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The government has raised the maximum loan amounts for rural housing.
The Rural Development Office of the U.S. Department of Agriculture recently increased the direct loan limit for rural single-family mortgages, which varies from county to county, to an average $146,040 from $136,730, spokesman Wayne Maloney told MortgageDaily.com in an e-mailed statement. The limits apply to Rural Housing Direct Loans, which are funded by the government and allow low- and very low-income households obtain homeownership. “Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas,” the office says. The rural single-family housing loan limits, which the office updated in October as part of its annual review process, are based on cost figures gathered from a cost-data service used in appraisals that are then added to the cost of a developed lot for the area, he said. The total is then compared to state housing agency limits and the HUD 203(b) limit, the loan amount insurable by the Federal Housing Administration. Rural loan ceilings cannot exceed the 203(b) limit, currently at $312,895. The counties with the top three highest loan limits were all in Hawaii; Kauai, Maui and Oahu, respectively at $469,342, $454,600 and $402,722. The lowest loan limit, $94,000, applied to several counties across the country. In Los Angeles, the office raised the rural loan ceiling by nearly 61% to $312,895, according to office data. The limits in Dallas County, Texas, and Dade County, Fla., were unchanged at $117,600 and $98,670, respectively. In the McHenry and Kane counties that surround Chicago, the loan limit remained $167,000. In Suffolk County, New York, the limit was raised to $370,530 from $343,790. |
Coco Salazar is an assistant editor and staff writer for MortgageDaily.com. e-mail: [email protected]