FHA Raises Home Loan Limits to Help More Families Become Homeowners

Wednesday, January 07, 2004

Acting Secretary Jackson yesterday announced that the Federal Housing Administration has increased its single-family home mortgage limits by more than three percent.

FHA now insures single-family home mortgages up to $160,176 in low cost areas and up to $290,319 in high cost areas. The loan limits for two-, three- and four-unit dwellings also increased.

Low-income and first time homebuyers are attracted to FHA-insured loans because the agency requires only a three-percent down payment.

The new loan limits are part of an annual adjustment HUD makes as a result of rising home prices. Under federal law, FHA loan limits are tied to the conforming loan limits of Freddie Mac and Fannie Mae, federally chartered corporations that buy and package mortgages.

A complete schedule of FHA mortgage limits for all areas is available on the Internet (www.entp.hud.gov/idapp/html/hicostlook.cfm).

Content Archived: September 09, 2009