HOME Homeownership Value Limits have gone into effect for HOME funds committed on or after August 23, 2013 and remain in effect until HUD issues new limits.
The new HOME homeownership value limits for existing HOME properties is 95% of the median purchase price for the area based on the Federal FHA single family mortgage program date for existing housing and other appropriate data that are available nationwide for sale of existing housing in standard condition.
Nationwide, HUD has established a minimum limit or floor based on 95% of the state-wide nonmetropolitan area median purchase price using this data. HUA has used the greater of these two figures as their HOME homeownership value limit for existing housing in each area.
There is a similar calculation for new construction. This can affect the purchase price of contracts already in place!
*This information is not intended to be legal advice. This information is subject to change, please contact us for more information.