Southeast Texas Home Buyers Find FHA Loans Most Appealing

Its harder to finance a home these days.  If you've been in the residential real estate market in 2009 that comes as no surprise.  You may find it surprising to know that in October in Southeast Texas more home buyers used FHA loans than any other type of financing.  See the cool chart below.

Conventional financing still comes in second for all Southeast Texas home buyers and not far behind is cash.  37 home buyers paid cash for their home in October.  What a nice problem to have. 

Here's five more noteworthy tips about the type of financing home buyers used this October:

1. The median price for cash closings was $75,000.
2. The median price for conventional closings was $163,000.
3. All homes spent an average of 116 days on the market.
4. The median price for FHA closings was $124,900.
5. This October 155 homes closed, compared to 178 last year, and 185 in 2007. 

*Data is from the Beaumont MLS and has not been released to Texas A&M real estate center yet.  One of the big advantages of FHA financing is the 3.5% down payment.  For first-time home buyers its about the cheapest way to get into a home.  FHA loans also allow up to a 6% seller paid closing cost contribution.  Its no wonder, with the first-time home buyer tax credit still driving the market, that FHA financing is the most appealing loan type right now.  Want more information about the Southeast Texas residential housing market?  You can contact me right here on the blog.  Just click the contact Diane button in the right column. 

Comments

[FHA Rates]

Ever since the conventional mortgage market ran into financial trouble, FHA mortgage loans have been increasing as a more viable source of home financing because of the easier mortgage qualifying guidelines and relatively lower costs. The market share for FHA loans has jumped from a 3% share to about 30% of home purchase financing plus about 20% of home refinance loans.

[FHA Rates]

Ever since the conventional mortgage market ran into financial trouble, FHA mortgage loans have been increasing as a more viable source of home financing because of the easier mortgage qualifying guidelines and relatively lower costs. The market share for FHA loans has jumped from a 3% share to about 30% of home purchase financing plus about 20% of home refinance loans.