On Ocotber 1, Congress had failed to extend the FHA and GSE mortgage loan limits. They had been set at 125% of the median home price in each county. The new limits will be 115% of the median home price. What does this mean for you, the buyer? In Plymouth County, your limit will go from $523360 to $465450. IN Bristol County, from $475000 to $426650. In Barnstable County, the limit will go from $462500 to $405650. So, our range is a decline from $48,000 to $58,000.
This will effect our Jumbo Loan limits. National Association of Realtors is continuing to attempt to restore the higher limits as quickly as possible. How can you help? Contact your Congress person.
Why is this important to you, even if you don’t have a price in this price range? As the market contiues to soften, we are challenged with keeping our median price of homes stable. We need these higher end homes to infuse some good numbers into our mix. Our funding in budgets statewide and nationwide takes into consideration our median home prices. We simply need the stability. Please make the call or email!
If you have any questions on numbers and email addresses, please contact us and we will help you. Help keep our area strong… and BOLD!
LOAN LIMITS EXTENDED! READ ON! PLEASE COMMENT AND SHARE!
Realtors® Applaud Congress for Reinstating FHA Loan Limits
Washington, DC, November 18, 2011
WASHINGTON (November 17, 2011) – The National Association of Realtors® commends Congress for reinstating the loan limit formula and maximum cap for Federal Housing Administration-insured loans for two years.
“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,” said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. “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 home owners and the housing market recovery remains fragile.”
The provision reinstates the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets. The floor will remain at $271,050.The loan limits for Fannie Mae- and Freddie Mac-backed mortgages will remain at 115 percent of local area median home prices, up to $625,500.
NAR believes the reinstated loan limit formula and cap change will help make mortgages more affordable and accessible for hard-working, middle-class families throughout the country, not just wealthy individuals or those in costly markets. Nearly two-thirds of buyers who will be helped by the loan limits provision have incomes below $100,000.
“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.The legislative action will have an impact even in communities with loan limits well below the maximum cap;the reset last month impacted 669 counties in 42 states and territories, with an average loan limit reduction of more than $68,000.
The bill also provides for a short-term extension of the National Flood Insurance Program through December 16, 2011. NAR strongly urges Congress to use the additional time to complete work on a five-year reauthorization of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
This Exerpt is from Realtor.Org, part of National Association of Realtors.
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