Current Section 203(b) mortgage limits exceed the 95 percent maximum purchase or after rehabilitation value limits authorized by the HOME statute.

In accordance with the guidance provided in HUD's January, 2009 HOMEfires Vol. 10 No. 1 (which supersedes HOMEfires Vol. 9, No. 3), participating jurisdictions are authorized to use either the Section 203(b) mortgage limits established as of February, 2008 or the actual 95 percent of median sales price limits for their areas, whichever is higher.

HUD has issued a new Value Limits spreadsheet for 2012 containing the current limits for each county in the U.S. HUD will periodically update these limits. These 2012 Limits are effective March 29, 2012.

Participating jurisdictions also have the option of determining their own limits in accordance with the procedures described in the HOME regulations at 24 CFR 92.254.