I’m often asked by Ventura County home buyers what is the difference between loan pre-qualification and a loan pre-approval.  The two terms tend to confuse some home buyers, however the difference can mean a lot when it comes to purchasing a home.

Loan Pre-Qualification:

Most loan officers are able to pre-qualify a home buyer over the phone.  In this process the loan officer will ask a few questions such as the home buyer’s credit, income, and assets in order to place the home buyer in a certain loan program.  Assuming the home buyer has provided the loan officer with correct information, a pre-qualification letter is then issued to the buyer which states that the home buyer is Potentially eligible for a certain loan amount.

The pre-qualification letter is then issued to the home buyer to be submitted with their offer to purchase a home to  the home seller.

Loan Pre-Approval:

In the pre-approval process the loan officer needs to perform extensive financial background checks on the home buyer in order to issue a loan.  The lender will need to look at the home buyers’ credit history, previous tax returns, and verification of employment.  Once the lender approves the home buyer for a certain loan amount a pre-approval letter is issued to the home buyer.  Most pre-approval letters are valid for 60 days after the date they are issued.

Most home sellers prefer that the home buyer provide a pre-approval letter with their offer.  Many bank owned homes, REOs, require that the potential home buyer goes through a pre-qualification or even a full pre-approval process with the specific lending institute that is selling the home.  However, the home buyer is not forced to obtain their loan from the institute that is selling the property.

If you need any help finding a trustworthy lender in Ventura County or need help purchasing a home in Ventura County please don’t hesitate to contact me, Mana Tulberg: (805) 443-8898.

As a Realtor I have the opportunity to preview many homes for sale in Ventura County.  Also, as a Realtor I see many homes where the home sellers’ remodeling actually lessens the value of their home.

Below is a 2 minute video from the show “This Old House” which may help many of you Ventura County homeowners with your home remodeling.

If you are looking to sell or purchase a home in Ventura County please feel free to contact me, Mana Tulberg: (805) 443-8898.

In Ventura County’s current real estate market FHA home loans are becoming a popular means of obtaining a mortgage loan for home buyers.  For many years the intricacy and difficulty associated with FHA loans made many lenders and home sellers frown at home buyers who could only obtain an FHA loan.

What Is an FHA Loan?

An FHA loan is a type of loan offered by conventional lenders where the Federal government agrees to insure the loan.  This insurance by the Federal Housing Administration (FHA) presents less risk to lenders who participate in FHA mortgage loan programs.

In Ventura County many home buyers are taking advantage of the lower down payments (3.5%) and less than perfect credit scores required by FHA insured loans.  With no income limits on FHA loans, most home buyers and especially most first time home buyers in Ventura County can qualify for an FHA loan.

What Are FHA Loan Limits?

FHA loan limits vary from state to state and even county by county.  The loan limits on FHA loans are set by the Department of Housing and Urban Development (HUD).  Currently in Ventura County the FHA loan limit is set at $598,000.  This means that a Ventura County home buyer can borrow up to $598,000 for the purchase of a single family home.

FHA Rates

Since FHA loans are insured by the Federal Government, it is possible for Ventura County home buyers to find an FHA loan rate lower than the rates offered on conventional loans.

FHA insured loans require that a monthly mortgage insurance premium be paid into the cost of the loan.  Ventura County home buyers with FHA loans will have a 1.5%  premium added to their loan balance.  The monthly mortgage premium is paid for 5 years or until 78% of the home value has been paid off.   Nevertheless, the FHA mortgage insurance premium is much less than the mortgage premiums asked by private mortgage insurance premiums.

Down Payment on FHA Loans

As of January 1, 2009, Ventura County home buyers interested in obtaining an FHA loan need to provide a down payment of 3.5% .  The new FHA terms prohibit home sellers from contributing any funds or incentives towards home buyers’ down payment.  However, there are many venues for home buyers to explore including HUD down payment assistant grants.

Closing Costs on FHA Loans

A typical FHA loan’s closing costs for the home buyer is between 2-3% of the total loan.  Some of Ventura County home buyers’ closing costs associated with an FHA loans include, but not limited to: appraisal fees, origination fees, and lender’s inspection fees.  To keep the home buyer’s closing cost to a minimum HUD has set some closing cost guidelines.  The HUD guidelines have limits on how much lenders can charge borrowers for loan origination fees.  Again, FHA loan closing costs differ from region to region.   Nevertheless, borrowers of FHA backed loans can ask the home seller to pay up to 6% of the home buyer’s closing costs.

FHA secured loans have been around since 1934 and because they are insured by the Federal Government these loans will be here long after all conventional or any other type of loan.

Ventura County home buyers who are interested in obtaining an FHA loan need to interview more than one FHA lender.  By visiting the Department of Housing and Urban Development you can search for an FHA Lender in your area.

Once you have obtained information on your loan please feel free to contact me to start searching for your new home in Ventura County.

Ventura County first time home buyers can now use the Federal Government’s $8000 tax credit towards their down Payment.  On Tuesday, May 12, 2009, the Department of Housing and Urban Development secretary, Shaun Donovan, announced that the Federal Housing Administration (FHA) will permit its lenders to let first time home buyers use the $8000 federal tax credit as a down payment.

According to Secretary Donovan, “The FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.”

Currently,Ventura County first time home buyers may receive the Federal tax credit after they have filed their taxes.  However, the new offer to first time home buyers will help many in Ventura County who need extra money for their down payment to cover the closing costs associated with their home purchase.

The FHA is currently working on a program where approved lenders will provide first time home buyers with a short term loan to be used towards the down payment.  Once these first time home buyers receive their tax credit from the Federal Government, they would then pay back the lender of the short term loan.

Now first time home buyers in Ventura County have more incentives than ever to enter the market and purchase a home.

If you need any help purchasing a home in Ventura County or if you have any questions about the first time home buyer tax credit please feel free to contact me, Mana Tulberg: (805) 443-8898.

Currently there are 43 homes for sale in the city of Santa Paula.  Of these 43 homes for sale in Santa Paula, 12 homes are listed as short sale and 7 are bank owned or REO homes.

Below is a real estate market report for Santa Paula for the month of April 2009.

Santa Paula Real Estate Market-April 2009

Single Family Homes in Santa Paula:

• Homes listed for sale in April: 6
• Homes sold in April: 9
• Average home sale price: $294,300
• Median home sale price: $295,000
• Average days on market: 65
• Average selling price % of list price: 97.70%

Condos and Townhouses in Santa Paula:

• Condos/Townhouses listed for sale in April: 2
• Condos/Townhouses sold in April: 7
• Average Condos/Townhouses sale price: $129,857
• Median Condo/Townhouse sale price: $93,000
• Average days on market: 22
• Average selling price % of list price: 102.10%

Source: Ventura County Regional Data Share

If you wish to receive updated information on Santa Paula Real Estate please don’t hesitate to call Mana Tulberg: (805) 443-8898.

There are currently 194 homes for sale in Port Hueneme.  Of these 194 homes for sale in Port Hueneme, 31 are short sale homes and 7 are bank owned or REO homes.

Below is a real estate market report for Port Hueneme for the month of April 2009.

Port Hueneme/Oxnard Beaches Real Estate Market-April 2009

Single Family Homes in Port Hueneme:

• Homes listed for sale in April : 20
• Homes sold in April : 10
• Average home sale price: $816,500
• Median home sale price: $572,500
• Average days on market: 36
• Average selling price % of list price: 88.37%

Condos and Townhouses in Port Hueneme:

• Condos/Townhouses listed for sale in April : 22
• Condos/Townhouses sold in April : 8
• Average Condos/Townhouses sale price: $379,374
• Median Condo/Townhouse sale price: $357,500
• Average days on market: 27
• Average selling price % of list price: 96.20%

Source: Ventura County Regional Data Share

If you wish to receive updated information on Port Hueneme/Oxnard Beaches Real Estate please don’t hesitate to call Mana Tulberg: (805) 443-8898.

Currently there are 299 homes for sale in the city of Oxnard.  From the 299 homes for sale in Oxnard, 156 homes are short sale homes and 69 homes are bank owned or REO homes.

Below is a real estate market report for the city of Oxnard for the month of April 2009.

Oxnard Real Estate Market-April 2009

Single Family Homes in Oxnard:

• Homes listed for sale in April: 53
• Homes sold in April: 128
• Average home sale price: $273,626
• Median home sale price: $250,000
• Average days on market: 53
• Average selling price % of list price: 100.95%

Condos and Townhouses in Oxnard:

• Condos/Townhouses listed for sale in April: 21
• Condos/Townhouses sold in April: 53
• Average Condos/Townhouses sale price: $164,612
• Median Condo/Townhouse sale price: $135,500
• Average days on market: 57
• Average selling price % of list price: 95.30%

Source: Ventura County Regional Data Share

If you wish to receive updated information on Oxnard Real Estate please don’t hesitate to call Mana Tulberg: (805) 443-8898.

There are currently 229 homes for sale in the city of Ventura.  Of these 229 homes for sale in Ventura, 28 homes are short sale homes and 20 are bank owned or REO homes.

Below is a real estate market report for the city of Ventura for the month of April 2009.

Ventura Real Estate Market-April 2009

Single Family Homes in Ventura:

• Homes listed for sale in April: 45
• Homes sold in April: 49
• Average home sale price: $496,525
• Median home sale price: $425,000
• Average days on market: 47
• Average selling price % of list price: 97.94%

Condos and Townhouses in Ventura:

• Condos/Townhouses listed for sale in April: 19
• Condos/Townhouses sold in April: 15
• Average Condos/Townhouses sale price: $247,167
• Median Condo/Townhouse sale price: $247,100
• Average days on market: 49
• Average selling price % of list price: 98.28%

Source: Ventura County Regional Data Share

If you wish to receive updated information on Ventura Real Estate please don’t hesitate to call Mana Tulberg: (805) 443-8898.

Currently there are 224 homes for sale in the city of Camarillo.  From the 224 homes for sale in Camarillo, 47 homes are short sale homes and 8 homes are bank owned or REO homes.

Below is a real estate market report for the city of Camarillo for the month of April.

Camarillo and Santa Rosa Valley Real Estate Market-April 2009

Single Family Homes in Camarillo and Santa Rosa Valley:

• Homes listed for sale in April: 34
• Homes sold in April: 38
• Average home sale price: $562,932
• Median home sale price: $467,500
• Average days on market: 62
• Average selling price % of list price: 96.76%

Condos and Townhouses in Camarillo:

• Condos/Townhouses listed for sale in April: 17
• Condos/Townhouses sold in April: 22
• Average Condos/Townhouses sale price: $279,867
• Median Condo/Townhouse sale price: $263,750
• Average days on market: 48
• Average selling price % of list price: 96.62%

Source: Ventura County Regional Data Share

If you wish to receive updated information on Camarillo Real Estate please don’t hesitate to call Mana Tulberg: (805) 443-8898.