning you have not owned a primary residence in the past three years, along with income qualification and a homebuyer education certificate. The Dream For All Shared Appreciation Loan, by contrast, requires that at least one borrower be a first-generation homebuyer (neither the applicant nor their parents currently own or owned at death a home in the United States), and it is available only with a CalHFA Dream For All Conventional first mortgage, not with FHA.

What credit score do I need for a jumbo loan in California?

Most lenders require a minimum credit score of 700 for jumbo loans, with the best rates and lowest down payment requirements available to borrowers at 720-740 and above. Some lenders offer jumbo products with scores as low as 660-680, but expect higher rates and stricter reserve requirements. A conventional high-balance loan at the $1,249,125 conforming ceiling generally requires 620-640 minimum, meaningfully more accessible than a full jumbo product for buyers who can keep their purchase at or below that threshold.

Is the California Dream For All program still accepting applications?

As of late August 2026, the 2026 application window for Dream For All is closed. Applications were accepted from February 24 through March 16, 2026, and vouchers from the randomized selection were released on May 20, 2026. No new round has been announced. Buyers interested in the program should complete the free Dream For All education course, gather parent ownership documentation, and secure a CalHFA lender pre-approval now so they can move quickly when the next window opens.

Can a VA loan cover a home priced above $1.25 million in Los Angeles?

Yes. VA loans carry no set maximum loan amount for eligible borrowers with full entitlement, and the VA itself does not require a down payment. However, individual lenders impose their own limits and may require a down payment on amounts above a certain threshold. For high-value purchases in the North Hollywood market, confirm lender-specific overlays with a VA-approved lender directly; no-down financing is not guaranteed at every price point.

What happens to CalHFA assistance if my purchase price is above $1,249,125?

CalHFA assistance programs, MyHome, CalPLUS ZIP, and Dream For All, all cap out at the conforming loan limit. If your purchase price exceeds $1,249,125, none of these programs apply. At that point, your financing options are a standalone jumbo loan, a combo loan structure pairing a conforming high-balance first mortgage with a second loan, or a VA loan if you have qualifying service. Running the numbers on both jumbo and combo structures with a lender familiar with the North Hollywood market will show which path costs less over your expected hold period.