The coming change in the conforming loan limit will have a much larger impact on loans insured by the Federal Housing Administration (FHA) than on those purchased or securitized by either Fannie Mae or Freddie Mac.

According to an analysis by the FHA, loan limits on government insured mortgages are likely to decline in 669 of the 3,334 counties or county equivalents when the ceilings revert back to the levels determined under the Housing and Economic Recovery Act of 2008 (HERA). The shift will take place on Oct. 1 unless Congress intervenes.

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