Well, it is official! The new FHA limit for Orange County CA is $625,500. The old limit was $362,790, so this is a huge jump. In March of 2009, as part the the economic stimulus package, temporary limits were raised to $729,750, but those limits will go away effective January 1, 2009.

There weren't many FHA loans closing in Orange County that were higher than our new limit of $625,500, so the lower number shouldn't have much negative effect. FHA is a full income documentation loan (as nearly all loans are these days) and it took approximately $170,000 annual verifiable income showing on 2 years tax returns to actually qualify for a $729,750 loan amount. It will take approximately $130,000 in annual income to qualify for a $625,500 FHA loan. With 3.5% down, which is the new down payment requirement for FHA, this would get a buyer a $648,000 home. So even with all this talk of how difficult it is to get a loan, a home buyer can still purchase a very nice home in Orange County with a small down payment and get a low 30 year fixed rate.

Most of the First Time Buyer deals I've been working on in Orange County have been in the $325,000 to $450,000 price range. For example, I recently closed an FHA loan in Santa Ana Ca on a price of $365,000 and loan of $354,000. I also closed an FHA loan in Anaheim CA on a single family priced at $370,000 with an FHA loan of $358,900. I've got a loan in escrow right now for a $355,000 condo in Irvine CA.

It does seem like the market is heating up. First time buyers are very aware of the $7,500 tax credit in effect for homes bought prior to July 1, 2009. Also, which prices down there are some good deals out there. It does depend on where you're looking though. The buyers I'm working with are surprised, after hearing from everyone that this is a buyers market, to find they are competing with multiple offers on every property they look at. Having a Preapproval from a direct lenderwill help get the winning bid, but acting quickly is very important.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan.  877-786-4243 x 7.

www.OCFHALoans.com

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