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FHA Loan Limits Still at $729,750

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

For more information about Palos Verdes and South Bay Real Estate and buying and selling a home on the Palos Verdes Peninsula, visit my website at http://www.maureenmegowan.com . I try to make this the best real estate web blog in the South Bay Los Angeles and the Palos Verdes Peninsula. I would love to hear your comments or suggestions.

Comment balloon 0 commentsMaureen Megowan • December 26 2011 09:00PM

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