real estate forecast

“The Cove”

Priced to sell $237,000 

Beautiful turnkey home nestled at the base of the San Jacinto mountains in the quiet, very desirable community called “The Cove”. This home is well maintained and clean inside and out! The kitchen features granite countertops and an open floorplan that leads into the living room. The front and backyard are fully landscaped with water wise plants and rockscape. All 4 of the bedrooms are located upstairs. Good sized master bedroom and bath with walk in closet. The community offers two private, gated parks for residents only. Great veiws of the mountains and a great location off of Warren Rd. close to Dominagoni Parkway and the 79. Minutes away from schools and shopping.

Please contact Miguel Aguilar at 951-634-8843 or Miguel@MiguelsWorld.org

 

 

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Understanding FHA Financing To Purchase Your Next Home

I am asked on  a weekly basis “what are the programs out in the market to help maximize my purchasing power”

 

In 1934, the federal government established the Federal Housing Authority (FHA). The FHA was not created to actually lend money; rather, it was created to insure the loans made by approved lenders to protect the lenders against defaults on the loans.

If a borrower obtains an FHA loan and then defaults on it, the lender is compensated by FHA, and thus the lender will not lose as much money and is therefore more willing to lend according to FHA guidelines.

Inviting Terms
Originally considered a program mainly for first-time buyers, FHA loans are now one of the most popular types of loans for all types of borrowers due to a variety of attractive features:

  • Low down payment. FHA loans let new buyers put down as little as 3.5 percent of the home’s purchase price. Gift funds may be used for the down payment, which means you may not need to come up with any cash at all.
  • Market-appropriate loan limits. For many years, FHA loans had very low maximum loan limits. But in 2007 the FHA raised its loan limits to equal the median home price in your market.
  • Lower credit requirements. While there are no set credit requirements, it’s best to contact me to determine if your credit history along with other factors will qualify you for an FHA loan.
  • Low up-front mortgage insurance rate. The FHA requires mortgage insurance to protect itself from loan defaults, but premiums are only 1 percent of the loan amount. The premium can be paid directly by the borrower or rolled into the loan amount.

In the past FHA loans were considered “risky” or too much trouble for lenders, with strict regulations and requirements that had to be met before an FHA loan would be approved. Borrowers who applied for an FHA loan were also sometimes considered high-risk, because usually they would not qualify for conventional funding. Relaxed guidelines combined with the state of the market have taken the stigma off of these loans and made them a great choice for nearly any borrower.

Other Considerations
While FHA loans offer less stringent terms than you would find with conventional loan requirements, they are also designed to ensure responsible homeownership. FHA loans impose ratios on borrowers’ debts in relation to their income. The FHA also requires you to pay 1% of the loan amount as an upfront mortgage insurance premium. In addition, annual mortgage insurance payments are also required, divided into monthly payments of 1.10% to 1.15% for 30-year loans, according to the loan-to-value ratio.

 

If you would like additional information please contact me to direct you to my preferred lender to help you with any questions 951-634-8843 miguel@miguelsworld.org

To Buy or Not To Buy, That is The Question!

To Buy or Not To Buy, That is The Question!

Many forecasts by the media and economic analysts across the United States don’t have much good to say about the health of the U.S. real estate market, although statistics do show the market is getting increasingly better. Ironically, this is and most likely will be one of the very best times to invest in the American Dream. I know that sounds crazy, but it is true! According to Mortgage News Daily reports of rates were as low as 3.875% just this past week. If you qualify for a loan, which let’s be realistic isn’t as hard as most people make it sound, then more than likely you will lock-in a 30-yr fixed mortgage rate that is currently experiencing all-time historical lows. Fortunately for you, if you can prove your income, assets, credit and debt to be worthy then there are financing options for you.

Here are some things that you may want to keep in mind:

Most people believe conventional financing to be their only option, but we are here to tell you that you have other options. You may be asking, “What are they?” One option that is growing in popularity is FHA financing. This is because an FHA loan offers many advantages to the borrower like:

  • Low down payment. FHA only requires a 3.5% down payment vs. conventional loans that require 20%
  • Easier to qualify. Since FHA loans are insured by the Federal Housing Administration often borrowers find that the requirements to qualify for an FHA loan are much more lenient. This includes borrowers with lower credit scores and higher debt-to-income ratios.
  • Lower closing costs. Often using an approved FHA lender directly translates to lower closing costs in comparison to most conventional loans.
  • Lower overall costs. Typically FHA loans have good interest rates, which mean a greater savings on the overall cost of the loan.
  • Foreclosure options. The Federal Housing Administration can provide foreclosure options to borrowers with FHA loans.

Even better are the prices of real estate. In most markets the median price of residential homes has dramatically decreased over the past 2-3 years (Murrieta approximate median home price is $249k according to Zillow.com), but forecasters are saying most major cities, even in California, will start to see an increase by early-to-mid 2011.

What does this mean to you? It means it is time to buy NOW and NOT TOMORROW! As prices begin to increase then interest rates will be sure to follow. Plus by waiting you’ll take the chance of losing valuable equity in the biggest investment you’ll ever make during your lifetime. So don’t waste another minute! Get pre-qualified today and get out there and find your American Dream! Don’t get overwhelmed, let Realty World and Associates help you realize your dream today!

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