Beginning tomorrow, the new conforming limit on loans insured by the Federal Housing Administration will be temporarily raised to $729,750, more than double the current limit of $362,790, the U.S. Department of Housing and Urban Development announced today.
The limit, which is good until the end of the year when it reverts back to $362,790, will apply only to loans insured under a program administered by FHA, which targets low to moderate-income home shoppers.
HUD will announce tomorrow the new conforming loan limit for all markets, a spokesman said. Conforming loans are sold to government-sponsored buyers such as Fannie Mae and Freddie Mac and have a current limit of $417,000 in California and most states.
The FHA and conforming limit increases could give the housing market a boost. Rates on jumbo loans, which are above the limit, have risen to about a percentage point above conforming rates.
The average rate Tuesday on a 30-year fixed conforming loan in Orange County was 5.841% with a one-point fee, while the average jumbo rate on a 30-year fixed was 6.908% with a one-point fee.
But Fannie Mae and Freddie Mac have yet to say when they will begin buying larger loans or if they will impose any restrictions, such as requiring larger down payments. Some housing watchers say rates on loans up to $729,750 might not drop as much as government officials hope.
President Bush signed a stimulus package into law last month that included granting HUD the power to raise the conforming limit based on 125% of the median home price in high-cost areas. HUD said today Orange County’s median home price is $710,000. That’s much higher than DataQuick, which pegged the median home price in January at $520,000 for all houses and condos, and $583,250 for just resale houses.
HUD said it calculated median prices based on government and commercial data.
From HUD’s release, here is a list of each county in California, with the median home price and the new FHA limit on the far right. HUD tomorrow is expected to release limits for areas in other states. To find the new limits for your county visit the direct HUD search tool here.
Alameda County 995000 729750
Alpine County 438000 547500
Amador County 355000 443750
Butte County 320000 400000
Calaveras County 370000 462500
Colusa County 318000 397500
Contra Costa County 995000 729750
Del Norte County 249000 311250
El Dorado County 464000 580000
Fresno County 305000 381250
Glenn County 230000 287500
Humboldt County 315000 393750
Imperial County 260000 325000
Inyo County 350000 437500
Kern County 295000 368750
Kings County 260000 325000
Lake County 321000 401250
Lassen County 200000 271050
Los Angeles County 710000 729750
Madera County 340000 425000
Marin County 995000 729750
Mariposa County 330000 412500
Mendocino County 410000 512500
Merced County 378000 472500
Modoc County 125000 271050
Mono County 370000 462500
Monterey County 599000 729750
Napa County 615000 729750
Nevada County 450000 562500
Orange County 710000 729750
Placer County 464000 580000
Plumas County 328000 410000
Riverside County 400000 500000
Sacramento County 464000 580000
San Benito County 790000 729750
San Bernardino County 400000 500000
San Diego County 558000 697500
San Francisco County 995000 729750
San Joaquin County 391000 488750
San Luis Obispo County 550000 687500
San Mateo County 995000 729750
Santa Barbara County 615000 729750
Santa Clara County 790000 729750
Santa Cruz County 719000 729750
Shasta County 339000 423750
Sierra County 228000 285000
Siskiyou County 235000 293750
Solano County 446000 557500
Sonoma County 530000 662500
Stanislaus County 339000 423750
Sutter County 340000 425000
Tehama County 250000 312500
Trinity County 200000 271050
Tulare County 260000 325000
Tuolumne County 350000 437500
Ventura County 599000 729750
Yolo County 464000 580000
Yuba County 340000 425000
