FHA Loan Limits – Georgia

The U.S. Congress on Thursday approved a bill to raise the maximum size of mortgages the Federal Housing Administration can insure and sent it to President Barack Obama to sign into law.

The measure would push the so-called FHA conforming loan limit in the highest-priced real estate markets back up to $729,750 through 2013, from $625,500, a sign of lawmaker concern over the still-depressed state of the housing sector.

The limits, which vary from market to market, were temporarily raised for FHA and Fannie Mae and Freddie Mac during the financial crisis when banks became reluctant to lend. They automatically dropped back on October 1.

Metro Atlanta Loan Limits for 2012

In Metro Atlanta loan limits will go back to $346,250 from the current level of $320,250.

For Atlanta home-buyers looking to purchase, refinance or purchase and renovate via FHA 203K loans now have a little more room to work with.

In neighborhoods like Brookhaven, Kirkwood, Grant Park, Buckhead, Morningside, Virginia Highlands and Alpharetta the increase is especially helpful.

Home-owners looking to take advantage of today’s low interest rates with a refinance will also benefit.

Politicians haven’t made many smart moves with housing market legislation, but restoring the loan limits is definitely a positive move.

The housing industry and consumer advocates mounted an intense lobbying effort to convince officials the time was not yet ripe to reduce government support.

Some conservative groups fought raising the loan limits, with the influential Club for Growth warning that the government was distorting the market and impeding a recovery.

FHA, which traditionally has supported low-to-moderate income households, said on Tuesday that its capital reserves had dwindled over the past year. But it rebutted the contention of some analysts that it will likely need to turn to the U.S. Treasury for a bailout.

FHA recently increased mortgage insurance requirements, they will be fine. Hope that the folks in Washington DC don’t allow them to use this as an excuse for further increases.

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