The Federal Housing Administration looks poised to replace Fannie Mae and Freddie Mac as the primary government lender of relatively high-cost mortgages.
The government recently passed a bill that extended the agency's conforming loan limit to $729,750 in the country's most expensive neighborhoods, while keeping Fannie Mae and Freddie Mac's ceiling at $625,500, the level to which it fell after Congress allowed a previous $729,750 loan limit to expire on Oct. 1. This probably means that relatively well-off homebuyers will increasingly turn to the FHA in order to help finance mortgages in high-cost areas, concludes columnist Kenneth R. Harney.
The decision by Congress to raise loan limits solely for FHA-insured loans, and not for Fannie Mae or Freddie Mac-backed loans, reflects the government's growing displeasure with the two mortgage giants (which back roughly half of all mortgages in the U.S.) and its desire to reduce their role in the housing market.
- 7 Crucial Retirement Mistakes
- The Worst Way to Withdraw From Retirement Accounts
- This Year's Best High-Interest Savings Accounts
- Are You A Homeowner? Turn Your Skyrocketing Equity Into Cash
- Need Cash? Take Money Out of Your Home
- Smart Ways To Pay for a Home Renovation
- Home Mortgage Rates Drop Sharply This Week
- HARP Refinance Program is Over. Now What?
- Digital Mortgage Platform Helps Home Buyers Shop for Mortgages
- Take Control Of Your Finances With These Cards
- Spend $500, Get $200 Fast with This Top Card
- Want to Travel Practically Free? This Card Is For You
- The True Story Behind "The Blind Side"
- These Are All The Hidden Hacks Of Costco
- The Largest Military Planes In The World Are A Sight To Behold