FHA Loan Volume is Soaring:  In 2007, the number of government-backed FHA loans issued in the Sacramento Region was 649.  In 2008, this number soared to 8,998 loans.  In 2009, this number will increase again.  With this in mind, I looked back at all of the transactions I have been involved in, in 2009, and found 67% of the buyers used FHA loans. FHA loans are primarily used by people who can't afford a big down payment, or have credit score issues.  FHA buyers are only required to make a down payment equal to 3.50% of the purchase price, and can receive credits/gifts from the seller to assist with paying part or all of their closing costs.  With the credit market shot, most conventional loans now require at least 10 percent down.  FHA Loans are Making a Difference: In light of the housing down-turn, there are many existing home owners with growing families and/or incomes who would like to get a great deal while upsizing in this down market. Many of these would be buyers are well qualified with 2+ years of work history, excellent credit scores and great income. Their weakness?  By the time they sell their existing home, and pay off their existing loan(s), there is little or no money left over for the down payment on their home purchase.  This is where the FHA loan steps in, allowing these families the buy their dream home with total out of pocket costs as low as 3.50% of the purchase price.  FHA loans can also be used for refinancing homes that have little equity in them.  In Sacramento and El Dorado Counties, the maximum loan amount allowed with FHA loans is $580,000. If you want to know more about FHA loans, I don't originate them, but I'd be happy to answer your questions.

Deal of the Month:  I am selling a home at 988 Patrick Circle in Folsom.  2,750 square feet, 4 beds, 3 full baths, 3-car garage on almost .20 acre lot.  This meticulous home is in turn-key, move-in condition. Asking $450k (only $163 per square foot).  Call me for details!

Regional Snapshot:  The average home price in Sacramento County rose for the 6th consecutive month. The number of bank owned home sales fell for the 6th consecutive month to 715 units, their lowest level since March of 2008.  The first time home buyer tax credit, FHA loans and low interest rates continue to be the right mix to keep the housing market going in the right direction.

El Dorado Hills:  El Dorado Hills housing statistics continue to kick along what appears to be the bottom.  The only statistics that stood out were the avg. home price got back above half-a-million to $509k and the avg. dollars per square foot got back up to $168 (highest level since Feb '09).  The number of active Bank owned homes and short sales varied marginally and the banks still are not allowing short sales to close escrow.