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Oahu’s FHA
home-loan limits
increased

The ceiling is raised
11 percent to $284,810

Star-Bulletin staff

The loan limit for Federal Housing Administration-insured home mortgages on Oahu has been raised about 11 percent, the Department of Housing and Urban Development said today.

The ceiling for a single-family home loan went to $284,810 on Jan. 1, up from $256,000. The ceilings on other islands were unchanged at $187,300 on the Big Island and Kauai and $204,250 on Maui.

The FHA does not make loans directly but guarantees loans made by commercial lenders. FHA-insured loans require a down payment of only 3 percent, which can come from family and friends, and credit standards are more lenient than those for non-FHA loans, the department said.

There are debt and credit limits. The monthly payment must not be more than 29 percent of the borrower's gross monthly income and the borrower's total personal debt may not exceed 41 percent of gross monthly income.

FHA-insured loans are particularly helpful to first-time buyers who may not be able to qualify for a loan without the FHA backing.