Hillary Sponsoring FHA Loan-Limit Bill

Sen. Hillary Rodham Clinton, D-N.Y., told an awards ceremony in New York City Dec. 9 that she will introduce legislation that would increase the loan limits of the Federal Housing Authority and enable more New York households to qualify for FHA loans.Speaking at the 30th Annual Awards Luncheon hosted by the New York Housing Conference and the National Housing Conference, Sen. Clinton said the FHA Single Family Loan Limit Adjustment Act of 2003 would increase the FHA loan limit to 100% of the area median home price, which in New York is up to $310,000, and eliminate the Fannie- and Freddie-imposed 87% ceiling on such loans. Under current law, FHA loans are permitted for up to 95% of the area's median home price, but loans cannot exceed 87% of the Fannie and Freddie national limit, which will be at about $290,000 beginning in January. "It may not mean much for Cleveland, Ohio, or Detroit, Michigan," she said, "but in New York this would increase the number of homes eligible by nearly 900,000."