Blogging about real estate in Orange County, California

So it's finally official, enacted, etc. The FHA loan limits have been raised to a reasonable level for high-cost areas (at least through 2008, anyway). What does this mean to you? Well FHA loans allow buyers to go in with a small down payment and a decent interest rate. Because the loan limits were not raised with the market, a hole was created where the government loans simply did not fulfill the needs of buyers. So the loan industry filled that hole with sub-prime loans. FHA loans are generally considered superior, in part due to the requirement for full documentation. There is a PITA factor to going full-doc, which is why many lenders discouraged using FHA loans for so long, but in the current market, this is the only way for many buyers to take advantage of the great prices on properties and finally fulfill their dream of home ownership.

Okay, enough of the fluffy stuff, you no doubt want to know what the qualifying loan limits are, right? Here's a county-by-county breakdown: 
 

County Name               One-Family      Two-Family      Three-Family    Four-Family

                                               

ALAMEDA                 $729,750         $934,200         $1,129,250      $1,403,400

ALPINE                      $547,500         $700,900         $847,200         $1,052,900

AMADOR                   $443,750         $568,050         $686,650         $853,350

BUTTE                        $400,000         $512,050         $618,950         $769,250

CALAVERAS             $462,500         $592,050         $715,700         $889,450

COLUSA                    $397,500         $508,850         $615,100         $764,400

CONTRA COSTA      $729,750         $934,200         $1,129,250      $1,403,400

DEL NORTE               $311,250         $398,450         $481,650         $598,550

EL DORADO              $580,000         $742,500         $897,500         $1,115,400

FRESNO                     $381,250         $488,050         $589,950         $733,150

GLENN                       $287,500         $368,050         $444,900         $552,900

HUMBOLDT              $393,750         $504,050         $609,300         $757,200

IMPERIAL                  $325,000         $416,050         $502,900         $625,000

INYO                          $437,500         $560,050         $677,000         $841,350

KERN                         $368,750         $472,050         $570,600         $709,150

KINGS                        $325,000         $416,050         $502,900         $625,000

LAKE                          $401,250         $513,650         $620,900         $771,650

LASSEN                     $285,000         $364,850         $441,000         $548,050

LOS ANGELES          $729,750         $934,200         $1,129,250      $1,403,400

MADERA                    $425,000         $544,050         $657,650         $817,300

MARIN                       $729,750         $934,200         $1,129,250      $1,403,400

MARIPOSA                $412,500         $528,050         $638,300         $793,250

MENDOCINO            $512,500         $656,100         $793,050         $985,600

MERCED                    $472,500         $604,900         $731,150         $908,650

MODOC                     $271,050         $347,000         $419,400         $521,250

MONO                        $462,500         $592,050         $715,700         $889,450

MONTEREY               $729,750         $934,200         $1,129,250      $1,403,400

NAPA                         $729,750         $934,200         $1,129,250      $1,403,400

NEVADA                    $562,500         $720,100         $870,450         $1,081,750

ORANGE                    $729,750         $934,200         $1,129,250      $1,403,400

PLACER                     $580,000         $742,500         $897,500         $1,115,400

PLUMAS                    $410,000         $524,850         $634,450         $788,450

RIVERSIDE                $500,000         $640,100         $773,700         $961,550

SACRAMENTO         $580,000         $742,500         $897,500         $1,115,400

SAN BENITO             $729,750         $934,200         $1,129,250      $1,403,400

SAN BERNARDINO  $500,000         $640,100         $773,700         $961,550

SAN DIEGO               $697,500         $892,950         $1,079,350      $1,341,350

SAN FRANCISCO     $729,750         $934,200         $1,129,250      $1,403,400

SAN JOAQUIN          $488,750         $625,700         $756,300         $939,900

SAN LUIS OBISPO   $687,500         $880,100         $1,063,850      $1,322,150

SAN MATEO             $729,750         $934,200         $1,129,250      $1,403,400

SANTA BARBARA    $729,750         $934,200         $1,129,250      $1,403,400

SANTA CLARA         $729,750         $934,200         $1,129,250      $1,403,400

SANTA CRUZ            $729,750         $934,200         $1,129,250      $1,403,400

SHASTA                     $423,750         $542,450         $655,700         $814,900

SIERRA                       $285,000         $364,850         $441,000         $548,050

SISKIYOU                  $293,750         $376,050         $454,550         $564,900

SOLANO                    $557,500         $713,700         $862,700         $1,072,150

SONOMA                   $662,500         $848,100         $1,025,200      $1,274,050

STANISLAUS            $423,750         $542,450         $655,700         $814,900

Actually, yes, you can.

I've seen some interesting things on the MLS these days. All the short sales hitting the market have really created some interesting opportunities for buyers.

For example, just today I was cruising the MLS for one of my buyers, and one home that came up on the search was a 1 bedroom, 1 bathroom condo WITH a garage, and it's listed in the (very) low $200,000's. And before you assume such a price could only be gotten in senior communities or the norther part of OC, I should tell you that this is actually in South Orange County! (Okay, technically, the title gives that away, doesn't it?)

Now, understand that the price of that particular unit is not all that common in this area, as this Irvine-adjacent neighborhood is very pleasant, tree-filled, etc. (Hey, it's Lake Forest, one thing Lake Forest is not short on is trees!) And that particular property is actually conveniently close to the 241 toll road. But condos took a big hit when the bottom fell out of the sub-prime market, and the hit is two-fold: 1. People who bought on a risky loan that suddenly saw their interest rate jump beyond what they could afford now need to sell quickly, and 2. There are fewer buyers available because credit has tightened up. So you have a lot of sellers competing for a very small pool of buyers, all of whom are looking to get a great deal on a property. And the great deals are definitely out there.

While still not a common price, there are actually multiple condos available even in the mid-$200,000s (say, $240K-$270K). Actually, the complex that the low-$200s property is a part of is one of the lowest-priced condo complexes in the area, so there are a few condos on the market there in the mid-$200s. There's another condo complex in Lake Forest, but closer to the 5 freeway than the toll road, that also has some units in the mid-to-high-$200s. In the low-$300s, you start getting into some of the really nice 1-br condos.

2-bedroom condos, while generally running high-$300,000s on upward, have also taken a hit, and a shrewd shopper willing to deal with a short sale could get one in the mid- or even low-$300,000s. There aren't a lot of them in that range, but there are a couple. Even more surprisingly, there are a couple 2-bedroom condos in the high $200,000s. (And not surprisingly, they are in the same complex as the 1-bedroom in the low $200s)

What am I getting at here? It's a buyer's market, kids. If you're looking to buy, it's time to get off the fence and take advantage of market conditions that haven't been seen since the 90s.

Are you ready to buy? Email me and let's find your new home together!