The government on Wednesday raised the mortgage limits for loans guaranteed by the Federal Housing Administration in 14 high-cost California counties.The Department of Housing and Urban Development 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.
The economic stimulus package includes a temporary increase in the limit on FHA-backed loans, from $362,790 to as high as $729,750 in expensive areas, to let more homeowners with high-rate subprime mortgages refinance into federally insured loans.
The package also includes a temporary increase in the cap on mortgages that the government-sponsored mortgage companies Fannie Mae and Freddie Mac can buy or guarantee from $417,000 to $729,750.
March 6, 2008
I won't pretend that I understand what all those terms like FHA, Fannie Mae, and Freddie Mac mean, but I think the gist of the following Business Week story is that we Californians aren't going down alone. We're taking the other 49 states down with us. See you in taxpayer bailout hell!