Industry Applauds Congress for Restoring Higher FHA Loan LimitsNovember 22nd, 2011 | Category: Industry News
Members of the National Association of Home Builders (NAHB), and the National Lumber and Building Material Dealers Association (NLBMDA), applauded Congress last week for reinstating another two years of the higher conforming loan limits for the Federal Housing Administration (FHA).
“We commend congressional leaders in both parties and each chamber of Congress for taking this action to boost overall mortgage liquidity in the marketplace, create jobs, and provide home owners and home buyers with safe and affordable financing,” said NAHB chairman Bob Nielsen, a home builder from Reno, Nev. “Restoring the higher FHA loan limits will help to stabilize home values, provide constancy while private investors re-enter the market, and enable millions of creditworthy consumers to get home loans with the best mortgage rates and lowest fees and down payment requirements.”
Michael O’Brien, NLBMDA president, says increasing the loan limits guaranteed by FHA to $729,750, will stabilize home values while enabling creditworthy consumers to get home loans. He clarifies, however, that despite the action by Congress on FHA loans, the lower Fannie Mae and Freddie Mac conforming loan limits of $629,500, which went into effect on October 1, remain in place.
“We thank the Republican and Democratic leadership in Congress for backing legislation that supports the recovering housing market, creates jobs, and allows access to affordable and reliable financing to responsible home buyers and owners,” said O’Brien.