House approves higher FHA conforming loan limits

The House of Representatives voted 292-121 to restore the elevated conforming limits for jumbo mortgages for the Federal Housing Administration Thursday.

The Senate is expected to give a final vote in the coming days.

Members of a joint committee compromised earlier this week to include language in a minibus spending bill that would raise the limits on mortgages insured by the FHA but not those guaranteed by Fannie Mae and Freddie Mac.

Congress raised the limits in 2008 to allow the government to back more loans when credit markets froze. On Oct. 1, the limits expired, reverting back to $625,500 from $729,750 in the most expensive neighborhoods.

According to the bill the House passed Thursday, the elevated limits for FHA loans will be extended through 2013.

The effect of the drop has already been felt in some markets. San Francisco home sales above $500,000 fell 20% in October from last year, according to analytics firm DataQuick.
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About SanDiegoatHomeTeam
Christian van't Vlie and Ivana Milosevic. Helping sellers and buyers successfully reach their real estate goals while keeping them informed every step of the way, disclosing all known facts and real estate practice procedures so that all involved parties can make well-informed decision. We care and we are at your service.

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