The maximum on an FHA insured loan for 2008 is presently $729,750.  In the FHA guidelines for the new loan limits would exceed the conforming limits of $417,000 and become what mortgage executives call jumbo mortgage loans.  Higher FHA loan limits are set by the federal government as part of an economic stimulus package early this year, were supposed to make jumbo loans more affordable in expensive housing markets. FHA mortgage rates finally have come down on these so-called “jumbo conforming” mortgages, though these home loans may be difficult for many borrowers to qualify for.

Jumbo-conforming loans range in size from $417,000 to nearly $730,000 and are especially important in expensive housing markets. FHA continues to help homeowners who recently lost the equity in their home because of declining real estate values in the region.  The FHA home loan limits varies based on the cost of housing in the nearest metro area and can vary from $271,050 in average cost neighborhoods and rise up to $729,750 in  the more costly areas of towns. Homeowners that are considering a home refinance with a jumbo sized mortgage but do not have the 20 percent equity that most conforming lenders requires should  consider the FHA jumbo mortgage, which enables borrowers to refinance up to 97% on a rate and term mortgage.