On September 30th, President Obama signed a resolution that included a provision extending through fiscal year 2011 the current conforming loan limit of $729,750 for high-cost areas, including many in California. The same limits will also be extended to loans insured by the Federal Housing Administration.
Without the extension, which was set to expire at year's end, FHA loan limits would have dropped by as much as 50 percent in some areas, and the conforming loan limit would have dropped by about 40 percent.
This action effectively extends the higher conforming loan limits for Fannie, Freddie, and FHA loans through Sept. 30, 2011.
Copyright 2010 CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.)
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