HUD RAISES FHA MORTGAGE INSURANCE LIMITS
Seven County Portland-Vancouver area to benefit
PORTLAND --More low- to moderate-income homebuyers in counties surrounding Portland, Oregon, and Vancouver, Washington, 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 loan limits have been increased nearly 13.8 percent.
The new mortgage limits for Clackamas, Columbia, Multnomah, Washington, and Yamhill Counties in Oregon, and Clark and Skamania Counties in Washington are $243,200, up from $213,750, for a single-family unit; $273,900, up from $240,750 for a duplex; $332,800, up from $292,500 for a triplex; and $384,000, up from $337,500 for a four-plex. Adding the three percent required FHA down payment to the new FHA mortgage limit of $243,200 means a purchase price of $250,700 will be in reach for homebuyers.
“These higher loan limits are in response to recent rapid increases in the average price of affordable housing in the seven-county Portland-Vancouver MSA. These higher loan limits will help more people in Oregon and Southwest Washington purchase homes using FHA mortgage insurance,” said Portland Field Office Director Tom Cusack.
Low-income and first time homebuyers are attracted to FHA-insured loans because of the program’s benefits: a three-percent down payment, which can be 100 percent gifted from an acceptable source, liberal underwriting criteria, market rate interest, and consumer protections.
The new loan limits are part of a regular adjustment HUD makes to account for rising home prices. 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 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, 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 at www.hud.gov.