HUD No. 05-OR-05
June 28, 2005
HUD RAISES FHA MORTGAGE INSURANCE LIMITS IN GRANTS PASS/JOSEPHINE COUNTY
PORTLAND - More homebuyers in Grants Pass and Josephine County may be eligible for FHA insurance on their mortgages and home improvement loans under new mortgage limits recently released by the U.S. Department of Housing and Urban Development. The loan limits have been increased over 11 percent.
The new mortgage limits for Josephine Count are $227,500, up from $204,250, for a single-family unit; $256,250,
up from $230,050 for a duplex; $311,350, up from $279,500 for a triplex; and $359,250, up from $331,968 for a
four-plex. Adding the three percent required FHA down payment to the new FHA mortgage limit of $227,500 means
a purchase price of $234,325 will be in reach for homebuyers. FHA loans can be used to purchase condos and manufactured homes.
"These higher loan limits are in response to recent rapid increases in the average price of housing in the Grants Pass/Josephine County area. These higher loan limits will help more people in Josephine County purchase homes
using FHA mortgage insurance," said Portland Field Office Director Tom Cusack.
Many homebuyers are attracted to FHA-insured loans because of the program's benefits: a three-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.
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.
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 a
s 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.
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.