FHA Loan Limits and Its Impact

credit: Flickr

Recently, the Federal Housing Administration (FHA) reduced the loan limits for its single-family insurance program in 652 counties, while raising them in 89 counties.

In an Urban Institute commentary, it takes a closer examination on the effect of the decreases in the FHA loan limits. The FHA plays a vital role in making African American and Latino families become homeowners, insuring more than half of the purchase money loans made to African Americans and Latinos in 2012.

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