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FHA Loan Limits Increase - HUD Releases Median Home Prices for Riverside County, California

FHA Loan Limits Increase - HUD Releases Median Home Prices for Riverside County, California

The Department of Housing and Urban Development released median home prices for Riverside County, California.

The median price of a single family residence in Riverside County, California (including Hemet, San Jacinto, Murietta, Temecula, Idyllwild, Banning and the surrounding areas) is now $400,000.

That would make the new FHA, Fannie Mae and Freddie Mac loan limit $500,000 (125% of the median home price). This is part of the economic stimulus package signed by President Bush earlier in the month. The bill increases the home loan limits through December of 2008.

Now that the bill is passed and HUD published the median home prices, there are a few remaining questions:

Will all major investors change their guidelines to reflect the new limits?
When will the investors start purchasing these loans?
Will the changes put pressure on interest rates because of perceived risk by investors?

Before the act, Conventional home loans were limited to $417,000. FHA loan limits were 95% of the median price for homes.

To check the mortgage loan limits in your area, visit this page on the HUD website.

Related Articles:

Joey Aszterbaum is the Hemet Home Loan Guy and a member of the Active Rain social network of real estate professionals. To buy or refinance your home in Hemet, Riverside County, or California visit www.HemetHomeLoans.com or call 951.571.5751

**UPDATE: THE ORIGINAL POST HAD INCORRECT MEDIAN PRICE. HUD UPDATED THEIR SITE 3/6/08 AND THE INFORMATION IS ACCURATE NOW**

Posted by Hemet Home Loan Guy, Joey Aszterbaum on 03/05/2008 05:01 PM

Comments (25)

credit and financing, hemet mortgage information, riverside buy or refinance, hemet real estate

Originally posted at: Hemet Mortgage & Real Estate Blog: FHA Loan Limits Increase - HUD Releases Median Home Prices for Riverside County, California

This post has been included in California Information Riverside County, CA Information Hemet, CA Information
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25 Comments on FHA Loan Limits Increase - HUD Releases Median Home Prices for Riverside County, California

MAR

2008

Hi Joey, I just received something from the lender I use about this but ours was around $270,000 or thereabouts; which makes sense as you get a lot more house for the money in our area compared to your area. FHA is becoming very popular again.

Hang tight mi amigo, we are expecting the new limits to be published by March 15th latest. Although I agree with your estimate of your new limit. We are locking loans with estimates of the new limits right now

Hey my Joey... FHA has been rare around here due to the low limits which fall below our typical home values. It will be interesting to see if this rises to a 'usable' level. I can honestly say I have NEVER brokered a transaction using FHA. But then, times are changing!

Not a very huge increase for us in Riveside county. LA, San Francisco, Orange and Ventura and seeing limit over $700,000.

Palm Springs Mortgage Guy

MAR

2008

Great post Joey........FHA is a great product and I have used it for more than 20 years......but our loan limit is 209K and no one seems to be able to answser questions for me about the new loan limits.....

Hi Joey,
Most of my clients are military and go with VA (best for them for sure!) Is there anything new with VA?

**UPDATE: THE ORIGINAL POST HAD INCORRECT MEDIAN PRICE. HUD UPDATED THEIR SITE 3/6/08 AND THE INFORMATION IS ACCURATE NOW**

Marchel: The new mortgage loan limit for Harris County, Texas is $271,050. Thanks again for being a good friend and keeping in touch!

Joe: The new mortgage loan limit for Montrose County, Colorado is $271,050. Thanks for visiting...and come again.

JenJen: The new mortgage loan limit for Multnomah County, Oregon is $418,750. Is that usable now? Should be 125% of the median home price, although in Portland I imagine it's higher than most of the county.

Charles: Yep...Los Angeles, Ventura and Orange County have a new mortgage limit of $729,750 - the maximum under the stimulus package. Still...for FHA deals in Hemet and the surrounding areas it will work. I can imagine it's harder in Palm Springs, Rancho Mirage, etc. I suppose for those with a jumbo of $417,000 to $500,000 that want to refi and still have equity it will be nice. Thanks for visiting!

Julie: Your new mortgage loan limit for Glynn County, Georgia is $276,250. Does that help?

Cynthia: Unfortunately I'm not an expert at VA loans, but this website might help answer your question. The new FHA/GSE home loan limit for Onslow County, North Carolina is $306,250. Keep in mind...that's for a single family residence. They are higher for multiple units.

Joey

saw that this morning and blast email to my realtor base and then after about an hour to the head of the MLS so she could blast all 300 realtors

got to love it

Joe: Yeah...somehow I had the wrong info at first but HUD has updated their site. Let's hope your Realtors give you a call!

Joey - per the HUD website - the Raleigh area will go to 295000 - this will TRULY help some builders and sellers in our area!

MAR

2008

Joey,
Thank you, will check out the website and will keep the FHA limit in mind too. We always need to know the options.

Thank You for bringing this to our attention, Joey.

Have a great day!

Richard: No worries...go get 'em.

MAR

2008

Joey,

Thanks....I have already made two sales to buyers with these new loan limits.........FHA financing has so many advantages over conventional financing......Thanks for always being there and always having the answer......

MAR

2008

Julie: Awesome. Good for you! Typically I would say conventional over FHA, but if you don't have 10% or more down and maybe a few credit bumps, you can't beat FHA.

Joey,

Is this increase on the FHA limits to be temporary as they had initially planned or are these new guidelines to stay?

Thanks

Martin

Martin: So far it's through December 2008. Thanks for stopping in.

AUG

2008

Joey, I have owned a home in East hemt for 3 years now, I am looking to do an FHA short-refi. Do you do these relatively new FHA loans? The american dream has turned into a nightmare for me.

AUG

2008

Jerry: What a way with words...it's turned into a nightmare for a lot of folks. We do the FHA Secure loan, however its more tricky than the media or the government would have you think. Give me a call or give me your contact information and I will be glad to start that process and help you review your options.

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