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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.

 

fha-home-loans-in-san-diego

 

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-Stated Purchase Loans are Back and HomePath’s new 97% Purchase Loan with no MI! Thursday, August 27th, 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 two new loan programs that just hit the market that will be available for home loans in San Diego. The first one 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 either. The second program is a true stated program that you can now use for your purchase transactions. I think we can look at these new product offerings as a positive sign for our market place, whereby investors are now willing to offer these loan programs to clients that were unable to get these types of home loans in San Diego for the past two years. The next step we can hope to see is for an ease in current underwriting standards, and with this new stated product hitting the market we can venture to say that investor appetite for a little more risk is coming back. I believe that the market recovery for the financing side has now started.
 

What is HomePath and who Qualifies?


As Little as 3% down for owner occupied properties
As Little as 10% down for investment properties
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 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. They are offering 97% financing up to $417k, the 3% down payment can be gifted or borrowed, you only need a 620 credit score, must be full documentation, there is no mortgage insurance and you don’t need to do an appraisal. This can offered on condos, SFR’s, Puds and multi family units. 2nd homes and investment properties can get financing up to 90% LTV. There are only a few lenders offering this special financing at this time as directed by Fannie Mae, so if you are interested please contact me directly.

 
How to get Approved to offer HomePath!


If you are interested in becoming an approved HomePath listing agent or need some HomePath marketing material, go to www.homepath.com or click on the following link for more information. http://www.fanniemae.com/homepath/realestateprof/index.jhtml

 

So Who Qualifies for the Stated loan product!

 

 I know many of us have had a client recently that has been unable to qualify for a loan because there have been no stated loan options available. This new stated product will definitely help give our clients another option for purchasing a home. I myself have had two loans that funded through this program this month, so I can now vouch that this program works. I did not want to market this until I knew this was a loan program that worked. So, who qualifies? If your client can meet the following guidelines and you get an acceptable DU Approval/Eligible, your client will qualify for this new stated loan program. Rates are also excellent and currently you can get a 30 year fixed at 5.5%.

 

Needs a 660 credit score.
Will need to be a W2 wage earner.
Will need to be purchasing a owner occupied residence.
Will need to be a SFR or detached PUD.
Loan amount limited to $417k.
LTV limited to 80%.
Purchase or rate and term refinance.
1-2 units 80%, 3-4 units 75% financing available.
30 year fixed loans only.
True stated program as No 4506T is ran.

In Conclusion


I hope that you find these two new programs beneficial for your clients to obtain home Loans in San Diego. I believe that for a full market recovery it is imperative that we make more of these financing options available to our clients. If you have any questions about how to qualify for either of these programs, please do not to hesitate to contact me directly at 858-200-9602. I look forward to speaking with you soon.

 

Your mortgage planner

 

Michael Deery

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Posted in Home Loan Programs | No Comments »