Santa Barbara and Goleta Boasts Second Lowest Unemployment Rate in the State

California has been one of the states hit the hardest by the economic downturn and unemployment. Nationally, around 6,000 people are still losing jobs daily. However bleak these harsh facts are, Goleta and Santa Barbara have maintained the second highest employment level despite national and statewide turmoil. The Santa Barbara Independent recently reported that:

"at 8.4 percent, Santa Barbara County has the second lowest unemployment rate in the state. Statewide, the unemployment rate is 12.1 percent; nationally it’s 9.6 percent. The prognosis, according to Ben Courtney and Tyler Powell, financial advisers from Wells Fargo who delivered a mid-year outlook, is that Goleta can expect a continuing trend of moderate recovery."

This is great news for first-time home buyers in the Santa Barbara area! Buying your first home is an emotional process. When facing the prospects of a 30 year mortgage, many may worry about job security. Luckily Santa Barbara and Goleta have been blessed with a steady job market that will allow for first time buyers to make their dreams a reality.

Santa Barbara Real Estate Market News

Many economists and real estate agents are speculating as to how and when California will bounce back from the drop in home prices seen earlier this year. Statistics have shown that in August the number of homes sold in California fell nearly 11% from July. Also, the median sale price in California has increased again for the fourth time this year at $275,000 in August, up 2.6 percent from July.

Of course Santa Barbara homes have a much higher median, but these statistics illustrate an increase in overall home value and demand. Not to worry though! We're still very much in a buyer's market. Number are still low compared to previous years- the median peaked at $505,000 in mid 2007.

Even more notable is DataQuick's report that homes in more costly areas such as Santa Barbara have come down in cost by about half as much as those in newer, more affordable neighborhoods. This is great news for those hoping to buy their first Santa Barbara home!

FHA Loans Perfect for First-Time Home Buyers in Santa Barbara

For many first-time home buyers, the process of acquiring a loan can be a befuddling process. However, The Federal Housing Authority (FHA) is a clear choice for first time home buyers. Working just like a conventional loan, in June 2009 FHA backed mortgages accounted for almost 40% of all loan applications. This is likely due to the fact that FHA has a very low minimum down payment requirement of only 3.5%. Additionally, if you're lucky enough to receive funds from friends or family- the FHA will accept gift down payments (up to 100%!) .

Also, the FHA has reasonable credit standards as well- scores for those who qualify average around 620. This can be attributed to the fact that the FHA does not make risk based rate adjustments and that spouse's credit scores are not held against borrower.

Although one might not be able to reap the benefits of the first time home buyer tax credit because of high income (which is plausible considering the higher average incomes in Santa Barbara), there are no income limits for FHA qualifiers and homes can be of non-permanent residences (although second and vacation home financing is forbidden).

First-time buyers should definitely look at the options available with FHA loans when they begin the home financing process. (Photo)

Survey Finds Federal Tax Credit for First Time Home Buyers Critical

A Recent C.A.R (Califonria Realtor's Associaton) survey found that nearly 40% of first-time home buyers said they would not have purchased their homes if they did not receive federal tax credits offered by the federal government. Thankfully, this insightful survey has been published during a critical time in which Congress is deciding to extend the tax credit beyond its December 1st deadline. Hopefully it will serve to persuade Congress to not only maintain the tax credit, but increase it.

Its no secret that California homes, and especially those built in the Santa Barbara area, cost well above the national average. Additionally, California was one of the most affected states by the mortgage crisis. Therefore, I think first-time home buyers interested in Santa Barbara real estate can really benefit from these tax credits. Lets keep our fingers crossed as Congress comes to a decision!

Extension on First Time Home Buyer Credit Gaining Support in Congress

Good News! The First Time Home Buyer Credit I mentioned expiring in a previous post may be extended thanks to Sen. Johnny Isakson (R-GA) who has been tirelessly rallying Congress to extend the program. Isakson's proposed bill would not only help extend the program until the end of 2010, but it would almost double the $8,000 credit to $15,000 for qualified buyers. With 15 bipartisan co-sponsors so far, it looks like the bill may have a chance of passing through the Senate in the next few months.

Stay tuned over the next few months to see if this credit becomes available. Click Here for more information on Sen Isakson's bill.

Be Green, Save Green

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You don’t need to be building a home from scratch to make it eco-friendly. In fact, there’s many ways to save energy and money by going green. Why not begin a green and money saving lifestyle with the purchase of your new home? We’ve gathered 5 solid tips to help you save money and help the environment for years to come:

Turn Down Your Water Heater: Lowering the maximum temperature on your water heater from 140 to 120 degrees can help to reduce your water heating costs by 6 to 10%. This small tweak can make a great difference for saving money while still allowing for hot showers.
Unplug Unused Charger: Billions of dollars are wasted per year from appliances and electronic chargers remaining plugged in while not being used. In fact, this can account for up to 8% of our electricity bills! So, make sure to take out the plugs when not charging your gadgets.
Install Compact Fluorescent Lights (CFL’s): These spiral-shaped bulbs use a third less energy than regular bulbs and last ten times longer. Not only do they pay for themselves in a short amount of time, but they help lower energy bills over time. They come in a variety of sizes, so be sure to use them with every possible light fixture you can!
Go for Green Insulation: Made from recycled, sustainable materials and denser than conventional insulation, making it more efficient and environmentally friendly. Green insulation can reduce your energy bill by up to 26%.
Be Smart With Your Thermostat: Program your thermostat to be on only when you’re home. Also, be vigilant with thermostat use while at home. For example, in colder weather, you’ll save 1-3% of your heating bill for every degree your thermostat is lowered. Installing a programmable thermostat is a great way to monitor this, and will easily pay for itself in lowered energy bills over time.

For more info on greening your home visit The Daily Green

Peace of Mind for First Time Buyers

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Even in a down economy, there is now reason to go ahead with purchasing a new home. In addition to helping first time home buyers through tax credits, the Housing Affordability Fund is offering help to protect first time home buyers with mortgage payments should they be faced with unemployment due to layoffs. Beginning August 1st, 2009 the C.A.R.H.A.F Mortgage Protection Program will offer $1,500 per month for up to six months to help those faced with unemployment make their mortgage payments while in-between jobs. A qualified co-buyer will also be eligible for the program, and may receive a monthly benefit of $750 per month for up to six months as well.

For more information about the California Association of Realtors visit www.car.org or click on the link below to learn more about the California Mortgage Protection Program.

California Mortgage Protection Program

How Much Home Can You Afford?

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The U.S Department of Housing Provides a great calculator for you to estimate just how much home you can afford when you start your home search. Although there are many factors that account for how much you can afford on a home, this calculator serves as a simple way to find your ballpark estimate.

Go to ginniemae.gov or you can find the Home Affordability Calculator Here.

First Time Home Buyer Tax Credit to Expire Soon

As stipulated in the Recovery and Reinvestment Act of 2008, first time home buyers of 2008 and 2009 are eligible for a tax credit of 10 percent of the sale price ($8,000 maximum) from the U.S Government. The full credit is available to both single taxpayers with incomes up to $75,000 and married couples filing a joint return with incomes up to $150,000.

As all good things must come to an end, the credit will only last until December 1st, 2009. Meaning, homes will only be eligible if December 1st, 2009 (or before) is the day you first occupy your new home.

If you're interested in buying your first home, there's no better time than now! To fill out the form and get started, please click HERE.