President Bill Clinton's fiscal 2001 proposed budget calls for substantial increases in two areas affiliated with the mortgage industry, the Federal Housing Administration and the Office of Federal Housing Enterprise Oversight. Both departments are pleased with Clinton's suggestions.
Under the FHA portion of the budget, Clinton is calling for an increase in the FHA loan limit to be 100% of the conforming-loan limit, which currently is $252,700. The current FHA limit in high-cost areas is $219,849. According to the budget document, "Raising the FHA loan limit to 100% of the Fannie Mae/Freddie Mac conforming limit will help approximately 55,000 families purchase their first homes, especially large families and families in high-cost areas."