FHA Maximum Loan Limits Increased To $729,750 For Certain High Cost Areas According HUD Chief

The Federal Housing Administration temporarily will raise the limits of loans it will insure to ($729,750) in certain areas, the chief of the U.S. Department of Housing and Urban Development said at a meeting Wednesday at the Treasury.

“FHA is over 20 percent of the mortgage market,” HUD Secretary Shaun Donovan said. “Ensuring that FHA is a constructive part of the solution is a critical part of this.”

FHA loan limits in high-cost areas had been capped at $625,000. The increased limits are scheduled to stay in effect through 2009.

Treasury Secretary Timothy Geithner touted the government’s quick actions to implement President Barack Obama’s housing recovery plan. “We need to move forcefully and aggressively,” he said.

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