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Home Loan Limits

Brokers, lenders and borrowers all prayed that 2011 home loan limits for conventional, VA and FHA loan programs would remain unchanged from the 2010 levels.  All year mortgage and real estate professionals have feared that HUD and Congress would be reducing the loan limits signbificantly in 2011 in an effort to stem foreclosures. 

Congress Extends FHA Loan Limits for 2011

 

It’s no secret that loan defaults and foreclosures have fueled the housing crisis.  With FHA, Fannie Mae and Freddie Mac foreclosures exploding over the last few years, many finance experts believe that reducing the FHA loan limits will be good for the longevity of the government financing programs.

The good news is that Congress passed a bill that will extend the FHA loan limits with no reductions.  Many lending professionals cheered that the move will help spur mortgage lending in 2011.  FHA home loans have helped support the lending programs as subprime lending has all butTime will tell, but less foreclosures and delinquencies will have to happen in 2011 or most agree that loan limits will be severed significantly in 2012.

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