I want to add here that I believe in the concept of FHA loans. They were originally designed to give first-time buyers a “leg up” into the housing market. I believe a $300K loan limit (for the SD region) is more than sufficient today for this purpose. I just don’t feel that it is an appropriate for the FHA to be available to finance upscale or luxury properties (or even fixers in highly desirable areas). Persons who are buyers in these categories need to use their own money and obtain a conventional mortgage, if necessary. IMO, by HUD taking on individual risks this large, the taxpayers will unwittingly be subsidizing more “luxury home” defaults.