U.S. House votes to raise FHA loan limits. The house on Thursday approved a bill that raised the maximum loan size of mortgages for the Federal Housing Administration (FHA) that can be insured and all that is needed now is for the Senate to give its final blessing.
This limit amount was raised from $625,500 to $729,750 through 2013. This limit increase was a concern raised by FHA and Fannie Mae and Freddie Mac due to banks reluctance to lend money.
This measure is fine and a beginning to help insure the financing for increase values in the real estate market for luxury homes that staggered in sales for the last few years. It would be nice to ensure sales after working so hard to get the deals put together and not have the banks come up with excuses on not being able to provide the loan.
Again, lets wait and see what the Senate will do.
This action is suppose to reduce the governments role in supporting the housing finance system. But wait, isn't an increase in the amount of the insured amount an increase in the supporting amount. Whatever, politics is not my understanding. Maybe someone could explain it to me.
My personal comment on this: that this should be one of many steps that push, prod, bull doze banks into giving more Americans the ability to finance the purchase of their new homes. Banks have been given the guarantee and support to continue doing their business and I strongly believe that Americans get their "market" share of support.
What do you think?
Edson X. Bezerra
Boardwalk Realty of Florida
www.boardwalkfl.com
239-770-3994. Direct