PERMANENT FHA MORTGAGE LIMITS IN MOST ALASKA MARKETS TO RISE 35 PERCENT ON JANUARY 1st

SEATTLE - The U.S. Department of Housing and Urban Development has announced that new, permanent limits on
the maximum allowable mortgages that can be insured by the Federal Housing Administration (FHA) will take effect
on January 1st, 2009.

This is the first time since January 2007 that permanent FHA limits have been raised nationwide. The new,
permanent limits also replace the temporary limits that took effect with passage earlier this year of the Economic Stimulus Act that is set to expire at the end of 2008.

"Throughout 2008 FHA-insured mortgages have served as a safe and secure harbor for homebuyers seeking refuge from a very stormy mortgage market," said HUD Regional Director John Meyers. "These new limits should insure that FHA remains competitive in the market and responsive to consumers who want to stay away from risky mortgages."

• In most Alaska markets, the new, permanent FHA limit on a one-unit house will rise 35 percent to$271,050
  on a one-unit, single-family house, up from $200,160. The new FHA limit on a two-unit house will rise from
  $256,248 to $347,000 a three-unit house from $309,744 to $419,400; and on a four-unit house from
  $384,936 to $521,250.

• In the Anchorage and Matnuska-Susit area, the new FHA limit on a one-unit house will rise from $263.600 to $290,950; on a two-unit house from $296.900 to $372,450; on a three-unit house from $360.750 to $450,200; and on a four-unit house from $416,250 to $559,500.

• In the Fairbanks area, the new FHA limit on a one-unit house will rise from $240,350 to $271,050; on a
  two-unit house from $270,710 to $347,000; on a three-unit house from $328,900 to $419,400; and on a
  four-unit house from $384,936 to $521,250.

• In the Juneau area, the new FHA limit on a one-unit house will rise from $303,050 to $349,600: on a two-unit house from $341,330 to $447,550; on a three-unit house from $414,700 to $540,950; and on a four-unit house from $478,500 to $672,300.

• On Kodiak Island, the new FHA limit on a one-unit house will rise from $242,450 to $317,400; on a two-unit house from $272,850 to $406.300; on a three-unit house from $331,500 to $491,150; and on a four-unit
  house from $384,936 to $610,400.

• In the Aleutians West area, the new FHA limit on a one-unit house will rise from $200,160 to $349,600; on a two-unit house from $256,248 to $447,550; on a three-unit house from $309,744 to $540,950; and on a four-unit house from $384,936 to $672,300.

• In the Ketchikan area, the new FHA limit on a one-unit house will rise from $200,160 to $322,000; on a
  two-unit house from $256,248 to $412,200; on a three-unit house from $30.744 to $498,250; and on a
  four-unit house from $384,936 to $619,250.

• In the North Slope area, the new FHA limit on a one-unit house will rise from $200,160 to $301,300; on a two-unit house from $256,248 to $385,700; on a three-unit house from $30.744 to $466,250; and on a four-unit house from $384,936 to $579,400.

• In the Sitka area, the new FHA limit on a one-unit house will fall from$327,750 to $301,300; but on a two-unit house will rise from $369,150 to $385,700; on a three-unit house will rise from $448,500 to $466,250; and on
  a four-unit house from $517,500 to $579,400.

In an otherwise troubled mortgage market, FHA-insured mortgages have been increasingly important mortgage products for those who wish to purchase a home or refinance an existing mortgage. It may be used for mortgages
on owner-occupied, one to four-unit residential properties. FHA insurance makes home financing more available to low-income and first time homebuyers because they are backed by the full faith and credit of the government,
freeing lenders from assuming the risk of default. Higher FHA loan limits do not cost taxpayers money because the
FHA Insurance Fund is fully supported by premiums paid by insured borrowers.

The Housing and Economic Recovery Act pegs the national conforming mortgage loan limit to a house price index chosen by the new Federal Housing Finance Agency (FHFA). For 2009, the national conforming limit will remain at
the current level of $417,000.

The Act says that the new FHA loan limits will be set at 115 percent of the median house price in a given area, as determined by HUD, but can not be lower than 65 percent of the conforming loan limit (the national floor). Also, the FHA mortgage limit cannot exceed 150 percent of the national conforming loan limit (the national ceiling).

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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
and espanol.hud.gov.