FHA increases limit on loans for Baltimore area

Real Estate Watch

October 07, 2001

More Baltimore-area homebuyers will be able to take advantage of Federal Housing Administration loans, thanks to recently increased loan limits.

The FHA raised the limit on single-family loans in the Baltimore metropolitan area to $239,250 from $189,000. That means that homebuyers will have better options when it comes time to shop around for a mortgage.

The Baltimore metropolitan area received the increase because it's considered one of several high-cost areas in the country by the FHA. The area includes Baltimore City and Anne Arundel, Baltimore, Carroll, Harford, Howard and Queen Anne's counties.

The basic standard mortgage limit nationwide is $132,000.

A part of the U.S. Department of Housing and Urban Development, the FHA insures mortgages made by private lenders to homebuyers. The loans enable homebuyers to make down payments as low as 3 percent and carry more debt.

The FHA also has more flexible credit requirements and permits homebuyers to use gifts from family members and nonprofit groups to make down payments.

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