FHA program was started to assist the first time home buyers in inexpensive housing. Now 5 years after the housing crash it’s morphed into the agencies to support sub prime borrowers and prop up home prices.
Under Pressure, FHA Skews to Wealthier Home Buyers
Published: Friday, 25 May 2012 | 12:20 PM By: Diana Olick CNBC Real Estate Reporter\
The Federal Housing Administration, the government insurer of home mortgages, is often credited with saving the home finance market during the worst of the latest housing crash.
When no one else would lend to lower-income borrowers, the FHA stepped in, its share of mortgage originations rising from around 3 percent during the height of the housing boom to close to 40 percent of the home purchase market at the height of the crash.
That was not without a very high price.
12 percent of FHA loans were delinquent at the end of the first quarter of 2012, with an additional 4 percent already in the foreclosure process; 16 percent of FHA loans are in some form of distress. That is far higher than the 11 percent of all loans nationally in distress, according to the most recent data from the Mortgage Bankers Association. The higher delinquency is expected, given that FHA, historically, serves borrowers with lower credit scores and lower down payments. A borrower needs just 3.5 percent down payment and a 580 credit score to qualify, according to FHA guidelines.
Buena Park Overview
| Median home price is $325,000. Based on a rental parity value of $449,000, this market is under valued. |
| Monthly payment affordability has been worsening over the last 1 month(s). Momentum suggests unchanging affordability. |
| Resale prices on a $/SF basis increased to $228/SF to $232/SF. |
| Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. |
| Median rental rates declined $33 last month from $1,916 to $1,883. |
| Rents have been rising for 5 month(s). Price momentum suggests rising rents over the next three months. |
| Market rating = 10 |
Proprietary OC Housing News home purchase analysis 
31 CENTERSTONE Cir Buena Park, CA 90620
$495,000 …….. Asking Price
$441,117 ………. Purchase Price
3/12/2012 ………. Purchase Date
$53,883 ………. Gross Gain (Loss)
($35,289) ………… Commissions and Costs at 8%
============================================
$18,594 ………. Net Gain (Loss)
============================================
12.2% ………. Gross Percent Change
4.2% ………. Net Percent Change
47.0% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$495,000 …….. Asking Price
$17,325 ………… 3.5% Down FHA Financing
3.80% …………. Mortgage Interest Rate
30 ……………… Number of Years
$477,675 …….. Mortgage
$128,520 ………. Income Requirement
$2,226 ………… Monthly Mortgage Payment
$429 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$124 ………… Homeowners Insurance at 0.3%
$498 ………… Private Mortgage Insurance
$44 ………… Homeowners Association Fees
============================================
$3,320 ………. Monthly Cash Outlays
($340) ………. Tax Savings
($713) ………. Equity Hidden in Payment
$22 ………….. Lost Income to Down Payment
$82 ………….. Maintenance and Replacement Reserves
============================================
$2,371 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$6,450 ………… Furnishing and Move In at 1% + $1,500
$6,450 ………… Closing Costs at 1% + $1,500
$4,777 ………… Interest Points
$17,325 ………… Down Payment
============================================
$35,002 ………. Total Cash Costs
$36,300 ………. Emergency Cash Reserves
============================================
$71,302 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # P822785 from our database. Please check back soon.
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$350,000 7838 BELLFLOWER Dr |
0.44 miles 5 bd / 3.5 ba 2,079 Sq. Ft. |
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$445,000 8537 LOCUST Dr |
0.78 miles 3 bd / 3 ba 2,332 Sq. Ft. |
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$539,900 8561 GRAND Ave |
0.94 miles 5 bd / 3.5 ba 2,716 Sq. Ft. |
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$405,900 2700 MADISON Cir |
1.12 miles 3 bd / 2.5 ba 2,000 Sq. Ft. |
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$349,000 3114 West POLK Ave |
1.3 miles 5 bd / 2 ba 2,000 Sq. Ft. |
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$399,900 6602 HIGHLAND Ave |
1.38 miles 4 bd / 2 ba 2,300 Sq. Ft. |
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$610,990 118 North HARDING Pl |
1.38 miles 4 bd / 3.75 ba 2,680 Sq. Ft. |
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$550,000 7852 ARTESIA Blvd |
1.67 miles 5 bd / 7.5 ba 2,394 Sq. Ft. |
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$510,000 509 South VICKI Ln |
1.73 miles 5 bd / 2.5 ba 2,606 Sq. Ft. |
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$395,000 5861 MARSHALL Ave |
1.78 miles 6 bd / 3 ba 2,264 Sq. Ft. |
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Lenders are succeeding in driving prices higher. Do you feel good about being forced to pay more for a house to enrich a bankster.
Zillow: Home Values See Highest Monthly Increase Since 2006
Zillow issued a released Friday reporting that both national home values and rents rose in the month of April.
According to the April Zillow Real Estate Market Reports, national home values rose 0.7 percent in April to a Zillow Home Value Index of $147,300. This is the largest monthly increase in home values since January 2006, and it makes April the second month in a row in which home values climbed up.
Zillow also reported that rents rose from March to April, increasing by 1.6 percent, according to the Zillow Rent Index. Of the 178 markets covered by Zillow, 78 percent experienced a rise in rents.
The Miami-Fort Lauderdale and Phoenix metro areas saw the biggest increases in home values, rising 1.6 and 1.9 percent, respectively. Values continued to decrease in hard-hit markets like Atlanta, where home values fell 0.7 percent.
“The housing market continues to show positive signs, with home values increasing significantly in April,” said Dr. Stan Humphries, chief economist at Zillow. “The recovery is moving in the right direction, but we caution that negative equity will cast a long shadow over the housing market. With almost one-third of homeowners with mortgages underwater and unable to sell their homes, inventory is having a hard time keeping up with increasing demand in many areas. We’ll continue to watch this signal as increasing home values turn from a blip into a trend.”
Foreclosures also continued to decline in April, with 6.8 out of every 10,000 homes being foreclosed across the U.S. That figure was down from 8 out of every 10,000 in March.