December 6, 2011 By

Statewide News Is Much Different Than Porter Ranch and other San Fernando Valley Towns.

 

 

Statewide news of moderate drops in valuation do not reflect accurately what is going on locally in towns throughout San Fernando Valley.

Last month in the Valley the median price of a previously owned home was $350,000, down 9 percent from a year earlier. And it is just 3 percent above the low for this cycle of $339,900 reached in February of 2009.

And 3 percent is not much distance to cover in this market. October’s median fell by that much from September.

October’s numbers also show just how this once high-flying housing investment has tanked, too.

 

The median price, the point at which half the homes cost more and half less, topped out at $655,000 in June of 2007. By October it was 46.6 percent, or $305,000 under that level.

The condo market is faring a little better.

Last month’s condo price settled at $225,000, up 21.6 percent from the low point of $185,000 reached in May of 2009.

But it is 45.8 percent, or $190,000, under the record high $415,000 in February of 2006.

The local market is not mirroring the state activity which has San Francisco to keep to  correction statewide from being so dramatic.

the lesson to be learned if you want to know history of local towns of Porter Ranch, Granada Hills, Chatsworth, Woodland Hills etc, you need to pay attention to local news.

Filed Under: Business, City News, Foreclosure Information, Investment Real Estate, Porter Ranch, Real Estate, San Fernando Valley, Selling a home, Short Sale Information

Porter Ranch Expensive Homes get a Break.

November 28, 2011 By

 

 

More Expensive Home Areas Like Porter Ranch go a Break.

President Obama signed into law a bill that will reinstate higher limits for Federal Housing Administration-backed mortgages in high-cost areas. In expensive housing areas such as Porter Ranch, the limit for these FHA-backed loans had dropped to $625,500 from $729,750 on Oct. 1. The change will enable home buyers to get reasonable loans at rates they can afford. Since over 90% of loans are backed by the U.S government, it is important to see higher loan limits again until the rest of the loan market recovers.

Filed Under: Business, Investment Real Estate, Mortgage, Porter Ranch, Real Estate, San Fernando Valley

Can I Afford This House

June 2, 2011 By

By Dave Friedman, Realtor

Whether it is a beautiful Tuscan style home in Northridge or a wonderful Porter Ranch townhome with great canyon views,  how do you know if you can afford that house?  Loan programs have down payment requirements that vary depending on your FICO credit score, money in the bank and income level.   Home buyers should have at a minimum an idea of their maximum down payment and maximum allowed monthly housing expense before shopping for a home.  Ideally, home buyers should be preapproved by a lender so they know exactly how expensive of a home the bank will lend on.  Home sellers expect offers to be accompanied by a pre-approval letter.    The following information will give you a better understanding of lender guidelines.

The federal government has stepped in with low down payment FHA programs for most home buyers that require only 3.5% down.   The down payment minimums for the majority of loans range from 3.5% to 20%.    You want to take into consideration approximately 2%  of the purchase price for closing costs which may be put into the loan or paid at closing.  You should have a reserve of at least 3 months  of home payments in the bank for emergencies.  Once you figure out how much you feel comfortable for a down payment, closing costs and emergency fund,  then the mortgage and related payment affordability based on income can be calculated.

A fairly accurate way of figuring your maximum monthly payment affordability is to take into consideration all monthly debt reported to credit agencies such as car payments and other loan payments.  That total should not exceed 45-50% of your gross monthly income.

The last major piece in determining what loan programs you qualify for is your FICO score or credit rating.  Fico scores that still qualify for some loans can be as low as 500 but require at least 10% down.

The majority of loans require mortgage insurance if the borrower does not put down 20%.  The fee ranges from presently .5% to .9% of the loan amount annually until the loan value drops to a conforming amount relative to the property value.  The good news is the borrower with limited funds may be able to purchase a home when values are low and interest rates are around 5% fixed for 30 years and about 4.35% fixed for 15 years.

The other monthly costs besides mortgage payments and mortgage insurance for down payments under 20% are property taxes and property insurance.  Property Insurance can be figured approximately .34% or .0034 times the purchase price.    Property taxes in Los Angeles County is approximately 1.25% or .0125 times the purchase price.  The last two expenses should be broken down by month so you can see your total housing cost.

The factors of  borrowers’  FICO credit score, cash position and income are key in determining the maximum affordability.  The recession should have reminded us all that maximizing debt to the fullest is not always a great idea.   Can I afford this house should be followed up with do I feel comfortable with this amount of debt and how much can I save with a 15 year loan versus a 30 year loan.

Feel free to call me with any  Real Estate Questions at 818-Myhouse (694-6873).  With over 20 years experience in Real Estate I assist with property sales, purchases, investing and resolving distressed loans. 818MyHouse.com/Keller Williams Realty – Experience turns Real Estate Dreams Into Reality

Filed Under: Business, Investment Real Estate, Real Estate