This is good news for homeowners who are in trouble because of an adjusting ARM or other sub-prime mortgage, and could help them avoid foreclosure.
It is also a boon to many home buyers who now have a larger selection of homes because of the higher loan limits.
FHA is an affordable alternative for those borrowers who do not qualify for regular conventional programs, without exposing them to the risks involved in the creative financing that created the problems we hear so much about these days.
Here in Monroe County, the limit for a single family home is raised to $271,050, well above the average sale price here. In Carbon, Northampton & Lehigh, the limit is $402,500, and in Pike County, $729,750. There are higher loan limits available for multi-unit properties.
These new loan limits expire at the end of 2008 so there is some incentive for owners and potential buyers to complete their transactions this year as the limits could revert to the 'old' limits of $200,160 in Monroe County, $305,666 in Carbon, Northampton & Lehigh, and $362,790 in Pike.