Hud Approves Increase In Fha Mortgage Limits In Martin And St. Lucie Counties

MIAMI - The U.S. Department of Housing and Urban Development has approved an increase of $39,640, which is a 16.7 percent increase in the maximum mortgage that can be insured by the Federal Housing Administration (FHA), a part of HUD, in Martin County, Port St. Lucie - Fort Pierce area.

The increase is effective immediately and is based on a request and recent home sales data submitted to HUD by a housing industry constituent from the area. As a result of HUD's decision, the FHA mortgage insurance limit on one-family homes will rise from $237,000 to $276,640, the FHA mortgage limit on two-family homes will rise from $266,950 to $311,584; the FHA mortgage limit on three-family homes will rise from $324,350 to $378,560; and the FHA mortgage limit on four-family homes will rise from $384,936 to $436,800.

"The cost of housing in Florida has increased substantially over the past few years," said HUD Miami Field Office Director Armando Fana, "the increased limits allow FHA to remain competitive in the market and responsive to those who want to own a piece of the American Dream."

The increase in loan limits will enable more working families to become homeowners and will help the FHA mortgage insurance program to keep pace with the robust housing market. Low-income and first time homebuyers are attracted to FHA-insured loans because the agency requires only a three percent downpayment and permits family and friends to contribute to the initial home buying expenses. In addition, FHA has more relaxed credit standards and permits borrowers to carry more debt than private mortgage insurers typically allow.

The higher FHA loan 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.

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, 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