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Jennifer Archambeault - an Austin Texas Realtor

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How the FHA Loan Limit Decrease Effects Buyers and Sellers

09-03-11
Jennifer Archambeault - an Austin Texas Realtor

Will the decision to decrease FHA loan limits be a game changer? I believe so as there are 372 active listings within the Austin Multiple Listing Service (MLS) that will be impacted based on their current list price, but you decide after reading further.

If you are on the prowl for a home to purchase in the Central Texas area, are planning to proceed with a Federal Housing Administration (FHA) insured mortgage and your possible purchase price range is above $280,880 - keep on reading! An upcoming change to the FHA maximum loan limits may or may not affect your ability to purchase the home you have your eyes set on or affect the likelihood of selling if you are attempting to sell your home.


On October 1, 2011, FHA maximum loan limits are set to decrease from $288,750 (or a $299,000 purchase price) to $271,050 (or a $280,880 purchase price). This change both can affect both buyers and sellers looking to buy or sell real estate in Travis County, Williamson County, Hays County and Bastrop County.

How does it affect you as a buyer?


Currently, a buyer is able to proceed with a FHA loan with financing up to $288,750 (or up to a $299,000 purchase price). When the change takes place, the loan limit will decrease to $271,050 and will decrease the maximum purchase price to $280,880 to still accommodate a 3.5% down payment FHA loan. If you had your eyes set on a home priced above $280,880 you now have three options in order to proceed with the purchase.

  • Contribute more funds towards the down payment to satisfy the new lower maximum loan limits
  • Forgo FHA financing and opt for a Conventional loan (minimum down payment of 5% and loan limits ceiling is $417,000)
  • Ask the seller to consider a reduction in the sales price that would still allow you to purchase and still would allow them to sell the property

Don't panic if you are currently under contract to purchase a home, read below and be sure to speak with your mortgage professional to ensure you or your potential buyer is grandfathered.

How does this affect you as a seller?

If your home was valued within the $300,000 price point, your realtor probably advised you to set pricing on or around $300,000 in order to lure both FHA and Conventional mortgage buyers. Since many buyers opt for FHA financing due to various reasons (lower mortgage insurance monthly amounts, the ability to obtain lower interest rates with lower credit scores, etc), if your property is still being marketed with a price that exceeds the new maximum loan limit, then you may alienate half or more of the potential buyers. For example, if a buyer was interested in your property priced at $299,000 prior to the loan limit change, they'd be responsible for bringing at least 3.5% of the purchase (or $10,250) to the table for their down payment. After the change takes effect, the buyer would have to dole out an additional $17,700 just to meet FHA loan guidelines. Yikes, that's a little over a 9% down payment.
So, if this buyer doesn't have the additional 5.5% to keep on track to purchase your property now the only option is to proceed with a Conventional loan, providing they have 5% of the purchase price set aside for a down payment. That's 1.5% more than they had previously accounted for. Then, there is a possibility the buyer may not qualify for the same interest rate as they had on the FHA loan option based on their current credit score further changing their financing picture. Plus, the monthly mortgage insurance payment increases, further increasing their monthly obligation. These changes can quickly create havoc and derail a buyers decision to buy your home or reassess their priorities.

As a seller, put yourself in the buyers shoes and ask yourself these two questions, especially if your home is priced is higher than the allowable maximum limits.

  • As a buyer, are you willing to pay the possible additional up-front and monthly unforseen costs to purchase this particular home?
  • Is it in your best interest to reanalyze the search criteria and locate a home that is priced accordingly to the new loan limits?

If you are a buyer and already have a contract on a home or are a seller and already are under contract with a buyer, don't panic just yet. There are a few questions you or your agent should ask the mortgage professional.

  • Is there a case number assigned?
  • Does the buyer have a Scorecard approval? If not, when do they expect to have approval?

After speaking with my preferred mortgage professional, buyers whose loan package has been submitted, have a FHA case number assigned and have been issued a Scorecard approval will be grandfathered providing the approval and both case number is issued on or before September 30, 2011. Those parties who do not have an approval on or before September 30, 2011 will be forced to conform to the new guidelines. Game changer? I think so!


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Austin Area Farmer's Markets

09-02-11
Jennifer Archambeault - an Austin Texas Realtor

Enjoying any outdoor activity for the past few months has been quite the challenge regardless of where you live in Texas. Thankfully, the month of September delivers the very early states of fall which temps us with cooler temperatures making it much more likely to enjoy many more outdoor activities.


One of my favorites outdoor fall activities to enjoy is visiting the various Farmer's Markets around the area. I can recall a few years ago when there were only a few weekend or weekday markets in town, but now there are dozens of options that have sprouted up all over the Austin area. Today, you can find markets strung from Georgetown to Buda and everywhere in between. One market to enjoy that is not listed on the list of Austin area Farmer's Markets is the Farmer's Market at the Triangle from 4 p.m. to 8 p.m. every Wednesday.


Here are my favorites:

Sunset Valley Market

Barton Creek Market

Downtown Market at Republic Square

The Triangle Market

I look forward to hearing your list of favorite farmer's markets around town after you've had a chance to venture out to a few.

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The Guide to Being an Austinite

09-01-11
Jennifer Archambeault - an Austin Texas Realtor

Have you just been snatched up from a city you know inside and out and have just been plopped into Austin?

austin texas

If so, it's time to become familiar with the local culture, our quirky isms, our crazy rules of the road, how to pronounce road and nearby city names. You'll be schooled on the Moonlight Towers, our lovely exotic pets that live underneath the Congress Bridge, the red headed strangers favorite watering hole, why we call our natural spring swimming hole a pool and other various hot spots around town that locals enjoy.

After reading through The Austin Old Timer's Guide to Bein' from Here, taking and passing the 31 question quiz at the end of the guide, then you can consider yourself an Austinite.


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2010 Central Texsa Fall into Autumn Gardening and Landscaping Guide

08-18-10
Jennifer Archambeault - an Austin Texas Realtor





Once again Allison Harris Craig with Gracy Title in Austin Texas has gathered some great information to help Central Texas homeowners prepare for the upcoming fall gardening and landscaping season.


Her cheat sheet is packed full of information on what to plant and when to specific items this fall, a list of native plants that will thrive and survive our winter and a list of popular garden supply centers across Central Texas.


To print this information and keep it handy visit the 2010 Central Texas Fall into Autumn Gardening and Landscaping Guide. Fall or Autumn in Texas is considered the Second Spring... it is when every leaf turns into a flower. Enjoy and Happy Yard Working!





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Circle C Ranch - Austin Texas - July Market Update

08-16-10
Jennifer Archambeault - an Austin Texas Realtor


Circle C Ranch - Austin Texas - July Market Update


Circle C Ranch



Circle C Ranch is a large master planned community broken down into ten smaller subdivisons. Below you will find the market report for July for each Circle C Ranch neighborhood.



Circle C - Alta Mira

Number of Homes Sold: 3
Average Days on Market: 66
Average Square Footage: 3,017
Average List Price: $380,484
Average Sold Price: $358,633
Sold Price/List Price Ratio: 94.26%


Original Circle C

Number of Homes Sold: 6
Average Days on Market: 76
Average Square Footage: 2,938
Average List Price: $317,283
Average Sold Price: $304,783
Sold Price/List Price Ratio: 96.06%

Circle C - Heilscher/West

Number of Homes Sold: 4
Average Days on Market: 41
Average Square Footage: 3,292
Average List Price: $417,100
Average Sold Price: $403,250
Sold Price/List Price Ratio: 96.68%

Circle C - Lacrosse

Number of Homes Sold: 7
Average Days on Market: 70
Average Square Footage: 2,295
Average List Price: $324,243
Average Sold Price: $314,571
Sold Price/List Price Ratio: 97.02%

Cirlce C - North

Number of Homes Sold: 6
Average Days on Market: 25
Average Square Footage: 1,909
Average List Price: $243,511
Average Sold Price: $238,497
Sold Price/List Price Ratio: 97.94%

Circle C - On the Park

Number of Homes Sold: 1
Average Days on Market: 5
Average Square Footage: 3,516
Average List Price: $384,900
Average Sold Price: (not disclosed due to multiple properties not being sold)
Sold Price/List Price Ratio: not disclosed to due to multiple properties not being sold)

Circle C - Park Place

Number of Homes Sold: 5
Average Days on Market: 105
Average Square Footage: 2,433
Average List Price: $370,992
Average Sold Price: $249,113
Sold Price/List Price Ratio: 91.93%

Circle C - Park West

Number of Homes Sold: 1
Average Days on Market: 142
Average Square Footage: 2,533
Average List Price: $319,500
Average Sold Price: (not disclosed due to multiple properties not being sold)
Sold Price/List Price Ratio: (not disclosed due to multiple properties not being sold)

Cirlce C - Vintage Place

Number of Homes Sold: 3
Average Days on Market: 67
Average Square Footage: 2,855
Average List Price: $315,600
Average Sold Price: $307,500
Sold Price/List Price Ratio: 97.43%

Circle C - Wildflower Park

Number of Homes Sold: 2
Average Days on Market: 22
Average Square Footage: 2,233
Average List Price: $283,950
Average Sold Price: $280,250
Sold Price/List Price Ratio: 97.43%


Circle C Ranch is the largest master planned community in Southwest Austin. The first home was constructed in 1987 and the community is still growing today. Currently, 4,500 homeowners enjoy local amenities such as the Circle C Swim Center (an olympic sized heated pool), an 18 Hole Public Golf Course (Grey Rock Golf Club), the Circle C Tennis Club, 500 acres of parkland including the Slaughter Creek Metropolitian Park, the Veloway (a 3.1 mile bike and rollerblade only course), Circle C Cafe with free home delivery within Circle C and The Lady Bird Johnson Wildflower Center.

Children who live within the community attend Kiker Elementary School, Clayton Elementary School, Baldwin Elementary School (opening fall 2010) Gorzycki Middle School, and Bowie High School. Both the elementary and middle schools are located within the community and the high school is located within a mile of the neighborhood entrance.

There are several retail centers (Arbor Tails, Escarpment Village, Sunset Valley and Shady Hollow Village) nearby all within a five mile radius of Circle C Ranch housing both local and national chain restaurants and variety of shopping options.

Currently, there are 102 Homes for Sale in Circle C Ranch. Be sure to check them out if you are interested in purchasing a home in the Circle C Ranch community. Or if you are considering selling your home sometime in the near future be sure to obtain a market analysis customized for your home.

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