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.SFGate: California gets first crack at new FHA mortgage limits (March 6, 2008) The FHA expects that more counties across the nation will be able to participate in 2008.

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 SFGate: California gets first crack at new FHA mortgage limits (March 6, 2008)
3. Previous FHA insurance maximum was $362,790Reuters: FHA plugs higher loan cap for troubled borrowers(June 19, 2008)
4. 675,000 families are estimated to potentially qualify for the FHA insuranceReuters: FHA plugs higher loan cap for troubled borrowers(June 19, 2008)
5. FHA has received nearly triple the amount on applications in 2008 as compared to 2007Reuters: FHA plugs higher loan cap for troubled borrowers(June 19, 2008)
6. Initial reports by HUD stated that FHA-backed loans would be made available to 250,000 homeowners nationwideSFGate: California gets first crack at new FHA mortgage limits (March 6, 2008)
7. FHA home insurance applications in 2008: 1.17 millionReuters: FHA plugs higher loan cap for troubled borrowers(June 19, 2008)