California is the first to get the higher FHA loan limits up to a cap of $729,750. The counties that qualify for the highest amount are Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo and Santa Clara, Orange, Los Angeles, Monterey, San Benito, Santa Barbara, Santa Cruz and Ventura.
HUD Secretary Alphonso Jackson said as many as 30,000 Californians and 250,000 homeowners nationwide will qualify for FHA-backed loans.
As for traditional conforming loan limit hikes, Jackson had 30 days from February 12 to determine those super-conforming amounts for every region nationwide. HUD is using median price multiplied by 125% (up to a cap of $729,750 and a floor of $417,000) to determine what regions will get what conforming loan amounts. No word on this yet.