The Federal Housing Administration has raised its limit on single-family home mortgages in Utah County from $108,750 to $123,400.
"The previous loan limit of $108,750 woefully understated the recent, dramatic increase in local housing prices," said Rep. Bill Orton, D-Utah, who worked with local realtors to push FHA for an increase in the local loan limit.He said the increase should "increase homeownership opportunities for young couples and individuals in Utah County."
Orton added that under the old limit, "the average Utah County homebuyer was becoming shut out of the market for FHA loans, which require lower down payments than conventional loans.
"For many young families in Utah County with minimal savings, this can make the critical difference in fulfilling the dream of homeownership," he said.
Orton said that the FHA provides about a third of all mortgages in Utah.