Bakersfield, CA Real Estate Update

February 26, 2013 By Leave a Comment

California state flagAs one of the nation’s busiest regions for agriculture and oil production, Bakersfield  CA is growing by leaps and bounds. Its population is estimated to surpass the 1 million mark by 2020. So, investing in property, whether for a residence or rental, could be a wise move.

Since last year, the average price per square foot is up to $91, which reflects a 12.3% increase. Median sales prices for single-family homes are also up in the y-o-y analysis by a significant 22.8%, or $29,369.  Unfortunately, home sales are currently down from last year by 21.9%.

A recent survey query from the Bakersfield Association of Realtors, which polled real estate agents, was, “Please indicate the major source of your business during the last 12 months.” Of the 293 respondents, 254 stated that it was in residential and traditional sales. Of those sales, 221 answered that distressed residential properties made up the bulk of their business. According to Trulia, there are now around 3,286 homes in some stage of foreclosure or auction. 

For the week ending January 1st, Trulia reported that the average listing price in Bakersfield was $238,365. From Movoto’s site, the median DOM (days on market) through January 1st was 82, which is better than last year’s figure of 92.

If you are considering a property purchase here, keep in mind that along with being known as “California’s Country Music Capital,” the Bakersfield area is also hugely involved with agriculture. Much of the country’s supply of certain citrus fruits, almonds and grapes are produced right here in the San Joaquin Valley. Looking into properties eligible for financing with a USDA Rural Housing loan, would definitely be worthwhile!

For those in search of a more traditional neighborhood, here’s a look at some of Bakersfield’s most popular choices along with the most current median sales price: 

City in the Hills: $219,500

Campus Park: $229,500

Seven Oaks at Grand Island: $517,000

Seven Oaks: $336,00

Stone meadows: $202,250

More Real Estate Updates from AFR Mortgage:

Mesa, AZ Real Estate Update
Omaha Real Estate Update
Miami Real Estate Update

Filed Under: Real Estate Tagged With: , , , ,

3 Reasons to Consider a USDA Rural Housing Loan

January 17, 2013 By Leave a Comment
home in country setting

Rural homes are often financed through USDA Rural Housing Loan programs.

Although it is certainly not new, the USDA Rural Housing Loan program may be one of the most overlooked opportunities available to prospective home buyers. Established in 1949 by the US Department of Agriculture, its goal is to give residents of rural areas the opportunity to own a home and promote development in underdeveloped areas.

There are certain eligibility requirements for both the borrower and the property to be purchased. Borrowers must meet certain income, credit and employment requirements while the home to be purchased must lie within the USDA’s Property Eligibility Map.

The USDA works with approved lenders in all 50 states. Since the program began, over 2.7 million rural borrowers have become proud homeowners. Here are 3 compelling reasons why this is such an outstanding prospect for anyone thinking of buying a home:

Rural does not mean remote

Please do not assume that the eligible properties are all located miles and miles from civilization. A quick check with the USDA’s website will allow you to track down homes that meet the USDA guidelines. Guess what? Many of them are in close proximity to some of the nation’s fastest growing metro areas – including places like Austin, TX; Bend, OR; or Santa Fe, NM. [Read more...]

Filed Under: Home Buying Tagged With: , ,

What Are USDA Rural Housing Loans?

January 16, 2013 By Leave a Comment

Log home in the country.A USDA Rural Housing Loan is a special type of mortgage in which borrowers can finance a home that is located in an area designated as rural by the United States Department of Agriculture. Not all lenders offer USDA home financing; only lending institutions that are approved by the USDA can offer this type of mortgage to their clients.

USDA Rural Housing Loans are a popular choice for buyers, as the interest rates associated with this loan type are typically low and 100% financing is available for qualified applicants. Through this specialized program, borrowers must meet certain qualifying criteria in order to be approved for USDA home financing.

Eligibility is largely based on where the home to be purchased is located. In order for your property to qualify for USDA financing, the home must lie within the rural development boundaries established by the USDA. Even if the property you’re interested in doesn’t appear to be in a “rural” setting, it may still qualify for USDA home financing. If the property you’re considering is not eligible, don’t give up hope. When you work with a qualified mortgage consultant or real estate agent, he or she can help you find similar properties that lie within the USDA’s rural development map. [Read more...]

Filed Under: Home Buying, Q & A Tagged With: ,

Conforming Loan Limits To Remain Unchanged

December 24, 2012 By Leave a Comment

large luxury home with brick drivewayThe conforming loan limits are going to stay the same for mortgages acquired by Fannie Mae and Freddie Mac, the Federal Housing Finance Agency reported in November.

The FHFA stated that the maximum loan limit for one-unit properties will remain at $417,000, but will still be able to run as high as $625,500 if the property is located in a designated high-cost area. Homes that are sold for more than the conforming loan limits are required to be financed through non-conforming  jumbo mortgages.

For loans originated before Oct. 2011, the FHFA says the maximum loan limit will remain as high as $729,750. That limit was the result of older legislation that will not impact mortgages originated in 2013, a recent Housing Wire article reports.

In order for the Federal Housing Agency to insure homes that reached the $729,750 limit, a law was created by President Obama in 2011 that reinstated higher conforming loan limits for the FHA through the end of 2013. This piece of legislation allowed the FHA to insure mortgages up to $729,750 in the nation’s most expensive neighborhoods. Unfortunately, not everyone was on board with the decision. Opponents of the legislation felt this decision would hamper the Treasury’s stated intent of bringing back private capital and phasing out the government presence in the housing market.

In Other News…

home in country settingUSDA Property Eligibility Map to be Updated in March 2013

If you’re thinking of buying a home that qualifies for USDA financing, we’ve got some great news for you! The USDA Rural Development Single Family Housing recently announced that it will delay updating its Property Eligibility Map until March of 2013. This means that you have about three more months to secure a no-money down USDA home loan on an eligible property.

USDA loans are a popular choice for many home buyers, particularly first-time buyers or buyers with little to no cash to put down. To qualify for a USDA loan, the property you intend to purchase must be within a certain boundary as set by the USDA. These boundaries usually encompass rural areas with less development. In addition to the property being in the eligible area, to qualify for a USDA home loan, your household income can not be more than the limits for that county.

Periodically, the USDA will update its eligibility map to match new census data. As economies thrive and businesses expand, it’s not uncommon to see the USDA rural boundaries shift or shrink in size. As an example, more than 20 communities in North Carolina grew to the point where they no longer met the criteria to be considered “rural.”

Since these USDA updates can really change the playing field, you might want to act sooner rather than later if you want to take advantage of this special financing. Remember, just because a home is eligible for USDA financing today doesn’t mean it will remain eligible after March!

For more information on USDA home loans, contact American Financial Resources at 1-800-634-8616 or complete the rate quote request form to the right.

 

Filed Under: Mortgage News Tagged With: , ,

5 Reasons to Move to the Country

August 25, 2012 By Leave a Comment

Are you a City Mouse or a Country Mouse? Had you rather pop down to the neighborhood market for your fruits and veggies or grow your own? Do you long for wide-open spaces or does nature make you nervous? Are you ready to swap the cacophony of car horns, train whistles, and sirens for the chirping and croaking of birds, crickets, and frogs? Have the long-term effects of the economic downturn reinforced your desire to be self-sufficient? Perhaps it’s time to consider a few benefits of life in the country…here are five:

Home buyer in the woods.1. Affordability – The cost of living is definitely lower in the nation’s less congested suburban and rural areas. A quick check on a cost of living calculator is very telling! To compare for yourself, use the link on Sperling’s Best Places: http://www.bestplaces.net

In terms of home prices, it is possible to get much more for your money outside of an urban area. According to the website, home-cost.com, construction costs per square foot average $70 to $85 in many of the nation’s rural areas. When contrasted with the higher price of homes inside the city limits, which range from $90 to $128 per square foot, it’s no contest.

There are also specialized loan programs that may make getting out of town much more affordable. Mortgage rates for single wide and doublewide mobile homes are extremely low and can be used to purchase or refinance. The USDA’s Rural Housing program was established in 1949 as a means to give residents in outlying areas the opportunity of home ownership. It is the only zero money down loan available to those outside of the US military. 203k-rehab loans are yet another way to finance your “Green Acres” farmhouse that’s in need of a little TLC.

2. Mother Nature is a nice neighbor – Rather than relying on a cup of Joe to fuel the morning commute or reverse afternoon fatigue, when you live in the country, a breath of fresh air does the trick! Recent studies in the Journal of Environmental Psychology indicate that, “just being out in nature makes people feel more alive, and creates a sense of increased vitality beyond just the ordinary effect of increased physical activity and social interaction.” Another BBC News study reported that just five minutes of outside activity boosts mental health.
[Read more...]

Filed Under: Home Buying, Living Tagged With: , , ,

USDA Rural Housing Guidelines for 2012

May 25, 2012 By Leave a Comment

Nice back porch with flowers and sunshine.If you’ve been considering a USDA rural housing financing solution, be sure to take a look at the current guidelines.

Please note, this information is subject to change and may have already changed by the time of this posting. For the most up-to-date guidelines, contact a mortgage professional at AFR Mortgage and ask about USDA home loans.

For those of your who are unfamiliar with the USDA rural housing loan program, you’re not alone. This specialty loan is geared toward borrowers buying in a rural housing market and isn’t as aggressively advertised as FHA loans or traditional 30 year fixed rate mortgages. USDA loans are backed by the United States Department of Agriculture and are designed to boost housing stability in rural areas.

Some of the Guidelines for USDA rural housing loans:
[Read more...]

Filed Under: Home Buying, Mortgage News Tagged With: ,

5 Creative Ways to Afford a Home

May 24, 2012 By Leave a Comment

Family playing on a blanker in their yard.It’s generally the down payment, not the monthly mortgage payment, that makes owning a home unaffordable for first time home buyers. Consider these five ways to afford a home purchase:

  1. Apply for a low money down or zero down mortgage. FHA loans require as little as 3.5% down, and USDA rural housing mortgages and VA loans offer 100% financing for qualified borrowers.
  2. Look for owner financing. Some sellers may be willing to have you pay your monthly mortgage payment to him or her rather than to a traditional mortgage lender, and can set their own terms for a down payment amount.

[Read more...]

Filed Under: Home Buying Tagged With: , , ,