Loan Limits Lowered in Southern California For 2009

In my 2009 San Diego Real Estate Outlook, I suggested that lower loan limits could cause a convergence of home prices. I expect the mid-priced homes ($500,000 to $1,000,000) to decline towards the loan limits while lower priced homes (under $500,000) already dove in 2008.

Southern California Loan Limits For 2009:

Loan Type San Diego Orange Los Angeles

VA $697,500 $729,750 $729,750 (no change from 2008)

FHA $546,250 $625,500 $625,500

Conforming $546,250 $625,500 $625,500

Originally Posted on Millionaire Real Estate Lender