California FHA loan limits vary for each California County. The FHA Loan Limits are set by HUD, and they are recalculated on an annual basis.   The limits are based on a percentage calculation of the nationconforming loan limit.   The 1 unit (single family) limits are calculated by factoring in the median price value of homes within the specific county.

Depending on those limits, FHA’s minimum national loan limit “floor” is at 65% of the national conforming loan limit. The floor applies to those areas where 115% of the median home price is less than 65% of the national conforming loan limit.

On the higher end of the scale, any area where the loan limit exceeds the “floor” is considered a high cost area. The maximum FHA national loan limit “ceiling” is at 150% of the national conforming limit. In areas where 115% of the median home price (of the highest cost county) exceeds 150% of the conforming loan limit, the FHA loan limits remain at 150% of the conforming loan limit.

Areas are eligible for FHA loan limits above the national standard limit, and up to the national ceiling level, based on that particular area’s median area home prices.   Several California counties are considered high cost areas, and the loan limits in those counties are current set at the ceiling loan limit.