FHA Loan Limits For 2010 - A Positive Outlook For FHA Mortgage Programs ...

The FHA loan limits for 2010 have already been set which is an advantage to lenders and borrowers. FHA (Federal Home Association) is a division of HUD (U.S. Department of Housing and Urban Development) will continue to keep the same loan limits as in 2009. The FHA guidelines state that loan limits can go as high as $729,750 in some areas the maximum is $271,050. Local loan limits will be set by each county and state. Had this latest bill not been passed, the limit of $729,750 would have expired on December 21, 2009 and the limit would have fallen to $625,500.

First time home buyers can benefit from having the FHA loan limits for 2010 by having future real numbers to make plans with. The limit of $729,750 will not expire until the end of the calendar year 2010 which gives potential home buyers more than a year to get on board with the numbers that have already been announced. The lenders sometimes wait to establish new loan programs until the government announces the limits of government loans. Now banks and brokers will be able to plan for their next full calendar year. The FHA lenders can also think positively and look forward to low FHA mortgage rates. The year 2009 produced very low mortgage rates and 2010 looks as if low interest rates will be enjoyed again.

HUD has been approved to insure 400 billion worth of FHA loans in 2010, an increase from 315 billion in 2009. With the ability to loan more FHA mortgages and interest rates staying competitive it could lead to banks having more activity and more people being able to get into a homeownership role. Some markets have showed an increase in home sales; however, the middle income and higher income level buyers have not showed an increase. With the limit being kept at over seven hundred thousand due to the FHA loan limits for 2010, congress and the real estate market are hopeful that these markets will show an increase before long. Before these major groups start to purchase homes, no one can say that home mortgages as a whole are on the rise.

According to the FHA loan blog, the 2010 FHA loan limits will maintain the 2009 loan limit levels rather than being reduced as many mortgage brokers were fearing. With the increase in the amount of loans HUD will insure in 2010 and the promising outlook of interest rates, 2010 could very well be a great year for homebuyers to turn their attention to FHA home loans to see if they can work in their situation. Many believe now is the time to buy. It surely is the time for potential home buyers to feel more confident after the FHA loan limits for 2010 have been set.