Owning a home in Manteca now costs $599.21 less per month than renting a similar property. A 1,094-square-foot home at 431 Edward Avenue sold for $70,000 on February 10. With a 3.5 percent down 30-year fixed FHA loan, the monthly cost including taxes and insurance is $480.79. A comparable three-bedroom, one-bathroom home on the same street rents for $1,080 a month.
This shift in affordability is driven by a surge in distressed properties. More than 90 percent of the 1,296 resale homes that closed escrow in Manteca over the last 13 months were either foreclosures or short sales. The median selling price so far in 2009 is $179,900, which is 2.9 times the median household income of $62,000.
FHA loan rule change
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