FHA Loan Limits Are Up

Effective January 1, the Federal Housing Administration (FHA) has just increased its highest loan limit to $362,790 in high cost areas nationwide. This is a $50,000 increase from last year's limit. FHA loans are usually available at lower interest rates than conventional loan rates, with easier lending guidelines to help first-time buyers. While extra paymentc called MPI (mortgage risk insurance) are tacked on that are not tax deductible, this is still very good news because it gives borrowers a lot more loan assistance in high markets that was not available before.