FHA Loan Limits Announced- FHA lending begins today "So they say"

images.jpgAlameda and Contra Costa FHA new loan limits begin today.


FHA Press Release below-


FHA Releases New Mortgage Limits for California Counties

FHA Max Limits Include 14 CA Counties

* FHA Press Release *  

WASHINGTON  - Tens of thousands of California families could be eligible this year to purchase or refinance their homes using affordable, government-backed mortgages, thanks to the economic growth package signed into law by President Bush.  The Economic Stimulus Act of 2008 will allow HUD’s Federal Housing Administration (FHA) to temporarily increase its loan limits and insure larger mortgages at a more affordable price in high cost areas of the country.  

“The Bush Administration is expanding the pool of eligible borrowers, enabling more American families to qualify for safe, affordable FHA-insured mortgage loans.  These temporarily higher loan limits are a shot in the arm for communities trying to sustain property values, bringing much-needed liquidity to the mortgage market, while helping many current homeowners who desperately need to refinance,” said HUD Secretary Alphonso Jackson at a forum on how to prevent foreclosure at the Operation Hope Center in Los Angeles and a Hope Now Alliance event in Anaheim.

Beginning tomorrow, HUD will offer temporary FHA loan limits that will range from $271,050 to $729,750.  Overall, the change in loan limits will help provide economic stability to America ‘s communities and give nearly 240,000 additional homeowners and homebuyers a safer, more affordable mortgage alternative.  The maximum amount of $729,750 will only be applicable to extremely high-cost metropolitan areas such as: Los Angeles County , San Francisco County , Orange County , and Santa Barbara County .  Previously, FHA’s loan limits in these very high-cost areas were capped at $362,790.

The Economic Stimulus Act of 2008 permits FHA to insure loans on amounts up to 125 percent of the area median house price, when that amount is between the national minimum ($271,050) and maximum ($729,750). The new minimum and maximum loan limits are based on 65 percent and 175 percent of the conforming loan limits for Government-Sponsored Enterprises in 2008, which is $417,000.  The FHA used a combination of existing government data sets and available commercial information to determine the median sales price for each area.  The change in loan limits are applicable to all FHA-insured mortgage loans endorsed after HUD publishes the increased loan limits tomorrow, and it lasts until December 31, 2008 .  

By increasing loan limits nationwide, FHA will provide much needed liquidity and stability to housing markets across the country.  Already, as conventional sources of mortgage credit have been contracting, FHA has been filling the void. From September to December 2007, FHA facilitated more than $38 billion of much-needed mortgage activity in the housing market, more than $15 billion of which was through FHASecure, FHA’s refinancing product.  By focusing on 30-year fixed rate mortgages, FHA helps homeowners avoid and escape the risks associated exotic subprime mortgage products, which have resulted in rising default and foreclosure rates.

“This is not an easy crisis to address, and there is no silver-bullet, but I know that we can help hundreds of thousands of people keep their homes, and we can calm the waters,” said Jackson .

In January 2009, FHA’s maximum loan limit will return to $362,790, unless the U.S. Congress approves bipartisan legislation to permanently increase loan limits as part of the FHA Modernization bill, which is still awaiting final approval on Capitol Hill.  

“In January 2009 the loan limits will return to their previous setting,” Jackson said.  ”That is why we need to permanently raise the loan limits to an acceptable level that more accurately reflect housing prices nationwide.  We also need to make the minimum down payment more flexible and create a fairer insurance premium structure.  This will allow more families to use FHA.”  

FHA loan limits are based on the county in which the property is located.  However, for properties located in metropolitan or micropolitan statistical areas, the limit is set at that of the county with the highest limit within the metropolitan or micropolitan area.  

The new temporary FHA loan limits for California are attached below.  The full text of the Secretary’s remarks can be found on the HUD website.


HUD is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.

County Median price FHA limit Conforming loan limit
Alameda County $995,000 $729,750 $729,750
Alpine County $438,000 $547,500 $547,500
Amador County $355,000 $443,750 $443,750
Butte County $320,000 $400,000 $417,000
Calaveras County $370,000 $462,500 $462,500
Colusa County $318,000 $397,500 $417,000
Contra Costa County $995,000 $729,750 $729,750
Del Norte County $249,000 $311,250 $417,000
El Dorado County $464,000 $580,000 $580,000
Fresno County $305,000 $381,250 $417,000
Glenn County $230,000 $287,500 $417,000
Humboldt County $315,000 $393,750 $417,000
Imperial County $260,000 $325,000 $417,000
Inyo County $350,000 $437,500 $437,500
Kern County $295,000 $368,750 $417,000
Kings County $260,000 $325,000 $417,000
Lake County $321,000 $401,250 $417,000
Lassen County $200,000 $271,050 $417,000
Los Angeles County $710,000 $729,750 $729,750
Madera County $340,000 $425,000 $425,000
Marin County $995,000 $729,750 $729,750
Mariposa County $330,000 $412,500 $417,000
Mendocino County $410,000 $512,500 $512,500
Merced County $378,000 $472,500 $472,500
Modoc County $125,000 $271,050 $417,000
Mono County $370,000 $462,500 $462,500
Monterey County $599,000 $729,750 $729,750
Napa County $615,000 $729,750 $729,750
Nevada County $450,000 $562,500 $562,500
Orange County $710,000 $729,750 $729,750
Placer County $464,000 $580,000 $580,000
Plumas County $328,000 $410,000 $417,000
Riverside County $400,000 $500,000 $500,000
Sacramento County $464,000 $580,000 $580,000
San Benito County $790,000 $729,750 $729,750
San Bernardino County $400,000 $500,000 $500,000
San Diego County $558,000 $697,500 $697,500
San Francisco County $995,000 $729,750 $729,750
San Joaquin County $391,000 $488,750 $488,750
San Luis Obispo County $550,000 $687,500 $687,500
San Mateo County $995,000 $729,750 $729,750
Santa Barbara County $615,000 $729,750 $729,750
Santa Clara County $790,000 $729,750 $729,750
Santa Cruz County $719,000 $729,750 $729,750
Shasta County $339,000 $423,750 $423,750
Sierra County $228,000 $285,000 $417,000
Siskiyou County $235,000 $293,750 $417,000
Solano County $446,000 $557,500 $557,500
Sonoma County $530,000 $662,500 $662,500
Stanislaus County $339,000 $423,750 $423,750
Sutter County $340,000 $425,000 $425,000
Tehama County $250,000 $312,500 $417,000
Trinity County $200,000 $271,050 $417,000
Tulare County $260,000 $325,000 $417,000
Tuolumne County $350,000 $437,500 $437,500
Ventura County $599,000 $729,750 $729,750
Yolo County $464,000 $580,000 $580,000
Yuba County $340,000 $425,000 $425,000


Alameda County: ($729,750)






Castro Valley

San Leandro







Contra Costa County: ($729,750)

San Ramon





Walnut Creek

Pleasant Hill




Subscribe to our daily mortgage market emails.

Have a Question?

Legal Disclaimer
Or give us a call