FHA Loan Limits Adjusted

As a part of the Presidents Economic Recovery Package, FHA implemented temporary higher mortgage limits which took effect on January 1^st 2009. In Mason County the FHA loan limits on a one-unit house has been adjusted to $310,000.

 

In the Bremerton-Kitsap County area, the FHA limit on a one-unit house will be $475,000. In Olympia and Thurston County, the FHA limit has been raised to $361,250.

 

The American Recovery and Reinvestment Act of 2009 will allow HUD’s Federal Housing Administration (FHA) to temporarily increase its loan limits and insure larger mortgages at a more affordable price in high cost areas of the country.

 

The press release from the U.S. Department of Housing and Urban Development’s Homes and Communities web site points out the “under the American Recovery and Reinvestment Act of 2009, the revised FHA limits for 2009 are set at the higher of the loan limits established for 2008 under the Economic Stimulus Act of 2008.” The new Act  permits FHA to insure loans on up to 125 percent of the 2007 area median house prices.

 

The limit changes are for all FHA-insured mortgage loans and are scheduled to last to December 31, 2009. The increased loan limits will help FHA to provide stability to the housing market.  

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