FHA raises loan limits making more housing affordable
Tuesday, January 03, 2006
HUD ANNOUNCES HIGHER FHA HOME LOAN LIMITS TO HELP MORE AMERICAN FAMILIES BECOME HOMEOWNERS
WASHINGTON - Housing and Urban Development Secretary Alphonso Jackson today announced that the Federal Housing Administration (FHA) has increased its single-family home mortgage limits by more than 15 percent.
Effective January 1, 2006, FHA will insure single-family home mortgages up to $200,160 in standard areas and up to $362,790 in high cost areas. The high cost amount is almost $50,000 more than last year. The loan limits for two-, three- and four-unit dwellings also increased. FHA is sending letters to thousands of mortgage lenders and brokers to make them aware of the higher rates that can help families.
"This Administration is working to make homeownership more affordable and accessible so that more families can own a piece of the American Dream," said Jackson. " These higher loan limits will strengthen the economy by helping to create more construction and more jobs, while contributing to the President's commitment to create 5.5 million new minority homeowners by the end of the decade."
Here's a story from the HUD website that should be music to the ears of low-income homebuyers across the nation. The cost of buying a home have gone up fast & some help is on its way. Another angle on this story is that the increased limits further reflect the dis-affordability of housing in America today.
