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by CareyBot

The Department of Housing and Urban Development has announced new loan limits for FHA-backed loans in 2007 for homes of one to four units. Although the loan "ceiling" and "floor" remain unchanged from 2006, loan limits between the floor and ceiling have been adjusted to reflect changes in median home price by metropolitan statistical area. The Federal Housing Administration will generally back loans up to 95 percent of the median house price for a given area. But the FHA mortgage "ceiling limit" can usually not exceed 87 percent of the Freddie Mac loan limit of $417,000, or $362,790 for a single-family home. The FHA "floor limit" -- the maximum loan amount in lower-cost areas -- is 48 percent of the Freddie Mac loan limit, or $200,160 for a single-family home. In other words, the FHA ...