This is great news !!!!
The U.S. House and Senate yesterday restored FHA loan limits to the
level they were at before they were allowed to expire at the end of
September. As a result, the limits will rise to 125 percent of the area
median home price from 115 percent, up to a maximum $729,750 from
$625,500. NAR estimates that several hundred counties where FHA loan
limits fell at the end of September will now rise back up to the
previous level.
“The reinstated loan limits will help provide much needed liquidity and
stability to communities nationwide as tight credit restrictions
continue to prevent some qualified buyers from becoming home owners and
the housing market recovery remains fragile,” said NAR President Moe
Veissi in a statement released last night.
President Obama is expected to sign the legislation shortly. The
restored loan limits are in a broad-based bill that includes funding for
a wide variety of federal operations and programs.
The maximum conforming loan limits for secondary mortgage market
companies Fannie Mae and Freddie Mac also expired at the end of
September, but lawmakers did not include a restoration of those limits
in the bill. As a result, conforming loan limits will remain at 115
percent of the area median home price, up to $625,500.
Once President Obama signs the bill, the limits will go into effect.
FHA will release a mortgagee letter to its approved lenders thereafter,
containing a list that’s been updated to reflect the new limits. NAR
analysts say it will take the agency a short period to update its
database and release the mortgagee letter, maybe a couple of weeks.
The funding bill also extends the National Flood Insurance Program
(NFIP) until Dec. 16 to allow lawmakers time to consider long-term
authorization of that program, which is an NAR priority.
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