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I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

Federal-Housing-AdministrationJust few hours back, President Obama signed a bill reinstalling  the FHA Jumbo Limit back for several high cost counties in  California to $729,750 (from the recently reduced $625,500). The bill comes into immediate effect, meaning FHA can start  insuring the $729,750 Loan Amounts right away. The restored loan amount is good till Dec 2013.

Senate approved it 70-30, which was preceded by the House passing the bill 298-121. The senate has earlier in the month approved an amendment to the bill to restore the $729,750 loan limits for FHA and Fannie Mae/Freddie Mac. But the Joint Appropriations Committee left the GSEs (Fannie Mae and Freddie Mac) out. That means conforming high balance limit (also called Conforming Jumbos) stayed at $625,500.

While the restoration of FHA High-Balance Limit is a great news for all the High-Cost counties in the country, especially California – leaving out Conforming Loans is a bit of a disappointment. In fact Rep. John Campbell R-Calif, did try to make a case on the house floor to reinstate the Conforming Loan Limits as well citing concerns that the Real Estate market is not healthy enough for the Government to take out its lifeline.

On the other hand FHA acting Commissioner Carole Galante didn’t seem happy at all that the FHA Loan Limits are being restored. Galante said “We maintain its appropriate to take a step back on the loan limits”.

The restored FHA Loan Limits will impact many high-cost counties in California. In San Francisco Bay Area, Counties like Santa Clara, Santa Cruz, Alameda, Contra Costa, San Mateo and San Francisco will be eligible for the $729,750 FHA loan amount again.

If you are unsure of what the FHA Loan Amount Limit for your county is, you can check that here.

If you are looking to Refinance or Purchase a home using an FHA Loan, we are an approved FHA Direct Lender and can help you get the right loan at a great rate. Contact us at 408.615.0655 or email us at [email protected]

If you are interested in reading more posts about FHA Loans, you can go to