WASHINGTON – HUD has announced new, permanent FHA mortgage loan limits ranging from $217,050 to $625,000.

Beginning Jan. 1, 2009, FHA will insure single-family home mortgages up to $271,050 in low-cost areas and up to a maximum of $625,500 in high-cost areas. The February 2008 Stimulus Package temporarily raised the FHA maximum to $729,750 through Dec. 31, 2008. The new $625,500 maximum, however, represents a significant increase over the $362,790 limit that was in effect prior to the stimulus package.

The Housing and Economic Recovery Act pegs the national conforming mortgage loan limit to a house price index chosen by the Federal Housing Finance Agency. The act also pegs the national mortgage limit for FHA-insured reverse mortgages to the national conforming loan limit. For 2009, the national conforming limit will remain at the current level of $417,000. Home Equity Conversion Mortgages will therefore have a national mortgage limit of $417,000.