FHA Loan Limits Increased to stimulate economy

As of March 6, 2008, HUD in an effort to stimulate the economy and assist borrowers struggling to refinance out of arms with negative equity will offer temporary FHA loan limits that will range from $271,050 to $729,750 max limits. The change is a welcomed solution for the credit crunch and fall of the sub prime lending market since it can provide a more stable loan for homeowners with credit issues. The stimulation should also help buyers get into a home at a great time. Home prices are low, rates are still good, sellers are anxious. In Florida the single family limit was increased to $292,500.