Larger home loans backed by the Federal Housing Administration would be available in many of the nation's most expensive housing markets under legislation passed by the House.

By voice vote Wednesday, lawmakers agreed to raise the $101,250 limit on the size of mortgages the FHA can insure to $124,875.Supporters said the higher ceiling would help people buy costlier homes, while opponents argued it would expose the government to steeper losses if the borrowers default.

The median price of homes already exceeds $101,250 in 18 states and Washington, D.C., the National Association of Home Builders says.

The $67 billion housing, development, veterans and space program bill containing the loan cap returns to the Senate, which approved the FHA language last month and is expected to do so again.

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The legislation also contains money to finance a New Jersey arts center, a Michigan library and 39 other pet projects that lawmakers voted to retain despite opponents' arguments that the distribution of the money smacks of favoritism.

Opponents complained that the projects, worth $28.4 million, were largely spread among the congressional districts of members of the House Appropriations Committee, which produced the legislation.

They said that none had been approved by the Department of Housing and Urban Development, from whose coffers the money would come. But opponents lost an attempt to strip the projects from a housing and development bill on a 250-170 vote.

The bill provides $12.4 billion for NASA, including $1.8 billion for the planned space station. It also makes available $5.6 billion for the Environmental Protection Agency, $11.4 billion for veterans' medical care, and $15.1 billion for housing programs.

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