It is official – Congress has re-enacted the FHA loan limits back up to $729,500. As of October 1st, the limits were decreased to $625,000. Through lobbying by the real estate community, the law was reversed and was signed on November 18th.
This higher loan limits open the door for more people to purchase a home, especially with the higher home prices in the Contra Costa & Alameda areas. More home, less down payment and somewhat less stringent credit score requirements make it easier to buy–especially for the first time home buyer who may have excellent credit, good jobs, but not 10% to 20% required by conventional loans.