FHA Loan California --FHA Loan Limits in California and VA Loan http://www.cherrycreekloans... If you're not cl... (more) Added: March 11, 2008 http://www.cherrycreekloans.com. If you're not clear about the benefits of an FHA loan, California is one of the few states with high loan caps ranging from $271,050 in lower-cost areas, to $729,750 in high-cost counties. An FHA loan may be the only alternative for many borrowers who can only make a small down payment. This is good news from the new economic stimulus bill signed by the President in February. The FHA (Federal Housing Administration) also provides benefits for home sellers like paying loan-closing costs for buyers. This is a very important point in a weak market. Find out other FHA loan benefits in a brief overview by Tom Wardrope, an experienced mortgage banker for over 30 years.