FHA brings down loan maximum

WASHINGTON – The Federal Housing Administration has set October 1 as the effective date of bringing down the maximum loan amounts for FHA-insured transactions, including refinancings, in “higher-cost areas” of the country.
The loan limits had been raised in certain parts of the country following the collapse of the real estate market through the Economic Stimulus Act of 2008. Starting the beginning of federal fiscal year 2012, the maximum for FHA-insured loans will be $625,500 in 669 counties across the country, with exceptions still given for Alaska, Hawaii, Guam and the Virgin Islands. The previous loan limit in the higher-cost areas had been $729,750.