According to the National Association of Realtors (NAR), Congress has reinstated for the next two years loan limits on Federal Housing Administration (FHA) insured loans. NAR President Moe Veissi said, “As the nation’s leading advocate for homeownership, we applaud members of Congress for restoring FHA’s previous loan limits, which will help reduce consumer cost burdens, stabilize local housing markets and allow qualified, creditworthy borrowers to access affordable mortgage financing” and “The reinstated loan limits will help provide much-needed liquidity and stability to communities nationwide as tight credit restrictions continue to prevent some qualified buyers from becoming homeowners, and the housing market recovery remains fragile.”
The revision will reinstate FHA loan limits through 2013 at 125 percent of local median home prices with a maximum of $729,750. The loan limits backed by Fannie Mae and Freddie Mac mortgages will continue to remain at 115 percent of local area median home prices, with a max up to $625,500. Economists at NAR believe that by reinstating FHA loan limits it will help make mortgages more affordable to potential buyers. Nearly two-thirds of homebuyers across the country who have incomes below $100,000 will be helped by this revision. It’s a misconception that only wealthy borrowers benefit from the maximum cost loan limits; middle-class homebuyers living in all areas of the country deserve the same access to affordable mortgage financing and the same opportunity to achieve homeownership that homebuyers enjoy in the most affordable regions of the country,” said Veissi.
Contact the Shane T. White Team if you are looking to buy or sell your home. Discover what it is like to work with a team with a real passion for real estate. Contact us today at (512) 515-LAND (5263). We are here for you to help you buy or sell real estate near Austin in the Liberty Hill area, including Leander, Georgetown, Cedar Park, and Bertram.
