Industry News

HUD raises real estate loan limits

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The Federal Housing Administration has increased its single-family home mortgage limits by more than 15 percent, Housing and Urban Development Secretary Alphonso Jackson said Tuesday. Effective Jan. 1, 2006, FHA will insure single-family home mortgages up to $200,160 in standard areas and up to $362,790 in high-cost areas, HUD said. The high-cost amount is almost $50,000 more than last year. The loan limits for two-, three- and four-unit dwellings also increased. FHA is sending letters to thousands of mortgage lenders and brokers to make them aware of the higher rates that can help families, the agency said. "This administration is working to make home ownership more affordable and accessible so that more families can own a piece of the American Dream," said Jackson. "These higher loan limits will strengthen the economy by helping to create more construction and more jobs, while contributing to the President's commitment to create 5.5 million new minority homeowners by the end of the ...