A quarter of homes in Mueller Austin are in the affordable program – an income qualified scheme which subsidizes housing and allows owners to participate in a shared equity appreciation. If they sell, they get profit proportional to their ownership. If home values go down, there is no penalty on sale. So in essence, there is no down side from a financial perspective, the only challenge is the qualification, but there’s some slight good news on that front.
Are Mueller Affordable Homes More Affordable in 2011? Yes – due to slightly higher earning limits and the resale market having different restrictions.
The income qualification for the new homes is to earn 80% or less of the Austin Median Family Income for your given family size. The City of Austin raised its median income to $74,900 in 2011 from $73,800 in 2010. The new data was released June 1st 2011 though it isn’t live on the City’s website yet. For reference, the maximum qualifying income for the Mueller program is now:
2011 New Affordable Home Income Limits by Family Size
1 person: $41,950 2 people: $47,950 3 people: $53,950 4 people: $59,900
5 people: $64,700 6 people: $69,500 7 people: $74,300 8 people: $79,100
While this isn’t very different to last year, there are some people I’ve been working with who earned just a shade too much and weren’t able to qualify for one of the new David Weekley Affordable Garden Homes or the Standard Pacific Affordable Mueller House Condominiums. The news for resale affordable homes is that the income limits are actually 120% of the median, which means the following limits:
2011 Resale Affordable Home Income Limits by Family Size
1 person: $62,925 2 people: $71,925 3 people: $80,925 4 people: $89,880
Are homes in the US more affordable right now than previously? Yes, according to thie article from the National Association of Realtors which sees the affordability index at historical highs – this compares median income with the cost of borrowing money and the median cost of house buying. Given that mortgage rates are low and many housing markets have seen a downward trend in prices, the ability to purchase has risen. This doesn’t take into account more restrictive lending practices which mean that only well qualified buyers can actually get loans – ones with better credit scores and more downpayment.
Comparing this to the programs in Mueller, prices are fixed, income limits are slightly higher, and low mortgage rates do make the homes more affordable for those who qualify. The only real question I have is qhat happens when mortgage rates go up? It makes it very hard for those who meet the income qualification to qualify for a large enough loan.
Garreth Wilcock helps people buy homes at Mueller Austin. 512 215 4785.