FHA Loans Limits Increased Again for Austin- March

Still looking for solutions to both the lagging national home market, the sub prime mortgage hangover, and economy fears, the government backed FHA loan program gets a beneficial boost yet again for third time in several months to an unprecedented high of $288,750 for single family homes and $369,650 for 2 family homes which will undoubtedly benefit Austin. FHA loans, which to some lenders and Realtors was a hassle in the past due to its strict guidelines for properties and heavy paperwork for consumers in order to qualify, will be the go to program once again since many conventional loan programs are a thing of the past especially to the credit challenged.

While credit score is still the measuring stick in obtaining loans, there are other methods involving FHA available such as manual underwriting for those whose score is numerically challenged. Manual underwriting simply requires that you have one year of clean history, meaning no late rent payments, on time utilities, no judgments against you and a debt to income ratio up to 41% to name a few criteria.

The biggest news is that the increase will benefit both the Austin Buyer and Seller. Sellers whose homes are listed above the previous limit of $218,595 will have another avenue for prospective buyers to be able to purchase their home. There are still some requirements in order for homes to qualify for financing through FHA.

As of this second on the MLS the increase in loan amount potentially opens up more than 250 homes to buyers from the previous limit of $218,595 to the new limit of $288,750 for buyers. Condos, lofts, and townhomes saw an increase of 135 more homes potentially available to choose from. Of course as I mentioned before those properties must meet specific FHA guidelines in order to meet financing requirements, however the increase is a sign of greater choice for prospective buyers.

I can’t begin to say how great an opportunity for Real Estate in Austin this is. It seems that Austin, never apart of the national housing bust, seems to keep benefiting from these announcements. This along with the constant migration of people into Austin stands to see our market continue to out pace the nation and keep it ever desirable.

For more information, feel free to email me or call me directly at 512-744-4553 to get started in buying or selling your next home.

Christopher

RE/MAX Capital City

New SoCo Condo Choice

The latest in apartment conversions brings the popular condo zip code 78704 another affordable choice near Travis Heights, Creekside Terrace.

This project is for those of you who are looking to live near the popular South Austin hot spot but want to get a little more square footage without having to work 3 jobs to live there.

A small community of only 48 units offers only 2 floor plans, a 700ft2 one bedroom/one bath and a 1100 ft2 two bedroom/two bath. Many of the units will be renovated with concrete or bamboo flooring. Inside the design continues with mosaic tile in the kitchen area with stainless appliances and redone bathrooms.

All condos have a view of the courtyard where the pool is located although no hot tub exists, bummer. The pool and the grounds are scaped with large rectangular limestone steps and fine dark gray rocks. The exterior has been repainted and the parking area has been repaved. There is a complimentary laundry area as the one bedrooms are not equipped with washer or dryer connections in the units, although the two bedroom models are.

Now the important part. The HOA in the community will run $150 for the one bedroom and $200 for the two bedroom. Pricing will be $155,000 for the one and $189,000 for the two. That comes out to about $1200 a month total for the one bedroom.

Thats not bad considering on the MLS, one bedroom one baths average start price is at $179,000.

The drive to downtown is 5 minutes at most and is blocks away from the SoCo district. Convenient to shopping, parks, grocery stores, greenbelts and entertainment, this is a prime location for condo seekers.

These units will be available for sale 30 -45 days from now, but you can preview them with me before hand. Simply contact me and I can fill in more details and set up an appointment with you to go check them out.

Christopher

South Austin Condo Buying is Blistering Hot

 

While you’re sleeping on it, someone will be sleeping in it.

 

My client and I spent weeks looking around at various condos in various areas in South Austin. In the very beginning I explained that the market is quick in the south and I advised him that if he saw something that he should act on it.

Sometimes though clients do not really see or understand that Austin condos perform a David Copperfield from the marketplace until they miss out on 1, 2, or 3 condos.

For example, pulling information from our MLS since the beginning of the year in area 6/ 7, (or 78704 zip code) out of 30 condos listed near the popular SoCo area, 11 condos have sold within an average days on market of 17 days, and 9 condos have gone Pending averaging 12 days on market. So if my math is correct, 2 out of 3 condos under $200k in that area have sold or have accepted an offer within an average of 15 days on market. Whew! Zip code 78745, just a little more south, is not much different.

According to the latest stats from the Austin Board of Realtors, Days On Market dropped significantly from 149 days in January 2006 to 34 days in January 2007 for those areas. Also sold to list ratio rose from 97% in January 2006 to 99% in January 2007. This means that condos are selling at near list price. These numbers are for the entire price spectrum for these areas however yet still a good indication of conditions for a competitive South Austin market.

Christopher