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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 »

Fannie Mae Tightens debt to income Rules for Home Loans in San Diego! Will You Still Qualify? Saturday, October 24th, 2009

Fannie Mae lowers debt to income ratios down to 45%

Fannie Mae has just announced it will be lowering its debt to income (DTI) ratio requirements for all home loans in San Diego from 50% down to 45%. As part of normal business operations, Fannie Mae regularly reviews DU ( Desktop Underwriter) to fine-tune its credit risk assessment based on new data and loan performance information to ensure that credit risk assessment will stay strong moving forward on all future business. These new rules will go into effect as of December 12th on all loan applicants. This is not really a surprise considering recent home loan performances in San Diego, from 2002 until fairly recently debt to income ratios were allowed on most loans up to 60%, this never factored in utility bills, food and insurance etc, so it is easy to see why people did not have too much cash left over at the end of each month to cover all their bills..and the rest they say is history.

Make sure you still qualify!

I feel this is a very important subject that needs to be addressed immediately with all potential homebuyers, as these new stricter qualifying guidelines will prevent a large percentage of outstanding offers in this market from getting approved for financing. If buyers have an offer out there with a 55% debt to income ratio and they are not accepted by December 12th , they will not get financing under these new qualifying guidelines.

A lot of buyers will not qualify!

I would venture to say that at least 30% of most approvals for buyers are in the 45-55% debt to income ratio range. I myself performed an analysis on 28 different clients of mine that have current offers out there, and found that over 30% of these have debt ratios over 45%. I immediately categorized these buyers as “safe” or ”unsafe” so all parties know what expectations need to be met over the next 4-5 weeks.

Why it will be very important to work with a Professional Mortgage Planner!

Fannie Mae did announce that they will allow flexibilities up to 50% debt to income ratios as long as a loan file has strong compensating factors, under current guidelines clients were able to get approvals up to 55% with strong compensating factors. Strong compensating factors to name but a few are, a steady job history, consistent income for the past few years, plenty of liquid assets, solid credit scores etc. Therefore it will be imperative that the proper documentation is  requested and underwritten upfront and accurate information is being verified for all applicants, so they have the best chance to get approved for the maximum loan approval possible.

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Helping buyers create a mortgage plan

Until recently many times you could just throw an applicant against the wall and the loan approval would stick, in fact if they had a pulse from 2002-2006 most people could get a loan. In current times, I think It will also be important to take a very proactive approach with loan applicants and help them restructure some debt and also advise them on ways to pay down their debt, so they can get in the best possible position to qualify for the maximum loan approval. If you need help getting  approved, or if you have any questions regarding these new guidelines, Please do not hesitate to contact me. I look forward to hearing from you soon.

Cheers

Michael

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Posted in How to Purchase a Home | No Comments »

Qualifying for Condo Financing and What You Need to Know! Sunday, October 11th, 2009

 
What is going on with Condominiums? Almost not a day goes by when I do not get a call from a client asking me why they cannot get approved for  condo home loan. There sure are some great deals out there in the condo market for our clients with these low prices not seen in San Diego for some time, but many can’t seem to qualify for a condo home loan in San Diego for many different reasons.

Either the owner occupancy rates are not high enough, the HOA are more than 15% delinquent, the complex is not FHA approved etc etc. So with all these rules and changing guidelines, what is the best way to get our clients approved for a home loan for a condo? Here are some great tips for you to know when your client is interested in buying a condo.

Is the condo complex FHA or Fannie Mae approved?

 First of all it is imperative to check and see if a complex is FHA approved or Fannie Mae approved if you plan on getting financing through one of these sources for your clients. Here are the links you need to check right away to make sure the particular complex is approved.

1. For FHA financing use the link https://entp.hud.gov/idapp/html/condlook.cfm

2. For Fannie Mae financing use the link below and then click on “California” to make sure the complex you are looking for is on the list for Fannie Mae approved complexes. https://www.efanniemae.com/sf/refmaterials/approvedprojects/index.jsp?from=hp
 

Spot Approvals are gone as of February 1st!>

 It’s official and as of February 2nd FHA are no longer allowing “Spot Loan Approvals” (SLAs). The decision to eliminate spot approvals in my opinion, will deny ownership to many potential condo purchasers, as this allowed people to purchase a condo in a project without having to go through the project approval process. Now the whole project will have to get approved. Previously, only the FHA could grant approval to condo projects for FHA financing, but now the FHA will allow Lenders to determine project eligibility and review project documentation.

It will be interesting to see what lenders will step up to participate in this new process, given the extra liability processing and certifying their own condo approvals will entail, it is my hope that the FHA will reverse this decision soon because this will definitely hurt condo sales in our markets.
 
What if complex has more than 15% HOA delinquencies! A Limited Condo Review is the solution!

Another rule that FHA and Fannie Mae have come up with, is that there cannot be more than 15% of the units in the complex be delinquent on their HOA fees. I have run into this problem myself a few times recently when the HOA cert comes back and it shows that 20-25% of the properties are delinquent..this will kill the deal immediately as the property will not get financing.

Now most people assume that the lender always requires a HOA cert on every condo loan file, this is not true. Here is the solution if you have more than 15% delinquencies in your particular complex! First of all, you should always do a little homework upfront on the specific complex, or if you can request a HOA cert upfront on the complex and determine the data of the complex. If your borrower has the following requirements..is owner occupied or 2nd home, has a loan amount <$417k, complex is more than 50% owner occupied, complex is not involved in litigation etc, some lenders will allow you to complete a “limited condo review” on the complex, which eliminates the need to request a HOA cert which lists the delinquencies.

You are eligible for a limited review when you run DU (Fannie Mae desktop underwriter) on your client’s application,  DU will advise you if you are eligible to qualify for a limited review for the complex. If you qualify for a “limited review” you will not have to send in a HOA cert which of course would list the HOA delinquencies of the complex…so bingo.. your borrower now qualifies for financing. I should also point out it is important that the appraiser inputs the correct data regarding the condo on the appraisal, as not listing this correct data may trigger a HOA cert and then kill the deal.

Please note there are only a few lenders that I know off that allow a limited review on a complex, so if you have a file that has HOA delinquencies over 15% let me know and I can help you get your client approved. 

 What if I cannot get a Limited Condo Review?

If you cannot get a limited review (as described above) then you are going to be subject to a “Full Review” of the complex and a full HOA cert is required for the loan file. Make sure you are aware of the requirements to be eligible for FHA and Fannie Mae financing. Here are some of them but make sure you know what all of them are for a specific lender you are trying to get financing with. For example, you will need 51% owner occupied, no litigation, 70% of the units must be presold or under contract, no more than 15% of the units can be delinquent on their HOA fees, one investor cannot own more than 10% of the total number of units, etc.

 
Mortgage insurance and Condos!

Obtaining mortgage insurance on condos for high loan to value financing has also become quite difficult. Thankfully the FHA will allow mortgage insurance (MI) up to 96.5% on condos. Fannie Mae now only allows conforming financing up to 80% on condos and this is because none of the MI companies will insure higher than 80% here in CA, as CA is still determined as a declining market.

While values continue to decline, (although it seems at last they are stabilizing in CA) MI companies will limit their exposure on condos. When the market picks back up again and values have stabilized, you will see MI companies come back to the fore again to offer MI on higher LTV financing on condos.

 Help your clients qualify for single family homes instead of condos!

There is no doubt it is getting tougher to get financing on condos, even some of the sellers will not even allow FHA financing on some of their condos. But I do think there will be many more opportunities opening up soon for our buyers, as the lenders have to allow their condo inventories to unclog at some time. So when they do it is imperative that we know what our clients can qualify for and what requirements need to be met for financing.

From working with lots of first time buyers, many of them assume they can only afford a condominium as this is where their price range is and affordable monthly payment is. But there are ways to help them qualify from “condo buyer to single family home buyer”.

Here are a few tips that I have used recently to help some of my clients move into a position to qualify for a single family home, just by helping them restructure their debt a little and also by giving them the right advice. Lets say your buyer is looking for a condo, by eliminating for example $300-$400 HOA fees from a buyers debt ratios, this enables them to afford $55k-$75k more on a single family home. Perhaps they also have a $500-600 car payment they can turn in for a cheaper payment to help them afford more financing.

Perhaps they can get a loan from the family to payoff some high interest payment credit card debt and lower their debt ratios, and in turn they can pay them back with the $8k tax credit (it is my opinion that this tax credit will get extended for 6 more months). Perhaps they can ask one of their family members to help them co sign for a single family home because they cannot get condo financing, many times they did not know co signing was an option, and only asked their parents after I advised them too.

I hope this information and some of these ideas help you and your clients, if ever you have any questions please do not hesitate to contact me.

Sincerely

Michael

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Posted in Condominium Financing | No Comments »

Home loan San Diego-What are Trigger Leads? Protect your Personal Information Tuesday, August 18th, 2009

After you have applied for your new home loan in San Diego, did you know that the credit bureaus will sell your personal data? Believe it or not, this is actually true. Borrowers who have applied for a home loan in San Diego will be immedietely flagged and sold to the highest bidders, who are looking for “hot leads” or potential homebuyers to call on.

 

For about $35 to $75$ more, your name, address, mortgage or rental history, phone number and fico score range will be sold to to these highest bidders who will call you up blindy and solicit your business. What results is unwanted phone calls and mailings to your home, providing you with offers for a loan that you did not request.

 

At this current time, there is no legislation that exists to stop the credit bureaus from profiting from selling your information. You just have to be aware that you will be receiving quite a few too good to be true offers over the phone and in the mail, with many of them trying to discredit the already established relationship you have with your trusted mortgage advisor or real estate agent.

 Now there is a way that you can remove yourself from these unscrupulous sales tactics that may come your way, and this is what i recommend to all my clients once we have begun the application process. You can ”opt out” of the credit bureau solicitations by going to the website called www.optoutprescreen.com and inputting the required information. For all new homebuyers and exisiting homeowners, this is definitely the easiest way to sidestep this problem immedietely.

 

We understand that buying a home can be an arduous journey with many unknown hurdles along the way, that is why when you apply for your new home loan in San Diego with my company, you can feel safe and secure knowing that you have a professional mortgage planner who has your best interests at heart. For more information on the homebuying process and what other steps you need to take to obtain your new home loan, please visit www.michaeladeery.com or call me directly at 858-200-9602. 

 

Your mortgage planner

 

Michael Deery

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Posted in How to Purchase a Home | 2 Comments »

San Diego Home Loan- How Much Money Should you Borrow? Sunday, August 16th, 2009

How much money should I borrow for my new San Diego home loan? While it might be tempting to borrow the amount of money your mortgage lender is willing to give you, it is very important to decipher how much you will actually need to borrow  in order to purchase your new home. From the amount you will need for the down payment, the closing costs, for property taxes and the home owners insurance, there are many factors to consider when making probably the largest financial decision you will ever make for your new San Diego home loan.

 

What may surprise you, is that there is no exact formula for accurately calculating the dollar amount you should borrow when purchasing your new home. But many economists agree that you should only borrow more than 2 1/2 to 3 times your annual income, or that 28% to 40% of your income is the maximum amount of debt that you should ever take on for a mortgage.

Now while these calculation insights may help you in your thinking of the overall loan process, i believe meeting with a professional mortgage planner and getting properly pre-approved for your loan is really the only way to know exactly the amount of money you really can afford and can qualify for. By getting properly approved, you not only improve the odds of finding the perfect home, but you now also become a “cash buyer” that increases your bargaining position imensely.

 

As a professional mortgage planner, i see my role much differently than a typical loan officer. Not only is my job to match your profile with the best mortgage available, it is also my role to make sure that this is the most responsible loan product for you as well that suits your goals and needs. That is why we have our detailed mortgage concierge program, that will go over in detail your goals and plans for the next 10-20 years.

 

I hope you now are more aware of the amount of money you may need to borrow for your new San Diego home loan. Some lenders will offer you the maximum amount of money that you may qualify for, whether you actually need the whole amount or not. This is why it is very important that you sit down with a professional mortgage planner that you can trust, who will help you decipher the amount you can afford for your new purchase. For more information on how to purchase a home correctly and avoid the mistakes that a lot of first time buyers make, Please visit http://www.michaeladeery.com/index.php?option=com_user&task=links&id=39. My next posting will go over the process of “how purchase loans are made”.

 

Your mortgage planner

 

Michael deery

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Posted in How to Purchase a Home | 5 Comments »

First time buyers race to find a home loan in San Diego to beat $8k tax credit deadline! Saturday, August 15th, 2009

The first time home buyer frenzy is on to find a new home in San Diego. With the $8k tax credit deadline of November 30th fast approaching, many new first time home buyers are now scrambling to get a home loan in San Diego. Competition is certainly hot out there in this demographic, as over 43% of sales in the 2nd Quarter were attributed to first time buyers. Real estate agents are also advising that new buyers need to be in contract before September 30th, due to the fact that closing on a transaction for a new home loan in San Diego is taking almost two months in this current market.

But the biggest problem right now in the San Diego market is that there is not enough inventory out there to choose from, and it is especially more difficult for first time buyers who have limited funds for downpayments and closing costs. This is why this $8k tax credit is so important among first time buyers, as it is helping buyers get into homes that they could not afford otherwise. Many first time buyers are taking advantage of the $8k in a few different ways. The two most popular ways are as follows, firstly where they borrow the $8k funds from a family member and then they can pay back the family member immedietely after closing, as the IRS allow you to amend your taxes and claim this $8k as a refund right away. Secondly, borrowers are borrowing the funds from a 401k account, and then paying back those 401k funds immedietely after closing with your $8k refund. Both of these methods for down payment assisstance are allowed by the FHA, which is fast becoming the most popular choice among buyers for new home loans in San Diego. The FHA also only requires 3.5% for a down payment.

Many real state agents are advising that they are seeing a surge of first time buyers who want to close before November 30th, the deadline for the credit. But now that the overall loan process is taking longer, it is advisable for people to get into contract as soon as possible, because many buyers are now seeing several weeks being added onto a typical transaction due to inspections, appraisal delays and slower loan approvals.

Once this $8k tax credit approaches its deadline of November 30th, they are many who are optimistic that this tax credit will be extended going into 2010. There is no doubt it has helped a battered housing market, so keeping this tax carrot going into 2010 will only help to keep our San Diego market moving along. For more information on how to obtain a new home loan in San Diego, please visit www.michaeladeery.com, Here you will be able to find all the information you are looking for on the home buying process.

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