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

Austin Home Sellers New Year’s Resolutions for 2008

Yesterday I offered a set of New Year’s Resolutions for any Austin Home Buyer for 2008. Today the focus is aimed at Sellers who may have plans to enter their home into the Austin Real Estate Marketplace. So for those wanting a successful sale, here are some of your resolutions.

1. Learn About the Austin Housing Market: Just like a buyer, it is a good idea to for sellers to understand their local market too. Seek the facts on your specific area where your home is located. In 2006 through most of 2007, sellers were seemingly flattered with an abundance of buyers and multiple offers. The market has cooled down a little so it is a good idea to understand the speed of your neighborhood currently so your moving plans will go smoothly. Get specific facts.

2. Spend More Time With Your Home: Today’s Austin home buyer has an eagle eye when they walk up to and through a home. I have spent a lot of time and still do work as a buyer’s agent so I tend to hear what things makes impressions on them. So that out of control flowerbed or that worn out carpet that needs attention is screaming for your time. Spend more time with your home and put the work into to needed to make it looks its best inside, increase its value, and reduce the market time to sell. A fresh coat of paint can work wonders. Remember details are everything and the saying “Cleanliness is next to Godliness” applies here. If you have no idea what things Austin Buyers are looking for, seek consultation from your designated Seller Representative Specialist who knows what is in demand.

3. Understand Your Home’s Right Price: Many times Sellers get caught up on what they would like to get for their home or they want this much for their home. Sometimes Sellers have done their homework and can get a close guesstimation, but overpricing can have negative effects. Longer market time and bad first impressions from buyers and Realtors alike (“Where’s the value?”) tend to be the major Achilles heal for Sellers. The right price sells homes timely.

4. Know When to Say When: Separate your ties to your home that is, when you definitely decide to place your home on the market. One of the biggest emotional hurdles and set backs for current homeowners selling is letting go and realizing that you are presenting your home so a buyer can envision themselves living there. Staging is a very beneficial compliment to your 2nd resolution which maximizes the look, space, and appeal of your home. Not to mention staging can minimize market time.

5. Stay Committed: Statistically we are still in a Seller’s Market, but the numbers have swayed slightly due to the tightening of mortgage underwriting. Staying proactive responding to market/buyer feedback aggressively can help you sell your home quicker.

So remember, tie a string around your finger to help you keep these Austin Home Seller Resolutions for 2008 to ensure a successful sale your home.

For more in depth information on any of these areas, feel free to email me. I have a lot more to share. And feel free to comment below.

Christopher

RE/MAX Capital City