Governor Arnold Schwarzenegger today released the following statement after the Federal Housing Administration (FHA) announced that 14 California counties would receive the maximum federal government loan limit of $729,500, which was previously $417,000:
"I applaud the Administration's swift action to help California's housing market rebound. No other state has been more impacted by the ongoing mortgage crisis than California and the announcement today by the federal government will help more working Californians achieve the American dream of homeownership through less expensive and more secure loans. I will continue to ask Congress to pass comprehensive reform legislation to make these increases permanent."
Last week, the Governor met with U.S. Department of Housing and Urban Development Secretary Alphonso Jackson in Washington D.C. to discuss raising federal loan limits permanently. The Governor sent a letter earlier this year urging Congress to approve increased home mortgage loan limits and he sent a similar letter last fall.
The counties impacted by today's FHA announcement are: Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz and Ventura.