Lost Valley Road just listed as MLS #90003449. It is a 1830 SF 3/2 in one of Centex’s Cyan projects in the South Meadows, which has been heralded as the one bright spot for new housing sales. Listed at $247,000 as a sort sale, the home was purchased less than 7 months ago for $285,105.
I don’t have any personal information about the seller or what went wrong – sometimes life just happens. What drives me to distraction is the financing that was allowed to be used. The loan is for $280,699 through CTX Mortgage, a division of the developer. It is classic FHA paper, 97% financing with some closing costs thrown in. The seller put $4406 worth of skin in the game, and now We the People are going to eat the loss on this one. This was less than 7 months ago – didn’t we already know better?
Am I cherry picking again? Nope, right across the street on Lost Valley is MLS #80019024 listed at $249,900 short. It was purchased 4 days earlier for $279,908 with a $275,282 FHA loan through Wells Fargo – $4606 down payment. Though I don’t know the pricing history, this home has been on the market 90 days.
Are FHA loans going to be the new Sub-Prime?