San Joaquin Homes Community Blog

As credit underwriting guidelines tighten and down payment requirements increase, some home buyers – especially first-time home buyers – are finding it more difficult to qualify for a mortgage loan offered by a traditional financial institution. One viable option for some first-time home buyers, or those with challenged credit, is to apply for a home loan with the Federal Housing Administration (FHA). These loans are mortgages issued by a private lender but insured by the FHA. They often require smaller down payments and offer fixed-rate or adjustable-rate loans. However, not all home buyers will qualify. The FHA requires verification of income and assets along with a full home appraisal. While consumers with credit scores a low as 580 may qualify, home buyers should contact an FHA lender for an accurate assessment of their situation and ability to qualify.

Norbert G. Huston

www.SanJoaquinHomes.info

Effective January 1, 2009, any person or private entity with whom a live animal has been "involuntarily deposited" must take charge of it, if able to do so, and immediately notify animal control officials to retrieve the animal. An "involuntary deposit" includes the abandonment of a live animal on a property that has been vacated upon, or immediately preceding, the termination of a lease or foreclosure of the property. The animal control officers who respond can secure a lien to recover the rescue cost, but this law imposes no other liability upon a depositary who complies with these rules. Assembly Bill 2949.

Norbert G. Huston

www.SanJoaquinHomes.info

Fast Facts
Calif. median home price - September 08: $316,480(Source: C.A.R.)
Calif. highest median home price by C.A.R. region September 08: Santa Barbara So. Coast $935,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region September 08: High Desert $159,720 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 08: 48 percent (Source: C.A.R.)
Mortgage rates - week ending 11/13/08 30-yr. fixed: 6.14% Fees/points: 0.7% 15-yr. fixed: 5.81% Fees/points: 0.7% 1-yr. adjustable: 5.33% Fees/points: 0.5%(Source: Freddie Mac)

Norbert G. Huston

www.SanJoaquinHomes.info

When searching for a home inspector, consumers should seek recommendations and referrals from their REALTOR®, as well as other recent home buyers. It is recommended that consumers interview at least three potential candidates during this process. Home inspectors are not regulated as closely as other industries; so home buyers should consider choosing one that belongs to the American Society of Home Inspectors. The American Society of Home Inspectors requires its members to complete at least 250 inspections. Consumers also should inquire about fees, and whether the inspector is bonded and insured.

Norbert G. Huston

www.SanJoaquinHomes.info

Here's an interesting statistic from USN&WR's latest editorial.

"In the decades since WWII, home prices as a multiple of annual rent have generally averaged 15 times. In the recent bubble they reached a multiple of 26 and remain at 22."

The editorial's point is housing prices have a ways to drop yet to reach a level relative to personal income, at least not without the lax mortgage financing that produced the bubble in the first place.

In my own experience (in New Jersey), before the early 1970s Oil Crisis, 100 times the monthly rent was the cost of a house, or multiple of 8.3.

In those days the Savings & Loan banks required 25 per cent down, but 40 year loans were available.

Of course in the case of New Jersey, property taxes were high, which put downward pressure on house values. In the case of California with relatively low property taxes due to Proposition 13, a home’s value was higher. The point
being, people have only so much they can afford for a house, whether divided into the cost of the monthly mortgage or property taxes.

Submitted by Robert Sharp; November 13, 2008