We see dozens of marketing reports posted every day about total sales and sales prices in Northern Virginia. We know sales prices are down. Recently we have been able to report that the total number of sales have increased from 2008-2009, brought on by lower prices and lower interest rates. One set of numbers that you don't see reported often is how are the home purchases being financed?
Let's just say simply, FHA and VA rule!
A quick glance at a comparison between May 2008 and May 2009 shows just how significant the increase is.
|
MONTH
|
May 2009
|
May 2008
|
|
|
Total
Transactions
|
1,803
|
1,724
|
|
|
LOAN
TYPE
|
|
|
|
|
Conventional
|
860
|
1118
|
-27%
|
|
FHA
|
538
|
278
|
+93%
|
|
VA
|
174
|
95
|
+83%
|
|
Cash
|
169
|
0
|
|
|
Assumption
|
51
|
44
|
+15.9%
|
|
Other
|
11
|
19
|
-42%
|
There
have been a number of concerns in the last
few weeks with low FHA and VA appraisals scuttling contracts at the
last minute. The
new HVCC (Home Value Code of Conduct)
which went into affected on May 1, 2009 has many Realtors® in a
tizzy. At the
moment there do seem to issues that
need to be resolved. Personally
I’ve had
two appraisals with issues “The
New Appraisal Process-Not to Worry Your
Home is on a Toxic Waste Dump.”
Meanwhile
buyers keep pressing forward and
taking advantage of the buying opportunities the low 3.5% down payment
an
FHA loan provides and the even better ZERO down payment required for VA
Loans. It will be
interesting to see if the jump in
FHA and VA loans will continue through the summer months.
If you are considering a move in Northern Virginia this summer give the Cindy Jones team a call at 703-346-2213. Let's talk about whether now is the right time for you to buy a new home. No hassle, no pressure, just straight talk about what makes sense for you.
;)
;)
Cindy
FHA and VA are great vehicles for a buyer; do you have rural home loans in your area as well?