Logo of the Federal Housing Administration. (Photo credit: Wikipedia)
An FHA loan or mortgage is a popular choice, especially for first-time homebuyers. It is called an FHA loan because the Federal Housing Authority backs it. It’s a type of loan created by the government so that borrowers could get low-cost financing.
Another advantage of an FHA loan is that it is not as strict in terms of what’s required to qualify for one. It also requires less of a down payment. While most conventional loans required 20 percent down, the minimum down payment for one of these loans is 3.5 percent. Plus, with a conventional loan if you can’t put down 20 percent, you will most likely be required to get what’s called private mortgage insurance or PMI.
The impediments to a faster recovery were lenders’ too-tight with their credit standards and the rise in mortgage interest rates, which broke the 4 percent barrier in mid-June. The average home buyer faced major challenges in getting a home loan and were required to put a larger downpayment.
Another financing hurdle for housing was poly changes at the Federal Housing Administration, which hiked mortgage insurance premiums for FHA loans and began requiring many FHA borrowers to pay annual premiums for longer periods.
Mortgage interest rates remain low, sustaining homeownership as an attractive and affordable opportunity for Californians.
Median home values in the United States of America in 2005 (Photo credit: Wikipedia)
The median prices of homes in Lake County made a big increase in October while homes sales declined slightly for the second straight month mainly because the government shutdown slowed the closing of some escrows. The housing supply conditions continued to dwindle as the housing market entered its off season according to information gathered from the Lake County Multiple Listing Service.
The median home price climbed sharply in October and was also higher on a year-to-year basis. The county wide median price of a home was up 48 percent from September’s median price of $125,000 to $185,000 in October. October price was 95.8 percent higher than $94,500 recorded in October of 2012. Good News for Lake County!
English: Mortgage rates historical trends (Photo credit: Wikipedia)
Activity was down in the mortgage market last week as a result of spiking interest rates, according to recent reports. Rates spiked last week on a better than expected jobs data, with the average rate for a 30-year fixed-rate mortgage hitting 4.558%, up from 4.480% the week prior. Refinances took the biggest hit last week, but conventional loans also suffered. There was a 7% decline from the previous week, compared to last year at this time. The market activity dropped by nearly a third. Low inventory has been some of the reason for conventional financing, hopefully sellers will strike on the low inventory market.
The Singing Handyman (Photo credit: ~Oryctes~)
Finding a handyman is like searching for gold. When you find a good one, it is tempting to keep him a secret–after all, this is a resource you can depend upon for fixes all over the home. From fixing cupboard doors to replacing the grout in the bathroom. A great handyman who is available, can communicate well, is capable of a wide variety of jobs, who can trouble-shoot and think outside the box is worth quite a lot. The great thing about hiring a handyman is that they are paid by the hour (plus materials), and you can save up a list of smaller jobs that you would like to accomplish.
Often, local handymen who are in business for themselves are not licensed, bonded or insured–so they charge less, but there is a level of risk in using them that you will have to judge for yourself. Some companies provide handyman services, where the business ensures that there is property insurance and bonding, but they are usually higher in cost to the consumer. It’s my recommendation that you hire a handyman that does carry the proper insurance to cover any accidents that might happen.
New Listing-Affordable housing
Three bedroom two baths with updated kitchen with granite counters, large master bedroom, small patio for entertaining, single car garage, central & air, pool & hot tub, $175,900
We now must under the law have health coverage or face a penalty unless they meet one of the law’s exceptions, including financial hardship, defined as spending at least 8 percent of your income on insurance.
The requirement takes effect in 2014. If you don’t meet one of the exceptions and decide not to buy insurance, the penalty is 1 percent of your household income or $95 for each uninsured person in the household, whichever is greater, although you’ll never pay more than the price of the lowest priced plan on the exchange.
Households with income of up to 400 percent of the federal poverty level (about $96,000 for a family of 4) are eligible for premium credits. To be eligible, the insurance has to be available in your state exchange, even if you don’t purchase the policy on the exchange. It seems confusing but the actual website is easy to maneuver around.
Insurance (Photo credit: Christopher S. Penn)
Everyone is always asking about interest rates, where will they go and how high…interest rates over the next l8 months will probably rise gradually with the l0-year Treasury yield, reaching 3.7 to 4.0 by the end of 2014 and 4.7 percent by the end of 2015. That may seem like a big increase but remember that before this recession, 4 percent to 5 percent interest rates were the norm. As long as the rate increases are gradual, the market will be able to digest them.
English: Gonorrhea — Rates: United States, 1941–2007 (Photo credit: Wikipedia)