HUD RAISES FHA MORTGAGE INSURANCE LIMIT
IN CLALLAM COUNTY
Increase will enable more homebuyers to use FHA home loans
SEATTLE -- More homebuyers in Clallam County may be eligible for FHA insurance on their mortgages and home improvement loans under new mortgage limits effective July 25 announced by the U.S. Department of Housing and Urban Development. The new FHA mortgage limit for a single-family unit is $225,150, which allows for purchase of a single-family residence, condominium or manufactured home costing $232,113 with the required 3 percent downpayment. Higher loan limits apply for two to four-unit dwellings.
The increase is more than 12 percent above the previous limit of $200,160, which was set in January 2006. For a complete list by county, go to https://entp.hud.gov/idapp/html/hicost1.cfm.
"This significant increase in FHA loan limits is in response to the continuing rapid increase in the average price of housing in Clallam County," said HUD Regional Director John W. Meyers. "FHA loans are particularly appealing for first-time homebuyers and those with less than perfect credit who might otherwise pay higher rates in the sub prime market."
Many homebuyers are attracted to FHA insured loans because of the program's benefits: a low 3 percent down payment, which can be 100 percent gifted from an acceptable source, such as gifts from family or a downpayment assistance program, liberal underwriting criteria, market rate interest, and consumer protections.
FHA loans are assumable, have no income limits, no minimum credit scores, no prepayment penalties and are not restricted to first-time homebuyers.
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.
Recent streamlining of FHA insured loan processing has made these loans easier to use for lenders, Realtors and consumers. For more information on FHA, visit www.fha.gov or call 1-800-CALL-FHA (800-225-5342).
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, and enforces 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.