California is privileged to have HUD release their new FHA loan limits just ahead of the rest of the country, who will get their own announcements tomorrow.
These new temporary limits were government-derived by calculating 125 percent of each California county’s median home price.
In San Diego, for example, the median home price at time of calculation (from the San Diego MLS) was $558,000. Hence, the new FHA loan limit in San Diego County will now be $697,500.
Many distressed San Diego homeowners and potential home buyers will rejoice at the new loan limits that may provide financing or refinancing for their homes. And these long-awaited increases may help to contribute to the recovery of the San Diego real estate market.
San Diego real estate, though, is apparently still more affordable than that in 14 other California Counties, where FHA, Fannie Mae and Freddie Mac loan limits were hiked to $729,750. Many of those counties are located in the San Francisco and Bay area, along with Los Angeles, Orange, Ventura, and Santa Barbara Counties. San Bernardino and Riverside Counties cap out at $500,000.
We haven’t done an FHA loan in our real estate practice in years, but I think its time we quickly went back to school!