On Friday, November 18, 2011 President Obama signed into law a government spending bill effectively reinstalling higher conforming loan limits for the Federal Housing Administration through the end of 2013.
The House passed the spending bill 298-121 Thursday afternoon, and the Senate approved it 70-30 Thursday night.
Effective today, FHA can insure loans up to $729,500 from $625,500 in the country’s most expensive neighborhoods – including San Francisco.
This change does not affect loans backed by Fannie Mae and Freddie Mac – which continue to have a $625,500 limit.
Loans that exceed the Fannie, Freddie and FHA limits are jumbo loans that carry higher interest rates and require higher down payments.
Read more about this change here.