New Loan Limits for California Announced by FHA

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New Loan Limits for California Announced by FHA

Mar 7th, 2008 by The Cilks

HUD’s Federal Housing Administration (FHA) is temporarily increasing its loan limits and will insure larger mortgage prices in California and other areas of the country with higher priced housing markets, beginning March 6th, 2008. This is especially good news for Tri-Valley homeowners residing in Alameda and Contra Costa County (Pleasanton, San Ramon, Danville, Alamo, Dublin and Livermore) because of the higher priced inventory in our community.

These temporary changes in loan limits allow FHA to insure loans on amounts up to 125% of the area median price, and are a direct result of the Economic Stimulus Act which was signed into law in February. Whether or not the temporary increase in loan limit will be extended remains to be seen, however, real estate professionals have long been advocating a change in this direction. First time buyers and move-up buyers are now in a stronger position to get into the housing market at a better interest rate than they would have with a jumbo loan product.

It’s a GREAT time to get into the real estate market - both as a first time buyer; move-up buyer or investor. Inventories are up and there is a great variety to choose from.

For more information, give Bob and Deb Cilk of United California Brokers a call at (925) 417-7129. Seize the day!