Buying Your First Home

For all of you renters out there who thought it was too late and that housing prices had passed you by...............there is hope out there after all. Even though housing prices are still higher than they were at the start of the decade, the recent price adjustments along with the revised guidelines for the FHA loan limits has brought you the ability to buy up to a $750,000 house with as little as 3% down AND the down payment can be a GIFT!

There are bargains to be had, with a lot of bank owned properties and a lot of distressed sellers listing their homes for less money than the bank is owed (known as a Short Sale). While the market is far from settled, if you look at your home purchase as a HOME rather than as an investment, you will be positioned for what every homeowner eventually realizes. The longer you own your home, the more likely the purchase will be a wise investment. While there may be peaks and valleys to your home's value, overt the long term the value almost always rises. There is after all only so much real estate. And Orange county real estate still comes at a premium.

The important things to remember are that you have plenty of time. The market is still unsettled. The first thing you'll need to do is get yourself prequalified. There are plenty of sources available to do this. To get an idea of what you qualify for, use this handy little worksheet. There are plenty of places available online to get your credit score for free. The online version of your credit score may not be exactly that which the lenders will use, however, so you may really want to consult with a lender who can assis you in getting a free credit report and prequalify you for a loan at the same time.

The next step is to identify the area in which you'd like to buy and find free listings of homes available for sale and most definitely work with a buyer's agent that will represent YOUR interests in the transaction. You will need help analyzing the local market, negotiating the RIGHT price, and providing you with the protection that only years of experience can provide you. The next step is one of the most critical, especially if the property you select is bank owned or a short sale............insist on a full property inspection. Even though most of these homes are sold as is (with the seller not paying for repairs) you still need to assess the overall condition of the home, and determine whether after all of the needed repairs, is it still a good bargain?

For any and all real estate related services, contact a local Orange County Real Estate specialist who will serve your best interests.

Credit Worries Spur Fed Rate Cut

The Federal Reserve cut both the Federal Funds Rate and the Discount rate by 3/4% yesterday. While the market was expecting a full point cut, the market still reacted positively. The Dow Jones Industrial average closed up over 400 points in brisk trading. The Fed hinted at future rate cuts while most of the nations economists believe we are in the midst of a recession.

The impact on real estate and the housing market has yet to be seen. Conforming loans are looming around the 5.5% mark, meaning that here in Orange County a 30 Year fixed loan for up to $729,750 can be had around 5.5%, while Jumbo loans, those above that level continue to be more difficult to obtain and are averaging somewhere near 7% for a 30 year fixed.

First Time Home Buyers!

FNMA, FHLMC, and FHA loan limits are increased effective 3/10/2009. The new limit allows as little as 3% down payment on FHA loans and 10% down on FNMA and FHLMC loans all the way to $729,750. This is a huge increase from $417,000 for FNMA and FHLMC and from $365,000 on FHA loans. The time is right to buy now. These new limits are only going to be in effect through the end of this year. Take advantage of this infusion of cash in the mortgage market and BUY NOW! Search The MLS NOW! Coto de Caza Listings Ladera Ranch Listings

The TIME Is Right To Buy Your First Home!

With interest rates still very near all time lows, and property prices having fallen over the last 18 months the time is right to buy your first home. In fact it may never be more affordable. Even the experts agree that timing the real estate market is at best unpredictable. With all of the national media crying out in the headlines that it's only going to get worse, TIME magazine has advised "Ignore The National Media" Time Article, saying that your first home is almost always your best investment. In fact it may be that housing will never be more affordable. As the economy recovers as it eventually will, interest rates will tend to increase, making housing payments rise. So if it is your first home you are considering, it will probably still be your best investment. Ignore the local media, ignore the national media and consult a local REALTOR

GSE's Raise Conforming, Government Limits

President Bush signed into law the propsed economic stimulus package, among other benefits raising the loan limits from $417,000 across the country to a number equal to 125% of the median home price across the country. For the Ultra High cost areas in Orange County California, this results in a conforming loan amount of up to $729,750. The effects of this package according to the National Association of Realtors will be approximately 350,000 more new home sales this year.

The time is right to buy now. The impact of the stimulus package should stabilize the home prices in the 500-800,000 price range by providing easier access to competitve loan products underwritten by the GSE's FNMA (Fannie Mae), FHLMC (Freddie Mac)and FHA/VA.

Congress Sends President Stimulus Package -- Final Bill Includes Increased Loan Limits

The Senate passed their version of an economic stimulus package today, Thursday, February 07, 2008. The Senate version expands rebate checks for seniors and disabled veterans and includes the same increases to the conforming loan limits for both GSE and FHA found in the House stimulus package. The House just passed the Senate version of the bill and it will now be sent to the White House. The President is expected to sign the legislation by the end of next week, ahead of the Congressional self-appointed deadline of February 15th.

The U.S. House of Representatives passed a stimulus package last week that raised the FHA and conforming loan limits to as high as $729,750 in high-cost areas. By increasing the loan limits, borrowers will see immediate relief with new liquidity in the mortgage market and the nation will see an additional 300,000 home sales. Research shows that an increase in the FHA limit would enable an additional 138,000 Americans to purchase homes, and 200,000 families to refinance their homes safely and affordably.

Increasing the FHA loan limits is critical to bolstering California ’s housing market. Current law restricts FHA loans to levels well below the median home price in many areas of the country and caps loans in high cost states at $363,790. These limits are preventing many homebuyers from using FHA to purchase or refinance their loan. The proposed provision will increase FHA loan limits nationwide by raising the floor to $271,050 and the limit to 125% of local median home prices.

The critical role that GSEs play in providing liquidity to the mortgage market has never been more evident than it is today. The national subprime meltdown has had a dramatic impact on both the cost and availability of mortgages in many markets. Since August 2007, the interest rates for jumbo borrowers have been more than 1 percentage point higher than conforming loans, which can cost homeowners up to $400 month in higher interest payments.

House PASSES stimulus package!

To address the mortgage crisis, the House bill would raise the limit on Federal Housing Administration loans from $362,790 to as high as $729,750 in expensive areas, allowing more subprime mortgage holders to refinance into federally insured loans. To widen the availability of mortgages nationwide, it also would boost the cap on loans that Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets. Those measures would expire at the end of the year.