Support builds for homebuyer tax credit

Obama administration backs higher loan limits

The Obama administration is urging Congress to approve a limited extension of the first-time homebuyer tax credit, and a one-year extension of the temporary $729,750 loan limit in high-cost housing markets for mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac.

Senate Democrats are reportedly proposing an extension of the first-time homebuyer credit, due to expire on Nov. 30, to apply to homes under contract by April 30.