The Conforming Loan Limit

Well, finally after much to do, the Federal Housing Administration (FHA) has just increased the conforming loan limit.  The amount is different for each market, so you'll have to check the HUD website for your area (http://www.hud.gov).   This was done as part of the "Economic Stimulus Package" and is intended primarily to try to spur home sales.  

What does it all mean?

For me, it changes nothing...  The housing market is still very inflated (at least here in the OC), and allowing me to borrow more money (either at a lower rate or without having to resort to breaking the loan into a first and second mortgage) doesn't sound tempting.   For some, who plan to buy homes that are $600K and above, this will be of benefit as they can get a lower overall mortgage rate than they would have been able to before.  

But the question that begs to be asked is:  Will a good deal now, be a good deal a year from now?

UPDATE #1: The new limits will take affect on March 17th.

UPDATE #2: The new limit (single unit) for Orange County is $729,750 (up from $417,000)