It has been about 20 years since I have gotten excited about anything to do with FHA. In this credit crunch we have been experiencing, I am embracing it.

I hope you don’t think I am one of “those parrot bloggers” who just repeat the daily news feed everyone gets and weigh in on it. This is fairly good news so I thought I would share it:

Talking to a few Mortgage Brokers in Reno today, it appears that it has increased (FHA loans) to $403,750.00. That should help people who are struggling with the Jumbo loan requirements for Reno luxury home purchases. Many ArrowCreek, Somersett, and Montreux home buyers have been hobbled by this jumbo loan excessive tightening the last 6 months.

To find out the new limits in your area, simply click on this link: https://entp.hud.gov/idapp/html/hicostlook.cfm, which will take you to the “mortgage limits” page at the HUD web site. On that page, enter your state and county information, chose the type of loan from the “Limit Type” drop-down box (FHA Forward, Fannie/Freddie or HECM). [Note: FHA Forward is what HUD is calling the temporary FHA loan limit.] Then click the “send” button at the bottom of the page. On the results page, you’ll see the new loan limit for the type of loan you selected for your area. You can also find a county-by-county listing of the new FHA and Fannie Mae-Freddie Mac loan limits at REALTOR.org by following this link: FHA Loan Limits by county

The new loan limits for FHA and Fannie Mae and Freddie Mac are now calculated at 125 percent of the HUD published median prices, with a floor of $271,050 and $417,000, respectively, not to exceed $729,750.

I instantly wanted to find out how our Golden Goose on the other side of the hill did; Most of the Bay Area reps I talked with seemed to indicate it was around $729,000.00

This should free up some boomers to sell their home in California and come to Nevada to learn to ride a Harley, restore a classic car, start a wine and cigar collection, a little golf, buy a mini storage facility in the desert and call it a life.

One of the things that you will notice is as the market swings back from a buyers to sellers market or stable; you will see headline bad news accompanied by occasional good news like this (FHA increases) in the back of the paper. Similar for example how in a Sellers market you will see headline good news with occasional bad news. Another example for the stock guys; to the footnotes of a corporations public filings, the details are in the back.

In general, the 10 year yield and interest rates are down, snow levels and job growth is up. I am still calling for a June 12 stabilizing of the market in So. Reno, Old Southwest and a few other areas. On the Carson City homes side; I have noticed a stabilization at North Carson as people fill the homes in anticipation of the freeway to bring them to the Silicon Meadows tech and biotech campuses. All of the new hospitals with state of the art medical equipment is filling many of these homes with employess as well. The desert outskirt subdivisions are still a mess and have years of unwinding/stabilizing to do ie; no appreciation for years.

I hope this finds you well, here is a saying for the day; Smart investors buy in a buyers market and sell in a sellers market. The herd does just the opposite, I think it was Templeton who said; ” Be greedy when everyone is fearful and be fearful when everyone is greedy”.

Your Reno Realtor

Ron Bell

775-750-5256

Filed under: Loan Information