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Archive for November, 2009

Interest Rates Drop to Record Lows for Home Loans in San Diego Saturday, November 28th, 2009

 

Today represents a truly unique time to buy a home! Interest rates have dropped to almost all time record lows for San Diego home loans. Most buyers are now qualifying for rates in the 4.875% range on the 30 year fixed. This is truly a fantastic time to buy a home considering this low interest rate environment, the $8k home buyer credit being extended, and all the great low priced homes that are also available. But it is important that all buyers understand that these low rates for San diego home loans will more than likely go up next year, probably by summertime and here are the reasons why.

As you may or may not know, the Federal Reserve are actively buying  mortgage backed securities in record amounts to artificially lower rates down to record lows, so they can continue to kickstart a weak housing market. But they have advised they will stop buying these securities come the end of the first quarter next year, alll experts are predicting rates to jump back over 6% once the manipulation of rates is over. They have actually started easing the buying of these securities in the past 60 days, so there is not a drastic market reaction once they do offically stop buying the securities next year. If you have been thinking of buying recently, do not think twice right now because it is highly unlikely we will see these rates again in decades if not our lifetimes.

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As it takes ususally 60-120 days to find a home, get in contract and then close on the transaction, it would be a good idea to begin the home buying the process soon. To receive the $8k home buyer credit, you need to be in contract by April 30th 2010. If you are looking for more information on how to obtain a home loan in San Diego, please contact me directly at 858-200-9602. Or you can visit my website at www.michaeladeery.com.

Sincerely

Your mortgage planner

Michael Deery

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Posted in Interest Rates | No Comments »

HomePath’s 97% Financing with No MI and No Appraisal! Saturday, November 28th, 2009

 

With all the negativity surrounding the lending world recently about available financing options, good news is always welcome. I wanted to advise you of a home loan program that is now available for all new buyers. It is a new loan program offered by Fannie Mae called HomePath, that involves getting financing on Fannie Mae foreclosed properties up to 97%, and there is no mortgage insurance or an appraisal needed on the transaction. Fannie Mae is also offering a credit of 3.5% towards closing costs on all transactions that close between January 28th and April 30th.

What is HomePath and who Qualifies?

•As Little as 3% down for owner occupied properties
•As Little as 10% down for investment properties
•As little as 10% down for 2nd homes
•No MI
•No appraisal needed-value determined by sales price

HomePath was created to facilitate the purchase of the bulk of REO properties currently serviced/guaranteed by Fannie Mae. In summary it is a new San Diego home loan program offered by Fannie Mae that offers special financing on foreclosed properties already owned by Fannie Mae. Their goal is to offload and sell these properties as quickly as possible in order to minimize the impact on the community.

How to Qualify for HomePath

They are offering 97% financing up to $417k, the 3% down payment can be gifted or borrowed, you only need a 620 credit score, and all loans must be full documentation, there is no mortgage insurance and you don’t need to do an appraisal on the transaction. This can offered on condos, SFR’s, Puds and multi family units. 2nd homes and investment properties can get financing up to 90% LTV.

I believe that for a full market recovery it is imperative that we make more of these financing options available for all buyers. There are only a few lenders offering this new home loan in San Diego at this time as directed by Fannie Mae, so if you are interested please contact me directly at 858-200-9602. .

Sincerely

Michael

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Posted in Home Loan Programs, HomePath Loans | 6 Comments »

FHA Changes Rules for Home Loans in San Diego Friday, November 27th, 2009

 

It would be safe to say the Real Estate market would be in a more precarious position if it were not for FHA financing, as over 50% of all San Diego home loan transactions are now done through the FHA. Experts are predicting that FHA financing will be responsible for funding at least 75% of all first time homebuyer transactions for all home loans in San Diego in the next 12 months.  Here are some of the recent FHA changes that came out recently that will affect all new buyers.

Recent announcements by FHA will help new buyers

FHA came out with a few announcements last week that will help the housing market in the near term. Spot approvals for condo projects were supposed to be ending on December 7th, but have been extended yet again until February 1st  2010. I actually would not be surprised if they extended this until the end of 2010. They also eased the guidelines for condo project eligibility until December 31st  2010 in regards to owner occupancy rates, pre sale requirements and FHA concentration requirements for each condo project…this essentially will make it easier for a buyer to qualify to buy a condo so this good news. FHA also took away the need for a 2nd appraisal on all jumbo loans over $417k, needing two appraisals done before was both more costly and time consuming for buyers and sellers.

Buyers not have enough funds to purchase? FHA to the rescue

The # 1 reason I hear that buyers cannot afford to buy is because they do not have the funds for the down payment and closing costs. FHA allows gift funds for all the down payment and closing costs, many times I have had to advise my clients that they are able to borrow funds from their family or a relative for closing, with the $8k tax credit being available currently, buyers can pay them back with this credit once they close. Or if they have some funds in their 401k or retirement account, they can borrow from this and then pay it right back with their $8k credit once they close. Another option that a lot of people are not aware of, is that mum or dad can lend if they wish, and not gift, some or all of the money for closing, and then put a 2nd lien against the home that exceeds 100% loan to value.

Buyers unable to qualify alone? FHA allows co-signers

Many times a new buyer is unable to meet the qualifying guidelines for a new purchase loan. FHA allows for the use of non occupant co borrowers (co-signers) to help buyers qualify. This is a very popular scenario with parents who want to help their child qualify for their first home. I have been able help many more of my first time buyers just by letting the buyer know they have an option to ask their parents for help, many times the buyer did not know this was an option. Many times there will be another family member who will be willing to help out and co sign, they just have reach out and ask.

 

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Quick FHA facts

· A 15 year fixed FHA loan has no monthly mortgage insurance.

· 2-4 unit owner occupied properties are also eligible for 96.5% financing at the same interest rate as 1 unit homes.

• FHA financing allows for 96.5% financing up to $697k here in San Diego.

 The 1st time buyer market is buzzing and FHA will represent 75% of new transactions!

With the $8k home buyer credit getting extended until June 30th, this has brought a flood of new buyers off the fence and back into the market looking for home loans in San Diego. Rates are also fantastic right now on FHA loans, with most borrowers qualifying around 4.875%-5%, and this also goes for people with above average credit scores of 660. But it is important for buyers to know that, once the Federal Reserve stops buying mortgage backed securities next year rates may go to 6%, becuase as we all know they are artificially manipulating the market right now to keep rates low to stimulate homebuying. I believe the next 6-12 months will represent a once in a lifetime opportunity for many buyers looking for home loans in SanDiego, especially when you consider current rates, temporary guideline changes and low prices, and the FHA is going to play a major role. If you are looking for more information please do not hesitate to contact me directly at 858-200-9602, or you can visit my website at www.michaeladeery.com for more information.
 
Sincerely

Your mortgage planner

Michael Deery

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Posted in FHA loans, Home Loan Programs | 6 Comments »

CALSTRS (Teachers) San Diego Home Loan Purchase Program offers 97% financing to $650k! Friday, November 27th, 2009

 

Did you know that members of CALSTRS and CALPERS are able to get 80%/17% home loan financing up to $650k to purchase a home in San Diego, that their payments on the 2nd mortgage are DEFERRED for 5 years so they do not have to make a payment on the 2nd mortgage, and they only need 1% of their own funds for the down payment? I think this is a home loan product that not a lot of people in San Diego are aware of, but it is a program that offers tremendous opportunity to more potential home buyers, as almost everyone knows a teacher or someone in the California public employee system.  Often times many of the people within CALPERS and CALSTRS do not know these programs are available either, so this is a home loan program here in San Diego that not a lot of people are taking advantage of.

Who Qualifies?

The following people are able to qualify for the CALSTRS and CALPERS home loan programs.
• Employees of a California public school district and/or a member of the California State Teachers Retirement System ( CALSTRS)
• Employees of a CA Community College
• CA Public Employees Retirement System (CALPERS)  i.e Firefighters, police men etc
• Judges retirement system

No payments due on the 2nd mortgage for 5 years!

Another great benefit of this loan program is that the payments on the 2nd mortgage are deferred for 5 years. This is a great opportunity for the borrower to save extra money each month without this additional payment. Another great benefit is that the second mortgage also has the same rate as the first mortgage and both are 30 year fixed loans. However, the second note will have accruing interest that will be added to the principal balance at the end of the 5 year deferred period. The new second mortgage loan balance will then be amortized with regular monthly, principle and interest payments due.

Only 1% of Borrowers funds needed for down payment

Only a 3% down payment is required on all loans. Only a minimum of 1% is required from the borrowers own funds for the down payment as the other 2% can be gifted. The maximum loan to value financing is 97% up to $650k, and this is split up into 80/17 financing. There are also certain rules that apply to this program that you should be aware of, It is for properties in California only, and they must be owner occupied residences.

 

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Great opportunity for buyers
 
With banks making it more and more difficult to qualify for home loans in San Diego, this loan program presents a tremendous opportunity for buyers who can qualify for this product, especially as second mortgages are almost extinct these days. I am sure if you go through your friends and family list you will find a teacher or a CA public employee in there somewhere, let them know this product exists to help them buy a home.  There are only a few lenders that are affiliated with CALSTRS and CALPERS to offer this loan program, and myself and my company are approved and certified with two of these lenders, so if you are interested in getting  approved for this program, or you want more information about this program please do not hesitate to ask. You can also visit my blog at www.michaeladeery.com for more information, or you can reach me directly at 858-200-9602. I look forward to hearing from you soon

Sincerely

Your mortgage planner

Michael Deery

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Posted in CALSTRS (teachers) loans, Home Loan Programs | No Comments »

Home loans San Diego. First Time Homebuyer Tax Credit Extended Into 2010! Plus…A New Tax Credit for Existing Home Owners! Friday, November 6th, 2009

 

The much-anticipated extension to the home buyer tax credit has finally been approved, this is fantastic news for buyers looking for a home loan in San Diego. President Obama has just signed the new bill into law to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.

 
Who Gets What?

First-Time Homebuyers (FTHBs): First-time homebuyers looking for home loans in San Diego (that is, people who have not owned a home within the last three years) are eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. This is a great incentive for any buyers who will be looking for another home loan in San Diego.

 

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

 

What are the Income Caps?

The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

 

What is the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.
 
How Much are First-Time Homebuyers (FTHB) Eligible to Receive?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000. 

 

home loans San Diego

 

Who is Eligible for FTHB Tax Credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

 

How Much are Current Home Owners Eligible to Receive?

The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

 

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

 

  Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?

Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

 

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?

Yes, provided that the child meets the other requirements for the tax credit.

 

There is no doubt that this will be a gift for everyone that is looking to buy, sell or finance a new home loan in San Diego. If you have any questions regarding this new home buyer credit, or you need help getting pre approved, please do not hesitate to contact me. You can contact me directly at 858-200-9602.  I look forward to hearing from you soon.

Sincerely

Your mortgage planner

Michael Deery

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Posted in $8k Homebuyer Credit | No Comments »