Aaron Cullen : Folsom & El Dorado Hills Real Estate

FHA Loan Volume is Soaring: In 2007, the number of government-backed FHA loans issued in the Sacramento Region was 649. In 2008, this number soared to 8,998 loans. In 2009, this number will increase again. With this in mind, I looked back at all of the transactions I have been involved in, in 2009, and found 67% of the buyers used FHA loans. FHA loans are primarily used by people who can't afford a big down payment, or have credit score issues. FHA buyers are only required to make a down payment equal to 3.50% of the purchase price, and can receive credits/gifts from the seller to assist with paying part or all of their closing costs. With the credit market shot, most conventional loans now require at least 10 percent down. FHA Loans are Making a Difference: In light of the housing down-turn, there are many existing home owners with growing families and/or incomes who would like to get a great deal while upsizing in this down market. Many of these would be buyers are well qualified with 2+ years of work history, excellent credit scores and great income. Their weakness? By the time they sell their existing home, and pay off their existing loan(s), there is little or no money left over for the down payment on their home purchase. This is where the FHA loan steps in, allowing these families the buy their dream home with total out of pocket costs as low as 3.50% of the purchase price. FHA loans can also be used for refinancing homes that have little equity in them. In Sacramento and El Dorado Counties, the maximum loan amount allowed with FHA loans is $580,000. If you want to know more about FHA loans, I don't originate them, but I'd be happy to answer your questions.

Deal of the Month: I am selling a home at 988 Patrick Circle in Folsom. 2,750 square feet, 4 beds, 3 full baths, 3-car garage on almost .20 acre lot. This meticulous home is in turn-key, move-in condition. Asking $450k (only $163 per square foot). Call me for details!

Regional Snapshot: The average home price in Sacramento County rose for the 6th consecutive month. The number of bank owned home sales fell for the 6th consecutive month to 715 units, their lowest level since March of 2008. The first time home buyer tax credit, FHA loans and low interest rates continue to be the right mix to keep the housing market going in the right direction.

El Dorado Hills: El Dorado Hills housing statistics continue to kick along what appears to be the bottom. The only statistics that stood out were the avg. home price got back above half-a-million to $509k and the avg. dollars per square foot got back up to $168 (highest level since Feb '09). The number of active Bank owned homes and short sales varied marginally and the banks still are not allowing short sales to close escrow.

FHA Loan Volume is Soaring: In 2007, the number of government-backed FHA loans issued in the Sacramento Region was 649. In 2008, this number soared to 8,998 loans. In 2009, this number will increase again. With this in mind, I looked back at all of the transactions I have been involved in, in 2009, and found 67% of the buyers used FHA loans. FHA loans are primarily used by people who can't afford a big down payment, or have credit score issues. FHA buyers are only required to make a down payment equal to 3.50% of the purchase price, and can receive credits/gifts from the seller to assist with paying part or all of their closing costs. With the credit market shot, most conventional loans now require at least 10 percent down. FHA Loans are Making a Difference: In light of the housing down-turn, there are many existing home owners with growing families and/or incomes who would like to get a great deal while upsizing in this down market. Many of these would be buyers are well qualified with 2+ years of work history, excellent credit scores and great income. Their weakness? By the time they sell their existing home, and pay off their existing loan(s), there is little or no money left over for the down payment on their home purchase. This is where the FHA loan steps in, allowing these families the buy their dream home with total out of pocket costs as low as 3.50% of the purchase price. FHA loans can also be used for refinancing homes that have little equity in them. In Sacramento and El Dorado Counties, the maximum loan amount allowed with FHA loans is $580,000. If you want to know more about FHA loans, I don't originate them, but I'd be happy to answer your questions.

Deal of the Month: I am selling a home at 988 Patrick Circle in Folsom. 2,750 square feet, 4 beds, 3 full baths, 3-car garage on almost .20 acre lot. This meticulous home is in turn-key, move-in condition. Asking $450k (only $163 per square foot). Call me for details!

Regional Snapshot: The average home price in Sacramento County rose for the 6th consecutive month. The number of bank owned home sales fell for the 6th consecutive month to 715 units, their lowest level since March of 2008. The first time home buyer tax credit, FHA loans and low interest rates continue to be the right mix to keep the housing market going in the right direction.

Folsom: Folsom housing statistics continue to kick along what appears to be the bottom. The average home sales price rose to $395k while the average dollars per square foot held steady at $183. The biggest quirk in the market is that the total number of active short sales (112), when added to the number of active bank owned homes (25) added up to 53% of all homes for sale (258). This is the first time in this housing downturn that active distressed home listings has exceeded 50% of available homes. No doubt this continues to erroneously skew home buyer perception as to home values and is causing further angst for home sellers.

Aaron Cullen - Brokers Inc. Residential Real Estate

Folsom Live 2009 - 12 Bands, 10 Stages, 1 Night, 9/26/2009. If you are looking for a home in Folsom, take a break and unwind a little bit... Folsom Live 2009 is tonight! If you like live music and hanging out with a couple thousand of your newest friends, check it out: http://www.folsomlive.com/welcome.html .

A high-energy evening of non-stop music in historic Folsom takes place Saturday, September 29 as Folsom LIVE! with tributes to such rock legends as Johnny Cash, Lynyrd Skynyrd and KISS. Also appearing is classic rock icon Billy Richards' Coasters, in addition to last year's favorite, Fun, Fun, Fun, a fun-filled show featuring tributes to The Beach Boys, Monkees and Beatles. With more than 10 venues along the three-block stretch of historic Sutter Street, the event features bands with styles of music ranging from rock and roll to country.

In an effort to off-set last year's fincial meltdown and the ensuing recession, the current administration created a tax credit of up to $8,000 for certain first-time home buyers in the $787 billion Economic Stimulus Package that was passed in February, 2009. Through this program, you are eligible to receive an $8,000 tax credit when you purchase a principal residence if you have an adjusted gross income of $75,000 or less (or $150,000 for married couples), you have not owned a home during the three years leading up to the purchase, and, you close escrow on your purchase prior to November 30, 2009.

Translation: Under the current First-Time Home Buyer Tax Credit program, if you would like the opportunity to get an $8,000 gift from the Federal Government, you have 71 days left to get pre-approved for a loan, find a home you would like to purchase, negotiate the contract, complete all the inspections and close escrow. The clock is ticking... Now is the time to take action!

Will Congress and our President allow this program to expire? Will it be extended? Will it be replaced by a different program? At this point, the answer is a resounding "Who knows?" If you want to move forward with any certainty, close escrow on your home purchase by November 30, 2009, meet the criteria outlined above, and you'll qualify for a juicy $8,000 gift from Uncle Sam.

-Aaron Cullen, Realtor, Broker, Owner Brokers Inc. Residential Real Estate

In an effort to off-set last year's fincial meltdown and the ensuing recession, the current administration created a tax credit of up to $8,000 for certain first-time home buyers in the $787 billion Economic Stimulus Package that was passed in February, 2009. Through this program, you are eligible to receive an $8,000 tax credit when you purchase a principal residence if you have an adjusted gross income of $75,000 or less (or $150,000 for married couples), you have not owned a home during the three years leading up to the purchase, and, you close escrow on your purchase prior to November 30, 2009.

Translation: Under the current First-Time Home Buyer Tax Credit program, if you would like the opportunity to get an $8,000 gift from the Federal Government, you have 71 days left to get pre-approved for a loan, find a home you would like to purchase, negotiate the contract, complete all the inspections and close escrow. The clock is ticking... Now is the time to take action!

Will Congress and our President allow this program to expire? Will it be extended? Will it be replaced by a different program? At this point, the answer is a resounding "Who knows?" If you want to move forward with any certainty, close escrow on your home purchase by November 30, 2009, meet the criteria outlined above, and you'll qualify for a juicy $8,000 gift from Uncle Sam.

-Aaron Cullen, Realtor, Broker, Owner Brokers Inc. Residential Real Estate