>Credit guidelines for mortgages get tougher: Higher FHA limit extended 2 more years
GUIDELINES GET TOUGHER
The Federal Housing Finance Agency, with help from Congress, recently took steps that affect people buying homes in high-priced real estate markets such as New Jersey.
First, Congress approved an extension of the loan limit on Federal Housing Administration loans in high-priced markets at $729,900. The regular limit in most areas is $417,000, but in the Housing and Economic Recovery Act of 2008 Congress temporarily approved the higher limit for some high-priced areas. That limit was set to expire in November 2011. Instead, the higher limits have been extended for two more years.
In addition, the FHFA has set the size of loans for 2012 that will conform to the Fannie Mae and Freddie Mac guidelines in higher-priced markets at $625,000.
