Conforming California, FHA Meets High Price Areas!
Conforming California, FHA Meets High Price Areas!
Ask most first time home buyers in my home town of Pismo Beach what the FHA loan limit is and the response you will most likely get is “What is FHA again?” This lack of knowledge of the FHA and what it does is common in my home town, and for good reason.
I am one of many Californians who live in a high price market. The median home price in my county of San Luis Obispo is somewhere around $550,000 and we don’t even come close to the neighboring Santa Barbara County. The median in Santa Barbara is a little over the one million dollar mark. With the FHA loan limit barely crossing the $360,000 mark, why would we take our time to learn about a loan that we don’t even come close to qualifying for? Well, those days are now part of the past, and let me be one of the many who say that this was way past due.
Late last year, a FHA reform was put in place by the Bush Admin that would increase the loan limit from $362,000 up to $417,000. There was a conflict in the reform as far as how big the maximum limit increase for high priced areas would be, as one side stated there would be a possible $100,000 increase available to the current limit of $417,000 and the other side had the increase up to a maximum of $730,000. The loan limit is now finalized at $417,000 with a possibility of increasing the limit up to $725,000 for high priced areas. What does this mean for residence in places like Santa Barbara, Palm Springs, San Diego, San Francisco and Sacramento? It means that every buyer who is a first time buyer, every buyer who is labeled “high risk” by lenders, all minorities who felt they could no qualify for a loan have now become eligible to purchase the home of there dreams in areas not available to them before! Let me ask you this: Why would you wait? Rates have not been this low since 1990! Home prices are about to hit bottom! FHA just helped a lot of high risk home shoppers become ready and willing home buyers! Is there a better time to buy?
Contact me and let me show you what a buyers market looks like! I can show you where you can buy a 5 Bedroom 2 Bath dream home for around the new FHA loan limit of $417,000!!! Don’t believe me? Visit my website at http://www.FiveCitiesHomes.net and let me prove it to you!
Ryan A Manning