East and South Bay Counties - Average Sales Prices

source: Apple Appraisal

Home prices are still on the rise. If you are considering buying or investing in real estate NOW is truly the TIME TO BUY. The combination of reasonable prices + low rates makes it the most affordable time in decades. Remember, as rates increase, your buying power/purchase price decreases for the same monthly payment.

FHA MIP premiums increase April 18, 2011

FHA Annual Mortgage Insurance Premiums--paid monthly--increase .25% on April 18. That is increase of approximately $21 a month per $100,000 in loan amount.  Note that MIP is required on all FHA loans regardless of down payment or loan-to-value.

 Although FHA financing is more costly then Conventional financing (AKA Conforming, Fannie Mae, Freddie Mac), FHA financing allows some qualifing situations that Conventional loans will not - FHA appproval guidelines allow:

• 3.5% down payment primary residence purchase loans -- all gift from immediate relative OK
• A non-occupant co-borrowers income may be used to qualify (i.e., parents)
• A borrower may refinanance to consolidate a first and second and that second is not purchase money second, but is a HELOC "seasoned" for 12 months with no more than $1000 accumulated draws in the past 12 months
• Cash-out refinance loans up to 85% of home value
• A Borrower's prospective new job income may be used in qualifying if the new job start date is within 60 days of closing and the borrower has a fully executed employment contract
• One borrower has no credit score but other borrower (including non-occupant co-borrower) has a credit score(s)
• Allows higher debt ratios than conventional (with compensating factors)
• Borrower(s) is currently in a Chapter 13 Bankruptcy -- OK.
• Is avaiable as High Balance FHA loan amounts up to $729,750 here in the Bay Area
• 15 Year Fixed, 30 Year Fixed, and Fully Amortized ARM's are available with FHA

Visit my Finance Page if you would like to recieve a quote for a FHA loan.

Great Economic News - Unemployment Falls to 2 Year Low!

The unemployment rate dropped to 8.8%--the lowest since March of 2009 -- the drop was much more than analysits expected. Since the beginning of the year, we have seen a stair step trend of lowering unemployment. That is great news for the economy. Remember, positive economic news typically translates to higher mortgage rates, so if you have not taken advantage of the low current rates, now may be your last opportunity--in this lifetime. 

If you are considering a home purchase, the low rates also maximize your buying power. As rates increase, the same relative monthly payment will mean less loan amount = lower purchasing power. Also, as the economy continues to add jobs, demand for homes will increase which will drive up home prices.

Visit my Finance Page for FREE Refinance Quotes and Home Buying Power Estimates:

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