Momentous news for aspiring homeowners: Last week Congress restored the loan limits for the Federal Housing Administration (FHA) through 2013.

Starting now mortgages will be more accessible and affordable for middle-class families in 669 counties in 42 states and territories, thanks to the FHA’s loan limit reinstatement and cap change. This new amendment will restore the FHA loan limits for two years at 125% of local area median house prices, with a cap of $729,750 in the highest cost markets.

One caveat: Congress decided not to apply the loan limits restoration to Freddie Mac and Fannie Mae. Mortgages with Fannie and Freddie will stay at 115% of local area median house prices up to $625,500.

The National Flood Insurance Program will also enjoy a short-term extension through December 16, 2011. NAR plans to continue to push Congress to use the additional time to finalize their work on a five-year reauthorization of the bill, which provides access to reasonably priced flood insurance for millions of home and business owners across the United States.