Should You Wait to Buy a House in Dallas/Ft Worth???

Real Estate Agent with 214.422.0729

The housing market has been in a downward trend for 4 years. There is some speculation that inventories will not reduce any time soon which will be necessary for prices to rise.

However, there are other factors that can increase the cost of housing, specifically mortgages. FHA accounts for a large percentage of the current housing loans and is expected to be even more prominent when the Qualified Residential Mortgage Guidelines go into effect next year.

  1. Rising rates are almost certain, due to looming inflation fueled by higher gas and food prices and the enormous amount of deficit spending
  2. FHA loan limits have been reduced – they are lower than conventional limits in most markets and FHA has suggested that they might be reduced further.
  3. FHA might increase the down payment to 5% or higher in an effort to have a more secure loan that will have less likelihood of going to foreclosure.
  4. FHA might decrease the amount of seller contributions in a similar move to require the buyer to have a larger investment in the home and therefore be a more “qualified” borrower.
  5. Congress may decide to increase the up-front MIP to build up the FHA reserves. The annual MIP has been adjusted twice since October 2010 when the Up-Front MIP was actually reduced.
  6. Due to tougher conventional requirements, demand for FHA loans could exceed maximum annual insurable limits. If Congress is having a hard time raising the limit on national debt, they might not even consider raising the limits for FHA.

In an effort to solidify the lending industry, qualifying is becoming harder for the buyer and more expensive at the same time. Many of the rules changes could go into effect next year. In addition, market factors could easily play a role in increasing buyer’s costs. Waiting will very probably require a larger up-front investment for buyers in the future.

To find out what's best financially for you, I'd be happy to refer you to a Mortgage Lender who can walk you through the different options you have.

Comments (2)

John Cannata
214-728-0449 - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

There are a few that want to buy and that would qualify, but they are waiting for the houses to stop dropping in certain areas. The sad thing is that it will end up costing them more to wait for another $10K to drop off the price than to buy it now. Why? Because rates could be higher. For a higher rate, even at .25% or .375% could cost them more than $15K in interest over the term of their loan. So really, what is the point of waiting if you want to buy now? None! Rates are great. House prices are not dropping as quickly as they once were 2 years ago. Its a great time to buy.

Nov 29, 2011 04:53 AM
Samantha Smith
214.422.0729 - Rowlett, TX
Sam I Am Houses, Simply Texas Real Estate

That's what I'm saying ... it's crazy how just a tiny increase in the Mortage Rates can end up costing 10k or more!

Nov 29, 2011 01:24 PM

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