May 12, 2006
HUD/FHA INCREASES MORTGAGE LIMITS IN DENVER, COLORADO
DENVER - The U.S. Department of Housing and Urban Development raised Denver and surrounding counties'
mortgage limits to a new high starting on May 15, 2006. The change is in direct response to the current upward
trend in home prices.
Purchasers may now borrow up to $308,370 for a one-unit, single family home in Douglas, Park, Adams, Denver, Elbert, Gilpin, Arapahoe, Jefferson, Clear Creek and Broomfield Counties using a loan insured by the Federal Housing Administration (FHA). The previous limit was $261,609 for a one-unit, single family home.
HUD Regional Director John Carson said, "Homeownership plays a vital role in creating strong communities by giving families a stake in their neighborhoods and helping them to build wealth. Increasing mortgage limits and providing
more flexible requirements for FHA loans removes two major obstacles for many first-time homebuyers."
Median home prices in the Denver Metropolitan Statistical Area (MSA) have increased dramatically within the last
few years. In many cases, we find that purchasers are well qualified from the standpoint of income and credit, but they lack sufficient funds for the size of down payment required on a conventional loan. Since the FHA program requires less of a down payment, it affords more consumers the opportunity to purchase their dream home. The increased loan limits effectively open the market to more of those consumers. Local housing and mortgage professionals were instrumental in gathering data on Denver area housing prices and delivering the research to HUD
to effect the change in the loan limit.
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 as
well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.