As a result of raising the FHA loan limit the mortgagae product of choice for many low and moderate income households has become the FHA product. on that front, there is some good news to report.The FHA modernizationAct of 2007 will help protect the interestof America's current and future homeowners by giving borrowers a safer alternative to riskier mortgage products while also helping many homeowners who may be facing foreclosure. In addition, the increase in FHA mortgage loan limits would help first-time home buyers, minority buyers, and people who do not qualify for conventional loans ( mortgages).