Government Extends Loan Limits

As of Jan. 1, the government has insured mortgage loans up to nearly $220,000 in high-cost areas for single-family homes.

The Department of Housing and Urban Development began insuring mortgage loans for single-family homes ranging from $121,296, in communities where housing costs are lower, to $219,849, in areas with higher housing costs.

In 1999, the limits ranged from $115,200 to $208,800.

“These higher loan limits will help create more home owners, more home constructions, more jobs and more economic growth,” Cuomo said. “They will transform the American dream of homeownership into a reality for families across the nation.”

The new loan limits are part of a regular annual adjustment HUD makes to account for rising home prices.

Under federal law, the loan limits are indexed to the conforming loan limits of Freddie Mac and Fannie Mae, federally chartered corporations that buy and package mortgages.

HUD also raised the mortgage loan limits for Federal Housing Administration insurance for two, three and four-family homes.

For two family units, the new limit in low-cost areas is $155,232. The limit had been $147,408.

The new range for three-family units is from $187,632 in low-cost areas. The limit had been $178,176.

For four-family units, the new limit range is $233,184 in less costly areas. The limit range had been $221,448.

The new limits are expected to help drive the nation’s home ownership rate past its current level of 67 percent of all households. More than 70 million American families own their homes, more than any other time in the nation’s history, according to HUD officials.

The FHA, which does not make home loans directly but insures loans made by private lenders, insured nearly 1.3million home mortgages in 1999 at a value of $124 billion.

Rural home loans available

The U.S. Department of Agriculture also has good news for would-be home buyers.

Through its Rural Housing Service, the department has made $46 million available to low- and moderate-income families in rural areas of Washington who purchase homes by the end of September.

Last year, $40 million was available.

Traditional mortgage lenders that participate in RHS make the loans. They may be used to buy new or used single-family homes or condominiums, or new manufactured homes.

There is not a maximum loan, but applicants can earn no more than 115 percent of the median income for the county. They cannot own another home, and must have been turned down for non-guaranteed financing.

There is no down payment required, and loans can be made for 100 percent of the property’s appraised value.

For information, call the USDA Rural Development office in Spokane at (509) 924-7350.