New FHA Loan Limits Announced for U.S. Areas

Washington, D.C.–Fannie Mae and Freddie Mac received new, higher limits on the loans they can buy or guarantee in 71 housing markets on Thursday, the Los Angeles Times reports.The new limits–part of the recently signed economic stimulus bill–affected almost all of Southern California. The area received new limits of up to $729,750, the current maximum, increased from $417,000. The limits vary per area and are based on median home prices.The loan limits were increased to help increase home sales and refinancings in high-cost markets. The limits apply to loans originated from July 1, 2007, through the Dec. 31, 2008.