With all the attention of the first time home buyer credit which was increased from $7,500 to $8,000 under the new stimulus bill signed by President Barack Obama last week, another important element of the bill that effects real estate was greatly ignored. The stimulus bill overhauled the Federal Housing Authorization’s mortgage insurance program limits.
In the spring of 2008 the FHA loan limits were increased from $263K to $346K for a single family home in Maricopa County. The new limits expired in late 2008 though and the FHA loan limits were reduced back to $263K. Under the stimulus bill the loan limits wereincreased back to $346,250 for a single family home in Maricopa County.