The maximum FHA loan amount in Travis, Williamson, Hays, Caldwell and Bastrop Counties is projected to decline from $288,750 to $271,050 - a $17,700 decline. The decline, set to occur in October 2011, is meant to reduce the government footprint in housing, but the real estate and mortgage industry fears it could lead to lower prices on an already injured housing market.
By comparison, the maximum loan amount in Monroe County, Florida will decline by $200,750 to $529,000 and $184,000 in San Joaquin, California, going from $488,750 to $304,750. So the decline is significantly less that experienced by other areas nationwide.
The article does not disclose the maximum Freddie and Fannie loan amount for Austin but Houston and Dallas will remain unchanged at 417,000 - more than likely Austin's conforming limit for non-FHA loans will likewise remain at $417,000.
See the Wall Street Journal article, Sellers Brace for New Mortgage Caps, here:
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