FHA Home Loans Growing In Spite of Housing Slump

With an estimated $290 billion in FHA loans projected for fiscal 2009, it's clear that while conventional lending markets are hurting the FHA is meeting a serious need for affordable

home loans. According to recent press, FHA mortgages tripled in 2008; in 2009 the amounts are expected to be even higher. 2009 has seen 30 year rates on home loans drop to record lows, and homeowner bailout programs and housing stimulus plans have only made it more attractive to apply for an FHA mortgage.

Some of the most recent developments are the most helpful. First-time home buyers and home owners have heard plenty about the Obama mortgage, but the latest news is even better for many currently in the market for their first home. On May 29, U.S. Housing and Urban Development Secretary Shaun Donovan made it official; home buyers can use their 2009 First Time Home Buyer's Tax Credit (also known to some as the Obama tax credit) as a down payment on their FHA home loans.

This is done by monetizing the tax credit through a short-term bridge loan which is applied as a down payment on the FHA loan; the larger the down payment, the lower overall cost of buying that first home. According to the U.S. Department of Housing and Urban Development, FHA borrowers are now permitted to apply the 2009 tax credit to the down payment above and beyond 3.5 percent of the appraised value or the borrower's closing costs.

What's the advantage in doing so? FHA home loans already have low down payment requirements compared to conventional loans, but using the 2009 First Time Homebuyer's Tax Credit means FHA borrowers could achieve lower interest rates as a result, saving money over the lifetime of the loan.

The U.S. Department of Housing and Urban Development is requesting authority to use up to $400 billion dollars in 2010, the equivalent of more than $2 million in loans. Compare those figures with FHA loan numbers from previous years; in 2007 lending volume was at a mere $60 billion. The requested $400 billion in FHA loan money for 2010 makes the 2007 numbers look positively anemic.

Rebounding Los Angeles Real Estate Helps Ease the City Out of Recession

April 28, 2010 According to Real Estate Specialist Alejandro Aldrete of Hilton & Hyland, most cities that

rebound faster from a recession have strong, diversified economies that aren’t focused solely on one industry. As a result, they’re shielded from economic volatility as they benefit from a variety of other secondary industries. Los Angeles is one such city, in which Forbes has also ranked ninth in their recent list of 10 cities where the recession is easing. With the Los Angeles, CA real estate market staying afloat and showing encouraging signs of recovery as sales continue to climb, 2010 proves to be an opportune time to invest in luxury Los Angeles properties like homes for sale in Bel Air (http://www.alejandroaldrete.com/) California.

While the housing crisis appears to have severe impacts nationwide it was more pronounced in states like California, since it was one of the first states to experience the negative side effects. As a Hilton & Hyland Bel Air realtor, Alejandro has seen an influx in decreased real estate values, while quoting, "this has given investors a strategic stance which has encouraged an increase in home sales while the market was down. This increase in real estate sales has contributed to the rebound and is one of the key factors in moving Los Angeles out of the recessionary slump."

In recent months, the National Association of Realtors reported that Los Angeles saw a surge in demand, with jumps in home sale prices up to 11% during the third quarter and another 2% leading to the fourth quarter. The numbers certainly show a lot of promise and are encouraging signs of stabilization, making real estate experts optimistic about the improvement of market conditions.

Wall Street Investors Target The Bahamas

April 28, 2010 Wall Street financial muscle has recently made a significant statement about the viability of The Bahamas as a burgeoning destination for the construction of second homes, travel and tourism. The Paradise Is Mine company announced Wednesday that it has received a formal commitment of $30,000,000 in financing provided for additional infrastructure on the island of Rum Cay in The Bahamas to support further pre-development efforts.

infrastructure on the island of Rum Cay in The Bahamas to support further pre-development efforts.Funding provided is expected to dramatically enhance the existing infrastructure on this postcard perfect Caribbean island. Rum Cay currently has all needed infrastructure for its residents. The island is the switching station for all fiber optic networks between Florida and the southern Bahamas and is home to the cellular tower providing services to the region. Service providers to the island currently include Bahamas Electricity Corporation and Bahamas Telecommunications Company (BTC).

The financing provided is from a syndicate of Wall Street and international investment firms attempting to cash in on the increased marketability of Rum Cay and the Outer Bahamas islands. William Myers, Paradise Is Mine’s Chief Financial Strategist stated, “the details will be made public in the very near future when all the i’s are dotted and the t’s are crossed. We have has no shortage of interested financial partners. The market seems to have definitely corrected.”

Rum Cay was once the home of 5000 residents in the early part of the 20th century as salt was cultivated on the island. The infrastructure on the island currently has significant capacity to support future demand. The financing provides a springboard for additional development on this 40 square mile island. The southern Bahamas as a whole is expected to benefit from the real estate boom on Rum Cay and elsewhere in the region.

“This should significantly bolster development on Rum Cay and in the Caribbean on the whole. New economic and tax incentives within The Bahamas make it an ideal target for investors” stated Charles Whitehurst, utilities consultant for the Caribbean basin.

Rum Cay has recently become the target of international hipsters, financiers and celebrities desiring to build vacation homes. “Rum Cay is becoming a chic locale for the in-crowd looking for the perfect place to get away. We have had a lot of very recognizable buyers interested in Rum Cay.” said company spokesman James Witherspoon, Jr.

Island residents anticipate an impending boom as Rum Cay has moved to the forefront of an international marketing effort generated from Paradise Is Mine. “We are definitely globalizing the marketing reach for this project” Witherspoon further stated.

The island's residents anticipate tremendous growth. Rock Resorts, an international high end luxury developer, is currently developing on the island. “As it is now, this place is like heaven on earth. With or without development this island is right out of a dream.” states Tom McNulty, part time Rum Cay resident.