The Economic Stimulus Package Creates FHA Limit Changes In All Markets

Many people think the recent passage of the Economic Stimulus Package only has an effect on higher priced markets like California, New York, etc.  However, the FHA loan limits are raised in all areas now.  Beginning March 6, HUD made changes to FHA loan limits to all areas of the country.  In my neck of the woods (Shreveport/Bossier City, Louisiana) our loan limit went from $200,160 to $271,050.  This will help with low down payment purchases as many of the mortgage insurance companies have made changes the last couple of weeks that make 97 to 100% programs next to impossible.  This will also help with refinances as FHA will allow for 95% refinances instead of the conforming max of 90%.