The department of Housing and Urban Development has announced that beginning today the maximum loan amount financed with an FHA (Federal Housing Administration) loan is $362,790. This is a significant increase over the previous maximum loan amount of $232,750 that will surely help many home buyers.
The announcement also states that FHA limits will be raised Tooele and Summit counties to reflect the rising home prices in each area.
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.”
FHA loans are insured by the goverment, making them attractive to lenders, along with their lighter requirements and minimum down payments of 3%. Although FHA does not allow the seller to pay the down payment for a buyer- there are down-payment assistance programs that essentially pay the down payment, with the seller paying for the service.