Field Office Director
November 2, 2005
HUD/FHA INCREASES MORTGAGE LIMITS IN PROVO-OREM MSA, UTAH
SALT LAKE CITY � The U.S. Department of Housing and Urban Development raised the Provo-Orem MSA mortgage limits to a new high for the area as of October 31, 2005. This is in direct response to the current upward trend in home prices.
Purchasers may now borrow up to $180,500 for a one-unit, single family home in the Provo-Orem MSA using a loan insured by the Federal Housing Administration (FHA). The previous limit was $175,750 for a one-unit, single family home.
Median home prices in the Provo-Orem MSA have increased dramatically within the last few years. In many cases, we find that 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 less of a down payment, it affords more consumers the opportunity to purchase their dream home. The increased loan limits effectively open the market to more of those consumers. Local housing and mortgage professionals were instrumental in gathering data on the Provo-Orem MSA housing prices and delivering the research to HUD to effect the change in the loan limit.
HUD Regional Director John Carson said, "Homeownership plays a vital role in creating strong communities by giving families a stake in their neighborhoods and helping them to build wealth. Increasing mortgage limits and providing more relaxed requirements for FHA loans removes two major obstacles for many first-time homebuyers."
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.