HUD Raises Insurable Loan Limit to $208,800

In a move that could make housing affordable for more families, the U.S. Department of Housing and Urban Development has raised the insurable loan limit to $208,800 in Orange, Los Angeles and Ventura counties. The increase, the second in three months. took effect on loans as of Jan. 1. In October, the Federal Housing Administration, a division of HUD, raised the insurable loan limit to $197,621. Rather than making mortgage loans directly, FHA insures loans made by private lenders to home buyers. The insurance guarantees the timely repayment of mortgage loans if a home buyer defaults. HUD Secretary Andrew Cuomo said the higher limit will be of particular benefit to minority, senior and first-time home buyers.