FHA Loan Limits Raised

Today Congress passed a bill today to return FHA loan limits to 125% of local area median home prices. The FHA can now back mortgages up to $729,750 in certain areas in the United States. These new loan limits have been extended until 2013 in hopes to stimulate the housing market.

Fannie Mae and Freddie Mac loan limits were not increased and remain at 115% of local area median home prices, not to exceed $625,500.