Homebuyers applying for a Federal Housing Administration insured mortgage in the Baltimore area will be able to borrow more after the government raised its maximum limits last week.
In the Baltimore metropolitan area, the U.S. Department of Housing and Urban Development increased its loan limit by 6.3 percent to $189,905 for single-family homes. In the Washington metropolitan area, limits were increased to $212,800, a 10.3 percent increase.
The new loan limits are part of an annual adjustment HUD makes to account for rising home prices. Under federal law, the loan limits are tied to conventional loans issued by Fannie Mae and Freddie Mac, the two quasi-governmental mortgage giants that make funds available to lenders.
In November, Fannie Mae and Freddie Mac raised their maximum limit on a mortgage loan for a single-family home to $275,000.
FHA-insured loans offer homebuyers several options, including a 3 percent down payment and a higher debt load than previously allowed for borrowers.