The real estate market across the country has had so much negative media lately that it is rare to hear anything positive. With depreciation of home values at the top of the list it is hard to know how to have perspective on the information fed to us daily. The Salem housing market obviously benefited from the housing boom in recent years – seeing double digit appreciation. Fortunately, the appreciation numbers were not too abnormal and now the benefit shines through the negative attention towards the market.
I read in an article today at www.housingpredictor.com that Salem, Oregon is the 2nd hottest housing market in the US. Housingpredictor.com places Salem in the 2nd position for forecasted appreciation in 2008 at 4.7%.
Although we’ve definitely noticed a slow down in real estate sales in 2008, it is important to keep the news we hear in perspective. Now is a great time if you’re looking to purchase your first home or an investment property!
2008 has brought a large amount of attention to the real estate, mortgage, and financial industries. The media throws information at consumers at a rate that is very difficult to comprehend. Education about the changes we hear from a day to day basis is important as we are all affected by these sectors of our economy. A major topic in the media is the government sponsored FHA home loan. Understanding the basics of the FHA home loan is important as it has become one of the most valuable programs for new and existing homeowners.
FHA or the Federal Housing Administration was established in 1934 to advance homeownership opportunities for Americans. FHA provides mortgage insurance for banks who lend money to consumers for home loans. The government security for banks opens an amazing opportunity for homeowners when many other mortgage programs have been negatively affected by the financial market woes.
When I mention the term FHA to my friends, family, or acquaintances more often than not I get the response that people think it is a program offered only to first-time homebuyers. The FHA loan program is actually designed to provide home loan opportunities for both new and existing homeowners. In recent years conventional loan programs have evolved to allow homeowners purchase or refinance homes with high loan to value ratios (the amount of your mortgage divided by the value of your home). These programs became popular because banks would provide great mortgage rates without requiring borrower paid mortgage insurance. Due to the unfortunate rise in default rates on these loans in 2007 and 2008 many banks have stopped offering these types of loans and the once popular government sponsored FHA loan program has again become a great option for those looking to either purchase or refinance.
You can visit www.hud.gov to learn more about the efforts our government is making to help homeowners make the most of the “American Dream”.
My name is Conrad Venti and I am blessed to be in a position to help people build a strong financial foundation. My passion is to educate friends, family, and acquaintances about the importance and benefits of home ownership. Strong Foundation is where I share tips and thoughts about credit, home ownership, and real estate in the Willamette Valley. I am going to shoot to have a new post up on Wednesdays, but will periodically post on other days as well.
