Special offer

Home Buyers...FHA Is Here So Get Off Your Duff And Buy A House!!!

By
Real Estate Agent with Keller Williams Realty, Pasadena

Home Buyers...FHA Is Here So Get Off Your Duff And Buy A House!!!

 Yes I know that sounds drastic, but I submit the following for your consideration.

If you have been thinking about buying a house but you are "on the fence", let me recommend that you jump off the fence.  FHA (Federal Housing Administration) has raised the limits of their Federally Insured Loans to $729,750 in high cost metropolitan areas such as Pasadena, Eagle Rock, South Pasadena, Altadena, Highland Park and their surrounding communities.  Previously, FHA's loan limits were at $362,790.  The change in loan limits will help provide economic stability and give 240,000 additional homebuyers a safer, more affordable mortgage alternative. 

 

Why should you consider an FHA loan?

 

An FHA insured loan makes lenders more willing to work with someone who might not completely fit their usual loan qualification requirements.  These loan requirements are more relaxed compared to traditional mortgage loans which mean more people are able to afford to buy homes.  FHA loans are tailored best for first time buyers that have fairly good credit, good income but have a low down payment.  In fact it is possible for you to buy a home with almost NO MONEY DOWN.  If you have a willing home seller, FHA will allow the home seller to contribute 6% of the sales price to go to financing the property.  3% (of the 6%) will go towards your (home buyer's) down payment and the other 3% will go towards your closing costs.  That means (theoretically) that a $729,000 home can be bought for virtually no money out of the buyer's pocket.  I would recommend in situation like this that the buyer place a few thousand dollars in escrow as an earnest money deposit.  This deposit can be returned to the buyer after the close of escrow. 

 

Why is this a great time to buy?

 

I can sum that up in two words: SELLER CONCESSIONS!!!!!

 

Sellers are not only willing to accept a lower price for their home, they are also willing to pay for the buyer's closing costs (which can typically be 3% of the sales price) and some sellers will pay for the buyers DOWN PAYMENT as well, which FHA will allow.  Wow!!! Is that wonderful or what?  That was just unheard of in the "Seller's Market" of a couple of years ago.  I'm not saying that all sellers are going to pay for your closing costs and drastically lower their price, but plenty will.  Eventually, if you make enough purchase offers, you will find yourself a good deal.  I've been in the real estate business for over 19 years and this is one of the best buyer's markets that I've seen.  You have heard of the old saying "buy low and sell high", if you buy now, hold for awhile, history says that you will make a pretty penny on your investment in the future.  Each area is different and gains in real estate equity are different from area to area.  I am a Realtor in Pasadena California so I can only comment on the local Pasadena conditions.  I am confident that real estate equity will rebound in the future here but I can not comment on any other State, City, and Community.  Seller consessions vary from area to area as well.

 

Oh by the way, this special offer will not last forever! In January 2009, FHA's maximum loan limit will return to $362,790. 

 

Speak to your Realtor, buy a home soon and realize the American Dream!

 

If you have any real estate questions, needs or concerns, please feel free to contact me.

 

Have a wonderful day!

 

Steven Galindo

 

Keller Williams Realty

 

866.211.8682

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Bill Austin
East Valley Living - Scottsdale, AZ

Is there a place to find a list of all of the high priced areas?

Jul 09, 2008 11:39 AM
Steven Galindo
Keller Williams Realty, Pasadena - Pasadena, CA

talk to your lender, they should know if you're in a high cost metropolitan area

Jul 09, 2008 11:49 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Steve 

We are seeing a big pick up in business with FHA financing. 

It's have a major impact with our first time home buyers.

Good luck 

Lou  

Jul 09, 2008 11:58 AM
Bill Austin
East Valley Living - Scottsdale, AZ

Thanks, I will do that.  Actually, maybe my friend from the title company would know.

 

 

Jul 09, 2008 12:18 PM
Joel Sanders
Fizber - Ventura, IA

Finding an ideal place to live is not as easy as it may seem. You need to be sure about what you would like to see in your future house and how much you can afford. For buyers with children it is sometimes difficult to find a good school nearby. Recently i have found this service http://schools.fizber.com/ that can help visitors to explore the school system in the neighborhood.

Jul 25, 2008 01:28 AM