New FHA Loan Limits Now In Effect

Credit: Flickr/<!-- </wbr> -->Images_of_Money

     The Federal Housing Administration (FHA) has implemented new single-family loan limits as of Oct. 1, reducing them in the highest cost metropolitan areas of the country while leaving them unchanged in most areas. 

     The new limits were scheduled to take effect in Jan. 2009 but were delayed because of turmoil in the housing markets.  The current limit for areas where housing costs are relatively low will remain unchanged at $271,050 for one-unit properties.  The new ceiling limit for higher-cost areas will be reduced from $729,750 to 625,500 for one-unit properties.  FHA estimates that only a fraction of borrowers living in the nation's highest-cost areas will be impacted by the new loan limits.