Dale Gray, Public Affairs Officer
400 State Ave., Kansas City, KS 66101-2406
Phone/Fax (913) 551-5542/(913) 551-5469
November 18, 2002
HUD INCREASES FHA MORTGAGE LIMITS IN THE KANSAS CITY METRO AREA
KANSAS CITY, KS - In response to the current upward trend in home prices, the U.S. Department of Housing and Urban Development (HUD) approved higher loan limits for Federal Housing Administration (FHA) insured mortgages in the metropolitan Kansas City area effective November 13, 2002. FHA, a division of HUD, has helped more than 30 million American families own their own homes for more than 60 years.
Purchasers may now borrow up to $179,503 for single-family homes in the Kansas City Metropolitan Statistical Area (MSA) using a loan insured by the FHA. The Kansas City metropolitan area covers Johnson, Leavenworth, Miami, and Wyandotte Counties in Kansas and Cass, Clay, Clinton, Jackson, Lafayette, Platte, and Ray Counties in Missouri. The loan limits for two, three and four unit dwellings also increased.
Median home prices in the Kansas City MSA have increased dramatically within the last few years. In many cases, 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 a smaller down payment, as low as three percent, it affords more consumers the opportunity to purchase their dream home. The increased loan limits effectively open the market to more consumers.
HUD Secretary Mel Martinez said, "Homeownership plays a vital role in creating strong communities by giving families
a stake in their neighborhoods and helping them build wealth. Increasing mortgage limits and providing more relaxed requirements for FHA loans removes two major obstacles for many first-time homebuyers."
FHA also permits homebuyers to use gifts from family members and non-profit groups to make their entire down payment, while conventional loans generally require homebuyers to come up with a portion of the down payment
from their own funds. In addition, FHA has more lenient credit standards than private mortgage insurers typically allow.
James B. Nutter & Company Senior Vice President Chuck Hendricks submitted the supporting housing data that resulted in HUD's approval of the higher loan limits in the Kansas City area. The previous loan limit was $173,375.
Anyone interested in a FHA-insured loan should contact a HUD-approved lender. To find a list of HUD-approved lenders, and more information about HUD and its programs, visit HUD's website at www.hud.gov or call the local HUD office at (913) 551-5641/5644.
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.