Can New Borrowers Qualify?

Another dancer pulled me aside last night at my dance club's Thanksgiving party. He wanted to know if people are still able to get loans approved, now that lenders are controlled by strict guidelines in the wake of the subprime flooding. Our local market can be more difficult, as expensive properties (those that require loans higher than $729,000...soon to be back to $624,000) are requiring a 20% or more down payment.
But lenders are learning the ins and outs of FHA loans again, and these are being approved more quickly than when they first became "the only game in town" for borrowers with as little as 3% down. Our extensive inventory of well priced bank-owned properties are selling(and closing!)quickly. Sales in the Bay Area are up 38%. What that tells us is that many people feel like right now real estate, in relative terms, may not be a bad place to park their money. Compared to the volatility of the stock market, housing—if history is any indicator—is looking like a pretty good investment.