FHA Loan Limits

Guide Note:

Insured by the U.S. Department of Housing and Urban Development (HUD), a federal housing authority (FHA) loan is a mortgage product that is designed to provide financing for homes at a low interest rates. On March 6, 2008, the FHA raised the loan limits for government-insured home loans. HUD announced 14 counties in California would benefit from this economic stimulus package.¹ The FHA expects that more counties across the nation will be able to participate in 2008.

Fast Facts:

1. In March 2008, the mortgage limit increase included 14 high-cost counties in California
2. The FHA will insure home loans up to a maximum dollar value of $729,750 ¹
3. Previous FHA insurance maximum was $362,790²
4. 675,000 families are estimated to potentially qualify for the FHA insurance²
5. FHA has received nearly triple the amount on applications in 2008 as compared to 2007²
6. Initial reports by HUD stated that FHA-backed loans would be made available to 250,000 homeowners nationwide¹
7. FHA home insurance applications in 2008: 1.17 million²