FHA Loan limits for 2014 lowered in San Diego

FHA Loan limits for 2014 lowered in San Diego

FHA announced on December 6th that 650 areas throughout the country would be seeing a reduction in the maximum loan limit for FHA loans and San Diego is one of those areas.

Currently, the maximum loan amounts for FHA loans in San Diego are:

One unit Two units Three units Four units
$697,500 $889,250 $1,079,350 $1,341,350

Beginning January 1st, the maximum FHA loan for 2014 in San Diego County will drop to $546,250 for one unit properties.

One unit Two units Three units Four units
$546,250 $699,300 $845,300 $1,050,500

Why the change?

Well, there is a lkot technical boring talk that goes along with explaining it but the bottom line is that FHA Loan limits in high cost areas had been temporally increased as a component of the Economic Stimulus Act of 2008 (ESA).

If you want to get really technical, the ESA allowed for a different calculation to be used in establishing limits in high cost areas amount (125% versus 115%).  It also used 175% versus 150% of the conforming loan limit to establish the FHA loan limit ceiling.  With the ESA expiration comes the return to the old calcualtions.


What does that all mean to us?For Sale sign

Beginning with case numbers issued January 1, 2014, anyone purchasing a home in San Diego county will be restricted to a maximum loan amount of $546,250.

 Those people looking at higher sales prices are going to be forced to do larger down payments.

The days of a client purchasing a $700,000 loan and using FHA financing for a minimum 3.5% down paymenbt are now gone.

But, FHA does remail the most useful tool for those that may have experienced some financial issues and would otherwise not qualify for conventional financing.


Yet another instance of legislation restricting our ability to generate business and offer our clients more diverse options for their home financing.

Want to know the maximum loan amount for your area?  Check it out HERE

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