No telling what the new ceiling on FHA limits will be. Personally I think the limits will be pushed to at least the conventional limit of $417,000. Since this is crisis management, it makes sense to help the most home owners without plunging into the same fiasco created by the ARM loans in the first place.
As for your concerns about the bailout aspect of the new program, I can only say that everyone deserves a second chance. It is much better to have these homeowners in their own home at 6.5% for 30 years than 11% for 6 months.
