Loan Limits Increased for Borrowers in Orange County

The government service enterprises, Fannie Mae, and Freddie Mac are raising loan limits on January 1, 2018 in 98% of counties nationwide because of the rapid growth in housing prices.

In high-cost areas of California typically near the coast, the county loan limits can be as much as $679,650, up from $636,150.

What this means for home buyers?

The higher 2018 loan limits may allow low- and moderate-income home buyers a bigger selection of homes to choose from when shopping for a home.

For the market areas, we are specifically serving borrowers in, here are your new one-unit confirming loan limits for 2018:

Greater Los Angeles

    Los Angeles County: $679,650

    Orange County:  $679,750

    Riverside County: $453,100

    San Bernardino County: $453,100

    Ventura County: $672,250

    Santa Barbara County: $625,500 

    San Diego County:  $649,750  

Among the benefits these new limits are significant is that it place some borrowers into a conforming loan versus a jumbo loan which means they may be able to come in with the 3% minimum on a home purchase up to $467,000.

Due to the L.A. and Orange County conforming limit increases, homebuyers can put down 5-percent and avoid the need for jumbo financing. Their maximum purchase could go up to $700,000 or $704,000 using an FHA loan that requires a 3-percent down payment. In San Diego, it enables home buyers to purchase a home up to $673,300.

Home Shopping Tips for Orange County, CA

The Orange County, California housing market continues to experience a low supply homes for sale due to strong interest from buyers. Due to this fact, home buyers must have all their ducks in a row when searching for a home in Orange County in 2018. The following is an up-to-date glance into the local housing market, as well as some excellent advice for home shopping success.

 Home Shopping Guide for Orange County: 2018

Limited supply. Solid competition. Fast transactions. Those are several items prospective home buyers can mot likely anticipate. Having said that, here are a few things you may want to do prior to searching for a home in Orange County, to maximize your likelihood of closing on a purchase.

1. Study and become familiar with existing home prices in your desired area(s).

According to the California Association of Realtors, home prices in Orange County have remained steady during the last two years. The median sales price for single family homes reached $786,600 in October 2017.

That is the media value, not the average home sales price. The median value can be skewed when numerous multi-million dollar homes sale and fewer low priced homes were sold in a given month.

Buying in North Orange County vs. South County

This market offers a broad range of home prices, so you’ll want to zero in on the area(s) where you plan to buy a home. The median sales price for many areas in Orange County fall range from $550,000 and $580,000. But the median sales price can be $1 million in new home developments, or $788,000 for n existing home in Irvine. There's a diverse selection of prices.

2. Get pre-approved for a home loan, so you can compete.

Inventory is still very limited in the Orange County housing market. As of October 2017, the county had a 3.5 to 4 month supply of residential homes for sale. For a balanced market six months would be the normal measure.

This fact emphasizes the importance of being pre-approved for home financing, prior to looking for a home in Orange County. Savvy sellers and realtors strongly prefer interested buyers to have their financing prepared in advance, prior to making a purchase offer. For the buyers who are paying all-cash, they will need to provide bank statements showing they have the necessary funds to purchase the home outright.

3. Hire an experienced real estate agent to represent you.

Based on recent real estate data and research, Orange County, CA is becoming less of a sellers' market. In October, pending home sales fell for the fourth consecutive month fell. The decline was just 2.6%, but that follows a year-over -year 6.6% drop in Sept, and 3.5% in August.  

With this facts, it is even more reason to work with an experienced real estate agent when searching for a home in Orange County. Wouldn't you want every possible advantage when house hunting in Orange County.

The market could be slowly changing but a home in a high demand area like Orange County will for the most part remain competitive for buyers.

4 Easy Ways to Get Your Home Ready to Sell

 If you want to get top dollar for your home, some of the following tips may pay off handsomely. Review some tip to sell your home at the highest possible price.

REPAIR:  Go through and fix those leaky faucets, replace cracked or broken tiles, fix doors that don’t close properly, replace light bulbs, and patch up any holes in the walls. Put up a fresh coat of neutral paint on the walls of rooms that have unusual colors such as purple, red, etc. In the bathroom area, make sure to caulk the tub and shower.  Little repairs around the home can save a lot during the contract process.   

 

CLEAN: Block out a day or two to thoroughly clean your home inside and out. Don’t forget about those tough to access areas. Dust the furniture, ceiling fan, and light fixtures. Make sure no cobwebs are present in the corners of the main rooms. Not only will this help your home look great but it will also get rid of any odors that could turn away prospective buyers once they walk inside.

Part of this process is also decluttering by putting all your neutral non-decorative items in moving boxes or a storage facility. You want to be sure your kitchen counters are free of mail, work documents. When you home is organized the buyers will feel that you take care of the rest of the home too.

CURB APPEAL: Within the first ten seconds of entering the home, most people will make a decision of whether they want to buy it or not. Impress them by trimming the trees and cleaning up the yard. Make sure the grass is cut, the bushes trimmed and the walkways and driveway pressure washed.

STAGING:  Staging a home is considered one of the most important item to do since 90% of homes listed for sale are seen on the internet, so effective staging will make your home stand out from the rest. Make the rooms bright and neutral so the buyer can visualize their furniture in the space. Remove any family photos so the buyers are not distracted.

Consider different window treatments in some of the main rooms like blinds, shutters, or new curtains., and hang up fresh new towels in the bathroom.