[Code of Federal Regulations]

[Title 24, Volume 2]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR203.18b]



[Page 156-157]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

 CHAPTER II--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING 

        COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 203_SINGLE FAMILY MORTGAGE INSURANCE--Table of Contents

 

     Subpart A_Eligibility Requirements and Underwriting Procedures

 

Sec.  203.18b  Increased mortgage amount.



    (a) If any party believes that a mortgage limit established by the 

Secretary under Sec.  203.18(a)(1) does not accurately reflect the 

median house prices in an area, the party may submit documentation in 

support of an alternative mortgage limit. For purposes of this section, 

an area (1) must be at least the size of a county, whether or not the 

area is located within a metropolitan statistical area, as established 

by the Office of Management and Budget; and (2) may be an area for which 

the mortgage limits established under Sec.  203.18(b)(1) apply.

    (b)(1) The documentation referred to in paragraph (a) of this 

section must consist of sufficient housing sales price data for the 

entire geographic area for which the request is made to justify an 

alternative mortgage limit. The documentation should include a listing 

of actual sales prices in the area for all or nearly all new and 

existing 1-family homes and condominiums, over a period of time varies 

with sales volume, as follows:

    (i) For 500 or more sales per month, a one-month reporting period;

    (ii) For 250 through 499 sales per month, a two-month reporting 

period.

    (iii) For less than 250 sales per month, a three-month reporting 

period.



The listing should contain a brief address for each property, its county 

location, its sale price, the month and year of its sale, and whether it 

is new or existing. In areas where the ratio of existing sales to new 

sales is three-to-one or greater, an increase in the mortgage limit may 

be based on 95 percent of the average of the new and the existing median 

sales prices. In these areas, the documentation referred to in this 

paragraph may also include separate median sales prices for both the new 

and existing homes.

    (2) Requests for an increased mortgage limit based upon 

documentation of median house prices for the area should be sent to the 

appropriate HUD field office.

    (c) In the case of an area where the Commissioner determines that 

the median one-family house price does not reasonably reflect the sales 

prices of newly constructed homes because of an existing stock whose 

value is static or declining, the Commissioner may give greater weight 

to the sales prices of new homes in determining median



[[Page 157]]



house price in such area. Without limiting the discretion of the 

Commissioner in fashioning appropriate methods of implementing the 

foregoing authority in particular circumstances based upon a 

demonstration of good cause satisfactory to the Commissioner, in areas 

where evidence satisfactory to the Commissioner indicates that existing 

home sales outnumber new home sales by three-to-one or better, the 

median sales price will be calculated as the greater of (1) the average 

of the median sales price for new and existing homes, and (2) the 

composite median price of all sales.



(Approved by the Office of Management and Budget under control number 

2502-0302)



[45 FR 76377, Nov. 18, 1980, as amended at 47 FR 917, Jan. 7, 1982; 49 

FR 12697, Mar. 30, 1984; 49 FR 14338, Apr. 11, 1984; 53 FR 8880, Mar. 

18, 1988; 56 FR 18947, Apr. 24, 1991; 58 FR 41002, July 30, 1993; 59 FR 

13882, Mar. 24, 1994; 60 FR 16033, Mar. 28, 1995]