Congress agreed to restoreÂ theÂ conforming FHA loan limitsÂ toÂ $729,750Â forÂ 2012Â andÂ 2013Â after seeing the negative impact the October 1st loan limit reduction had on the certain high cost housing markets.Â Â Restoring the FHA loan limit is considered essential to stabilizing the housing market in many high cost counties of California, as well as other parts of the nation. Â Loan amounts between $417,000 and $729,750 are often referred to asÂ high balanceÂ orÂ jumbo conformingÂ loans.
Who will benefit most from the restored jumbo/conforming FHA loan limits in California?
1)Â Home buyers who donâ€™t have a 10% or 20% down payment in high cost areas such as Los Angeles County. Â Now there is access toÂ low interest rates and affordable 3.5% low down payment financing.
2)Â Home values and sales prices in higher priced markets will stabilize because buyers can secure larger loan amounts when using an FHA loan.
Below is the 2012 â€“ 2013 updated FHA and Conventional loan limits by county in California.Â
Not sure if FHA financing is the best option for you?Â Interested in comparing a 5% Down Payment Loan Program that doesnâ€™t require any Monthly Mortgage Insurance? Â Call me direct at (818) 378-2694 to discuss your situation and learn more about financing programs.