FHA increases spending limit.

I'll keep it simple...In an effort to try to increase consumer borrowering power FHA has increased their maximum loan limits in most areas of the United States effective March 5, 2008.  Maximum financing for most Conventional loans is capped off at 90%-95% of the value of the home.  FHA allows for financing up to 97.15% of the value of the home.  This will give borrowers with less money for down payment the ability to purchase a more expensive home! (CNN post)