FHA steps up to serve first-time homeowners, more

F irst-time buyers and those who have lower to
middle income have an old way, now turned
new, to find a mortgage.
Many are turning to federally-backed Federal
Housing Administration (FHA) loans. Mortgage applications
increased from 41,530 in December 2006
to 73,444 in June of this year.
When the FHA was established in 1934, it provided
the only way for lower- and middle-income
buyers to get a home of their own. In 1934 it was
difficult to get a home loan because many banks required
a down payment of up to one-half of a home's
purchase price.
Today, FHA requires a 3 percent loan down payment.
As many mortgage companies came up with innovative
financing plans for home buyers in recent
years, the number of buyers turning to FHA fell significantly.
Though there are still some nothing-down loans
available from mortgage companies, most require the buyer to have a high credit rating and above-average
income to get one.
While the FHA system needs some updating, it
still works for many people. One of its flaws is the
current maximum for a single-family home, which is
$362,790. In San Francisco, however, the average
home price is $748,100, according to the National
Association of Realtors.
Because some lenders don't care to deal with FHA
paperwork, usually a mortgage broker handles the
loan. It usually takes from 90 to 120 days to get approval.
Buyers should know what the entire cost of
the mortgage will be including the broker's fee.
Meg Burns, FHA's director of the Office of Single
Family Program Development says, "Given how
many borrowers really could benefit from FHA financing
but how few of them do, I would say we are
still in the doldrums."
The FHA is anticipating more applications as
mortgage companies continue to make requirements
more stringent.

Time to plant spring-flowering bulbs
If you were filled with admiration this
year when other yards exploded with
spring flowers, now is the time to make
sure your yard joins the show next year.
Late October and early November are
the best times to plant spring flowering
bulbs. Here's how to do it.
First, select a site that has good soil
and good drainage so bulbs will continue
to flower year after year.
For tulip, daffodil, and hyacinth
bulbs, prepare the soil 8 inches deep ormore. Plant them 6 inches deep, measured
from the bottom of the bulb, and 6 inches
apart. For small bulbs such as crocus,
glory-of-the-snow, grape hyacinth, and
snowdrop, prepare the soil 6 inches deep
and plant bulbs 3 inches deep and 3
inches apart.
Broadcast a tablespoon per square foot
of 12-12-12 or 13-13-13 analysis fertilizer
and water well. When the ground freezes,
mulch with 2 inches of fine mulch or
straw.