Orange County FHA, VA & First Time Buyer Loan Information: FHA Loan Limits for Orange County, CA to Decrease in 2014

My goal is to provide valuable information for home buyers, both First Time Buyers and Move Up Buyers. This information will be about loan programs such as FHA ,VA, Conventional Fannie Mae and Freddie Mac, Reverse Mortgages, and even Portfolio Jumbo programs. I will also touch on tax advantages of homeownership, Rent vs. Own analysis, and any other aspect of loans and home ownership that will be of interest to Orange County home buyers and homeowners.

FHA Loan Limits for Orange County, CA to Decrease in 2014

As announced on December 6, 2014 in the FHA Mortgagee Letter 2013-43, FHA loan limits in Orange County will be lower in 2014 versus 2013. Other California counties will be effected by the loan limit drop as well, including Los Angeles, Riverside, San Bernardino, and San Diego. According to FHA, "due to the expiration of the authority granted in the Consolidated and Further Continuing Appropriations Act of 2012, the calculation of FHA's single family loan limits is altered, resulting in a decrease in the calculation of high cost limits and the loan limit ceiling for case numbers assigned on or after January 1, 2014 through December 31, 2014. "

2014 FHA Loan Limits Orange County

How this Effects Orange County, CA

The 2013 FHA loan limit for Orange County is/was $729,750. The new limit for 2014 will be $625,500, matching up with the standard high balance Conforming loan limit for Fannie Mae and Freddie Mac loans. The FHA program has been great for FHA Orange County home buyers for several reasons. It serves several "niches". One of those niches was the higher loan balance allowed with only 3.5% down payment. It has been fairly difficult for home buyers who have less than 20% down payment to buy a home in Orange County with less than 20% down, let alone less than 10% down payment. Especially when the purchase price results in a "high balance" loan, or loan amount over $417,000. So while the FHA loan program may have high mortgage insurance rates, it still has been an important loan program for Orange County partially because of the high loan limits, along with low down payment requirements, flexible FICO score requirements, high debt to income ratio limits, and flexibility when it comes to prior bankrupty or foreclosure.

The FHA Program will Still Be Important in Orange County

FHA will still be an important loan option, even with the loan limit dropping to $625,500. It is still a very flexible loan program when it comes to qualifying for home loan. In the OC, a home buyer can still buy a home for $648,000 with only 3.5% down payment using an FHA loan. The only program better than that is the VA home loan program, but you'll need to be a Veteran to qualify. 

The first step in the Orange County home buying process is to consult with an Orange County loan officer who can prepare custom FHA loan scenarios, along with a Side by Side Analysis showing the buyer the best options based on their qualifications. 


Authored by Tim Storm, an Orange County, CA Mortgage Loan Officer MLO 223456 - Please contact my office at the Home Point Financial. Direct line at 949-640-3102.

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Comment balloon 2 commentsTim Storm • December 09 2013 08:40AM


interesting .... declining.... good is some ways ... I suppose

Posted by Patty Luther, Lewiston ID Real Estate, Idaho-Washington (RE/MAX Rock-n-Roll Realty) over 5 years ago

Tim - Thank you for sharing an excellent blog about FHA loan limits for Orange County, California to decrease in 2014.

Posted by John Pusa, Your All Time Realtor With Exceptional Service (Berkshire Hathaway Home Services Crest) over 5 years ago