Lately we’ve been talking about the changes coming in the new year that will have the largest impact on our clients. Today I wanted to put some real numbers around that change and discuss how FHA Lower Loan Limits for 2014 effect San Diego, Orange County and Los Angeles.
A couple weeks ago I wrote about the news of 2014 for the Conventional Loan Limits – you can see that here. Last week, David Hughson wrote more generally about the FHA loan limit reductions. But this week I wanted to put that into context in terms of how it might effect you. Loan limits are set by county and based on the average cost of housing in that county. So there is a difference in the current loan limits set by these agencies. Here are some examples that might be most pertinent to a large number of our clients
**San Diego County – 2013 Limit = $697,500 | 2014 Limit = $546,250
**Los Angeles & Orange County – 2013 Limit = $729,750 | 2104 Limit = $625,500
As you can tell these are substantial changes. The thought here is that these agencies are attempting to limit their exposure in the higher end of the market by returning the lending to more traditional Financial Institutions.
THERE IS A WAY TO BEAT THE CHANGE! If you’re ready to buy or refinance now, you can lock in the old limits. There are some very specific things you must do. If this is applicable to you, or you have more questions feel free to click my name below and contact me for more info.
Jeremy Beck | Mortgage Planner | FHA Bird Dog