Alameda County FHA Loan Limits to Rise in 2017

Alameda County FHA loan limits will go up in 2017, in response to home price increases that occurred over the last year. The maximum loan limit for a single-family home in Alameda County will go up to $636,150 in 2017 (an increase of more than $10,000 from the 2016 limit of $625,500).

According to a December press release from the Department of Housing and Urban Development (HUD):

“The Federal Housing Administration (FHA) today announced the agency’s new schedule of loan limits, and due to an increase in housing prices, most areas in the country will see a slight increase in loan limits in 2017.”

Alameda County FHA Loan Limits for 2017

Here are the revised (increased) FHA loan limits for Alameda County in 2017:

• Single-family home: $636,150
• Two-family home: $814,500
• Three-family home: $984,525
• Four-family home: $1,223,475

Note: If you’re using an FHA-insured mortgage loan to buy a “regular” single-family home in Alameda County, the $636,150 loan limit will apply to you. The other three figures above apply to multi-family properties that are typically purchased by investors.

A Response to Rising Home Prices

FHA loan limits vary by county, and they are based on median home prices. HUD reviews the caps each year to make sure they are within the target range. The program is designed to help borrowers purchase a moderately priced home. Therefore, when home prices rise significantly from one year to the next, FHA limits are often increased to keep pace. That’s what happened this year.

In most counties across the country (2,948 of them, according to HUD), the FHA loan limits will go up for 2017. They will remain unchanged in 286 counties. There were no counties with a decrease.

According to Zillow, home prices in Alameda County rose by more than 6% during 2016. In some cities within the county, they rose by an even higher percentage. In Oakland, for instance, the median home price rose by around 11% during 2016, according to Zillow. This is partly why Alameda County FHA loan limits for 2017 are going up.

Alameda Conforming Loan Limits Also Rising

Last month, the Federal Housing Finance Agency announced that conforming loan limits across the country would also go up in 2017. These caps apply to conventional (non-FHA) mortgages. In 2017, the conforming loan limit for a single-family home in Alameda County, California will be $636,150 — the exact same as the FHA cap.

Elsewhere on our website, you’ll find a complete list of conforming limits for all counties in California.

How the FHA Program Works

The Federal Housing Administration (FHA) loan program has been helping home buyers since the 1930s. It was created through the National Housing Act of 1934.

Through this unique program, mortgage lenders in the private sector receive insurance protection on the loans they make, as long as they meet certain criteria. Because of this government backing, lenders are often more lenient with their qualification criteria for borrowers (credit scores, debt ratios, etc.).

FHA loans also have a relatively low down payment, compared to some other types of mortgages. With this program, a home buyer could buy a house in Alameda County with as little as 3.5% down.

Learn more about California FHA requirements.

Ready to Apply for the Program?

Are you in the market to buy a home? Do you have questions about the Alameda County FHA loan limits for 2017, or other aspects of this program? We can help!

Bridgepoint Funding has been serving borrowers in California for more than 15 years. We offer a wide variety of loan products and products, including the always popular FHA-insured mortgage.

We can help you get pre-approved for a mortgage before you start house hunting, to increase your chances for success in the competitive Alameda County real estate market. We can also provide you with a tailored rate quote based on your financing needs.

Contact our knowledgeable staff with any questions you have.