We’ve started a new blog series to address some of the most common questions among home buyers in California. Today’s question relates to the ever-popular FHA program. The question being: What is the maximum FHA loan size in California, in 2017?
Maximum FHA Loan Amount in California, 2017
Short answer: In California, FHA loan limits range from $275,665 in the more affordable housing markets, up to $636,150 in the pricier markets like San Francisco. There’s a broad range in between. So it partly depends on where you live.
FHA loan limits are set at the county level and based on median home prices. So the maximum FHA loan size in California actually varies from one county to the next.
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- The lowest maximum in the state is $275,665, for a single-family home. This amount applies to a dozen or so counties across California.
- The highest limit is $636,150, for a single-family home. This applies to the state’s more expensive real estate markets like San Francisco and Orange County.
These are what FHA officials refer to as the “floor” and “ceiling” loan limits. There’s a broad spectrum between the floor and ceiling. So you have to look up the maximum amount for your particular county (or the county where the property is located).
What Is a ‘Loan Limit’?
A Federal Housing Administration (FHA) home loan is different from a “regular” conventional loan in several ways. The biggest difference has to do with insurance backing. FHA mortgage loans are insured by the federal government, under the direction of the Department of Housing and Urban Development (HUD).
As the name suggests, loan limits restrict the amount of money you are able to borrow under a particular mortgage program. There are different limits for different programs. The maximum amounts for the FHA loan program are set by HUD.
If you’re planning to buy a home in California, and you want to use the FHA mortgage program to finance your purchase, you’ll want to research the limits for the county in which you plan to buy. And you can do that right here: FHA maximum amounts by county.
All County Limits Were Increased for 2017
In California, the maximum FHA loan amount is based on median home prices. So when home prices rise significantly from one year to the next, federal housing officials may increase loan limits to keep pace.
This is what occurred from 2016 to 2017. In December of 2016, HUD officials announced that they would be increasing the maximum loan amount for most counties across the U.S., in response to home value increases during 2016.
In high-cost California counties, like most in the Bay Area, the FHA limit was raised from $625,500 in 2016, to $636,150 in 2017. HUD also raised the “floor” for lower-cost areas from $271,050 to $275,665.
Want to Apply for the Program?
Do you plan to buy a home in California in 2017? Do you need to use a mortgage loan to help finance your purchase? We can help you.
Bridgepoint Funding has been serving borrowers across the state for more than 15 years. We offer competitive rates on a variety of loan types, including FHA. We can help you choose the best type of home loan based on your unique situation.
Please contact us today to get the process started, or with any financing-related questions you might have!