Economic Stimulus Plan Increases FHA Limit to $500,000 in San Bernardino County

Rialto, CA –  Congressman Joe Baca (D-Rialto) announced that the recently passed Economic Stimulus Package of 2008 will raise Federal Housing Authority (FHA) loan limits, enabling federally backed mortgage loans to reach more communities and neighborhoods.  The stimulus plan raises FHA loan limits to 125 percent of an area’s median house price for the remainder of the calendar year.  For San Bernardino County, this means FHA loan limits will increase from their previous cap of $362,790, to a new cap of $500,000. 
 
“Owning a home is a major part of achieving the American Dream, but the current subprime loan crisis has left too many of our families and neighborhoods in a nightmare scenario,” said Rep. Baca.  “The economic stimulus plan the House passed this past January includes a critical provision that increases FHA loan limits.  This will allow vital federal assistance to reach more homebuyers in our current unstable market - and keep more families in their homes.”

The FHA was established to provide a reliable source of affordable mortgage loans for first-time home buyers.  By increasing loan limits, the FHA will be able to assist more vulnerable borrowers and new homeowners in high cost housing markets like California with affordable rates and terms. 

“The Inland Empire has one of the highest rates of mortgage foreclosures in California and throughout the nation,” added Rep. Baca.  “With this loan increase, we can bring financial relief to some of our families, and prevent many others from having to rely on subprime loans in the future.”   

Rep. Baca voted in favor of the Economic Stimulus Package of 2008, which passed the House of Representatives on January 29, 2008, and was signed into law by the President on February 13.