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HUD rolls out new limits for FHA-backed loans

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The Department of Housing and Urban Development today implemented temporary increases in FHA loan limits in every housing market that it estimated will allow nearly 240,000 additional families to take advantage of the government-backed mortgage insurance program. The new limits for Federal Housing Administration loan guarantee programs are based on median home price, and range from a new floor of $271,050 up to a cap of $729,750 in the highest-priced markets, such as New York, Los Angeles, San Francisco and Washington, D.C. HUD said 75 out of 3,200 housing markets will see FHA loan limits bumped up to the maximum. HUD also published temporary increases in the conforming loan limit that will allow Fannie Mae and Freddie Mac to purchase "jumbo light" loans above the $417,000 conforming loan limit until the end of the year. The government-sponsored enterprises, or GSEs, are still in the process of updating their underwriting standards and loan processing software t...