HUD BOOSTS FHA MORTGAGE INSURANCE LIMITS
In Deschutes and Josephine Counties

PORTLAND - More homebuyers in Deschutes and Josephine Counties may be eligible for FHA insurance on their mortgages and home improvement loans under new mortgage limits effective May 18 announced by the U.S. Department of Housing and Urban Development.

Higher loan limits also apply for two to four-unit dwellings.

In the past 12 months the two counties have received multiple increases to their FHA mortgage limits.  Deschutes
has increased 5 times for a total 12 month increase of 29 percent.  Josephine's limits have increased 16 percent in
the same period.

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.

"Once again the FHA mortgage limits have been increased to better meet the need in the housing markets in Deschutes and Josehpine Counties," said HUD Portland Field Office Director Tom Cusack. "Recent changes in FHA
loan processing make it easier for REALTORS®, lenders and consumers to process and qualify for FHA loans."

Many homebuyers are attracted to FHA insured loans because of the programs 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.

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.

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