The table below shows the 2019 FHA loan limits for all counties in California. These limits apply to mortgage loans that are insured by the Federal Housing Administration (FHA), which is part of HUD. This government backing makes them different from conventional or “regular” home loans.
2019 FHA Loan Limits for California Counties
Note: The California FHA loan limits shown below apply to single-family homes. You can find the caps for multifamily properties (such as duplexes) by visiting https://entp.hud.gov/idapp/html/hicost1.cfm.
|California County||FHA Loan Limit|
|San Luis Obispo||$667,000|
Minimum Loan Requirements and Other Information
Do you have questions about FHA loan requirements in California? Keep reading. Here’s an overview of the minimum requirements and criteria for borrowers who are seeking an FHA-insured mortgage loan in California:
Down payment: Home buyers who want to use an FHA loan to buy a house anywhere in the state must put down at least 3.5% of the purchase price or appraised value (whichever is less).
Credit scores: Borrowers must have a credit score of at least 500 to participate in this program. A score of 580 or higher is necessary to be eligible for the 3.5% down payment mentioned above. Borrowers with scores between 500 and 579 must put down at least 10%. (Note: Those are the official HUD credit-score requirements for California FHA loans. Mortgage lenders can impose their own criteria as well.)
Debt ratios: HUD also has requirements and limits for the borrower’s debt-to-income ratio. But these criteria are a bit more relaxed, compared to the down payment and credit score requirements above. The maximum debt-to-income ratio for most California FHA loan borrowers is 43%. But it can be as high as 50% for some borrowers, if there are compensating factors to offset the higher debt level.
This is just a basic overview of California FHA loan requirements, limits and criteria. To learn more about this unique mortgage program, we recommend visiting FHAhandbook.com.