FHA Releases New Mortgage Limits for California Counties
FHA Max Limits Include 14 CA Counties

* FHA Press Release *

WASHINGTON - Tens of thousands of California families could be eligible this year to purchase or refinance their homes using affordable, government-backed mortgages, thanks to the economic growth package signed into law by President Bush. The Economic Stimulus Act of 2008 will allow HUD's Federal Housing Administration (FHA) to temporarily increase its loan limits and insure larger mortgages at a more affordable price in high cost areas of the country. "The Bush Administration is expanding the pool of eligible borrowers, enabling more American families to qualify for safe, affordable FHA-insured mortgage loans. These temporarily higher loan limits are a shot in the arm for communities trying to sustain property values, bringing much-needed liquidity to the mortgage market, while helping many current homeowners who desperately need to refinance," said HUD Secretary Alphonso Jackson at a forum on how to prevent foreclosure at the Operation Hope Center in Los Angeles and a Hope Now Alliance event in Anaheim.

Beginning tomorrow, HUD will offer temporary FHA loan limits that will range from $271,050 to $729,750. Overall, the change in loan limits will help provide economic stability to America 's communities and give nearly 240,000 additional homeowners and homebuyers a safer, more affordable mortgage alternative. The maximum amount of $729,750 will only be applicable to extremely high-cost metropolitan areas such as: Los Angeles County , San Francisco County , Orange County , and Santa Barbara County . Previously, FHA's loan limits in these very high-cost areas were capped at $362,790.The Economic Stimulus Act of 2008 permits FHA to insure loans on amounts up to 125 percent of the area median house price, when that amount is between the national minimum ($271,050) and maximum ($729,750). The new minimum and maximum loan limits are based on 65 percent and 175 percent of the conforming loan limits for Government-Sponsored Enterprises in 2008, which is $417,000.

The FHA used a combination of existing government data sets and available commercial information to determine the median sales price for each area. The change in loan limits are applicable to all FHA-insured mortgage loans endorsed after HUD publishes the increased loan limits tomorrow, and it lasts until December 31, 2008 . By increasing loan limits nationwide, FHA will provide much needed liquidity and stability to housing markets across the country. Already, as conventional sources of mortgage credit have been contracting, FHA has been filling the void. From September to December 2007, FHA facilitated more than $38 billion of much-needed mortgage activity in the housing market, more than $15 billion of which was through FHASecure, FHA's refinancing product. By focusing on 30-year fixed rate mortgages, FHA helps homeowners avoid and escape the risks associated exotic subprime mortgage products, which have resulted in rising default and foreclosure rates."This is not an easy crisis to address, and there is no silver-bullet, but I know that we can help hundreds of thousands of people keep their homes, and we can calm the waters," said Jackson .

In January 2009, FHA's maximum loan limit will return to $362,790, unless the U.S. Congress approves bipartisan legislation to permanently increase loan limits as part of the FHA Modernization bill, which is still awaiting final approval on Capitol Hill. "In January 2009 the loan limits will return to their previous setting," Jackson said. "That is why we need to permanently raise the loan limits to an acceptable level that more accurately reflect housing prices nationwide. We also need to make the minimum down payment more flexible and create a fairer insurance premium structure. This will allow more families to use FHA." FHA loan limits are based on the county in which the property is located. However, for properties located in metropolitan or micropolitan statistical areas, the limit is set at that of the county with the highest limit within the metropolitan or micropolitan area.

The new temporary FHA loan limits for California are attached below. The full text of the Secretary's remarks can be found on the HUD website.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at http://listener.bliemail.com/forwarder.aspx?ID=fb4fee6a-df5e-4442-a90c-053ccdc19ad7http%3a%2f%2frs6.net%2ftn.jsp%3fe%3d001GPnSaxHALMI9V0m-SS_aDrDc9GjPPLxF764nDn3D98O3HU8HasMH4X4vcljEJJroGI2weVOCxAFTcXuMM7YBwg%3d%3d and espanol.hud.gov. For more information about FHA products, please visit http://listener.bliemail.com/forwarder.aspx?ID=fb4fee6a-df5e-4442-a90c-053ccdc19ad7http%3a%2f%2frs6.net%2ftn.jsp%3fe%3d001GPnSaxHALMLY6P5Am8cR-6cv87njBipB2zQ3VIQJyrQo7OTydYfIj5xjYdLT_9otCmzUR6qNTQ3NBvoPHuTrAg%3d%3d.
California County LimitsObs prop_addr_st county_nm med_price FHA_1unit185 CA

Alameda County $995000 - 729750 - MAX186 CA
Alpine County $438000 - 547500 - 187 CA
Amador County $355000 - 443750 - 188 CA
Butte County $320000 - 400000 - 189 CA
Calaveras County $370000 - 462500 - 190 CA
Colusa County $318000 - 397500 - 191 CA
Contra Costa County $995000 - 729750 - MAX192 CA
Del Norte County $249000 - 311250 - 193 CA
El Dorado County $464000 - 580000 - 194 CA
Fresno County $305000 - 381250 - 195 CA
Glenn County $230000 - 287500 - 196 CA
Humboldt County $315000 - 393750 - 197 CA
Imperial County $260000 - 325000 - 198 CA
Inyo County $350000 - 437500 - 199 CA
Kern County $295000 - 368750 - 200 CA
Kings County $260000 - 325000 - 201 CA
Lake County $321000 - 401250 - 202 CA
Lassen County $200000 - 271050 - 203 CA
Los Angeles County $710000 - 729750 - MAX204 CA
Madera County $340000 - 425000 - 205 CA
Marin County $995000 - 729750 - MAX206 CA
Mariposa County $330000 - 412500 - 207 CA
Mendocino County $410000 - 512500 - 208 CA
Merced County $378000 - 472500 -209 CA
Modoc County $125000 - 271050 - 210 CA
Mono County $370000 - 462500 - 211 CA
Monterey County $599000 - 729750 - MAX212 CA
Napa County $615000 - 729750 - MAX213 CA
Nevada County $450000 - 562500 - 214 CA
Orange County $710000 - 729750 - MAX215 CA
Placer County $464000 - 580000 - 216 CA
Plumas County $328000 - 410000 - 217 CA
Riverside County $400000 - 500000 - 218 CA
Sacramento County $464000 - 580000 - 219 CA
San Benito County $790000 - 729750 - MAX220 CA
San Bernardino County $400000 - 500000 - 221 CA
San Diego County $558000 - 697500222 CA
San Francisco County $995000 - 729750 - MAX223 CA
San Joaquin County $391000 - 488750 - 224 CA
San Luis Obispo County $550000 - 687500 - 225 CA
San Mateo County $995000 - 729750 - MAX226 CA
Santa Barbara County $615000 - 729750 - MAX227 CA
Santa Clara County $790000 - 729750 - MAX228 CA
Santa Cruz County $719000 - 729750 - MAX229 CA
Shasta County $339000 - $423750 - 230 CA
Sierra County $228000 - $285000 - 231 CA
Siskiyou County $235000 - 293750 - 232 CA
Solano County $446000 - 557500 - 233 CA
Sonoma County $530000 - 662500 - 234 CA
Stanislaus County $339000 - 423750 - 235 CA
Sutter County $340000 - 425000 - 236 CA
Tehama County $250000 - 312500 - 237 CA
Trinity County $200000 - 271050 - 238 CA
Tulare County $260000 - 325000 - 239 CA
Tuolumne County $350000 - 437500 - 240 CA
Ventura County $599000 - 729750 - MAX241
CA Yolo County $464000 - 580000 - 242 CA
Yuba County $340000 - 425000 - 243 CA