Orange County Home Buyers will Benefit from Extension of Loan Limits Through End of 2010
Orange County, CA home buyers will continue to benefit from the increased loan limits of $729,750. On October 29, 2009, Congress agreed to extend the temporary loan limits through 2010. This extension is not only for Fannie Mae and Freddie Mac, but also FHA.
What Does This Mean for Orange County Home Buyers?
Only 2 years ago the Conforming loan limit was only $417,000, and the FHA loan limit for Orange County, CA was $362,790. In 2008 Congress raised the limits, first to $625,500, and then to $729,750, since Orange County is considered a "high cost" area. Los Angeles county also has the same limits. The continuance of the high loan limits enables Orange County home buyers to have access to loan programs that would not otherwise be available since the secondary market for mortgages took a bath in 2007.
The increased loan limits have added liquidity to the Orange County real estate market. FHA only requires a 3.5% down payment, which means home buyers can purchase a home for $756,000 with only 3.5% down payment. That's only a $26,460 down payment. For those home buyers who have a bigger down payment, going with a Fannie Mae/Freddie Mac loan with 20% down will make more sense. The purchase of a $912,000 home, with 20% down, will work with these loan limits.
The increased loan limits have added liquidity to the Orange County real estate market. FHA only requires a 3.5% down payment, which means home buyers can purchase a home for $756,000 with only 3.5% down payment. That's only a $26,460 down payment. For those home buyers who have a bigger down payment, going with a Fannie Mae/Freddie Mac loan with 20% down will make more sense. The purchase of a $912,000 home, with 20% down, will work with these loan limits.
Orange County Move Up Home Buyers Taking Advantage of High Loan Limits
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Orange County home buyers have been taking advantage of the high loan limits. FHA is not just for First Time Buyers, as many move up buyers are experiencing. With the drop in values, many move up buyers don't have as big a down payment as they would like. But with FHA allowing a small down payment, move up buyers are able to purchase homes that only a few years ago were valued in the millions. Of course, the first step for any home buyer is to get Prequalified or PreApproved for a mortgage.
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.
Contact us for your Orange County FHA Mortgage:
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 Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
Posted by Tim Storm at 10/31/2009 8:24 AM 
Categories: Orange County First Time Home buyer,FHA Loans
Tags: Real estate fannie mae loan limits Orange County fha loan limits conventional loan limits
Categories: Orange County First Time Home buyer,FHA Loans
Tags: Real estate fannie mae loan limits Orange County fha loan limits conventional loan limits
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