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Beginning March 7, 2008 HUD will offer increased loan limits on mortgages which should help provide more stability to a troubled mortgage market. The maximum amount of $729,750 will be available in the nation's highest-priced housing markets including San Francisco, Washington DC, and New York. HUD has also reset limits for loans to be purchased by Fannie Mae and Freddie Mac giving homebuyers a more liquid mortgage market. The new increase are part of the government's economic stimulus package approved by the Senate in February 2008.
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