FHA Conforming Loan Limit Finally raised permanently.

This year, as an emergency stop gap measure, the FHA conforming rate was raised to $729,000 for many of the higher cost areas like California. However, this was a temporary measure good only until the end of this year. As we, in California, know, borrowing $417,000 does not give you a lot of options in purchasing a home. High cost areas needed to have higher loan limits to help purchase the average median priced home.
Congress just passed an important Housing Bill this Saturday which is aimed at helping housing crisis the country is now facing. And along with the assistance of Fannie Mae and Freddie Mac is the permanent increase of the FHA conforming rate from the temporary limit of $729,000 to the permanent limit of $625,500. This move finally addresses a sticky point for many areas like Silicon Valley where the median price of a home is still $650,000. This certainly seems like the right direction in making homes more affordable for the average home owner.

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com