Virginia Association of REALTORS® President Bradley J. Boland sent a message to the Federal Housing Finance Administration, weighing in on the FHFA’s plan to reduce the loan limits for mortgages that could be purchased or insured by Fannie Mae or Freddie Mac.
Reducing those limits would mean that many potential home buyers would not be eligible for a mortgage because the property value would be too high to qualify. While it’s particularly an issue in the more expensive areas of the state, reducing the loan limits would have an effect on the entire Virginia real estate market.
“We urge you to NOT change the existing loan limits,” Boland wrote, “as it has been critical in restoring stability to local housing markets across the our state.”
He explained that, while the housing market has certainly been improving, it’s still a challenge for many potential home buyers to find available credit.
It is crucial that the federal government act to maintain market stability, not add disruptive and unnecessary changes at this critical time in the nation’s economic recovery. While the housing market continues to experience a nascent recovery, data reflects that it remains fragile.