With the new Loan limits, many Homeowners have found they have a FHA Loan that is actually at a higher principal balance than the new 2009 FHA Loan limit for their area, limiting their ability to refinance into the new lower rates available today.

For instance, if you purchased a home with a FHA Jumbo Loan in Los Angeles in 2008, the limit was $729,750.   In 2009 the limit for Los Angeles is $625,500.  Those Homeowners who purchased homes using FHA Jumbo loans in 2008 with loan amounts higher than the 2009 limits (> $625,500) may have been told by their lender that they cannot refinance into today's new lower rates due to their FHA Loan exceeding the 2009 loan limits