| Ask most first time home buyers in my home town of | | | | reform as far as how big the maximum limit increase |
| Pismo Beach what the FHA loan limit is and the | | | | for high priced areas would be, as one side stated |
| response you will most likely get is "What is FHA | | | | there would be a possible $100,000 increase available |
| again?" This lack of knowledge of the FHA and what | | | | to the current limit of $417,000 and the other side had |
| it does is common in my home town, and for good | | | | the increase up to a maximum of $730,000. The loan |
| reason. | | | | limit is now finalized at $417,000 with a possibility of |
| I am one of many Californians who live in a high price | | | | increasing the limit up to $725,000 for high priced areas. |
| market. The median home price in my county of San | | | | What does this mean for residence in places like |
| Luis Obispo is somewhere around $550,000 and we | | | | Santa Barbara, Palm Springs, San Diego, San |
| don't even come close to the neighboring Santa | | | | Francisco and Sacramento? It means that every |
| Barbara County. The median in Santa Barbara is a little | | | | buyer who is a first time buyer, every buyer who is |
| over the one million dollar mark. With the FHA loan limit | | | | labeled "high risk" by lenders, all minorities who felt they |
| barely crossing the $360,000 mark, why would we | | | | could no qualify for a loan have now become eligible |
| take our time to learn about a loan that we don't even | | | | to purchase the home of there dreams in areas not |
| come close to qualifying for? Well, those days are | | | | available to them before! Let me ask you this: Why |
| now part of the past, and let me be one of the many | | | | would you wait? Rates have not been this low since |
| who say that this was way past due. | | | | 1990! Home prices are about to hit bottom! FHA just |
| Late last year, a FHA reform was put in place by the | | | | helped a lot of high risk home shoppers become ready |
| Bush Admin that would increase the loan limit from | | | | and willing home buyers! Is there a better time to buy? |
| $362,000 up to $417,000. There was a conflict in the | | | | |