On Thursday the U.S. Senate voted to raise FHA loan limits to $729750 through 2013. The loan limits vary from county to county.
This vote should add homebuyers to the search for new homes.
FHA loans are an excellent tool for first time homebuyers. It allows for down payments as low as 3.5 percent. FHA does not make or approve loans, it insures the loans. FHA requires homes to meet certain safety and security requirements. Hand railings must be in place, all peeling paint must be scraped and painted and any broken windows need to be repaired. 203k rehab loans are also an FHA product, that can assist in purchasing distressed homes.