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HUD Publishes Final Rule Increasing Amount for Maximum Mortgage Limits in Some FHA Programs

Wednesday, March 3, 2004 - 1:45AM

The U.S. Department of Housing and Urban Development (HUD) today published a final rule increasing the amount by which HUD may increase the maximum mortgage limits in certain Federal Housing Administration (FHA) multifamily mortgage insurance programs. The new rule conforms HUD's regulations to the recent statutory changes in Section 302(b) of the FHA Multifamily Loan Limit Adjustment Act of 2003 (Public Law 108-186), which revises the statutory exceptions to maximum mortgage amounts for certain FHA multifamily housing programs. Section 302(b) substitutes 140 percent for the 110 percent exception for any geographical area, and substitutes 170 percent for 140 percent as the maximum exception allowed for a specific project. The statutory revision also allows the HUD Secretary to grant exceptions to maximum mortgage limits for certain multifamily housing programs up to 140 percent in geographical areas where cost levels so require, and up to 170 percent where necessary on a project-by-project basis.

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