*****HUD Loan Limits have reverted to the higher loan amounts***** This is only good through end of the year, though – then back to the lower limits*************
Barring any congressional action, Federal Housing Administration (FHA) loan limits will revert to loan limits determined under HERA for loans insured by FHA on or after October 1, 2011. This change would affect 669 of the 3,334 counties or county equivalents that are eligible for FHA insurance.
So what does this mean for Central Texas?
So what does this mean for Central Texas Real Estate and, in particular, the Austin Metro area? Below is a list of some of the affected counties and their new proposed loan limits:
Travis County $271,050, down from $288,750
Williamson County $271,050, down from $288,7
Hays County $271,050, down from $288,7
Bastrop County $271,050, down from $288,7
Bexar County $287,500, down from 332,500
The good news is that this represents only a small percentage of the actual transactions in Central Texas. Note the map below, which shows that other counties throughout the United States will be taking a much larger hit when it comes to the number of transactions.
Bottom line, this should have a minimum impact locally as this drop does not affect the majority of transactions in Central Texas. However, the East Coast and the West Coast, along with Nevada and Arizona, will see larger contractions in FHA originations and given the fact that Conventional Financing is much harder to qualify for and more expensive. ( See LLPA). Once again Texas has positioned itself to weather the near future as it pertains to home values and demand.
John McClellan
