It’s Official – FHA Loan Limit of $729,750 is Back! No Such Luck for Fannie/Freddie!
Author bio section
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.
Just 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 https://www.mortgageblog.com/category/fha-loans/
Related Posts
- 61Rejoice California Homebuyers and Home Owners - The $729,750 Loan Amount Limit for Conforming and FHA Loans could be coming back. These loan amounts were rolled back to $625,500 few weeks back. Bloomberg reported - The U.S. Senate adopted a measure that would raise the maximum size of a home…
- 54
FHA annual mortgage insurance premium was reduced today for loans endorsed on or after March 20,2023, per the latest announcement. What is FHA Mortgage Insurance Premium? FHA (Federal Housing Administration) loans are insured by Housing and Urban Development. To insure the lenders against default, it charges insurance premiums from the… - 52FHA announced a series of changes to their Down Payment, Credit Score, Seller Contribution and Mortgage Insurance guidelines. Credit Score/DownPayment Guideline Change : New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than…
- 52Now that you've decided to jump into the home buying process, it's time to face the alphabet soup of mortgage loans. From the outside, it looks like a jumble of meaningless letters, acronyms, and silly names like FHA, VA, Fannie Mae, and Freddie Mac. What do they all mean and…
- 51In this blog post I will try to answer all FAQs related to FHA condominium project approval. Beginning this year, FHA made some major changes to the Condominium process. I have done a lot of speaking on this topic and have written several blog posts. In this post, I am…
