FHA Loan Limits for Orange County, CA have Changed for 2009 Once Again
In early 2008 the FHA loan limit in Orange County, CA was $362,790. As part of a 2008 Stimulus package, the limits were raised dramatically to $729,750. This new limit definitely “stimulated” the real estate market, in combination with the First Time Buyer tax credit. But at the end of 2008, the loan limit was decreased to $625,500. For most buyers, this new limit was still high enough to buy most homes. But the lower limit did hurt the upper end of the market. Also, for those people who got an FHA loan in 2008 that was greater than $625,500, they were not able to take advantage of the FHA Streamline Refinance program at a time when 30 year fixed rates have dropped.
Orange County FHA Limit for 2009 Raised to $729,750 – Again
The change officially was announced February 23 as part of the American Recovery and Reinvestment Act. However, only in the past few weeks have lenders begun to accept the higher loan amounts. This change back to the higher limit will benefit those buyers in 2008 who wish to take advantage of lower interest rates. The FHA Streamline Refinance program is a No Qualifying, No Appraisal program which allows FHA borrowers to lower their interest rate and payment. This higher limit will also work with the FHA 203K Rehab loan program.
Buy an Orange County Home for $747,000 with 3.5% Down payment!
It is once again possible to buy a home for $747,000 with only 3.5% down using an FHA loan. Granted, a home buyers income will need to be approximately $170,000 per year (and verifiable), but this should really help the “upper” end of the market get the financing it so sorely needs.
Written by Tim Storm, an Orange County, CA Loan Officer and FHA Specialist- Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County FHA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
* Licensed by California Dept. of Real Estate. Lic. # 01190897
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