California FHA Loan Limits by County: 2022 Update for Borrowers

We have good news for California home buyers who plan to use an FHA loan in 2022. Housing officials have increased the maximum mortgage amounts associated with this program.

The California FHA loan limits for 2022 will go up considerably from their current levels. They range from $420,680 to $970,800, depending on the county where the home is located.

Refer to the table below to find the 2022 FHA loan limit for your particular county.

California FHA Loan Limits for 2022

The Federal Housing Administration (FHA) home loan program is a popular option among home buyers seeking a low down payment. These loans offer a down payment as low as 3.5% of the purchase price or appraised value. They can also be easier to obtain, when compared to conventional mortgage loans.

But there’s a limit to how much you can borrow when using an FHA-insured home loan. The maximum mortgage amount varies by county, because it’s based on median home values.

Here are the 2022 California FHA loan limits by county:

Note: The FHA loan limits shown above apply to regular single-family homes. There are higher limits for multi-family properties like duplexes, along with three- and four-unit properties. You can find those figures on the HUD.gov website. We’ve limited this table to the single-family column since that category applies to most home buyers and mortgage shoppers.

Conforming Loan Limits Also Went Up

As we explained in a related blog post, the conforming loan limits for California have also gone up. In 2022, the maximum mortgage amount for a “conforming” home loan will range from $647,200 to $970,800, depending on the county. This applies to conventional mortgages, which are not insured by the government.

The FHA program has its own set of loan limits, as shown in the table above. They’re similar, but different.

A Response to Rising Home Prices

To recap, California FHA loan limits for 2022 have gone up considerably due to rising home values.

According to a December 1st press release from the Department of Housing and Urban Development: “Loan limits for most of the country will increase in the coming year resulting from robust house price appreciation…”

In other words: They’ve increased the maximum FHA mortgage amount in order to keep up with rising home values nationwide.

California, in particular, has experienced significant price growth over the past year or so. According to Zillow, the state’s median home value rose by more than 20% in the past 12 months alone (as of December 2021). That’s miles above the historical average going back 30 years or so.

As a result of these trends, housing officials increased both the conforming and FHA loan limits for California, going into 2022.

Is the FHA Program Right for You?

FHA loans are insured by the federal government. They’re similar to the VA loan program, in that regard. But unlike the VA program, you don’t have to be a military member or veteran to qualify for an FHA loan. Anyone who meets the basic requirements can use an FHA-insured mortgage loan.

This program requires a down payment of 3.5%. Additionally, borrowers must have a credit score of 580 or higher to qualify for the 3.5% down payment. These requirements come from the Federal Housing Administration, which manages the FHA loan program.

As a result of the government insurance backing, FHA loans are generally easier to qualify for when compared to non-government-backed conventional mortgages. This makes the program popular among borrowers with less-than-perfect credit or other issues.

Aside from the increased California FHA loan limits for 2022, we do not expect any other major changes to the program. At least not in the near future. Credit score requirements, down payments, mortgage insurance, and other aspects of the program remain unchanged for now.