PORTLAND -- More homebuyers in Deschutes, Jackson, Lane, Marion and Polk Counties may be eligible for FHA insured mortgages and home improvement loans under new mortgage limits effective January 1 announced by the U.S. Department of Housing and Urban Development.
FHA mortgage limits have been increased to better meet the need in the markets of several Oregon counties. Deschutes, Jackson and Lane mortgage limits increased again. Over the past year, these three counties have seen cumulative increases greater than 20 percent. Marion and Polk also had increases effective with the New Year. The January 1, 2007 rates for all other Oregon counties were unchanged from 2006-year end.
||Approx. Purchase Price Based on New Limit
||2007 $ Increase Over Old Limit
||2007 % Increase Over Old Limit
||Increase over Jan. 2006 Limit |
Higher loan limits apply for two to four-unit dwellings. FHA insured loans can also be used to refinance existing mortgages.
For a complete list by county, go to https://entp.hud.gov/idapp/html/hicost1.cfm. For information about FHA insured mortgages, go to www.fha.gov or call 1-800-CALL FHA.
The higher limits will help seniors, age 62 or older, seeking FHA insured reverse mortgages (Home Equity Conversion Mortgages) to potentially access more equity from their homes.
"This increase in FHA loan limits is in response to the continuing rapid increases in the average price of housing in these counties and will help more people purchase or refinance homes using FHA mortgage insurance," said HUD Portland Field Office Director Tom Cusack.
Many homebuyers are attracted to FHA insured loans because of the program's benefits:
< A 3 percent down payment, which can be 100 percent gifted from an acceptable source such as a family member or downpayment assistance program
< Liberal underwriting criteria
< No minimum credit scores
< Market rate interest
< Consumer protections
< FHA loans are assumable, have no income limits, and are not restricted to first-time homebuyers.
Recent changes in FHA loan processing make it easier for realtors, lenders and consumers to process and qualify for FHA loans.
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.