Check out the newest provision in the FHA guidelines. You know, the loans that make it easy for first time home buyers to buy affordable houses with little to no down payment. Julie and I bought our first house with one.

- Because of noise worries, FHA insurance will be unavailable when properties are within 1,000 feet of a highway, freeway, or heavily traveled road; 3,000 feet of a railroad; one mile of an airport; or five miles of a military airfield. Projects must take action to avoid or mitigate such conditions before completing the loan review process.

What does that leave? There are million dollar homes in Austin less than 3000’ from a railroad. Most of the affordable housing in Austin is that close. Have you looked at the affordable developments in South Austin? The ones that pretty much run along the tracks?

Oh wait. That also knocks out half of our current neighborhood for being too close to a highway. You know the neighborhood where you can still get a 1200 sq/ft house for less than $150k within 2 miles of downtown.

I know that people want someone to blame other than those at fault for giving out bad loans, and the financial industry that thinks they can predict markets with math, but this is just ridiculous. The people getting FHA loans were not to blame. It was the risk analysts. The whole point of FHA loans is to take a risk on the people and properties banks won’t.

So we’re going to push to the suburbs some more. Farm land, far from highways and railroads. Petroleum burned as far as the eyes can see.

Grumble, grumble, grumble… must go to bed and stop ranting. That’s it. Take a look at a map. Those highways and railroad lines do an amazing job of covering most of Austin. Goodbye affordable housing.

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Comments

Kate

2009-09-17T06:34:23.000Z

What’s the reasoning? That just sounds ridiculous!