November 16, 2011 - Breaking News Finally some good news for first time home buyers in higher cost areas like San Diego.
Congress reached a bipartisan agreement that would increase the maximum dollar amount of mortgage loans that can be insured by the Federal Housing Administration (FHA) back to $729,750 after dropping the cap to $625,500 automatically after a temporary increase was issued for all loans insured by the FHA (and all government-sponsored enterprises). The restored higher limit will remain in place through 2013.
“Higher FHA loan limits are critical to supporting current housing prices and our overall economic recovery, and it doesn’t cost the federal government a dime,” said Representative Brad Sherman (D-CA).
“This is the single most important provision in the minibus [appropriations] bill to prevent a collapse of housing prices in high-cost areas like Los Angeles and San Diego.
This still has to pass both houses of Congress and get the President's signature but help for the struggling housing market has a lot of support (especially with elections around the corner), so it would be a huge surprise if it isn't passed quickly.
The higher limits coupled with the down payment assistance programs available to first time home buyers in San Diego make is a great time to follow the "smart money"
Click here for more information about first time home buyer financing in San Diego.
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