FHA increases loan limits for home buyers

The loan limits for FHA products have been temporarily increased nationwide, which will allow more borrowers to experience the benefits and protections afforded by FHA loans. The non-profit Florida Association of Mortgage Brokers offers consumers information on these loan increases that will be offered through December 31.

"We applaud HUD for taking a leadership role in addressing the needs of today's consumers and we encourage those purchasing or refinancing to ask their mortgage broker how an FHA loan could be beneficial," said Ritch Workman, president of the Florida Association of Mortgage Brokers.

The Department of Housing and Urban Development will offer temporary FHA loan limits, ranging from $271,050 to $729,750. The maximum amount of $729,750 will only be applicable to extremely highcost metropolitan areas. Previously, FHA's loan limits in high-cost areas were capped at $362,790. The new minimum and maximum loan limits are based on 65 percent and 175 percent of the conforming loan limits for Government-Sponsored Enterprises in 2008. HUD said that the change in loan limits will help provide economic stability to America's communities and give homeowners and homebuyers a safer, more affordable mortgage alternative. For more information and FHA loan requirements, visit www.hud.gov.

The new limits in Florida are available at https://entp.hud.gov/idapp/html/ hicostlook.cfm