The Department of Housing and Urban Development (HUD) just announced that the Federal Housing Administration (FHA) will be lowering the loan limits on all FHA loans, across the nation, beginning January 1, 2014.
This decrease in loan limits will most likely directly correlate with a drop in the purchase market. The government is eagerly trying to get out of the high end mortgage industry, but the question is, have they made this change too soon? Is the market stable enough to take another hit on higher end homes in each respective county? Will other lenders step in to fill the void?
California County 2013 and 2014 Loan Limits for Single Family Housing (1-Unit):
|California County||2013 LIMITS 1 – Unit||2014 LIMITS 1 – Unit|
|Los Angeles County||729,750||625,500|
|San Benito County||729,750||625,500|
|San Bernardino County||500,000||355,350|
|San Diego County||697,500||546,250|
|San Francisco County||729,750||625,500|
|San Joaquin County||488,750||304,750|
|San Luis Obispo County||687,500||561,200|
|San Mateo County||729,750||625,500|
|Santa Barbara County||729,750||625,500|
|Santa Clara County||729,750||625,500|
|Santa Cruz County||729,750||625,500|