Great news to anyone interested in qualifying for an FHA or VA loan. President Barack Obama that reinstates the higher loan limits until December 31st, 2013. The president did not provide his extension to the Power Houses known as Fannie Mae and Freddie Mac.
FHA and GSE maximum has been at $625,500 since October 1, 2008. Under the restored limits the highest FHA loan available in designated high cost areas will be $729,750. “Loans written between October 1 and today’s effective date of the new legislation will not be eligible for the new limits. Limits on VA loans will return to the levels established under the Veterans Benefits Improvement Act of 2008 which are, in some cases, higher than FHA limits”, according to a recent post by Mortgage News Daily.