The new maximum loan amount that can be insured by the Federal Housing Administration will apply in 14 California counties, one Florida county and 10 counties in New York. In addition, FHA limits have been raised to a lesser degree in numerous other counties and also impact conforming limits.
The U.S. Department of Housing and Urban Development has uploaded the temporary increases to its Web site. The new maximum FHA loan amount, as outlined in the recently enacted H.R. 5140, the Economic Stimulus Act of 2008, is $729,750 for the nation's highest-priced areas. The temporary increase is effective until the end of this year.
Among California counties that qualify for the maximum are Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz and Ventura, according to an inquiry on HUD's Web site.
In Florida, only Monroe County qualified for the maximum, an inquiry indicated.
Counties in New York that made the cut included Bronx, Kings, Nassau, New York, Putnam, Queens, Richmond, Rockland, Suffolk and Westchester.
The new limits also apply to conforming loans that can be purchased by Fannie Mae and Freddie Mac. While FHA limits are already effective, the increase in the conforming limit is not effective until July 1, 2008.
An announcement from Fannie and Freddie's regulator, the Office of Federal Housing Enterprise Oversight, indicated 71 Metropolitan Statistical Areas and Micropolitan Statistical Areas, including 245 counties, are impacted by the increases. In addition, 21 counties not located in MSAs, Guam and four municipalities in the Marianas Islands have increased limits.
Users can search for limits by county, MSA or state using HUD's Web site at:
In addition, OFHEO has posted maximums by MSA/county at:
Higher FHA Rolled Out in Some CA Counties
The U.S. Department of Housing and Urban Development has already confirmed some of the California counties that will qualify for the temporary increase to maximum limit on loans insured by the Federal Housing Administration.
FHA Limits May Rise in March
Borrowers may be able to apply in March under the expanded loan limits for mortgages insured by the Federal Housing Administration.
FHA, Conforming Limits Boosted
President Bush has signed into law emergency legislation that will temporarily increase the conforming limit by 75 percent. In addition, the limit for loans insured by the Federal Housing Administration will also see a temporary boost.