HUD just released MORTGAGEE LETTER 2008-36 which listed the new FHA loan limits for Orange County, CA. The new limit is $625,500, which is good news. This new limit will be effective for FHA case numbers issued after January 1, 2009. The currently temporary limit of $729,750 will go away, but that shouldn't be much of an issue since very few FHA loans have closed at a loan amount anywhere near $729,750. As a metter of fact, mpst FHA loans, even in Orange County, have been under the old limits of $362,790. Part of the reason for this may be a pricing difference for any loans over the old limit but under the temporary limit.
It is anticipated that there will be no difference in pricing for varying loan amounts with this official change. At the moment we don't know for sure, but we will know in the coming weeks.
For more information on the new FHA limits and how this will help cities such as Irvine, Newport Beach, Tustin, Orange, and Santa Ana, click here.
If you have any questions on FHA in Orange County, or southern California, please contact Tim Storm with Frost Mortgage. Frost Mortgage is a Direct Endorsed FHA lender located in Irvine CA. Thius means we will process, underwrite, and fund your loan in our office.
