HUD Archives: News Releases

Lee Jones
(804) 771-2100 ext. 3743
For Release
January 8, 2007


RICHMOND - The U.S. Department of Housing and Urban Development has approved a 42.5 percent increase in the maximum mortgage that can be insured by the Federal Housing Administration (FHA), a part of HUD in Winchester, Frederick County and Hampshire County, West Virginia effective for FHA-insured mortgages endorsed on or after
New Year's Day, 2007.

As a result of HUD's decision, in calendar year 2007 the FHA mortgage insurance limit on one-family houses will rise 42.5 percent from $253,320 to $361,000; on two-family houses from $285,318 to $406,600; on three-family houses from $346,648 to $494,000; and on four-family houses from $399,978 to $570,000.

The higher FHA limits will not cost the government any money because the FHA Insurance Fund is fully supported
by premiums paid by borrowers who receive FHA insurance.

FHA insured mortgages are especially attractive to first-time homebuyers because of down payment requirements
that are lower and easier to assemble than most conventional mortgage products. FHA also has more relaxed credit standards and permits borrowers to carry more debt than private mortgage insurers typically allow and FHA lenders must provide loss mitigation assistance to borrowers who experience financial difficulties.

The higher FHA limits apply to FHA purchase mortgages, acquisition and rehabilitation mortgages, energy efficient mortgages, disaster recovery mortgages and home equity conversion or "reverse" mortgages.

Like the Richmond-Petersburg, Hampton Roads, Charlottesville and northern Virginia metropolitan areas, FHA
considers the Winchester area to be a "high cost" market with FHA limits considerably higher than in smaller communities in the rest of the Commonwealth.

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 and people with disabilities and people living with AIDS. The Department also promotes economic and community development as
well as enforces the nations fair housing laws. More information about HUD programs is available at or


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