Categorized | Finance and Mortgage

FHA Loan-Limit Increase Approved Once Again

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The House of Representatives in the United States has once again voted to increase the FHA loan-limit to seven hundred and twenty-nine thousand dollars. The limit was previously at that figure earlier this year, but had expired in early October. Since that date, there has been great debate as to how much the government should be involved in the real estate market.

Many analysts had spoken out strongly against the expiration of the loan-limit in October, as they believed that such a measure would only cause the housing market to fall into a deeper decline. The loan-limit had dropped by more than one hundred thousand dollars in most areas.

While many analysts are applauding the House of Representatives decision to raise the loan-limit once again, there are some groups that are adamantly against the increase. These groups firmly believe that the government needs to remove itself entirely from the mortgage market in order to allow private firms to take over. Other groups believe that the wrong limit was raised. They feel that the FHA limits should have been left untouched, and instead, the loan-limits for Fannie Mae and Freddie Mac should have been increased.

There is the possibility that the new FHA loan-limits still may not happen, as both the Senate, and the President of the United States still must approve it. However, most people in the know believe that the bill will be approved, as the government continues to enact measures direct at improving the current state of the residential real estate market.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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