As you know, in late September the FHA, Fannie Mae; and Freddie Mac loan limits were reduced in 42 states pricing potential home buyers out of the American Dream of home ownership and holding back the housing recovery.
NAR immediately went to work with the goal to get the loan limits restored in Congress. For weeks that goal seemed unlikely.
The REALTORÂ®Â community went to work andÂ educated Congress that well-qualified buyers didn't need yet another hurdle to access affordable mortgage financing.
They finally listened. Because we were persistent. And because we were right.
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 National Flood Insurance Program through December 16, 2011 and 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
This is certainly the best time to buy. More options are yet again becoming more available.