2009 FHA Limit Set - $625,500 limit in high-cost areas

Emergency economic legislation temporarily increased the limit on loans insured by the Federal Housing Administration. But that increase is set to expire this this year. However, other legislation made permanent increases to maximum FHA loans.

H.R. 5140, the Economic Stimulus Act of 2008, was signed by President Bush on Feb. 13. Among other provisions, it temporarily raised -- until Dec. 31, 2008 -- the FHA limit in high-cost areas to $729,750. Prior to the legislation, the FHA limit was $362,790.

H.R. 3221, the Housing and the Economic Recovery Act of 2008, was signed by Bush on July 30. Among its provisions are a permanent increase to FHA-insured loan amounts -- which the U.S. Department of Housing and Urban Development said today would be $625,500 in high-cost areas. In low-cost areas, the limit is $271,050.