The National Lumber and Building Material Dealers Association (NLBMDA) applauded Congress for reinstating the higher conforming loan limits for the Federal Housing Administration (FHA) through 2013, helping reduce uncertainty for an already fragile housing market.
By increasing the loan limits guaranteed by FHA to $729,750, Congress has taken a step to stabilize home values while enabling creditworthy consumers to get home loans with the best mortgage rates, lowest fees and better down payment requirements, the NLBMDA said.
"We thank the Republican and Democratic leadership in Congress for backing legislation that supports the recovering housing market, creates jobs, and allows access to affordable and reliable financing to responsible home buyers and owners," said Michael O'Brien, NLBMDA president and CEO.
Despite the action by Congress on FHA loans, the lower Fannie Mae and Freddie Mac conforming loan limits of $629,500, which went into effect Oct. 1, remain in place. The NLBMDA said it will continue its efforts in restoring the higher conforming loan limits for Fannie Mae and Freddie Mac.