What Is the Max FHA Loan Amount In California for 2021?

This article is part of an ongoing series in which we answer common questions about mortgage loan programs and requirements in California. Today, we turn our attention to the Federal Housing Administration loan program, a popular financing method among home buyers.

Question: What is the max FHA loan amounts in California?

The maximum FHA loan size in California actually changes annually, and it can vary from one county to the next.

But again, these limits can change from one year to the next, and there’s a broad spectrum between those “floor” and “ceiling” amounts. So let’s take a closer look at the max FHA loan amount for California home buyers.

View the limits for all 58 counties

Maximum FHA Loan Amount for California

FHA loans are originated by mortgage lenders operating within the private sector. But they are insured by the government, through the Federal Housing Administration. This agency falls under the Department of Housing and Urban Development, or HUD. So it is HUD that determines the maximum FHA loan amount for California and all other states.

As mentioned earlier, maximum FHA loan size in California can change from one year to the next due to rising home prices. They can also vary by county because they are based on median home values.

In 2021, the max FHA loan amount in California ranges from $356,362 to $822,375 for a single-family home. It varies depending on the county where the home is being purchased. Generally speaking, more expensive counties have a higher maximum FHA loan size. The more affordable counties have lower limits.

California is a fairly extensive state, from a home-buying perspective. As result, quite a few counties in the state have the absolute maximum FHA loan size.

The following 10 counties have a single-family FHA limit of $822,375 in 2021:

• Alameda
• Contra Costa
• Los Angeles
• Marin
• Orange
• San Benito
• San Francisco
• San Mateo
• Santa Clara
• Santa Cruz

As you can see, most of the San Francisco Bay Area and Southern California have a maximum FHA loan size of $822,375. Again, that is for a single-family home purchased in 2021. Multifamily properties like duplex or triplex units have even higher limits.

In other counties across the state, the max FHA loan amount starts at $356,362 and goes up from there.

Five Things to Know About These Limits

Here are a few more things home buyers and mortgage shoppers in California should know about the maximum FHA loan amount.

1. They can change from one year to the next.

These limits are reviewed annually in relation to home price changes. When prices rise significantly over the course of the year, the maximum FHA loan size for California tends to go up as well. This is what has happened over the past few years.

2. They’re based on the conforming limits set by FHFA.

FHA loan limits in California are derived from the limits established by the Federal Housing Finance Agency, or FHFA. This agency sets the maximum size for conventional and conforming mortgage products. The Federal Housing Administration takes those conforming limits and applies a formula to determine the maximum FHA loan amount for counties in California.

3. They can vary by county due to home prices.

The max FHA loan amounts for California counties can vary because it is based on median home prices. As mentioned above, the more expensive counties like Los Angeles, Marin and Santa Clara have a higher loan limits than the more affordable counties like Fresno, Humboldt and Kern.

4. They don’t always align with the conforming limits.

FHA loan limits can be different from the conforming limits (i.e., those that apply to “regular” conventional mortgages). For instance, the lowest FHA limit in California’s more affordable counties is currently set at $356,362. But the conforming cap within those same counties is currently set at $548,250. So when you research maximum loan amounts, you have to look at the type of mortgage program you plan to use. You also have to zero in on your specific county.

5. Multifamily properties have higher limits.

The maximum FHA loan amount also varies based on the type of property that is being purchased. The figures included throughout this article mostly pertain to single-family home purchases in particular. Higher limits are allowed for duplex-style homes and other multifamily properties (with more than one residence).

Have questions? Bridgepoint Funding has been meeting the needs of California home buyers and mortgage shoppers for nearly 20 years. We offer a broad range of financing options, including FHA, VA and conventional mortgage loans. Please contact us if you have questions or if you would like to start the application process.