FHA picking up steam in the West
By Matt Carter, Thursday, July 3, 2008.Bookmarking Sites
Since March, when HUD rolled out temporary increases in FHA loan limits authorized by Congress and the Bush administration, FHA endorsements (guarantees of mortgage loans) have taken off in the West.
These statistics, just released by HUD Region IX (which includes California, Arizona, Nevada and Hawaii), show a 62.5 percent increase from March to May. California's Silicon Valley -- where most homes were too expensive to qualify for FHA loan guarantee programs before the increase -- has seen the biggest percentage jump, while the Phoenix, Ariz. metropolitan statistical area (MSA) has seen the biggest increase in terms of raw numbers.
Couple of things to ponder:
1. Will these numbers go right back down if Congress doesn't extend the new limits (or decides the new cap of $729,750 is too high)?
2. How many of these borrowers relied on seller-funded down payment assistance, which HUD is seeking to end?
FHA endorsements Region IX
| MSA | March 08 | May 08 | Percent change |
| | 68 | 189 | 177.94 |
| | 138 | 292 | 111.59 |
| | 422 | 697 | 65.17 |
| | 8 | 16 | 100.00 |
| | 14 | 44 | 214.29 |
| | 322 | 590 | 83.23 |
| | 1,705 | 2,693 | 57.95 |
| | 802 | 1,132 | 41.15 |
| Total | 3,479 | 5,653 | 62.49 |
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Submitted by Rick Gundzik on July 4, 2008 - 7:33pm.
I did a great podcast on FHA loans on June 26 and also back in February.
www.pacificresidential.com/show
Submitted by Joe Cline on July 5, 2008 - 6:41pm.
It seems like we should extend the limits while we are still faltering economically. People who are willing to invest in the economy at this time and are able to do so should be given as much help as possible. Just my two cents.
Joe Cline
Davenport Ranch, Texas MLS Listings | Affinity Properties
Submitted by Tiffany Taylor on July 6, 2008 - 4:57pm.
Tiffany Taylor
President
Platinum Funding
http://www.platinumfundinginc.com
888-537-7007x100
Submitted by Shane Kane on July 7, 2008 - 9:23am.
The increase in the number of these loans should be no suprise. In my region FHA loans seem to be the only deals closing these days. Without them the market will continue to rapidly decline.
Shane Kane
www.titlesuccess.com
Submitted by Ki Gray on July 8, 2008 - 5:47pm.
Joe is corrent. While the real estate market is faltering we need to extend the higher limits. I worry about how the 4 house investment limit is going to affect the market.
Site Austin Tx real estate.
Search Austin MLS
Submitted by Jason Anderson on July 9, 2008 - 9:38am.
The goal of encouraging purchases must be balanced by the need to keep idiot borrowers from taking the market down with them. Yeah, yeah, FHA loans have more stringent lending requirements. But we should remember that the Fed spurred the current crisis by keeping interest rates too low for too long.
History, especially recent history, should be our guide.
Lucky Rock Consulting
Bluetooth & Buzz Marketing
Bluetooth Advertising Blog
Skype ID: luckyrockconsulting
Yahoo ID: luckyrockconsulting
Submitted by Rick Belben on July 9, 2008 - 3:07pm.
Rick Belben
Amerivest Realty of Central Florida
Orlando Real Estate
Orlando MLS
Submitted by Rick Belben on July 9, 2008 - 3:10pm.
I would think the figures would drop significantly if the loan amounts go back down. Finally they come up with something that is successful in helping people - perhaps they will make it permanent.
Rick Belben
Amerivest Realty of Central Florida
Orlando Real Estate
Orlando MLS
Submitted by Lenore & Alex Wilkas on July 10, 2008 - 12:33am.
I've been in the real estate business 6 1/2 years and did my first FHA loan ever this past spring. Granted we are in a high cost market, the San Francisco Peninsula, but it is encouraging that prices have corrected enough at the entry level to allow for a buyer to qualify for an FHA loan! This was a single family house and not a condo.
~~~~~~~~~~~~~~~~~
Lenore Wilkas
Prudential CA Fine Homes International
Read Our Blog @ www.SanMateoRealEstateNews.com