Conforming Limits Restored

Benefit #4 — $729,750 FHA and Conforming Loan Limits Restored in High Cost Areas.
The $729,750 maximum loan limit had been in force throughout 2008, but was
reduced to $625,500 in 2009. The economic stimulus plan restores the $729,750 maximum. This makes higher cost homes more affordable — especially in the coastal housing markets that tend to have higher than average home values. Our local areas have average prices that fall in the higher range, also, and the high interest on traditional jumbo loans has been pricing out many buyers who might qualify at the new conforming rates.