If the larger spending bill is approved, the bill will be in the hands of the House where they will vote on it. The amendment extends higher loan limits through 2013.

Higher loan limits have been extended several times. After expiring on October 1st, high loan limits for Fannie Mae, Freddie Mac, or FHA loans is $625,500.

Higher Loan Limits History

As part of the economic stimulus package in 2008, temporary higher loan limits were enacted to help homeowners in high-cost areas that were unable to get loans FHA loans and conforming loans they needed and were unable to get regardless of their payment history, credit and income. Homeowners in areas such San Francisco, New York and Los Angeles routinely faced higher priced homes, which meant they were required to bring in substantially larger down payments when purchasing their home. These higher loan limits expired on October 1st.

The Federal Housing Administration (FHA) was established  to improve housing standards and conditions and to provide financing of homes  by insuring mortgages. Families that would otherwise be excluded from the housing market were finally able to buy the homes of their dreams by the backing of FHA (HUD) insured mortgages.

Today FHA insures thousands of mortgages for 1st time and seasoned home buyers alike.  FHA allows that you have only one FHA insured mortgage at a time.  However, there are compensating factors that allow for more than one FHA insured mortgage.  For example, if you currently live in Austin and are relocating to Dallas, you may be eligible to rent your current FHA insured home and purchase another FHA insured home in Dallas.

FHA also has maximum loan limits.  The average loan limit far an FHA loan in Texas is $271,050.  These limits are based on your county.  In Travis county the maximum loan limit is $288,750.  This is for the purchase of a single family home.  Loan limits increase for duplexes, 3 unit and 4 unit dwellings.  Check out the official HUD website for FHA information or give us a call at: 1-888-619-7770.