Congress Reinstates FHA loan limits Congress has 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.
The bill also provides for a short-term extension of the National Flood Insurance Program through December 16, 2011.
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