California Real Estate | Homes for Sale | Blog

For the fourth straight month, home sales rose in California. This would normally be great news, however the larger picture shows that sales decreased by 28.5% over last year February. In addition the median price has fallen by an astonishing 26.2%.

Here are some statistics from the California Association of Realtors:

Statewide, the 10 cities and communities with the highest median home prices in California during February 2008 were:

• Santa Barbara, $1,150,000
• Redwood City, $875,000
• Danville $875,000
• Encinitas, $842,500
• Santa Monica, $787,000
• Mountain View, $784,000
• San Clemente, $770,000
• San Mateo, $750,000
• Sunnyvale, $741,750
• San Francisco, $737,750
• Carlsbad, $675,000.

Statewide, the 10 cities and communities with the greatest median home price increases in February 2008 compared with the same period a year ago were:

• Encinitas, 25.7%
• Santa Barbara, 23.4%
• Walnut Creek, 21.5%
• Redwood City, 14%
• Carlsbad, 10.9%
• Sunnyvale, 5.3%
• Mountain View, 3.4%
• Rancho Mirage, 2.6%
• Santa Monica, 1.5%
• Los Angeles, 1.5%
• Santa Clarita, 0.9%.

Is now a good time to buy? Many would say YES! If you can qualify for a loan, there are some great deals to be had. If financing is an issue you might want to check into the CalHFA loan program, as there are less stringent requirements needed to qualify.

Is it your first time buyimg a house in California? Do you have a low credit score, no money to put down and not much money in your bank account? Are you starting to believe that your chance of getting a good deal on California real estate is zero? Do you feel like it’s impossible?

If you are in this category then this programs is just what you need. This program makes 100% financing a reality and covers all of your closing costs as well. This program is 100% legal because it is backed by a secure government agency. I know that this is just the opposite of what you are hearing and seeing in media everyday about California real estate. Across the United States, there is a dramatic rise in mortgage defaults. Many lenders have no choice but to shut their doors or create loans with much stricter guidelines and higher rates. The secondary mortgage markets are having second thoughts regarding the buying pool of mortgages from lenders because of these defaults. Who can blame them?

Those who are experienced enough will instantly point out that FHA and VA serves as guarantors to the performance of their loans. Both of these institutions are government programs. FHA can give you 97% while VA can provide you 100% but strict restrictions apply.

So what is this program for California real estate first time buyers? This program is called CalHFA. It has been around since 1975. CalHFa means California Housing Finance Agency. It offers below market interest rate mortgage programs ranging from very low to moderate income first time buyers. Who is considered as a first time buyer by CalFHA? You are a first time buyer if you have not owned a home in the last three years. CalHFA provides financial backing by selling tax spared Mortgage Revenue.

Here is the most exciting part of the program. CalHFA makes it possible to purchase a home with a lower credit score and no money down. It will also assist in paying your closing costs. They are able to do this with a FHA loan, a VA loan, a regular loan and a Jumbo loan. CalHFA offers several loan programs that suit the need of the prospective buyer. The interest only PLUSSM with up to 100% financing and borrowers can pay only the interest for the first five years of a 35 year term. There is also the 40 and 30-Year Fixed Mortgage which both offers up to 100% financing with a 40/30 year term and a lower market, fixed interest rate.

However there is a single string attached to these loan programs. According to the CalHFA website “CalHFA does not lend money directly to consumers. CalHFA works through and uses approved private lenders to qualify consumers and to make all mortgage loans.” All you need to do is to look for a mortgage professional certified to complete these programs.