HUD RAISES FHA MORTGAGE INSURANCE LIMITS
Four Alaska communities to benefit

ANCHORAGE - More homebuyers in Anchorage, the Mat-Su Valley, Sitka and Juneau may be eligible for FHA
insurance on their mortgages and home improvement loans under new mortgage limits released recently by the U.S. Department of Housing and Urban Development.

The new mortgage limits for single-family units in Anchorage are $235,100, up from $228,950; in Juneau, new limits are $275,000, up from $219,900; in the Matanuska-Susitna Valley, new limits are $235,100, up from $228,950; and
in Sitka, new limits are $248,900, up from $190,000. FHA loans also can be used to purchase condos and manufactured homes.

"These higher loan limits are in response to recent increases in the average price of affordable housing. Higher loan limits will help more people in Anchorage, Mat-Su, Sitka and Juneau purchase homes using FHA mortgage insurance," said Anchorage Field Office Director Colleen Bickford.

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, liberal underwriting criteria, market rate interest, and consumer protections. FHA loans are not restricted to first-time homebuyers.

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.

Native Americans and Alaska Natives choosing to use HUD's Section 184 Indian housing guaranteed loan program will benefit as well because the loan limit for this program is 150 percent of the FHA mortgage insurance limit.

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.

###