|
| |
| |
Hud Announces Higher FHA Home Loan
Limits To Help More American Families Become Homeowners
Housing and Urban Development Acting Secretary Alphonso Jackson today announced
that the Federal Housing Administration (FHA) has increased its single-family
home mortgage limits by more than three percent.
Effective January 1, 2004, FHA will insure single-family home mortgages up
to $160,176 in low cost areas and up to $290,319 in high cost areas. The loan
limits for two-, three- and four-unit dwellings also increased. The FHA is
sending letters to thousands of mortgage lenders and brokers to make them aware
of the higher rates that can help families.
"
These higher loan limits will help the FHA mortgage insurance program keep
pace with the robust housing market while contributing to the Bush Administration's
commitment to create 5.5 million new minority homeowners by the end of the
decade," said Jackson. "The new limits will help create more homeowners,
more construction, more jobs, and more economic growth."
Low-income and first time homebuyers are attracted to FHA-insured loans because
the agency requires only a three-percent down payment. Consumers can find out
more details by calling the HUD's Denver Homeownership Center at 1-800-543-9378,
extension 1005 for Customer Service.
The new loan limits are part of an annual adjustment HUD makes to account for
rising home prices. Under federal law, loan limits are tied to the conforming
loan limits of Freddie Mac and Fannie Mae, federally chartered corporations
that buy and package mortgages.
Five years ago, the loan limits ranged from just $115,200 to $208,800, levels
below the cost of many homes in many communities. As a result, families who
needed FHA mortgage insurance to qualify to buy a home were effectively locked
out of the process.
The higher FHA loan limits will not cost the government any money, because
the FHA Insurance Fund is fully supported by premiums paid by borrowers who
receive FHA insurance.
The increases will also benefit senior citizens who qualify for FHA-insured
reverse mortgages. Reverse mortgages allow homeowners age 62 and older to borrow
against the value of their homes without selling them. Homeowners can select
a lump-sum payment, monthly payments or tap into a line of credit. No repayment
is required as long as a homeowner lives in a home with a reverse mortgage.
The reverse mortgage is repaid, with interest, when a homeowner sells the home
or dies.
HUD is the nation's housing agency committed to increasing homeownership, particularly
among minorities; creating affordable housing opportunities for low-income
Americans; and supporting the homeless, elderly, people with disabilities and
people living with AIDS. The Department also promotes economic and community
development as well as enforces the nation's fair housing laws. More information
about HUD and its programs is available on the Internet and espanol.hud.gov
02/12
|
