FHA Loans are the WAY to GO!

I know we’ve said it before and we’ll say it again…FHA loans are the WAY TO GO!

 

Currently, FHA loans require a minimum of 3% down payment compared to 20-30% down for conventional financing. This down payment can be gifted to the buyer by a relative. Also, the seller can credit the buyer up to 6% to pay for closing costs. Lastly, credit scores can be as low as 580 and loan amounts go up to $729,750! Starting January 1^st, maximum loan amounts will go down to $625,500 and the minimum down payment will be 3.5%.

 

These loans allow buyers to purchase a new home with very little out of pocket money. The interest rates are very competitive right now. If you are wondering whether you can afford to buy a house, call or email us. We will help you create a budget and determine what you can realistically afford. The prices are lower than they have been in several years. It is a great time to buy!

 

 

Contra Costa October Statistics

Well, it looks like people are taking our recommendation to heart and getting in on the fantastic buying opportunities in the market right now! Statistics across the board for Contra Costa County are UP for October.

 

Closed sales for San Ramon are up 51.7%.

Alamo is up 18.2%.

Blackhawk is up 200%!

Walnut Creek is up 72.7%!

 

The housing affortability index is also up. For single-family detached homes it is up 45.1% and for townhomes/condos it is up 48.9%.

 

That means houses are selling, the activity is up and homes are more affortable then ever! Take advantage of this unique time in the market. You may regret it later if you don’t.

 

*Source: Contra Costa Board

 

Bank Owned and Short-Sale Statistics

As you can see from the below statistics released on November 3rd, the number of bank-owned and short-sale properties on the market is a very large percentage of the total homes for sale. We predict that with the changes in the state’s foreclosure process and the growth of JP Morgan’s “Loan Modification department”, banks will be working with owners much more to prevent foreclosure. If you need to sell your house, your chances of getting the bank to approve a “short-sale” will also increase.

If you have questions or are interested in listing your home for less than what you owe on your loan, please call us. We can help you.

Click on the image below to see expanded chart...

Can I Still Get a Home Loan Right Now?

 

YES!! The home mortgage market has been effectively federalized—at least for the time being. More than 90% of new loans now are being made through the federal Housing Administration insurance program, plus Fannie Mae and Freddie Mac. This means that there is more money available for home mortgages. Ginnie Mae which is the FHA’s pipeline to the bond market recorded an all-time high of $29 billion in new mortgage-backed securities issued in August!

 

If you are interested in buying a home then you need to know the following:

 

1)      Loan terms and credit underwriting standards have toughened up, but you can still put down only 3% on a FHA-insured mortgage and 5% on certain Fannie Mae and Freddie Mac loan programs with private mortgage insurance. This will go up to 3.5% after January 1^st. You do not need “spotless credit” to qualify for these loans.

2)      Maximum loan amounts through GHA, Fannie and Freddie in high cost local markets on the West and East Coasts continue to be $729,750 through December. It is projected that after January 1^st, this amount will go down to $625,500. If you need a loan above this amount the interest rate will be higher after January 1^st.

3)      Home prices have rolled back to 2003 and 2004 levels or lower in many of the foreclosure and boom markets.