Many people know that the limit for loans purchased by Fannie Mae and Freddie Mac was recently reduced from the limit of $729,750 in high cost areas down to the former limit of $ 625,500 , however many missed the fact that Congress recently passed legislation maintaining the higher loan limits for FHA mortgages.
In late November, Congress reinstated the loan limit formula and maximum cap for Federal Housing Administration-insured loans for two years.
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 view the full NAR press release on this subject, see here: http://www.realtor.org/press_room/news_releases/2011/11/congress_reinstates_fha_loan_limits
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