James

Aaron, you answer simply exemplifies your inexperience...the question is in regards to an investment proprty, not an owner occupied property. Fannie and Freddie are not funding 95% NOO properties, check you guidelines...as for fannie and freddie doing 95% loans, who's providing the PMI...? Unless of course you're mistakingly assuming Freddie and Fannie are funding FHA and VA loans. - Wed Apr 30 2008, 16:10

The simple answer with out cheerleading realtors is yes and no...Very liquid investors will be out picking up properties, but it still will not heat up for for some time now. That and the fact that it is becoming all but impossible for lenders and brokers alike to fund investment properties. Most purchases now require 30% down, so regardless of the "sale pending" figures, we all know that the only number that matters is the number of home sold. And a year on year analysis shows that we are not only down over 25% from last year but many of these homes in the 275-300 price range now, were in the 310-350 price range 12 months ago.

If it's a long term investment go for it! if you plan on fixing and flipping, consult a financial planner and put your down payment in some kind of safe insured bonds and wait... - Wed Apr 30 2008, 15:27

If your credit is bad, then you need to access your priorities before you really think of buying. If you can;t afford to pay off or at least settle your bad debt, then you can not afford to purchase a home. Remember it's not all about the financing and monthly payment. You have taxes, insurance, PMI, housing upkeep, water sewage garbage...Take your time and don't be in a hurry, your not missing out on anything. Rent a nice house, save your money and put that extra income towards fixing your credit and then re-evaluate in a year. - Wed Apr 30 2008, 15:38

Gina, the answer is that it really depends on the individuals situation. If you have a client who is going to be at the property short term 2-5 years, absolutely. But if you are doing it to make the monthly payment affordable, or to meet DTI guidelines, then absolutely not. - Wed Apr 30 2008, 15:33

Here's an outside opinion (I'm not in real estate)...Do you have 20 % down? Are you moving to the area to live long term (5-7 year min.)? Can you afford your mortgage for a year if you lose you job tomorrow?

If you answered yes to all of those questions, then consider it. Remember, that whatever stats a realtor spits out at you you have to look at these economic indicators. Job growth is negative (expected loss of 80,000 jobs to be reported on Friday), while East Sac is nice, difficult financing will slow any growth pace and speed up any depreciation. So while you make walk into an immediate 5% loss your first year, if you plan on staying past your 3 year anniversary, you may break even.

East Sac is great, I owned a home on T st. before moving to Midtown. But unless you are going to be a long term resident, wherever you live, it's a risk in buying. Don't let your realtor tell you all real estate is local, thats a tagline not based in reality. - Wed Apr 30 2008, 15:16