On March 6 2008, the Department of Housing and Urban Development (more commonly known as HUD) published its new FHA and conforming loan limits based on median home prices as mandated by President Bush's Economic Stimulus Act. The new loan limits are now calculated at 125% of the published HUD median prices with a maximum of $271,050 for FHA loans. The Fannie Mae and Freddie Mac conforming loans remains the same at $417,000 for a one-unit property.

So how does this impact us in the North Texas region?

HUD published that in this region, its HUD median price range is $187,000. This from the old FHA limit of $200,160 it raises to its new number at $271,050.

The prediction is that more current homeowners are able to refinance their homes for better fixed-rate loans. In the past few years, many homeowners in this region had mortgaged their properties at adjustable rate loans and are now finding it difficult to pay their mortgages when their new interest rates adjust upwards.

As your real estate resource for the North Texas region, I am closely networked with other resourceful mortgage connections. If you need a good referral or recommendation, please feel free to contact me. If you'd like to discuss your housing needs before deciding if refinancing or selling your home, I'd consider it an honor to speak to you about it. I can and will conduct an in-depth mortgage analysis based on current financial situation to see what may be the right path to take. Sometimes it means down-sizing and sometimes it means refinancing.

In addition to assisting current homeowners, the raise of the new FHA and conforming loan limits will help more first-time homebuyers achieve their American dream of owning their homes that otherwise would not. If you fall into this category, you have a larger selection of homes because the budget (loan amount) has increased. The type of house you can purchase with $250,000 is not the same as that of a $150,000.

When more consumers are buying their homes, it helps reduce the home inventory in the market, and in turn help strengthen the home prices. It is a win-win situation for everyone involved. If you are interested in some down-payment assistance programs in addition to these new loan limits, please feel free to contact me. I would love to share some exciting information with you and it is my pleasure to assist you into homeownership.

The interest rates are still at a historical 40-year low, thus many opportunities for new and current homeowners after this announcement was made. Many more families have the opportunity to purchase homes, refinance, move-up or down-size homes now. When more opportunities are available, this stimulates the housing industry and I am thrilled about this new outlook for 2008.

What's your opinion? Leave comments or feedback. I'd love to hear them.

Contact:
Loreena Yeo
Principal of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com