HUD Archives: News Releases

Colleen Bickford
Field Office Director
(907) 677-9800
For Release
October 24, 2005

Residents in Four Alaska Communities to Benefit

ANCHORAGE - More homebuyers residing in four Alaska communities may be eligible for FHA insured mortgages and home improvement loans under new mortgage limits released October 20 by the U.S. Department of Housing and
Urban Development.

FHA loan limits were increased in Anchorage, Juneau, the Matanuska-Susitna Valley, and Sitka. Anchorage's loan
limit is now $255,050, up from $235,100; Juneau's limit went to $294,000, up from $275,000; Mat-Su's loan limit
rose to $255,050, up from $235,100; and Sitka's new loan limit is $327,750, up from $248,000.

"We're pleased that FHA has made these changes," said Anchorage Field Office Director Colleen Bickford. "These
new limits should help more people purchase homes using FHA insured loans."

FHA insured loans can be used to purchase or refinance one to four-unit homes, condos and manufactured homes. Many homebuyers are attracted to FHA-insured loans because of the program's benefits: a three-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.

Also, under a special mortgage program, called Section 203(h), FHA will insure mortgages with zero downpayment
for individuals or families in a Presidentially-declared disaster area whose residences were destroyed or damaged to such an extent that reconstruction or replacement is necessary. Victims of Hurricane Katrina or Rita can use this program to purchase a home anywhere they wish in the United States.

Native Americans and Alaska Natives choosing to use HUD's Section 184 Indian housing guaranteed loan program
have different loan limits from FHA. Alaska Section 184 loan limits range from $469,342 for a single family home to $902,538 for a four-plex. Native Americans, Alaska Natives, Federally Recognized Tribes, Indian Housing Authorities, and Village or Regional Corporations formed pursuant to the Alaska Claims Settlement Act are eligible Section 184 program borrowers. The Section 184 program can be used for construction, purchase, rehabilitation and refinancing
of housing everywhere in Alaska.

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.

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.

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.


Content Archived: March 8, 2011