February 21, 2006
HUD ANNOUNCES HIGHER FHA HOME LOAN LIMITS TO HELP MORE CONNECTICUT FAMILIES BECOME HOMEOWNERS
The U.S. Department of Housing and Urban Development recently announced that the Federal Housing Administration (FHA) has increased its single-family home mortgage limits in Hartford, Tolland and Middlesex counties by almost $80,000.
FHA is the arm of HUD that insures mortgages against default. Many low-income and first-time homebuyers are attracted to FHA-insured loans because the agency requires only a three-percent down payment toward purchasing
The mortgage limit in Hartford, Tolland and Middlesex counties went from $254,600 to $333,735, which is significant because it makes homeownership more affordable and accessible to working families. The previous levels were below the cost of many homes in Connecticut communities and as a result, families who needed FHA mortgage insurance
to qualify to buy a home were essentially locked out of the process.
"With the help of HUD, the American Dream of homeownership is achieved every day in this country, often by
families who thought that a home of their own remained out of reach," said HUD Regional Director Taylor Caswell. "Many people can afford the monthly payments, but have difficulty saving for downpayment costs. These increases will make buying a home a lot easier for Connecticut families."
Higher FHA loan limits don't cost the government any money, 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; 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.