Oklahoma Number 1 in Home Price Appreciation
Here we are again at the top of the list. The Office of Federal Housing Oversight (OFHEO) has placed Oklahoma at the top of the list in home price appreciation through the second quarter of this year according to OFHEO's seasonally-adjusted purchase-only house price index. The index, which is based on data from home sales, was 1.4 percent lower on a seasonally-adjusted basis in the second quarter than in the first quarter (Nationwide). This decline was less steep than the 1.7 percent decline in the prior quarter. Over the past year, prices fell 4.8 percent between the second quarter of 2007 and the second quarter of 2008. The decline is the largest in the purchase-only index's 17-year history, but is much smaller than those of other indexes.
Here's the kicker Oklahoma's appreciation for one year was reported as 4.93%. For those who care to read the release you can find it at this link > OFHEO. Again for Oklahoma its the same good news / bad news. This state has not had a real estate "bubble" and has only appreciated at around 4% for the last few years. That's the bad news. The good news: We continue to appreciate at 4%. Also it was reported locally in the Tulsa World, according to Realty Trac, US foreclosures were 1 in 464 households in July. Oklahoma was 1 in 930 households or to make the comparison - about half of the nation wide rate.
Nearly 40% of all FHA loans are originated with DPA.These Federal Housing Administration loans are not sub-prime. Without DPA programs, an estimated 50,000 families per month will be locked out of homeownership.
Targeting minorities, women-headed households, and first-time homeowners.DPA participants are diverse. Of the participants in Nehemiah, the largest DPA program, nearly half are first-time homebuyers are people of color and more than one-third are female-headed households.
A perfect storm: removing assistance and raising the hurdle.In addition to eliminating vital support for responsible homeownership, the misguided H.R. 3221 increases the downpayment requirement from 3 to 3.5 percent in an economy where stable, creditworthy families have less cash than ever.
You can find more information here:
http://www.dpagroundswell.org
To besure this is a mixed bag of fruit. Borrowers that don't put money down have a higher default rate than borrowers who do. So here's the issue, while it helps some home buyers acheive their desire to own a home, some will ultimately default on their loan, and at a higher percentage rate than those who do not use a down payment assistance program. What happens next is when the lender has a default, here comes a foreclosure and the FHA gurantee kicks in (this is where the tax payer participates) and the lender receives a portion of the loan amount, less than that which is owed.
The elimination of down payment assistance programs is an important change and you can consider what the elimination of 600,000 (annual number) buyers might mean to the market. Does it mean there will be a better market for home sellers? I doubt it. You need to decide what might be in your best interest. If you believe that a down payment assistance plan will help you buy a home, you might want to root for passage of this bill brining it back.
As things stand now, according to Nehemiah Corporation of America, Sacramento, Calif., (Major provider of down payment assistnace) on October 1, 2008, 50,000 purchasers are off the market.
If you have any questions about what this may mean to you. Please feel free to contact mel.
Brett Brough
Cityscape Home Mortgage
NMLS #200326
NMLS # 213001
Staff Profiles | Contact Us | Closing costs - loans | Closing costs - Ins. | Your FICO score | Credit Information | Testimonials | Can I Get a Loan? | Can I Catch the Market Bottom | Is Now a Good Time To Buy? | 4.5% Rate - Is it Real? | Affordability | Closing Costs | Download Adobe Acrobat | Tell a Friend | News | Real Estate Glossary | Cityscape Home | Loan App Checklist | Mortgage Saving Tips | Your Down Payment | Documenting Assets | Site Map | Loan Application | The Loan Process | Get Your Loan Faster! | Improve Your Credit Score | When to get Qualified | When to Refinance | Loan Application Info | What is a credit score? | Rate Lock Periods | Rates and A.P.R. | Refinancing Options | Rate Sheet | Customer Login | Request Industry Info | 9 Steps to Ownership | How to Sell Your Home | Winterize your Home | What is PMI? | Gifts as Downpayment | Disputing Credit Reports | Mistakes on Your Report | Bankruptcy | Getting Your Credit Report | 401k for Downpayment | Need a Bridge Loan? | Government Loan Programs | Buyer Don'ts | Paying Your Loan Early | How Much You Can Afford | HUD-1 Settlement Statement | Debt-to-Income Ratios | Home Equity Lines of Credit | Are You Pre-Approved? | Home Equity Loans | Shopping Settlement Costs | Mortgage Tuneup | Home Price Index | Daily Rate Lock Advisory | My Mortgage Blog | Win $1000
Copyright © 2010 Cityscape Home MortgagePortions Copyright © 2010 a la mode, inc.Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map