Wednesday, March 5, 2008

New Conforming Loan Limit Announced.



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