Initially, only high-cost areas had the privilege of having their FHA loan limits restored to $729,750, but for case numbers issued on or after November 18th, 2011 the FHA loan limits in effect between January 1, 2011 to September 30, 2011 have been restored. This means that if you or somebody you know is applying to purchase a home and the loan amount is between $355,350 and $500,000 an FHA loan can be utilized. It’s almost imperative for these loan limits to be restored due to the affect that was noticed after seeing the negative impact that the October 1st loan limits had on the high-cost areas. It’s said by many economical experts that these higher loan limits is essential to helping the Inland Empire’s housing market regain stability by helping more buyers qualify for FHA financing.
It’s important to note that loan amounts between $417,000 and $500,000 (in San Bernardino and Riverside Counties) and up to $729,750 in high-cost areas, are considered High Balance which will trigger certain adjustments to the interest rate. These restored loan limits will be extended through December 13, 2013.
Max FHA Loan Limits for Local Counties
San Bernardino and Riverside County – $500,000
Los Angeles and Orange County – $729,750
Full charts listing all the county’s FHA loan limits
High Cost Areas
Areas that are between the floor and Ceiling
I will end this blog by saying that you do not have to be a first-time home buyer to qualify for an FHA loan. FHA requires a minimum of 3.5% down payment and it currently offers some of the lowest interest rates on the market. If you would like to compare an FHA loan with a low down payment Conventional loan call me today and I will prepare a detailed analysis that will show you everything you need to know to make an educated decision.
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