Median price of SoCal homes plunged 24 pct to 4-year low

Median price of SoCal homes plunged 24 pct to 4-year low
Southern California home prices fell 24 percent in March, almost a four-year low, according to DataQuick Information Services. March’s six-county regional median price was $385,000, down sharply from March 2007, when the median was at $505,000. The last time the regional median price was that low was in April 2004, when it was $380,000.
MAKING SENSE OF THE STORY FOR CONSUMERS
Foreclosures are driving price declines. Riverside/San Bernardino was most affected. Fifty-six percent of homes sold in Riverside County in March were foreclosures, which caused the area’s median price to drop 27 percent to $306,250. San Bernardino’s median price fell 28 percent to $265,000.
Orange County continues to be the most expensive market in the region at $506,000, which was 20 percent below last year’s median price for March.

FHA IS MAKING IT EASIER TO QUALIFY

Gift Funds An outright gift of the cash investment is acceptable if the donor meets any of the following criteria: ·
Relative of the borrower ·
Customers’ employer ·
Charitable organization ·
Government agency or public entity that has a program to provide homeownership assistance to low and moderate income families or first-time home buyers ·
Close friend who has a clearly defined interest in the customer Credit Score FHA does not use credit scores as a basis for underwriting decisions. FHA does consider a high credit score to be a compensating factor. Previous Mortgage Foreclosure A borrower is not eligible if they had a foreclosure within the previous 3 years Bankruptcy
A bankruptcy (Chapter 7) will not disqualify the borrower if: · 2 years have passed since the bankruptcy was discharged · The borrower has re-established good credit