Yesterday the House and Senate both passed the appropriations “minibus” spending bills. These not only allow Government to remain open, it also included at least two real estate friendly components. The first is a month-long extension of the National Flood Insurance Program to December 16th that will give the Senate time to consider the House-passed five year re-authorization. (Read more about the NFIP legislation by clicking here) That date coincides with the continuing resolution to keep funding other spending programs not included in the minibus legislation.
Perhaps more importantly the passage of the minibus spending bill includes a reinstatement of the FHA loan limits to their pre-September 30 levels effective as soon as the President signs the legislation (expected today). This could immediately provide additional mortgage capital to borrowers in hundreds of counties across the country via FHA financing.
The loan limits will revert to 125% of median area home price, with a cap at $729,750. Those higher limits will be in effect until December 31st, 2013 at which point they will again revert to 115% of median area home price with a cap at $626,500.
You can read more about the passage of the bill by clicking here. NAR has also congratulated Congress on reinstating the higher loan limits and you can read their article linked here --> Realtors® Applaud Congress for Reinstating FHA Loan Limits
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