HUD RAISES FHA MORTGAGE INSURANCE LIMITS
Comprehensive Update Boosts FHA Limits in 42 Idaho Counties

BOISE - More homebuyers in Idaho may be eligible for FHA insurance on their mortgages and home improvement
loans under new mortgage limits effective January 1 announced by the U.S. Department of Housing and Urban Development. The FHA mortgage limit for a single-family unit in all Idaho counties, with the exception of Blaine and Teton where higher limits are currently in effect, will be $200,160.

In 36 Idaho counties, this represents an increase of 15.9 percent from the previous limit of $172,632. Higher limits apply for two to four-unit dwellings. In Ada, Boise, Canyon, Gem, and Owyhee counties, the new limit of $200,160 represents an 8 percent increase from the prior limit of $185,400. Valley County increases from $189,050 to
$200,160. Blaine and Teton counties limits are unchanged from $312,895. For a complete list by county, go to https://entp.hud.gov/idapp/html/hicost1.cfm.

These increases may allow more prospective homebuyers to qualify for FHA insured mortgages and home
improvement loans to purchase or refinance one to four-unit residences including condos and manufactured homes. The higher limits will help seniors, age 62 or older, seeking FHA insured reverse mortgages (Home Equity Conversion Mortgages) to potentially access more equity from their homes.

"This significant increase in FHA loan limits is in response to last year's rapid increases in the average price of
housing in Idaho and will help more Idahoans purchase or refinance homes using FHA mortgage insurance," said
Boise Field Office Director Constance Hogland.

Many homebuyers are attracted to FHA insured loans because of the program's benefits: a 3 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.

Unlike some other loan products that advertise low down payment loans, the 3 percent down payment provisions
of FHA financing are available to all homebuyers who use FHA financing, not just those homebuyers with the very highest credit scores. That means when an FHA lender approves a family for an FHA owner-occupant home loan,
the family also is qualified for 3 percent down payment financing, if the home price is within the FHA mortgage
limits.

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
and espanol.hud.gov.

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