Gary- Money is tight. Banks are not cooperating with the housing crisis.

FHA seems to be the only game in town...especially for first time homebuyers who are looking to score the $8,000 tax credit. FHA requires a 3.5% down payment...other conventional lenders require 10-20% down payment. FHA has less strict guidelines regarding credit scores and credit history as compared with conventional lenders.

Max Loan amount in Orange County for FHA Loans on Single family homes is: $443,750.
This means that maximum purchase price in Orange County is $459,000 for Buyers who are looking to put down 3.5% and are pre-approved for FHA financing.

that's just my personal observation...makes sense?

We recommend that Sellers who are slightly above the "cut-off" offer unique incentives as a catalyst to drive traffic to your home.

Hi Gary,
Mortgages are alot harder to get these days, most of the homes I'm selling right now in that part of the county are priced fro $250k-$350k, it's alot of first time home owners, police, fireman, people that aren't worried about losing their job. I just bought a condo in New Windsor off of rt 300 that I'm renovating, that was a foreclosure that I picked up for $120k, my first home, I gutted it and I'm renovating it right now, still haven't moved in. Anyway, I'm friends with your agent Mary and you are in excellent hands, it's just a really tough market for a home in any price range.
Thank you,
Bill Smith
Keller Williams Realty

Homes that are under 300 are not even selling...all because of the banks and their greed! Good luck