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California FHA Loans

What are FHA Loans?
FHA stands for Federal Housing Authority. FHA Loans provide low-cost insured Home Mortgage Loans that suit a variety of purchasing options. Whether you're buying a home or want to refinance your mortgage, FHA loans might be right for you. If you're unsure about your credit rating, or have concerns about a down payment, FHA loans can give you piece of mind with super low closing costs and flexible payment options.


What factors determine if I am eligible for an FHA Loan in California?
To be eligible for FHA Mortgage Loans, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.

What is the maximum amount that I can borrow?
The maximum amount for an FHA Mortgage is determined by:

Maximum FHA Loan Amount in California: The Maximum FHA Loan amount allowed for FHA Home Mortgages varies from county to county in CA. The highest maximum FHA Home Loan right now in California is $729,750. The lowest maximum amount available in any county is $285,000. To see what the limit is in the county in which you're interested, please refer to the FHA Loan Limit chart at the bottom of this page.

Maximum financing: In California, the maximum FHA financing will be 97.75% of the appraised value of the home or its selling price, whichever is lower.

How much money will I need for the down payment and closing costs?
California FHA loans require the home buyer to invest at least 3.5% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the home buyer must invest at least $3,500. However, the home buyer can use gifts from family, funds from local, state or government agencies, or other sources for the down payment.

What property types are allowed for FHA Loans in California?
While FHA Loan Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the borrower intends to occupy one part of the multi-unit residence.

More information on FHA Mortgages

What types of refinance programs does FHA offer in California?
There are three main types of FHA Refinance loans available in CA.

FHA Rate/Term Refinance
The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate FHA Insured Loan.

Cash-Out Refinance
An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.


Streamline Refinance

The FHA Streamline Refinance is designed to lower the interest rate on a current FHA House Loan or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.

How much can I refinance in California?
The maximum amount for an FHA loan is determined by

Maximum FHA Loan Amount in California
The maximum FHA Loan Amount allowed for FHA Mortgage Refinance varies from county to county in California. The highest maximum FHA Home Refinance amount right now in California is $729,750. The lowest maximum amount available in any county is $285,000. To see what the limit is in the county in which you're interested, please refer to the FHA Loan Limit chart at the bottom of this page.

Maximum financing: In California, the maximum financing for an FHA Rate Term Refinance (No Cash-Out) or FHA Streamline Refinance Program (No Cash-Out) will be 97.75% of the appraised value of the home or its selling price, whichever is lower. The maximum financing for an FHA Cash-Out Refinance in California is 85%.

What factors determine if I am eligible for an FHA Refinance Loan?
To be eligible for an FHA Mortgage Loan Refinance in California, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.

Complete Online Application


California FHA Mortgage Limits by County
Updated 03/05/2008
County Name         
          Single Family
          Duplex
          Triplex
          Fourplex
ALAMEDA 729750 934200 1129250 1403400
OAKLAND-FREMONT-HAYWARD, CA METROPOLITAN DIVISION
ALPINE 547500 700900 847200 1052900
NON-METRO
AMADOR 443750 568050 686650 853350
NON-METRO
BUTTE 400000 512050 618950 769250
CHICO, CA (MSA)
CALAVERAS 462500 592050 715700 889450
NON-METRO
COLUSA 397500 508850 615100 764400
NON-METRO
CONTRA COSTA 729750 934200 1129250 1403400
OAKLAND-FREMONT-HAYWARD, CA METROPOLITAN DIVISION
DEL NORTE 311250 398450 481650 598550
CRESCENT CITY, CA (MICRO)
EL DORADO 580000 742500 897500 1115400
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)
FRESNO 381250 488050 589950 733150
FRESNO, CA (MSA)
GLENN 287500 368050 444900 552900
NON-METRO
HUMBOLDT 393750 504050 609300 757200
EUREKA-ARCATA-FORTUNA, CA (MICRO)
IMPERIAL 325000 416050 502900 625000
EL CENTRO, CA (MSA)
INYO 437500 560050 677000 841350
BISHOP, CA (MICRO)
KERN 368750 472050 570600 709150
BAKERSFIELD, CA (MSA)
KINGS 325000 416050 502900 625000
HANFORD-CORCORAN, CA (MSA)
LAKE 401250 513650 620900 771650
CLEARLAKE, CA (MICRO)
LASSEN 285000 364850 441000 548050
SUSANVILLE, CA (MICRO)
LOS ANGELES 729750 934200 1129250 1403400
LOS ANGELES-LONG BEACH-GLENDALE, CA METROPOLITAN D
MADERA 425000 544050 657650 817300
MADERA, CA (MSA)
MARIN 729750 934200 1129250 1403400
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLI
MARIPOSA 412500 528050 638300 793250
NON-METRO
MENDOCINO 512500 656100 793050 985600
UKIAH, CA (MICRO)
MERCED 472500 604900 731150 908650
MERCED, CA (MSA)
MODOC 271050 347000 419400 521250
NON-METRO
MONO 462500 592050 715700 889450
NON-METRO
MONTEREY 729750 934200 1129250 1403400
SALINAS, CA (MSA)
NAPA 729750 934200 1129250 1403400
NAPA, CA (MSA)
NEVADA 562500 720100 870450 1081750
TRUCKEE-GRASS VALLEY, CA (MICRO)
ORANGE 729750 934200 1129250 1403400
SANTA ANA-ANAHEIM-IRVINE, CA METROPOLITAN DIVISION
PLACER 580000 742500 897500 1115400
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)
PLUMAS 410000 524850 634450 788450
NON-METRO
RIVERSIDE 500000 640100 773700 961550
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
SACRAMENTO 580000 742500 897500 1115400
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)
SAN BENITO 729750 934200 1129250 1403400
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (MSA)
SAN BERNARDINO 500000 640100 773700 961550
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
SAN DIEGO 697500 892950 1079350 1341350
SAN DIEGO-CARLSBAD-SAN MARCOS, CA (MSA)
SAN FRANCISCO 729750 934200 1129250 1403400
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLI
SAN JOAQUIN 488750 625700 756300 939900
STOCKTON, CA (MSA)
SAN LUIS OBISPO 687500 880100 1063850 1322150
SAN LUIS OBISPO-PASO ROBLES, CA (MSA)
SAN MATEO 729750 934200 1129250 1403400
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLI
SANTA BARBARA 729750 934200 1129250 1403400
SANTA BARBARA-SANTA MARIA, CA (MSA)
SANTA CLARA 729750 934200 1129250 1403400
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (MSA)
SANTA CRUZ 729750 934200 1129250 1403400
SANTA CRUZ-WATSONVILLE, CA (MSA)
SHASTA 423750 542450 655700 814900
REDDING, CA (MSA)
SIERRA 285000 364850 441000 548050
NON-METRO
SISKIYOU 293750 376050 454550 564900
NON-METRO
SOLANO 557500 713700 862700 1072150
VALLEJO-FAIRFIELD, CA (MSA)
SONOMA 662500 848100 1025200 1274050
SANTA ROSA-PETALUMA, CA (MSA)
STANISLAUS 423750 542450 655700 814900
MODESTO, CA (MSA)
SUTTER 425000 544050 657650 817300
YUBA CITY, CA (MSA)
TEHAMA 312500 400050 483550 600950
RED BLUFF, CA (MICRO)
TRINITY 271050 347000 419400 521250
NON-METRO
TULARE 325000 416050 502900 625000
VISALIA-PORTERVILLE, CA (MSA)
TUOLUMNE 437500 560050 677000 841350
PHOENIX LAKE-CEDAR RIDGE, CA (MICRO)
VENTURA 729750 934200 1129250 1403400
OXNARD-THOUSAND OAKS-VENTURA, CA (MSA)
YOLO 580000 742500 897500 1115400
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)
YUBA 425000 544050 657650 817300
YUBA CITY, CA (MSA)

Complete Online Application




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 Why choose an FHA Home Loan?

  • California FHA Loan Programs require a Low 3.5% down payment.
  • Non-occupant, co-borrower are permitted to qualify for an FHA Home Loan.
  • California FHA Mortgage loans use Expanded qualifying ratios.
  • There are no prepayment penalties for FHA Mortgage Home Loans.
  • An California FHA Loan is fully assumable.
  • FHA Mortgage Insurance has lower premiums.
  • FHA Loan Requirements allow for non-income qualifying, streamline refinance.
  • An FHA Home Mortgage is available all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards.
  • An FHA Home Loan may be used to purchase or refinance a new or existing one to four family home in urban and rural areas, including manufactured homes on permanent foundations.
  • California FHA Loan Terms are offered at periods of 15 or 30 years.

 FHA Refinance Programs

FHA Rate/Term Refinance
The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate HUD FHA Loan.

Cash-Out Refinance
An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

FHA Streamline Refinance
The FHA Streamline Refinance is designed to lower the interest rate on a current FHA mortgage or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.


 FHA Refinance Questions & Answers

What are the guidelines for an FHA Refinance?
If the borrower wishes to take cash out of the property, then the maximum financing amount is 85% of the appraised value, depending on the borrowers qualifications. If the borrower does not take cash out then the maximum financing will be 97.75% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower.

Why should I consider refinancing into a FHA-insured mortgage?
FHA refinance mortgages do not come with prepayment penalties, have no teaser rates nor balloon payments. They are offered at market rate with terms up to 30 years and are fully amortized, meaning that you pay towards principal and interest every month.

What if I have a prepayment penalty and other refinancing costs and there isn’t enough equity in my home to refinance?
If you do not have sufficient equity in your home to add your prepayment penalty and/or other refinancing costs into your new HUD FHA Mortgage, then you should ask your lender to consider a second mortgage to pay the difference or a short payoff on your existing loan. Offering either of these options is at the discretion of the lender.

Does it matter that the value of my home is now less than what I still owe?
Not to The FHA, but your current lender will have to be willing to accept a short payoff on the existing loan OR to hold a second mortgage to make up the difference needed to pay off the existing mortgage and the home’s value.


FHA Mortgage   |   FHA Refinance   |   FHA LOAN REQUIREMENTS   |   FHA MORTGAGE CALCULATOR   |   FHA MORTGAGE RATES

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