Borrowers in Broward and Palm Beach can now obtain a maximum Federal Housing Administration-backed mortgage of $345,000, the Sun-Sentinel reported. The previous limit was $423,750 before Friday’s reduction.
The new maximum for single-family and condo mortgages takes effect on Jan. 1. FHA officials say the change should allow them to focus more on borrowers in need as the broader housing market recovers. First-time borrowers often turn to FHA loans because of their tiny down payments.
About 650 counties in the U.S. are scheduled to have FHA loan limits reduced. The government planned to take this action four years ago, but the proliferation of the national housing crisis delayed the measure. [Sun-Sentinel] — Eric Kalis