Congress Votes to Restore FHA Loan Limits

On Nov. 17, 2011 Congress voted to restore loan limits and the maximum cap for Federal Housing Authority (FHA) loans. 

The provision reinstates the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets. The floor will remain at $271,050.  The loan limits for Fannie Mae- and Freddie Mac-backed mortgages will remain at 115 percent of local area median home prices, up to $625,500.

To find the FHA loan limit for your area go directly to HUD’s website for FHA Mortage Limits.  It’s easy to use – simply select State and Limit Year and it will sort by county.  Better yet, narrow the results by entering your specific County.  Then, make certain to curser down the page to see Year 2012’s information.

For more details on this subject go to NAR's Press Release.  To see additonal information and visuals on stat’s go to Conforming Loan Limits. 

Please contact me directly with any questions you may have.  I would love to help you find your next home... and would be happy to put you in touch with mortgage lenders I know and trust.  I always encourage my clients to meet with a lender as early as possible [in the purchase planning process] to make certain they are prepared and confident with your decisions.  To learn more go to DarleneDiamond.com.