HUD Raises FHA Loan Limits

"Since loan limits were last increased, construction costs in some areas have risen by 25 percent or more. These increasing costs, coupled with the static loan limits, have driven developers to more lucrative projects.As a result many Americans have been left to scramble for suitable housing. A recent HUD report reveals that nearly five million American households suffer from worst case housing needs. These families are defined as renters who receive no federal housing assistance, have incomes below 50 percent of their area's median family income and who pay more than half of their income for rent and utilities or live in severely substandard housing."