Update as of 12/13/13: This week the maximum Federal Housing Administration-conforming loan limit for homebuyers in Riverside and San Bernardino counties fell 29 percent from $500,000 to $355,350, a reduction of $144,650.
This means that a buyer who used to qualify for a $500,000 home with an FHA loan and 3.5% down will now need to bring in an additional $144,650 to buy that same home OR start shopping for a lower priced home. This will send shockwaves across to sellers as well because this could cause prices to drop.
