Real Estate News You Can Use

July 2008

Risé Johns ASR®, CRS®, GRI

 Mortgage Industry News

 

            Rather than discuss the local real estate market, this month I decided to discuss the turmoil that continues to affect the mortgage industry.  This turmoil has a far-reaching impact on the real estate market and could effect some of your plans.

          Because 100% conventional financing has evaporated, lenders are making a lot more FHA loans.  FHA loans have always been one of my favorites.  In the past, I have done many, many FHA loans and they are easy-to-do loans.

          Maximum loan amounts in central Texas have been drastically increased to $288,750 allowing a buyer to purchase a home of a $295,000 sales price with minimal down payments, which makes homes in that price range or less a good fit for a lot more buyers today.  Contrary to what many people believe, you do not have to be a first-time home buyer to qualify for an FHA loan.

         There are lots of changes with “Piggy Back” loans—those 2nd liens we have all been using to avoid paying for mortgage insurance.  These loans are not as easy to get and the rates are higher.

        The good news is the Central Texas market remains healthy and we’re grateful for the diversity of our economy.  I feel most of the changes taking place in the mortgage industry are good and will ensure a sound economy in the future.

 Risé Johns has been involved in real estate for over 27 years.  Her knowledge, experience and customer service will make your next real estate transaction a smooth one.  Call Risé at (512) 267-LAGO for “World Class Service.”