Kenneth Harney a syndicated columnist for the Washington Post wrote an article that appeared recently in our Union Tribune and condensed all the known information about mortgage money and loan availability for todays Buyers of residential real estate.

The essence of the article was about the lack of shortage of money and the credit available to buy homes. He makes a very strong point that it is because the government has backed these loans and that there is much less risk, at least for now. So these loans are available at good rates

Now, it is acknowledged that attaining credit today is certainly not as easy as it once was but if you have a good credit score and at least some money to put down, you stand a very good chance of getting your loan request approved. 

Here are some of the Key Highlights of Kenneth Harney's article.

There is no shortage of money available for home mortgages, no freezing of credit to purchase or refinance a house. Why?  Because the American mortgage market effectively has been federalized - at least for the time being.  

Loan terms and credit underwriting standards have been toughened up, but you can still put down 3 percent (3.5 percent after Jan. 1) on an FHA-insured mortgage and 5 percent on certain Fannie Mae and Freddie Mac loan programs with private mortgage insurance.  

Despite the global financial system's quakes, mortgage rates not only remain low by historical standards but have actually declined recently. Last week there was a bit of a pop up in rates but I expect them to be going up and down by small increments for at least through the end of the year. But they are still very low.

Maximum loan amounts - through FHA, Fannie Mae and Freddie Mac in high-cost local markets on the West and East coasts ( San Diego is included in this category ) will continue to be $729,750 through December 2008. In January, the high-cost maximum is projected to dip to approximately $625,000. 

Home prices - pushed by foreclosures and short sales - have rolled back to 2003 and 2004 levels or lower in many of the former boom market areas.

Buyers are seemingly liking the lower prices as many more are coming off the sidelines and making offers and deals are coming together.  Our National Association of REALTORS reported that the Pending Home Sale index increased  over 7% based on contracts signed in August. Regretfully you don't read much about the improving aspects of our markets by the media. They are caught up in the current election and have been preaching the same tunes for a few years now. Perhaps they see a connection there.

The conclusion is that there is plenty of money available as long as you can qualify for it. If you are in the market to purchase a home, besides the large lenders, there are numerous San Diego local banks and credit unions that are wanting to lend mortgage money from their own portfolios and are competitive on their terms and rates. 

As a Buyer for San Diego real estate, get the facts. As you know the facts are usually the last thing you hear about when reading the journals around. Listen, they have to make money to survive. They have to sell the stories that get the attention and not necessarily the ones you want or need to know about. I am a real estate professional and if I don't know the answer to your questions, I surround my with the most skilled and knowledgeable people in the industry and we can help locate the right path to follow to fulfill your desire for either selling your property or buying a new one. You have seen  the rest and what they can do. If you want the best guidance and professional service, give me a call and I think you will see that I am that professional that will tell you the truth and help you learn how to make your own "Best Decisions". I have a very long client list and their testimonials speak best about what you can expect from me. I make it a habit to under promise and over deliver.