Can You Actually Use an FHA Loan to Buy a Median-Priced Home in Woodland Hills? The 2026 Math

Jonathan Lopez, Woodland Hills Realtor | Jim Sandoval Group | CA DRE #02282844 · Updated August 2026

FHA loans get pitched to first-time buyers as the low-down-payment option: just 3.5% down. That's true as far as it goes, but it leaves out a detail that matters a lot in a market like Woodland Hills: FHA loans have a maximum loan amount, and that cap doesn't move with local prices.

The Limit Itself

For 2026, the FHA loan limit for a single-family home in Los Angeles County is $1,249,125. That's the FHA's national high-cost ceiling, the maximum the program allows anywhere in the country, and LA County is one of only seven California counties that qualify for it (Orange, San Francisco, San Mateo, Santa Clara, Alameda, and Marin are the other six).

Why That Collides With Woodland Hills' Current Market

Woodland Hills' median sale price is $1,345,000 as of July 2026 closes (Movoto, page last updated August 13, 2026). That's already about $96,000 above the FHA cap. Here's where it gets specific: FHA's minimum down payment is 3.5% for buyers with a credit score of 580 or above. On a $1,345,000 purchase, 3.5% down is $47,075, which leaves a loan amount of roughly $1,297,925. That's over the $1,249,125 limit, so a straight 3.5%-down FHA loan doesn't work on a median-priced Woodland Hills home as-is.

What It Actually Takes

To bring the loan amount under the FHA cap on a $1,345,000 home, a buyer needs to put down at least $95,875, about 7.1% of the purchase price. That's still well below the old 20% assumption, but it's roughly double the 3.5% figure most buyers hear when FHA gets mentioned. The math shifts with the purchase price: a lower-priced home needs less extra down payment to clear the cap, a higher-priced one needs more.

It's Not an FHA-Only Problem

The 2026 conforming loan limit, the cap for conventional loans backed by Fannie Mae and Freddie Mac, is also $1,249,125 in LA County's high-cost tier this year. FHA sets its high-cost ceiling at 150% of the national conforming baseline, which is why the two numbers happen to match in 2026. Above $1,249,125, a buyer is looking at jumbo financing regardless of whether they started out planning to use FHA or conventional.

Who This Doesn't Affect

This is a math problem tied to purchase price, not a rule that shuts first-time buyers out of Woodland Hills. Condos and smaller single-family homes priced under roughly $1,294,000 to $1,300,000 can still close with a standard 3.5% FHA down payment. The homes where this matters are the ones at or above the current median, which in Woodland Hills is a meaningful share of the inventory. FHA's 3.5% down payment is real, but it's only the full story below a certain price point. See how Jonathan walks buyers through financing options before touring starts.

Frequently Asked Questions

Call (818) 934-7576 to map out which financing fits your target price range in Woodland Hills.