In a recent development, the U.S. House and Senate have voted in order to increase the mortgage limit for FHA loans to $729,750. This will help the homeowners to get higher and cheaper loans. Currently, the loan limit for FHA conforming loan is $625,500.
Voting in favor of the bill:
The house voted 298 to 121 in favor of the bill. However, it is to be noted here that around 101 Republicans voted against the bill. The Senate, on the other hand, voted 70 to 30 in favor of the bill.
Housing industry groups lobbied in favor of change:
Various housing industry groups such as the National Homebuilders Association had always supported the increase in FHA loan limits. They have always maintained that around 5.3 million homeowners wll be positively benefited from the change. The increase in FHA loan limits will provide borrowers with an affordable financing option. This will also provide a much-needed boost to housing markets.
President Barack Obama is likely to sign the change into law in a few days of time.