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Home » Store » Government-Insured Lending » Industry, Real Estate Groups Welcome Passage of Legislation Restoring ‘Emergency’ FHA Loan Limits

Industry, Real Estate Groups Welcome Passage of Legislation Restoring ‘Emergency’ FHA Loan Limits

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Housing finance and real estate groups are hailing the enactment this week of legislation raising the size of mortgage loans insured by FHA to $729,750 or 125 percent of area median home prices over objections by conservatives and most Republicans. The reinstated loan limit formula and maximum cap for FHA-insured home loans are good through 2013. The loan limits for Fannie Mae and Freddie Mac will remain at 115 percent of local area median home price, up to $625,500. The FHA floor will remain at $271,050 while the floor for loans purchased by the government-sponsored enterprises will still be $417,000. Last month...
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