Question 1

What is the 2026 conforming loan limit in Orange County?

Accepted Answer

The 2026 conforming limit is $1,249,125. Loans above this amount are jumbo and carry stricter requirements. Most Tustin buyers stay within this ceiling.

Question 2

Is Orange County an FHA high-cost area?

Accepted Answer

Yes. Orange County is designated an FHA high-cost area. This affects the upfront mortgage insurance premium and may change your FHA payment calculation.

Question 3

Is Orange County a VA high-cost area?

Accepted Answer

Yes. Orange County qualifies as a VA high-cost area. The VA funding fee and loan terms reflect this designation.

Question 4

What credit score do I need to buy in Tustin?

Accepted Answer

Conventional loans typically require 620 FICO minimum. FHA accepts 580 FICO with 3.5% down. VA has no strict floor but most lenders prefer 620+.

Question 5

How much do I need to put down on a Tustin home?

Accepted Answer

Conventional buyers put 3% to 20% down. FHA requires 3.5% minimum. VA allows zero down for eligible veterans. Down payment affects your rate and whether PMI applies.

Question 6

Do I need 20% down to avoid PMI on a conventional loan?

Accepted Answer

Yes. At 20% down (80% LTV), PMI is not required. Below 20% down, PMI applies until you reach 78% LTV or refinance.

Question 7

What is the upfront FHA mortgage insurance premium?

Accepted Answer

FHA charges 1.75% of the loan amount upfront. On a $1,000,000 FHA loan, that's $17,500 rolled into your balance.

Question 8

How long does FHA mortgage insurance last?

Accepted Answer

If you put down less than 10%, MIP stays for the life of the loan. With 10% or more down, MIP cancels after 11 years.

Question 9

Do VA loans have a funding fee?

Accepted Answer

Yes. VA loans charge a funding fee instead of PMI. At zero down, the fee is 2.15% of the loan amount. Disabled veterans may qualify for an exemption.

Question 10

How does the Newport Mesa school e-bike ban affect my home value?

Accepted Answer

The 2026-27 e-bike ban at elementary and middle schools may appeal to families prioritizing campus safety. School policies can influence buyer interest in specific neighborhoods.

Question 11

What does the Orange County median household income tell me about affordability?

Accepted Answer

At $113,702 median, most Tustin households qualify for conventional loans up to the conforming limit. Your actual approval depends on your specific income and debt.

Question 12

Can I get a jumbo loan above $1,249,125 in Tustin?

Accepted Answer

Yes. Jumbo loans exceed the conforming limit. They typically require 20% down, 700+ FICO, and 6-12 months reserves. Rates run 0.125% to 0.5% above conforming.

Question 13

How long does it take to close on a Tustin home?

Accepted Answer

Conventional closings typically take 30 to 45 days. FHA and VA can take 45 to 60 days due to additional inspections and appraisal reviews.

Question 14

What closing costs should I expect in Orange County?

Accepted Answer

Closing costs run 2% to 5% of the loan amount. On a $1,000,000 loan, plan for $20,000 to $50,000. Your lender will provide a detailed estimate.

Question 15

Can I refinance my FHA loan to remove the mortgage insurance?

Accepted Answer

FHA MIP cannot be removed by refinancing into another FHA loan. You'd need to refinance into a conventional loan once you have 20% equity.

Tustin mortgage questions answered