According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index, the San Francisco housing market is the toughest in the country to break into.
In the second quarter of 2014, only 11.1 percent of households earning the median local income of $100,400 could afford to purchase a median-priced home in the area. In comparison, 62.6 percent of households nationwide could afford to purchase a home at the national median price of $214,000.
Image via flickr/Román Emin
Four months before his tragic passing earlier this week, Robin William put his 653-acre Napa Valley estate on the market for $29.9 million, and it is still listed for sale.
Nicknamed Villa Sorriso, the home boasts five bedrooms, six full bathrooms and five half baths in 20,000 square feet. Outside there’s a barn, tennis courts and even a vineyard that produces three types of wines.
The home was previously on the market for $35 million in 2012, though Williams unlisted it when he experienced a lack of interested buyers.
Image via Zillow
When purchasing a home, it may be very tempting to try to either delay or rush the process in order to secure the best interest rate. But experts warn against both of these strategies.
If you wait too long, a house you have your eye on may get snatched up before you can put in a bid. And if you rush into the process just because interest rates are low immediately, you may jump into the purchase before you are truly financially ready. Or, you may settle on a house that you don’t love.
Image via flickr/Sean MacEntee
Anyone planning to invest in real estate should remember that it’s a business and should treat it as such.
The first step in managing a successful real estate venture is to create a business plan complete with revenue projections for your first few years.
Next you’ll want to set realistic one-, three-, five- and ten-year goals so that it’s clear what you’re working toward.
Image via flickr/Philip Taylor
Although home prices have been increasing, so too have rent prices. So with interest rates as low as they are, it may be better, financially, to purchase a home than to continue to rent.
Even former HUD secretary Shaun Donovan has spoken out on the issue and said that the rate at which rents are rising is the worst the country has ever known.
Image via flickr/Phil Sexton
It likely comes as no surprise that when an underwriter is reviewing an individual’s mortgage application, income plays a huge factor.
“We want to see a history of income that’s documented and has a likelihood to continue,” says Arlene Allert Maloney, Senior VP of Wells Fargo Home Mortgage.
And for individuals with lower incomes, all is not lost. Allowing your income to go further by paying off debt will make you a more attractive candidate.
Image via flickr/LendingMemo
The Mortgage Bankers Association has confirmed that Carol Galante has resigned as the commissioner of the FHA.
David H. Stevens, president of the MBA said in a press release that her departure is a “great loss for the industry as well as to HUD.”
Galante has accepted a new position at the University of California, Berkley.
Image via flickr/Dave Kliman
A new survey conducted by Fannie Mae revealed that the number of Americans who believe it’s a good time to buy a home and the number of Americans who believe it’s a good time to sell a home are evening out. This could indicate a better balance between supply and demand.
In the month from June to July, those favoring selling dropped from 70 to 67 percent, while those favoring buying jumped from 40 to 43 percent.
Image via flickr/james.thompson
Rhode Island homebuyers are the luckiest in the nation when it comes to mortgage interest rates. Anyone looking to buy a house in the nation’s smallest state can an expect an interest rate of about 3.4 percent, which is .35 percent lower than the national average.
Nebraska, on the other hand, has the highest average at 4.1 percent.
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Two men from California and one from New York were charged in connection with an alleged $18.5 million mortgage modification fraud scheme.
U.S. officials believe this may be the largest charge of its kind.
The three men allegedly falsely led more than 8,000 homeowners in all 50 states to believe that they were pre-approved for lower mortgage rates via a company called Home Affordable Modification Program.
Image via flickr/.v1ctor Casale.