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HUD RAISES VALLEY COUNTY’S FHA MORTGAGE INSURANCE LIMITS

BOISE -- More low-to-moderate-income homebuyers in Valley County may be eligible for FHA insurance on their mortgages and home improvement loans under new mortgage limits released this week by the U.S. Department of Housing and Urban Development.

The new mortgage limit for a one-family unit is $189,050, up from $172,632. The previously existing mortgage limits for a duplex ($220,992), a triplex ($267,120) and a four-plex ($331,968) remain unchanged.

“These higher loan limits are in response to recent rapid increases in the average price of affordable housing in Valley County. The new limits should help more people in Valley County purchase homes using FHA mortgage insurance,” said Connie Hogland, Boise Field Office Director.

The new loan limits are part of HUD’s ongoing program designed to ensure FHA’s loan limits keep pace with rising average 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. The higher FHA loan limits will not cost the government because the FHA Insurance Fund is fully supported by premiums paid by borrowers who receive FHA insurance.

The increase 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.

As the nation’s housing agency, HUD is committed to increasing homeownership among minorities and underserved segments of the population. HUD’s various local and national partnerships strive to create affordable housing opportunities for low-income Americans, support for the homeless, the elderly, people with disabilities and people living with AIDS. The Department also actively promotes economic and community development and is charged with enforcing the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

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