Utah Real Estate News Clips - Utah Real Estate

HUD increases FHA mortgage limits in six Utah counties
April 13, 2007

The U.S. Department of Housing and Urban Development announced it will raise the mortgage limits for loans insured by the Federal Housing Administration in six Utah counties: Salt Lake, Summit, Tooele, Davis, Morgan and Weber. The new limits, which will be in place on April 19, come in direct response to the current upward trend in home prices in those areas, a HUD press release said.

Purchasers in the Salt Lake City Metropolitan Statistical Area, which includes Salt Lake, Summit and Tooele counties, may now borrow up to $362,790 for a one-unit, single-family home using an FHA loan. The previous loan limit was $232,750.

In the Ogden-Clearfield Metropolitan Statistical Area, which includes Davis, Morgan and Weber counties, purchasers may now borrow up to $263,388 for a one-unit, single-family home using an FHA loan. The area’s previous limit was $200,160.

The increased FHA loan limits come at a time when problems in the subprime mortgage market are causing lenders to put tougher restrictions on those with low down payments and less-than-perfect credit — which may make an FHA loan a more viable choice for some home buyers. In fact, the chief economist of the National Association of REALTORS®, David Lereah, wrote in a Real Estate Insights article that he predicts many higher-risk households will begin to seek mortgages from a revitalized FHA.

“Homeownership plays a vital role in creating strong communities by giving families a stake in their neighborhoods and helping them build wealth,” HUD Regional Director John Carson said in a statement. “Increasing mortgage limits and providing more relaxed requirements for FHA loans removes two major obstacles for many first-time homebuyers.”

Return to top