Alex Tijerina For NoicolePompey.com
Southern California home buyers received some good news recently when the Federal Housing Finance Agency, more commonly known as FHA, released updated loan limits for 2020. Essentially, first time home buyers can now use a larger FHA loan to purchase their house.
But just what does an increased loan limit mean to Southern California home buyers? Let’s take a look at some examples and compare the new limits to the median price for single family homes as of Oct. 2019 (the most recent data available):
Orange County: Median price is $770k, new FHA loan limit will be $765,600.00 for 2020.
Riverside County: Median price is $400k, new FHA loan limit will be $442,750.00 for 2020.
LA County: Median price is $650k, new FHA loan limit will be 765,600.00 for 2020.
San Diego County: Median price is $630k, new FHA loan limit will be $701,500.00 for 2020.
Note that the median prices quoted above are for single family existing homes, and do not include condos or newly constructed homes.
The increased limits are welcome news for frustrated home buyers who can’t seem to catch a break from continually rising Southern California home prices. There are of course a number of details anyone interested should be aware of before embarking on purchasing a home, so if you’re in the market for a new home, be sure you spend some time talking with a trusted lender to get advice and insight into all the intricacies of the FHA program.