FHA NEW LOAN LIMITS - Get the facts dis-spell the myths Oct 1st 2011

Reblogger Kelli Grant Group Berkshire Hathaway HomeServices Arizona
Real Estate Agent with Kelli Grant Group | Berkshire Hathaway AZDRE #SA562433000
https://activerain.com/droplet/dT5

 

Such important information especially for clients who are still wondering is it the right time to buy.  Well, with inventory shrinking, prices moving up and now FHA chopping a third of the loan amount off - the indicators are clear lets get an offer in on that home before it is gone.  

Call me for help Kelli Grant in finding that perfect home

 

Original content by Mark Taylor Mortgages 207897nmls# DOC#207897

 

fha new limits for 2011

 

So with all the rampant rumors and conjecture by people who just want to make noise. I have attached the correct document from FHA on the proposed loan reductions.

 

"Who cares" an agent said yesterday - well my response was "you should and here is why!"

Barring a Congressional Stay our loan amounts will be reduced Oct 1st 2011

If you have buyers on the fence wanting to buy a home on the upper reaches of financing they will not be able to after Oct 1st.  For example in Maricopa County Arizona currently the loan limit is $346,250 it will be $271,050 a drop of $75,200 in buying power!

In San Diego where I write loans it is dropping $151,250, In Monterey County it is $246,750 and Los Angeles County buying power is reduced by $104,250.

If you have clients with offers on short sales you need to see what can be done to expedite the process or start preparing for a back up plan!

 

To see how this may affect you go here: FHA LOAN LIMIT UPDATE

 

Serious Stuff Right?

 

When analyzed by potential impact on loan counts, nine states may experience declines that are greater than 5%Arizona, California, Colorado, Connecticut, District of Columbia, Massachusetts, Maine, New Hampshire, and Oregon. When evaluated by potential impact on dollar volume, eight states may experience declines that are greater than 10%Arizona, California, Connecticut, District of Columbia, Massachusetts, New Hampshire, Nevada, and Puerto Rico.

 

What does it really mean for us?

 

As with anything in our industry of late we are all fueled by the rumor mill and coffee house myth that somehow becomes an urban legend and quickly a fact - like QRM mortgages and the 3% tax hit on all sales of future real estate all of which have become very mute - but from the press and local MLS meeting you would have thought that the world had stopped turning.

Again I believe this to be the case. While any reduction in my ability to help someone finance a home is irritating to say the least the impact based on 2010 and 2011 performance will shock you as to how little of an impact this may have:

 

For the U.S. as a whole, approximately 3% of loans by count (33,301) and 6% by dollar volume ($14.2 billion) endorsed in calendar year 2010 would not have been endorsed had HERA limits been in effect. In calendar year 2011 to date (January through April), approximately 2% of endorsed loans by count (6,673) and 7% by dollar volume ($2.8 billion) would have been affected.

 

So yes this is an irritation, and a major adjustment for some.  Good news is we have plenty of warning to market to all of our clients - yes go ahead re-blogg this send it viral lets get our buyers re-motivated to getting a home before its too late.  And if we do this by the times October rolls around we will be ready for it and it will not even be on our radar as we quizzically look at our competitors running around unprepared as deals fall of the table in front of their eyes.

For updates as they happen and often before they happen feel free to subscribe to  FHA LOANS

 Thanks for reading my FHA NEW LOAN LIMITS - Get the facts dis-spell the myths Oct 1st 2011

 


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Rainer
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Joan Valverde
Synergy Realty Group Inc - Colorado Springs, CO
GRI,CDPE,CNE,MRP,SRES Colo Sprgs, Blk Forest, Monu

Kelli,  This is a good item to re-blog.  Buyers on the fence really need to get off, while they have such a good thing in front of them.  Good money prices, good home prices, and with FHA lowering their loan amount,  Now is truly the time to buy!

Jul 13, 2011 04:39 PM #1
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Rainmaker
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