I came across a press release from HUD talking about how the recent increase in FHA loan limits will benefit quite a few people from California.

Some interesting excerpts from the release:

"The plan raises FHA's loan limits, enabling more families to qualify for a safe, affordable FHA mortgage. This is critical for California, where most families are currently priced out of FHA loans. Because the FHA loan limits didn't reflect the housing market in California and other high-cost states, a vacuum was created that was filled by exotic subprime loans. We estimate that nearly 33,000 Californians will benefit over the next 18 months... (HUD Secretary Alphonso Jackson)"

"Jackson also explained how the Bush Administration's aggressive efforts are keeping hundreds of thousands of families in their homes. The Secretary pointed to FHA Secure, the refinancing arm of FHA, which has helped more than 100,000 homeowners refinance their mortgage since it was announced last fall. FHA Secure includes homeowners who are current on their loan or past due because their teaser rates reset; some borrowers who owe more on their homes than they are worth; and those in the process of foreclosure. Families are saving an average of $400 a month compared to the cost of their previous exotic subprime loans. FHA Secure is on pace to help 300,000 families by the end of 2008.

"FHA is back. And we're letting the American people know about it, sending letters out to 850,000 homeowners with resetting rates, including 54,000 Californians, who might qualify for FHA," Jackson added."