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Home prices in San Joaquin County have gone up 115% in the past decade, but a critical FHA loan program isn’t keeping up

Rep. Harder is pushing the Federal Housing Administration to increase loan limits so families can use the program to buy a home

October 16, 2024 - STOCKTON – Representative Josh Harder (CA-9) is urging the Federal Housing Administration (FHA) to increase loan limits for families in San Joaquin County to keep up with skyrocketing home costs. Housing prices in San Joaquin County have risen 115% in the past decade. The FHA loan program was created to allow low and middle-income families to qualify for a home mortgage, but the loan limit for San Joaquin County is far lower than the median price of a house in most cities. 

“Our families are being priced out of the communities they grew up in and we have to do something about it.. The FHA loan program exists to address this exact problem, but our families don’t qualify because it hasn’t kept up with our housing prices. It’s totally unacceptable,” said Rep. Harder. “We need to get housing costs down so our families can actually afford to raise their families here.”

The FHA loan limit for San Joaquin County is $656,650, but that’s far lower than the median housing prices in many of the County’s cities:

• Mountain House - $931,750
• Ripon - $839,500
• Tracy - $750,000

Read Rep. Harder’s letter to the Federal Housing Commissioner below:

October 4, 2024

RE: Request for FHA Loan Limit Increase in San Joaquin County

Dear Assistant Secretary Gordon,

I write today to express my concern regarding the inadequate Federal Housing Administration (FHA) loan limits for San Joaquin County. I urge you to recalculate and increase this limit so families in my district can afford to stay in the community in which they were born and raised in.

As you know, the FHA loan program was created to allow low and middle-income families to qualify for a home mortgage when they may have otherwise found it difficult to obtain loans. Yet, housing prices in San Joaquin County have risen 115 percent over the past decade, outpacing FHA loan limits for the area. For example, the current FHA loan limit for San Joaquin County is $656,650. However, median housing prices in certain cities in my district, such as Mountain House, Ripon, and Tracy are $931,750, $839,500, and $750,000 respectively. This means many of my constituents are unable to access the homeownership opportunities the FHA was designed to provide given the current limits do not adequately address the soaring housing costs across my community.

This disparity between home prices and loan limits has created a challenging environment for potential homebuyers. Creating pathways to homeownership is essential for developing a diverse and economically empowered community. Without access to FHA loans that reflect the true cost of homes in our region, many first-time homebuyers and low-to-middle-income families are being priced out of the market entirely, depriving them of the wealth-building potential of homeownership. This lack of access not only undermines their financial stability, but also hinders the overall economic and social development of our community.

Increasing the FHA loan limit for San Joaquin County to adequately represent housing costs in San Joaquin County is a critical step in addressing the ongoing housing crisis. My constituents deserve the opportunity to not only buy their own homes but, more importantly, buy homes in the communities in which they themselves were raised in. As such, the FHA program must evolve to meet the realities of our local housing market in San Joaquin County.

Thank you for your attention to this important matter, and please do not hesitate to contact me if you require any further information or assistance.

Sincerely,

Josh Harder

Member of Congress
Source: Congressman Josh Harder