Due to the state of the housing market (and economy), HUD/FHA increased the maximum loan limits in 2008 to help homebuyers acheive the American Dream, home ownership. The limits have been extended and are now set to expire Sept. 30, 2011.
Not extending the higher limits, which allows more Americans the ability to purchase with lower down-payments and more attractive interest rates, will cause the fragile housing market more stress and most likely have a ripple effect on the US economy.
The FHA maximum loan limits must be extended through Dec. 31, 2013 in order to allow all Americans the chance at "affordable housing" and the American Dream.