The government is raising the mortgage limits for loans guaranteed by the Federal Housing Administration in 14 high-cost California counties. The Department of Housing and Urban Development today released the new loan limits for California - a hotbed during the housing boom that now is suffering the worst home-price declines in the nation. The limits, with the maximum at $729,750, are derived from median home prices in each county.
HUD is expected to raise the limits in other counties nationwide in the coming days.
In California, the counties at the maximum level for FHA loans are Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz and Ventura. At the other end, Lassen, Modoc and Trinity counties are subject to a loan cap of $271,050 - which is the lowest possible amount for an FHA-backed loan under the new law.
HUD Secretary Alphonso Jackson made his announcement in Los Angeles.
FHA California Mortgage Limits
U.S. Dept. of Housing and Urban Development
Click here for more headlines from ABC7 Eyewitness News