Special offer

2133 Emma Long Street, Austin, Texas 78723

By
Real Estate Agent with Sherlock Homes Frisco TREC #574729

What happens in Mueller Austin when a home falls out of the Affordable Program? This is what is currently in process with 2133 Emma Long Street.

To recap, the Affordable program is the income qualified scheme in Mueller that allows buyers earning less than 80% of the Austin Median Family Income to buy a new home. To facilitate this, the Mueller Foundation holds a silent (you don't have to pay monthly for it) second lien on the home. So when you come to sell the home, you give the Mueller Foundation their share.

That's great for new homes, but for resale affordable homes, the rules allow purchasers to buy with up to 120% of the Austin Median Family Income - opening up these sales to another larger buyer pool. You can check out this article on housing affordability in Austin which talks about income distribution, but in a nutshell, the amount of additional buyers earning between 80% and 120% of the MFI is large, so the market for these homes is significantly bigger.

When does a house fall out of the Affordable Program, like 2133 Emma Long Street? When a new qualified buyer isn't found to complete a sale within the timescales set out in the original program. So that could be for a few reasons:

  1. The affordable buyers are all looking at ther new and resale homes
  2. There are no buyers passing the qualification criteria
  3. The seller can't find an acceptable offer among the buyers

What are the implications for a house like 2133 Emma Long Street?

The seller has the right to market their home to the open market if an affordable buyer is not found. This happened a lot at the end of 2012. The homes go onto the open market and are no longer subject to any income rquirements (except those to get a mortgage if you are purchasing with a loan). So anyone can buy it. Of course, the seller is still bound to share equity with the Mueller Foundation so that they can continue operating, but it means the home goes into the pool of market rate homes.

 

What does this mean for you, fair reader? Well my partner at Sherlock Homes Austin, the esteemed Scott Brodrick is listing 2133 Emma Long for sale.

If you're interested in a single story home in Mueller, with 2 bedrooms, 2 bathrooms and just over 1050 sqft for $385,000, please give us a call on 512 215 4785.

Comments (3)

Richard Weeks
Dallas, TX
REALTOR®, Broker

Congratulations on your new listing.  Very nice house and nice job with your presentation.

Jun 04, 2015 09:57 PM
Nicholas Costantino
Engel & Völkers - Hoboken, NJ
CRS, ASP, e-Pro

Interesting program Garreth I hope your listing goes under contract quickly.

Jun 04, 2015 10:09 PM
Roy Kelley
Retired - Gaithersburg, MD

Thanks for sharing information on this program. Best wishes for a successful transaction and a very productive summer.

Jul 05, 2016 01:37 AM