The Federal Government raised the ceiling amount on government insured loans in high-cost areas, effective March 6, 2008. This was wonderful news for the Washington Metropolitan Area and folks interested in buying, or selling, a home.

Since I am licensed in Virginia, and that is where the bulk of my clients live, I checked to make sure that all of the counties in which I work were covered. These new limits cover all of the ‘inside the beltway areas' and extend out to Fairfax, Loudoun, Prince William, Stafford and Fauquier (as well as other areas not specifically mentioned). This new loan limit, which remains in effect until December 31, 2008 (unless extended by Congress) will allow a loan with a value up to $729,750 to be insured by the FHA. This will make these loans both safer and more affordable. Previously, this ceiling was $417,000.  This new limit will make the monthly payments for homes up to that ceiling more affordable, which will in turn make them easier to sell-and we can all use a little help right now!  In Real Estate speak: You can go higher on your loan amount and still remain as a 'conforming' loan--you might not need a Jumbo.

You can find more information about this at the Housing and Urban Development website:   https://entp.hud.gov/idapp/html/hicostlook.cfm. This link allows you to input information about your county and see if it is covered by these new limits.

To read the HUD News Release, go to: http://www.hud.gov/news/release.cfm?content=pr08-030.cfm