Is there is any chance you can actually qualify for a home loan to purchase a home in San Diego …
… is there actually a bank out there that has the funding.
The answer is YES there is plenty of money for home loans and YES you can qualify.
How so? For the time being our mortgage market has basically been federalized - the major loan players FHA, Fannie and Freddie have access to all global capital markets since all of their borrowings are fully guaranteed by the Treasury.
It is true that loan requirements have tightened up but not to totally unrealistic levels. FHA’s credit requirements are set to levels that allow for those who may not have the most perfect credit history to still qualify for a loan. Not to mention right now you can get an FHA insured loan with as little as 3% down! Note that starting January 1st of 2009 that down payment requirement will increase to 3.5%. Fannie and Freddie have increased their required minimum credit scores, but are still approving applicants with FICO’s in the upper 600’s with as little as 5% down! On top of the low down payment requirements, rates today are at a historical low.
It’s then a personal desision as to when to take advantage of reduced home prices - according to recent figures from DataQuick the median price for all homes in San Diego dropped $22,000 last month; making San Diego home prices the lowest since June of 2002. Another interesting figure was that compared to a year ago, this past month Southern California home sales went up 65%. With sharp price declines occurring in many areas, bargain shoppers are stepping out and buying homes. Data Quick also reported that 47.3% of the sales this past month were homes that at some point in the last year had been foreclosed on.
The current FHA max loan value for San Diego County is $697,500, it is predicted that maximum will be reduced some time early next year along with its increase in deposit requirements. The choice is yours, sit around and complain about the declining real estate market, or get up and take advantage of it!
So what does one of this nation’s most notable investors have to say about all this? Warren Buffett’s Advice: Be fearful when others are greedy, and be greedy when others are fearful!
» Posted by Peter
