Lawmakers voted late Thursday to increase the ceiling for loans insured by the ""Federal Housing Administration"":http://www.fha.gov (FHA). The measure was signed into law by President Obama Friday morning.
[IMAGE] [COLUMN_BREAK]Included in a ""minibus"" spending bill passed by both the House and Senate was an amendment to restore the FHA loan limit to $729,750 in high cost areas.
The maximum loan limit was lowered from that amount to $625,500 on October 1st for government housing agencies, including FHA, ""Fannie Mae"":http://www.fanniemae.com, and ""Freddie Mac"":http://www.freddiemac.com.
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 loan limits for Fannie Mae- and Freddie Mac-backed mortgages, however, 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.