WASHINGTON (AP) - The government on Wednesday raised the mortgage limits for loans guaranteed by the Federal Housing Administration in 14 high-cost California counties.

The Department of Housing and Urban Development released the new loan limits for California. The limits, with the maximum at $729,750, are derived from median home prices in each county.

HUD is expected to raise the limits in other counties nationwide in the coming days. The economic stimulus package includes a temporary increase in the limit on FHA-backed loans, from $362,790 to as high as $729,750 in expensive areas, to let more homeowners with high-rate subprime mortgages refinance into federally insured loans.