We have all been waiting for some relief to our current real estate market conditions, and it arrived today: the new FHA and Fannie Mae- Freddie Mac conforming loan limits have been released by the U.S. Department of Housing and Urban Development (HUD).
FHA loan limit on single-family residences has been increased to $697,500 in San Diego County!
Today’s announcement will help to stimulate the market by making it more affordable for many people to access homeownership. It could trigger the very beginning towards stimulating the housing market. Based upon the prices of homes and competitive interest rates, this is a wonderful time for many to “jump off the fence” and once again explore the benefits of homeownership. We expect the impact of these loan limit increases on the housing market to be significant because of the infusion of capital into the mortgage market, which should result in lower interest rates across the board. In addition, there will be a direct impact on high-cost areas that previously required borrowers to take out costlier jumbo mortgages.
HUD was mandated in the Economic Stimulus Act to publish new loan limits within 30 days of the bill’s signing by President Bush on February 13. As it stands right now, the new limits are scheduled to expire at the end of the year so now is the time to act.
We look forward to doing our part to help our fellow San Diegans to purchase their home by taking advantage on these higher FHA loan limits.