Good news for you buyers out there: The loan limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs, which were bumped back down to $625,500 in high-cost areas on Jan. 1, were restored to the temporary $729,750 – approved by Congress a year ago in the Economic Stimulus Act of 2008 – courtesy of the Stimulus bill that was recently passed.

Loans up to this amount should start to originate starting beginning of March. This is of course a good step forward for Santa Clara, San Mateoa and San Francisco counties which will all max out at this level.