Congress Reportedly Ready To Increase FHA Loan Limits

Congress Reportedly Ready To Increase FHA Loan Limits Congressional leaders have reportedly agreed to raise the maximum size of residential mortgages backed by the Federal Housing Administration (FHA).

According to a Bloomberg report, House and Senate lawmakers responsible for reconciling spending bills agreed to a new limit of $729,750 on FHA-insured loans; mortgages backed by Fannie Mae and Freddie Mac, however, would remain at their current level of $625,500.

The spending bills would need to be passed by both the House and Senate. However, several House leaders, including House Financial Services Chairman Spencer Bachus, have vehemently opposed any increase in loan limits. The original House bill that was presented for the reconciling process made no mention of the subject, while the Senate included an increase in the Fannie Mae and Freddie Mac loan limits.

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