February 6, 2008
HUD/FHA INCREASES MORTGAGE LIMITS IN WASATCH COUNTY, UTAH
SALT LAKE CITY � The U.S. Department of Housing and Urban Development will raise the Wasatch County mortgage limits to a new high for the area as of February 18, 2008. This is in direct response to the current upward trend in home prices in the area.
Purchasers may now borrow up to $327,750 for a one-unit, single family home in Wasatch County using a loan insured by the Federal Housing Administration (FHA). The previous limit was $200,160 for a one-unit, single family home. The FHA loan limit in Wasatch County was last adjusted January 1, 2006.
Median home prices in Wasatch County have increased dramatically within the last few years. In many cases, HUD has found 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.
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 ensures that more families will qualify for homeownership through a reliable FHA mortgage."
Wasatch County local housing and mortgage professionals were instrumental in gathering data on local housing prices and delivering the research to HUD to effect the change in the loan limit, Carson noted.
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 at www.hud.gov and espanol.hud.gov.