February 1, 2008
HUD/FHA INCREASES MORTGAGE LIMITS IN MONTROSE COUNTY, COLORADO
DENVER - The U.S. Department of Housing and Urban Development will raise Montrose County's mortgage limits to a new high for the area as of February 7, 2008 in direct response to the current upward trend in home prices in the area.
Purchasers may now borrow up to $205,200 for a one-unit, single family home in Montrose County using a loan
insured by the Federal Housing Administration (FHA). The previous limit was $200,160 for a one-unit, single family home. The FHA loan limit in Montrose County was last adjusted January 1, 2006.
Median home prices in Montrose County have increased dramatically within the last few years. In many cases, HUD has found 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.
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 ensures more families will qualify for homeownership through a reliable FHA mortgage."
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