FHA Raises Mortgage Limits in High-Cost California Counties

The Federal Housing Administration increased the mortgage limits to a maximum of $729,750 for fourteen high-cost areas in California, as the government began offering special assistance to homeowners. As stated in the recent economic-stimulus package, the FHA is required to help specific homeowners whop have been suffering with rising adjustable rate ARM’s. California FHA lenders said that the higher home loan limits also will apply to home mortgages purchased or guaranteed by government-sponsored mortgage companies Freddie Mac and Fannie Mae.

California counties such as Los Angeles and Orange will be eligible for the maximum limit, which will be increased from $362,790 to $729,750. FHA insures loans to protect lenders against mortgage failures. California counties that will be placed at FHA's new $729,750 maximum limit are Alameda , Contra Costa, Los Angeles , Marin, Monterey , Napa , Orange , San Benito , San Francisco , San Mateo , Santa Barbara , Santa Clara , Santa Cruz and Ventura .

FHA insiders predicted that the raise in California loan limits would help nearly 33,000 homeowners. The new FHA mortgage limits will be in effect through the end of this year. FHA reported that there will be an “appeal process through which the new loan limits could be increased even more for counties that aren't now eligible for the $729,750 maximum, but none of the limits will be lowered,” said Bill Glavin, special assistant for public affairs in the FHA's Commissioner's Office. The FHA appeals process could be announced, along with new loan limits for the rest of the country, as early as Thursday." From what we can see there are not going to be a lot of regions in the country except for California that are going to be at the maximum," Mr. Glavin said. Those who have applied for an FHA loan but haven't yet closed on it will be able to take advantage of the new limits. The new loan limitations would apply to existing homeowners seeking to refinance their conforming or subprime mortgage into a fixed rate loan insured by FHA.

FHA mortgage loans are simple to qualify for because credit scores are not equated into underwriting. With refinancing allowed up to 97% virtually no equity is needed to modify or refinance your first mortgages.

FHA Streamline Refinance Loans
FHA Refinancing & Debt Consolidation

With Congress and the Senate encouraging interest rate reductions again, FHA mortgage rates have fallen and homeowners finally able to find a fixed rate refinancing solution that makes their ARM disappear. Many mortgage lenders report lower mortgage rates for term refinancing and consumers are responding with home saving stories that helped them prevent foreclosures in many cases.

Rate & Term Refinance with FHA Mortgage
Chapter 13 Bankruptcy Refinance Loans
FHA Mortgage after 7 or 11 Bankruptcy Discharge