Friday, November 18, 2011

Updates from the National Association of Realtors on Loan Limits & National Flood Insurance Program.


Last night Congress restored the loan limits for the Federal Housing Administration (FHA) for two years.

In late September the FHA, Fannie Mae; and Freddie Mac loan limits were reduced in 42 states. The NAR believed that this reduction in loan limits would be pricing potential home buyers out of home ownership and holding back the housing recovery for everyone.

NAR has been working very hard to get the loan limits restored in Congress, and the goal seemed unlikely.

The reinstated FHA loan limit formula and cap change will help make mortgages more affordable and accessible for hard-working, middle-class families in 669 counties in 42 states and territories, where the average loan limit reduction after the reset last month was more than $68,000. The provision reinstates the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets, the floor will remain at $271,050. 



However, Congress chose not to apply the loan limits restoration to Fannie Mae and Freddie Mac. Fannie-and-Freddie-backed mortgages will remain at 115 percent of local area median home prices up to $625,500.

The bill also provides for a short-term extension of the National Flood Insurance Program through December 16, 2011. NAR will continue to press Congress to use the additional time to complete their work on a five-year reauthorization of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country.


 IF YOU HAVE QUESTIONS ABOUT  SELLING YOUR HOME OR BUYING A NEW ONE, DON'T HESITATE TO CALL, TEXT OR EMAIL ME.


My promise to my clients: I try to always remember what it is like to walk into this incredibly complex world of buying and selling with little or no knowledge of how the process works. I know that behind the door of your home and in your life there is much more going on than just your real estate transaction. I work with each person, not the house, and with the whole person, not just the issues surrounding the transaction. When I attempt to put myself in your shoes and contemplate what you are dealing with I am most effective.
The Benadum Team

Amy Bumpus
Straight Talk—Always