FHA Mortgage Insurance Limits Raised In Certain Counties In Idaho

More homebuyers in Boise and throughout Ada, Canyon, Gem and Owyhee Counties may be able to use FHA insured mortgages and home improvement loans under new mortgage limits announced today by the U.S. Department of Housing and Urban Development. The FHA mortgage limit for a single-family unit, condominium or manufactured home is $225,150. This represents an increase of nearly 12.5 percent from the previous limit of $200,160 set in January 2006. Limits for a duplex are $256,248, a three-unit home $309,744, and for a four-unit home $384,936. For a complete list of FHA insurance limits in Idaho counties, go to https://entp.hud.gov/idapp/html/hicost1.cfm.

These increases may allow more prospective homebuyers to qualify for FHA insured mortgages and home improvement loans to purchase or refinance one to four-unit residences including condos and manufactured homes. The higher limits will help seniors, age 62 or older, seeking FHA insured reverse mortgages (Home Equity Conversion Mortgages) to potentially access more equity from their homes. "This significant increase in FHA loan limits is in response to continuing rapid increases in the average price of housing in Ada, Canyon, Gem and Owyhee Counties and will help more Idahoans purchase or refinance homes using FHA insured mortgages," said Boise Field Office Director Constance Hogland. "FHA loans are particularly appealing for first-time homebuyers and those with less than perfect credit who might otherwise seek loans from the sub prime market. With FHA's 3 percent downpayment, this means FHA loans can be used to purchase a home with a sales price up to $232,113."

Many homebuyers are attracted to FHA insured loans because of the program's benefits: a low 3 percent down payment, which can be 100 percent gifted from an acceptable source such as a downpayment assistance program or family member, liberal underwriting criteria, market rate interest, and consumer protections. FHA loans are assumable, have no income limits, no minimum credit scores and are not restricted to first-time homebuyers.
Recent streamlining of FHA insured loan processing has made these loans easier to use for lenders, Realtors and consumers.