|HUD No. 05-OR-06
June 29, 2005
HUD RAISES FHA MORTGAGE INSURANCE LIMITS IN EUGENE AND LANE COUNTY
PORTLAND - More homebuyers in Eugene and Lane County may be eligible for FHA insurance on their mortgages and home improvement loans under new mortgage limits released today by the U.S. Department of Housing and Urban Development. The FHA mortgage limit for a single-family unit increases $4,250.
The new mortgage limits for a single-family residence in Lane County are $177,150, up from $172,900. The limits for
a duplex, $220,992; for a triplex, $267,120; and for a four-plex, $331,968 remain unchanged. Adding the three percent required FHA downpayment to the new FHA mortgage limit of $177,150 means a purchase price of $182,600 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 Eugene/Lane County area. These higher loan limits will help more people in Lane 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.
Native Americans choosing to use HUD's Section 184 Indian housing guaranteed loan program will benefit as well because the loan limit for this program is 150 percent of the FHA mortgage insurance limit. Members of any federally recognized tribe could use the 184-loan program to purchase a home throughout all counties in western Oregon except Josephine, Clatsop, and Columbia. Section 184 loans can be used to purchase a home on or off reservation
or trust lands.
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.