FHA has become the backbone of the purchase market again. FHA loans offer the most flexible combination of down payment and credit requirements. With loan limits as high as $729,750, the majority of transactions can be handled using FHA financing. FHA purchase loan originations were the only sector of the market that grew last quarter. Understanding the limitations and working with an expert who can help navigate them are critical to help create more transactions for you and your buyers.
FHA still does high expense ratios and low downpayments--Recently, private mortgage insurance tightened their guidelines significantly. In many situations, like with a 705 FICO score or a 50% expense ratio, private mortgage insurance is no longer available in CA--AT ALL. This means a client on the edge must either do 20% down conventional or do a 3.5% down FHA loan--easy choice.
Doing an FHA loan, most clients get approved up to about a 55% expense ratio and sometimes as high as 65%. This allows someone showing about $5,500 p/month income to purchase a home for $440,000 home with only about $15,000 down. The seller can cover all transaction costs, including prepaid expenses like taxes and interest paid in escrow. If income is shallow you can add a coborrower's income to help qualify.
Each loan situation is unique and requires a specialized expertise. Please call an FHA approved lender to talk through scenarios.
Rates right now are at about 5.5% for a 30 year fixed.
Tax credit towards down payment??-- Is this available?
The short answer is "No." FHA now allows the tax credit to be used towards closing costs, not down payment. To do this, it requires a 3rd party to advance the funds into the transaction, then be reimbursed. Other states have stepped up to fill that role, but CA will not likely be able to do that. Instead consider these options to lower borrower contributions--
Get a seller credit for closing costs. Usually, 3.0% is adequate to absorb costs including prepaid expenses.
Have down payment funds gifted, then use the tax credit to reimburse them.
Great Neighborhood
• 1,981 sq. ft., 3 bath, 4 bdrm 2 story - 
MLS® $220,000 - "New Listing-Great Price"
Unnamed Areas, Oakley - Great family home, 4 bedrooms, 3 full baths and a 3 car garage. Covered porch, covered patio, brick woodburning fireplace and cathedral ceilings with ceiling fans. One bedroom one bath down, formal living and dining rooms, breakfast nook and breakfast bar. Side yard access, water softner and auto sprinklers. Great curb appeal and commuter friendly location.
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Unnamed Areas, Oakley - Announcing a new listing on 4101 Sequoia Drive, a 1,981 sq. ft., 3 bath, 4 bdrm 2 story. Now MLS® $220,000 - "New Listing-Great Price".
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Grovewood, Antioch - Announcing a price reduction on 4904 Trustmore Way, a 1,580 sq. ft., 2 bath, 3 bdrm single story. Now MLS® $225,000 - Great Home no Mello Roos.
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Move in Ready
• 1,580 sq. ft., 2 bath, 3 bdrm single story - MLS® $225,000 - Great Home no Mello Roos
Grovewood, Antioch - Awesome starter home, no mello roos. Antioch home in Brentwood school district. Shows like a model home, bueatiful upgraded 1 story home with custom touches throughout. Large Yard and great neighborhood
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California Spirit, Brentwood - Announcing a price reduction on 4660 Ford Street, a 2,449 sq. ft., 3 bath, 5 bdrm 2 story. Now MLS® $349,000 - "Reduced".
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Vacation At Home
• 2,449 sq. ft., 3 bath, 5 bdrm 2 story - MLS® $359,000 - Great Price
California Spirit, Brentwood - Tropical Paradise!! Amenities include covered porch and French Doors to deck off of Master Suite. Pebble Tech Pool with Black Rock coating, refreshing water fall, moss rock wall with jump rock and its solar ready. The back yard also has an electric spa and deck. The kitchen has an island and recessed lighting. Updated light fixtures throughout the home, window coverings, beautiful hardwood and tile flooring.
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California Spirit, Brentwood - Announcing a price reduction on 4660 Ford Street, a 2,449 sq. ft., 3 bath, 5 bdrm 2 story. Now MLS® $359,000 - Great Price.
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Prewett Ranch, Antioch - Announcing a price reduction on 5216 Cedar Ridge Way, a 1,525 sq. ft., 2 bath, 3 bdrm single story. Now MLS® $200,000 - Great Home, Great Price.
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Antioch Real Estate Market Information
There were a total of 258 closed residential home sales from March 1st to March 31st in 2009 compared to 112 in March 1st to March 31st of 2008. The average selling price for that period was $179,053 compared to an average selling price of $306,729 for the same period in 2008, a percentage drop of 42%. The median selling price was $173,000 compared to $310,000 for the same period in 2008, a percentage drop of 44%. The average number of days a house was on the market was 59, compared to 71 days for the same period in 2007, 25% less time. Currently there are 353 homes on the market, and it's a great time to buy. For more detailed information on current real estate market conditions and knowledgeable service in the Antioch, California real estate market, contact Rick Tietz directly at 925-783-3371 or Joyce Tietz directly at 925-628-5105. You can also click here for listings in the Antioch area.
Antioch CA real estate remains abundant and more affordable than ever compared with other parts of the Bay Area. In the month of February 2009, the average sale price in Antioch CA was $184,720, compared to February 2008 average sale price of $314,878. WOW that's a difference of $130,158 drop in average sales price from last year. Prices have dropped 41 percent from the same period last year and over 50 percent from 2 years ago. There has been a decrease in average sales price of $5,667 in March of this year compared to last February.
Lots of beautiful features
• 1,652 sq. ft., 3 bath, 4 bdrm single story - MLS® $174,500 - Well Priced Home
Sherman Island, Oakley
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Sherman Island, Oakley - Announcing a price reduction on 4854 Bayside Way, a 1,652 sq. ft., 3 bath, 4 bdrm single story. Now MLS® $174,500 - Well Priced Home.
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Move In ready
• 1,705 sq. ft., 2 bath, 3 bdrm single story - MLS® $199,000 - Well Maintained
College Greens, Sacramento
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College Greens, Sacramento - Announcing a price reduction on 2912 Muskrat Way, a 1,705 sq. ft., 2 bath, 3 bdrm single story. Now MLS® $199,000 - Well Maintained.
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Well Maintained by Tenants
• 957 sq. ft., 2 bath, 3 bdrm single story - MLS® $89,000 - "GREAT INVESTMENT HOME"
Unnamed Area, Antioch
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