Los Angeles Real Estate. Articles and Information for Buying and Selling A Home. Provided by Paul Aragon

Los Angeles Real Estate

San Fernando Valley Home Sales On The Rise

May 22nd, 2008 7:43 PM

Here's an article that just came out recently regarding a great jump in home sales last month...it looks like the bottom is here!!

Home sales surged 22 percent in Southern California in April compared with March, as bargain-hunters bought lower-end homes in areas hardest hit by foreclosures, a research firm said Monday.

Still, sales were down 19 percent from April 2007, marking the weakest April tally since 1995, DataQuick Information Systems said.

In addition, the region's median home price fell 24 percent from a year earlier to $385,000.

The month-to-month sales increase in the six-county region was well above the average gain of only 1.2 percent seen from March to April since DataQuick began keeping statistics in 1988.

"Quite a few more buyers stepped off the sidelines last month to snap up homes at substantial discounts relative to the market's short-lived peak," DataQuick President Marshall Prentice said.

Sales of new and resale homes and condos reached 15,615 in April, up from 12,808 in March and the highest monthly total in Southern California since August, according to DataQuick Information Systems.

To view the full article, click on the link below

http://ap.google.com/article/ALeqM5h_DkmV9N0qyf2vfd5bqwsVnBh0JgD90OUO9G0

Posted by Paul Aragon on May 22nd, 2008 7:43 PMPost a Comment (0)

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New Home Lending Products For San Fernando Valley Residents

May 29th, 2008 2:57 PM

First time buyers and investors should find this information valuable for entering into this the housing market with great buying opportunities.

The Advantages of FHA Loans

A recent study indicated that FHA loans may account for the majority of the loans used to finance First Time Home Buyers in 2008. As a Realtor, you must have a general understanding of what can and can't be done. We underwrite, fund, and train Realtors on FHA programs, so please use me as your resource. Here is some good information you should know.

In many regions of the U.S., FHA loans have not been utilized for years, so a lot of real estate agents and mortgage originators aren't familiar with this great resource. The following are a just a few of the recent changes that have made FHA loans a more attractive option again for some consumers looking to buy a new home or refinance an existing one:

1) Congress passed the Stimulus Act of 2008. During the recent housing boom, home values surpassed FHA loan limits in many regions of the U.S. The recent enactment of this important legislation, however, increased FHA loan limits up to $729,500 in many high-cost regions of the U.S. through the end of the year. FHA loan limits vary by county, so give us a call for loan limits in your area.
2) The FHA changed its appraisal and fee negotiating guidelines. In the past, many sellers steered clear of FHA loans because the appraisals were too strict and certain fees were non-negotiable. The FHA has greatly loosened these guidelines to make it easier for both buyers and sellers.
3) FHA loans are much cheaper now. Because FHA loans are federally insured, they tend to trade at a higher premium in the secondary market. This means lenders can often charge a lower rate.

Other FHA Benefits:

FHA loans are not credit-score driven. Borrowers can have a lower score than other products and still qualify for a good rate.

FHA loans require as little as 3% down.

FHA loans allow down-payment assistance programs. This allows the seller to cover the buyer's down payment and closing costs. This means borrowers, especially first-time buyers, or move-up buyers with limited funds, have a real opportunity of getting into a home with little or no cash at closing. For sellers, this means you can offer concessions that make marketing your home much more attractive without having to lower the price of your home again.

FHA loans allow a) Sellers to finance all of the buyer's costs to close; b) Homeowners to take cash out up to 95% of the home's value; and c) Homeowners to consolidate a first and second loan up to 97% of the home's value.

You can use non-occupant co-borrowers to assist in qualification

Expansion of FHA Secure

The FHA has expanded guidelines for FHA Secure and opened this product up to more borrowers. These guidelines go into effect on July 14th, 2008, and will open doors for the borrowers that haven't been able to qualify over the past 6 months. Please remember that the FHA Secure is a temporary program to assist the housing market through its current crisis.

The FHA Secure:

Includes borrowers delinquent on their non-FHA ARMs due to a rate reset or the occurrence of an extenuating circumstance but experienced no more than two 30-day or one 60-day late payment in the 12 months prior to the rate reset or extenuating circumstance that caused the delinquency; or

Includes borrowers delinquent on their non-FHA ARMs due to a rate reset or the occurrence of an extenuating circumstance but experienced no more than one 90-day late payment or no more than three 30-day late payments prior to the rate reset or extenuating circumstance that caused the delinquency provided the loan-to-value on the FHA insured first mortgages does not exceed 90 percent.

If you would like to know more about refinancing at a lower rate or optimizing your future mortgage you can give me a call or email and I will route you to the best resources for your transaction.

Paul Aragon

Posted by Paul Aragon on May 29th, 2008 2:57 PMPost a Comment (0)

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