Recently the House and Senate both passed the appropriations “minibus” spending bills. These not only allow Government to remain open, it also included at least two real estate friendly components. The first is a month-long extension of the National Flood Insurance Program to December 16th that will give the Senate time to consider the House-passed five year re-authorization. That date coincides with the continuing resolution to keep funding other spending programs not included in the minibus legislation.
Perhaps more importantly the passage of the minibus spending bill includes a reinstatement of the FHA loan limits to their pre-September 30 levels effective as soon as the President signed the legislation (which he did on November 18th, using the auto-pen). This could immediately provide additional mortgage capital to borrowers in hundreds of counties across the country via FHA financing.
The loan limits will revert to 125% of median area home price, with a cap at $729,750. Those higher limits will be in effect until December 31st, 2013 at which point they will again revert to 115% of median area home price with a cap at $626,500.
The National Association of REALTORS® (NAR) has also congratulated Congress on reinstating the higher loan limits. "...we applaud members of Congress for restoring FHA’s previous loan limits, which will help reduce consumer cost burdens, stabilize local housing markets and allow qualified, creditworthy borrowers to access affordable mortgage financing,” said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami.
Written and Published by: VanEd