On a weekend of high-level Republican visits to the state of Nevada, Housing and Urban Development Secretary Alphonso Jackson announced an increase of more than 18 percent on the area's cap on some single-family mortgage loans that are insured by the federal government.
As of Friday, the limit on loans insured by the Federal Housing Administration jumped from $189,800 to $224,500, an increase meant to reflect the exploding cost of homes in the Las Vegas Valley. The increase affects Clark County, southern Nye County, and Lincoln County.
Speaking about the Las Vegas housing market, where the median price of new homes has increased from $200,660 in May 2003 to $239,145 in May, Jackson said that "people who work every day in this city find it hard (to own a home) ... We're ensuring that we keep pace with the housing in the city."
The valley's resale homes have experienced huge jumps in their median price as well, reaching $230,000 in May, compared with $163,500 last year.
The FHA insured home loans for more than 21,000 families in Las Vegas last year, according to information supplied by the agency. That represented about 30 percent of mortgage loans last year, said Larry Bush, a HUD regional spokesman.
Bush said the FHA program, overseen by HUD, can help homeowners secure lower interest rates, get longer terms so payments can be lowered and make lower down payments.
The announcement was made at the East Las Vegas Senior Center and was preceded by a brief statement by Councilman Gary Reese, who introduced Jackson.
Reese praised HUD for its work in Las Vegas and said, "The success stories are in the thousands, because that's how many people we've helped."
Lee K. Barrett, president of the Greater Las Vegas Association of Realtors, said that the FHA cap increase makes sense for Las Vegas.
"When the prices of housing went up it took those people who normally would be able to qualify ... out of contention," Barrett said.
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