Here we are again. No increase, but the expiration has been extended. The FHA, Fannie and Freddie Loan Limits at the $729,750 level through December 31, 2010 was passed by the Senate yesterday and is being sent to President Obama for his signature into law.  Since the provision is part of the Continuing Resolution*, which is necessary to keep the government operating, it is expected to be signed into law quickly. This was important victory for market stability across the board.  It is also important especially in our market where homes are generally higher priced requiring larger mortgages in most cases.

* A continuing resolution is a type of appropriations legislation used by the United States Congress to fund government agencies if a formal appropriations bill has not been signed into law by the end of the Congressional fiscal year. The legislation takes the form of a joint resolution, and provides funding for existing federal programs at current or reduced levels.

Last February a post called Know the Limit Today discussed this but the cap remains the same.