Mortgage Loan Limit: trick or treat?

Legislation has made it through both the House and the Senate to that will maintain the existing loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) through Dec. 31, 2010. An extension of the current loan limits (which had been due to expire Dec. 31, 2009) was included in the continuing resolution (HR 2996) that passed the House of Representatives and the United States Senate yesterday, on Oct. 29. While this has NOT been signed into law yet it HAS passed both legislative bodies, So there would be no reason for the President not to sign this.

In this area, the loan amount for FHA loans is capped at 729,7500.

So, the fact that it’s tough to find an affordable home for purchase in North Arlington, and you really need this limit to stay in place, and now you can at least get an FHA loan for the foreseeable future — I see this as a treat, but can also understand that some buyers would consider it a trick, to keep home prices stabilized.