Loan Limits extended thru Sept. 30 2011

Yesterday President Obama signed a resolution extending the current conforming loan limit of $729,750 for high-cost areas, including many areas in California.  The same limits will also be extended to loans insured by the Federal Housing Administration. This will be in effect until Sepember 30, 2011.  The extension would have expired at the end of the year.  This means FHA loan limits would have been reduced by up to 50 percent in some areas, and the conforming loan limit would have been reduced by 40 percent. This is good news in the effort to help the housing market recover.