Garrick Werdmuller's Blog

Writing an offer with 203k financing in Oakland Alameda, San Francisco

Garrick Werdmuller (First Priority Financial) — Mon, 14 May 2012 12:15:29 -0700

Direct Link

http://www.youtube.com/watch?v=fOazS9i4A7c&feature=youtu.be

Oakland Ca., It’s no secret we’ve discussed this before, there are some properties on the market with deferred maintenance right? Well it can be tricky for first time buyers to get into these well priced properties due to financing restrictions. That’s why more and more we are seeing 203K offers when necessary, a loan that actually allows you to finance the construction of the property after the close of escrow. Now the big questions is “How do you write an offer on a 203K property?”

Step 1

Put 203K in the Purchase Contract – Now this is not legal advice on how to write a purchase contract, however a good rule of thumb would be to fill out your contract like you would a normal FHA contract and then write in “203K renovation for FHA”.

Step 2

Provide for Longer Contingency Periods – A 203K takes a little bit of time, allow for enough time to get the Home Inspection AND a Contractor Bid with the HUID consultant present. Then, once construction is finalized we can submit to underwriting and order appraisal.

Step 3

Provide Longer Appraisal Contingency than You Are Used To – 203K Appraisals are based on future appraised value. You have to have the HUD consultant work write up and construction costs figured out FIRST before we can even order the Appraisal let alone inspect the property.

Step 4

Give 60 Days to Get it Closed – 203K Loans have more 3rd party items so give some additional time to get a couple contractors to the house AND give the contractors time to price accurately and get the file properly underwritten. Now that you know how to write a 203K contract you need to be able to sell the offer. To do that educate the listing agent on the fact that condition is a non-issue. All the repairs the property needs will be taken into account early on and there is rarely a value issue on these loans.

For more information email info@garrick.biz or call or text 510.846.3006.

203K and Sewer Lateral Repairs

The Truth About 203K Financing

203K Streamline vs. Full

Sewer Lateral Repairs and 203k Financing in Oakland and the East Bay Area

Garrick Werdmuller (First Priority Financial) — Fri, 04 May 2012 10:32:18 -0700

Direct link:

http://youtu.be/SyhrJHk4vdc

Oakland, Ca. As you may know, in many cities, a sewer lateral inspection/repair is a requirement in every real estate purchase transaction. Specifically in Oakland after January 16, 2012 all homes purchased are now required to obtain a certificate of compliance from EBMUD. So what does this mean exactly?

The EPA among other agencies is requiring six East Bay cities and one sewer district to fix old, cracked sewer pipes to ensure they don't allow the infiltration of rainwater which can overwhelm water treatment facilities and pose a threat to public health.

When are property owners required to obtain a compliance certificate?

The ordinance specifies three conditions which require property owners to test and, if needed, repair or replace their private sewer laterals:

1. Prior to selling the property; or

2. When obtaining any permit for the construction or modification of the property estimated to be greater than $100,000; or

3. When increasing or decreasing EBMUD water service that requires a change in meter size.

When purchasing a bank owned home the cost of the inspection and repairs is not automatically paid by the seller a.k.a. the bank as in certain other real estate transactions. Typically banks really don’t want to pay for anything on REO transactions especially maintenance. Buyers can utilize a FHA 203k rehabilitation loan to finance the charges and thus avoid having to pay out of pocket up front for these repairs. The City of Oakland will allow the borrower to pay a $4500 deposit to the city, and after the close of escrow when the work has been completed the funds from the construction loan can be used to pay the bill and the borrowers will get their deposit money back.

For more information on the benefits of FHA 203k financing call 510-282-5456 or email info@garrick.biz. Thanks you for watching, liking, forwarding and sharing!

Home Owner Bill Of Rights on Foreclosed Properties in California San Francisco Oakland Alameda

Garrick Werdmuller (First Priority Financial) — Tue, 24 Apr 2012 11:37:51 -0700

Direct Link

http://www.youtube.com/watch?v=4FqBL_NN22E&feature=plcp&context=C4774aeeVDvjVQa1PpcFNxIKhmLFmXvd2AG5sOq4XuvCSpfzvIpX4%3D

San Francisco; Ca; A Homeowner Bill of Rights has been introduced to the California State Assembly in the form of seven bills entered Focused on the impacts of foreclosure.

California Attorney General Kamala D. Harris’s office said that the proposed legislation seeks to protect homeowners from unfair banking practices related to foreclosures and provide remedies for communities threatened by blight from foreclosed properties.

Two of the bills would provide local communities with the ability to bring increased penalties against the owners of blighted properties deterioration, faulty planning, inadequate or improper facilities, deleterious land use or the existence of unsafe structures, or any combination of these factors,, even taking control of the property.

Another bill would protect tenants in foreclosed buildings. Purchasers of foreclosed properties would have to honor the terms of existing leases and allow tenants at least 90 days before commencing on eviction proceedings.

There are two bills which would provide additional tools for the Attorney General to investigate and prosecute mortgage frauds and crimes.

The final two bills in the clutch of legislation would allow the Attorney General to convene a special grand jury to investigate and indict the perpetrators of financial crimes when the victims are in multiple jurisdictions.

All seven of the bills have passed out of the appropriate legislative review committees and are heading toward a vote of the whole assembly.

If you have any questions or need help getting pre approved for a home loan to buy REO’s or any other property please email or call me 510.282.5456 info@garrick.biz

Do You Really Want to Close Your Mortgage Home Loan on Time in California or ANYWHERE?

Garrick Werdmuller (First Priority Financial) — Thu, 12 Apr 2012 10:52:01 -0700

San Francisco Ca, As you have heard, basically…EVERYWHERE IN THE MEDIA, lenders require A LOT of documentation to close a loan when purchasing or refinancing a home in this day and age. Loans are definitely fully documented and without question YOUR BEST DEFENSE IS A GREAT OFFENSE!

That being said here is what you must have prepared with your lender and agent when prepared to write offers:

· A Cover Letter – Tell your story and make sure your lender know your story. Don’t forget to include any skeletons dangling in your closet, collections, alimony, child support or unpaid IRS liens. Paint a pretty picture but explain any skeletons.

· A completed loan application – review for accuracy.

· If you own property already tie all mortgages from your credit report to your properties.

· If you own property already submit mortgage statements and proof of insurance and property taxes.

· Tri Merge Credit report – your lender will pull this. Get a copy, don’t pull your own. Especially if you are writing on bank owned properties. Most bank owned properties want you pre approved with their institution. That means if you go out and look at offers on 5 houses owned by 5 different banks you may have 6 credit checks! Keep them to a minimum.

· Photo ID.

· Income documentation – 1 month paystubs, 2 years w2’s, 2 years complete tax returns, and business returns if the borrower owns more than 25% of a company.

· Earnest money deposit receipt, copy of check and proof cleared borrower’s account.

· Most recent months bank statements or (Per AUS findings).

· Provide letter of explanation for all large deposits (Anything Greater than 10% of gross monthly earnings must also be documented) including paper trail- cancelled checks, corresponding bank statements, etc.

· Gift Letter and Paper trail: Gift Letter, Donors ability to gift and transfer from donor to borrower with final balance in account.

· Contract fully executed.

· Short Sale approval.

· Copy of any inspections and clearances (Per contract or appraisal).

· Preliminary Title Report (Usually received 2 days after escrow is opened).

· HOA certification form and copy of Master Liability Policy and Insurance Policy for a condominium.

While this may sound a little overboard this is exactly what is needed upfront to close FAST in today’s market. For more information on getting pre approved for your California home loan text or call 510.282.5456, or email us at info@garrick.biz

Home Affordable Refinance Program HARP 2.0 Update San Francisco California Bay Area

Garrick Werdmuller (First Priority Financial) — Thu, 12 Apr 2012 10:47:55 -0700

San Francisco Bay Area Home Affordable Refinance Guidelines include:

- Removing the 125 percent loan-to-value.

- Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.

- Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the GSEs

- Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines

- Extending availability of the program through the end of 2013

For more information on getting pre approved for your California HARP 2.0 Refinance home loan text or call 510.282.5456, or email us at info@garrick.biz

Mortgages Rates Jump up for the First Time In Months in San Francisco, CA!

Garrick Werdmuller (First Priority Financial) — Thu, 15 Mar 2012 11:16:47 -0700

San Francisco, CA: On March 13^th and 14^th we saw huge rate increases. Our beloved 3.875% “Best Execution” went to 4.125% with most lenders. In fact over the past two days we have seen a dramatic increase in rates –

For those that want to know WHY rates moved higher so quickly:

I Refer to Matthew Graham of Mortgage News Daily -

“(NOTE: For most of this discussion, we'll actually reference 10yr Treasury yields, even though it is Mortgage-Backed-Securities (MBS), that most directly influence lender's rate sheets. When markets are undergoing bigger shifts than they've recently seen, 10yr Treasuries are a better indicator to measure the progress and severity of those shifts. We'll ALWAYS make note of any major discrepancies between MBS and Treasuries on the occasions where we talk about both.)

There are several layers of causality. We discussed the "perfect storm" of events that drove rates higher yesterday. That discussion included Greece's recently fully-approved 2nd bailout, a slightly more upbeat FOMC Announcement, slightly stronger Retail Sales, and the general trading dynamics that left bond markets "susceptible" to the weakness.

Yesterday, we talked about that susceptibility as leaving room to run up to about 2.13% in terms of 10yr yields. Today's rout was the next destination in that technical framework. What begins as a test of higher-than-recent interest rates can quickly turn into a brutal disintegration if certain dominoes fall. Without attempting to explain every esoteric concept of the underlying markets, suffice it to say that between yesterday and today, some very big dominoes started falling, and we're not sure if they're done yet.”

WHAT NOW?

Rates are still phenomenal so if you haven’t locked in on your refinance I don’t think you missed out on anything…you were just waiting for the bottom, and when you wait for the bottom it is very easy to miss the bottom. That being said, it is of course very possible to see rates go even lower. We are still near historic lows!

For more information please feel free to comment, call 510.282.5456 or email info@garrick.biz.

Good News for SOME FHA Homeowners in Berkeley, CA– Streamline Mortgage Insurance is Going Down

Garrick Werdmuller (First Priority Financial) — Tue, 13 Mar 2012 15:23:56 -0700

Direct Link:

http://youtu.be/5N0ouGW1h-A">http://youtu.be/5N0ouGW1h-A</a

On March 7th HUD announced that FHA mortgage insurance is going up on April 9th for ALL FHA loans. A .10% increase.

Not only that but FHA is raising the upfront mortgage insurance premium from 1% to 1.75%

THEN they announced some good news – For case numbers assigned after June 11, 2012 which are refinancing an FHA loan which was endorsed prior to June 1st 2009 there will be a decrease to the monthly mortgage insurance to just .55%.

Now this is huge because rates were anywhere from the high 4’s to mid 5’s in 2009 and FHA mortgage insurance was .55%. Since then, or course, we have seen rates go down but mortgage insurance keeps going up. Every year!

Let’s take a look at an example – Say you have a $300,000 Loan

30 Year fix 5.25% Payment = $1656 MI .55% = $137.50 Payment = $1793

30 Year Fix 3.75% Payment = $1389 MI 1.15% = $287.50 Payment = $1676

*After June 11 2012* 3.75% (est) Payment = $1389 MI = $137.50 Payment = $1526

So this is a great step in the right direction for helping FHA homeowners who don’t want to throw away money on monthly mortgage insurance.

If you are a homeowner looking to see if you are eligible contact me to see when your FHA loan was endorsed. If you are a Realtor make sure you dig through your closed database and see if your clients qualify. There is never a better time to ask for a referral than after you save somebody Money.

If you need further assistance please feel free to comment, call 510.282.5456 or email info@garrick.biz

FHA Mortgage Insurance is on the Rise in the San Francisco Bay Area AGAIN!

Garrick Werdmuller (First Priority Financial) — Fri, 02 Mar 2012 12:25:22 -0800

Direct Link

http://youtu.be/GRLKjW9jJ3Y

On April 1st the Federal Housing Administration is increasing both upfront and annual premiums for its insured single family loans. The annual increase will be .10 % to make the annual mortgage insurance premiums 1.25% mandated by the Temporary Payroll Tax Cut Continuation Act of 2011.

But that’s not all! FHA is exercising its authority to raise other fees for the specific purpose of strengthening FHA’s Mutual Mortgage Insurance Fund (MMI).

The upfront premium, which went down in 2010 is going right back up to 1.75%. A .75% increase from the current 1% premium. This change will happen on all FHA loans regardless of amortization terms. Borrowers WILL still be able to finance this charge.

But that’s not all…. June 1st there will be one last increase of an additional 0.25 percent on FHA-insured loans with principal balances over $625,000 bringing the total hike on “Extended Loan Limit High Balance” FHA to 0.35 percent.

Acting FHA Commissioner Carol Galante said, “After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the return of private capital to the housing market. These modest increases are one of several measures we are taking towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers.”

FHA estimates that the premium changes will, in the aggregate, add more than $1 billion to the MIF based on the current volume projections through Fiscal 2013.

For questions on FHA financing Contact Wendy Werdmuller of Team Werdmuller at Wendy@garrick.biz NMLS# 242612 DRE Lic #01826247

How Long Until You Can Buy Again After Short Sale, Foreclosure or Bankruptcy in Alameda, CA?

Garrick Werdmuller (First Priority Financial) — Mon, 13 Feb 2012 15:44:56 -0800

Direct Link:

http://www.youtube.com/watch?v=gTY1UVPRk8g

A lot of people ask this question and it’s a great question.

And the answer is- That depends. You see, guidelines are always changing and will continue to change over the next few years.

In fact they JUST changed! So here is how it stands today…

CONVENTIONAL

Bankruptcy – You may apply for a Conventional, Fannie Mae loan after your bankruptcy has been discharged for FOUR (4) years.

Foreclosure – Home was given back to the bank – no owner participation.

- 7 years from the date the foreclosure was completed and transferred back to the bank if the borrower had NO extenuating circumstances. Minimum FICO of 680 required.

- 3 years from the date the foreclosure was completed and transferred back to bank with acceptable extenuating circumstances, AND 10% down payment. Primary home purchase and rate/term refinance only. Non‐owner and second homes not allowed

Short Sale / Deed in Lieu of Foreclosure -

Short Sale- Home sold, but sales price didn’t cover amount owed.

Deed‐in‐Lieu- Home returned to lender in exchange for canceling the loan.

- 7 years from date sale closed and transferred to new owner or transferred back to the bank for less than 10% down payment and minimum FICO 680.

- 4 years from date sale closed and transferred to new owner or transferred back to the bank with 10% down payment and minimum FICO 680.

- 2 years from date sale closed and transferred to new owner or transferred back to the bank may be possible with acceptable extenuating circumstances and 10% down payment.

Bankruptcy Chapter 7- Debts are discharged through BK, client does not pay any debts owing.

- 4 years from date of discharge - 2 years from discharge date may be possible with acceptable extenuating circumstances

Bankruptcy Chapter 13- Debts are paid back on a monthly scheduled payment plan by client.

- 2 years from date of discharge or

- 4 years from dismissal date

FHA (DETERMINED BY DATE OF CREDIT APPROVAL)

Foreclosure, Deed‐in‐Lieu of Foreclosure

Foreclosure: Home was given back to the bank – no owner participation.

Deed in Lieu: Home returned to lender in exchange for canceling loan.

- 3 years from date foreclosure was completed and transferred back to bank.

- Less than 3 years, but not less than 12 months from date foreclosure was completed and transferred back to bank may be acceptable depending on the results of acceptable extenuating circumstances.

Short Sale- Home sold, but sales price didn’t cover amount owed.

- 3 years from date sale closed and transferred to new owner. - No waiting period if borrower had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale, AND borrower is not taking advantage of declining market conditions. Subject property may not be in the same geographic region.

Bankruptcy Chapter 7- Debts are discharged through BK, client does not pay any debts owing.

- 2 years from date of discharge with re‐established credit paid as agreed or no new credit obligations incurred.

- Less than 2 years, but not less than 12 months from date of discharge may be acceptable if the bankruptcy was caused by acceptable extenuating circumstances, and the borrower has since exhibited a documented ability to manage financial affairs in a responsible manner.

Bankruptcy Chapter 13- Debts are paid back on a monthly scheduled payment plan by client.

- 1 year payout period under bankruptcy has elapsed and the borrower’s payment performance has been satisfactory; and all required payments made on time.

VA (DETERMINED BY DATE OF CREDIT APPROVAL)

Foreclosure, Deed‐in‐Lieu of Foreclosure Foreclosure: Home was given back to the bank – no owner participation.

Deed in Lieu: Home returned to lender in exchange for canceling loan.

- 2 years from date foreclosure was completed and transferred back to the bank.

- 12‐23 months from date foreclosure was completed and transferred back to bank; if credit re-established and paid as agreed, and was caused by acceptable extenuating circumstances.

Short Sale: Home sold but sales price didn’t cover amount owed.

- 2 years from date sale closed and transferred to new owner. - No waiting period if borrower has no late payments on any mortgages and consumer debts within the last 12 month period preceding the short sale, AND the borrower is not taking advantage of a declining market.

Bankruptcy Chapter 7- Debts are discharged through BK, client does not pay any debts owing.

- 2 years from date of discharge.

- 12‐ 23 months from date of discharge if credit is re‐established and paid as agreed; and was caused by acceptable extenuating circumstances.

Bankruptcy Chapter 13- Debts are paid back on a monthly scheduled payment plan by client.

- 1 year payout period under bankruptcy has elapsed and the borrower’s payment performance has been satisfactory and all required payments made on time.

When you are ready to get back into the housing market or for more information please contact me at 510-282-5456 or info@garrick.biz.

Feds Announce Bay Area Real Estate Mortgage Interest Rates to Stay Low Until 2014

http://the-buzzz.com/2012/01/25/feds-announce-bay-area-real-estate-mortgage-interest-rates-to-stay-low-until-2014-in-alameda/

Home Affordable Refinance Program Update HARP 2

http://the-buzzz.com/2012/01/27/home-affordable-refinance-program-update-harp-2-bay-area-san-francisco-california-march-2012/

Restoring FHA Loan Limits

http://the-buzzz.com/2011/11/17/restoring-fha-loan-limits-in-alameda-ca/

Allowable VS Non-Allowable Closing Costs a Veteran May Pay When Purchasing or Refinancing Using VA Financing in The SF Bay Area

Garrick Werdmuller (First Priority Financial) — Fri, 10 Feb 2012 18:46:41 -0800

I receive a lot of questions regarding what fees a Veteran is allowed and not allowed to pay in a real estate transaction in Alameda. Here is a summary of allowable and unallowable costs from one of the lenders I frequently work with.

ALLOWABLE CLOSING COSTS

A Veteran may pay any of the following reasonable closing costs and fees:

1% origination fee for purchase and cash-out loans, the origination fee is calculated using the total loan amount, including the financed funding fee
For IRRRLs, the origination fee is calculated using the payoff minus any cash payments by the veteran, if applicable
Reasonable discount points: Brokers may charge only those discount points required to buy down the loan’s interest rate – Correspondents/VA Automatic customers are exempt from this requirement, however, the discount points charged must be reasonable and customary
VA appraisal fee – The veteran may not pay a fee higher than the maximum allowable appraisal fee for the state in which the property is located – See VA Appraisal Fee Schedules
VA compliance inspector fees – Only if required by the NOV (Notice of Value)
Recording fees
Taxes and stamps
Credit report fees – a $50 credit evaluation fee may be paid in lieu of the credit report fee for automated underwriting approvals
Pre-paid items
Insurances (hazard and flood, when required)
Flood zone determination
Well and septic inspection fees
Survey, if required by lender or veteran, except for surveys of condominiums
Title insurance, title examination, title endorsement, title policy, title search
Environmental protection lien endorsement
Express mail fees for refinances if the saved per diem interest cost to the veteran will exceed the cost of the special handling – Anything over $50, provide the invoice to verify fee
VA funding fee
Mortgage Electronic Registration System (MERS) fee
Closing protection letter – Should not exceed $35
Fraud protection report
Termite, provided the loan is a cash-out refinance – The borrower may never pay these fees for purchase transactions

If a fee is not listed above, assume VA does NOT permit the veteran to pay it

NON-ALLOWABLE BORROWER-PAID CLOSING COSTS

Generally, the veteran may NOT pay any of the fees listed below, but the seller or lender may pay the non-allowable fees. However, if no origination fee is charged and the fee is not listed in the section below that itemizes fees the Veteran may never pay, the Veteran may pay non-allowable costs up to 1% of the purchase price. The veteran may also pay a combination of non-allowable fees and an origination fee, provided the combination does not exceed 1% of the purchase price.

The non-allowable fees are:

Attorney fees other than for title commitments
Lender’s appraisals
Lender’s inspections, except construction loan inspections and inspections required on the appraisal/NOV
Loan closing or settlement fees
Doc prep, underwriting, loan application, admin or processing fees
Assignment fees
Photographs
Interest rate lock-in fees
E-Mail, fax, copying, postage, stationery, telephone or other overhead charges
Amortization schedules, Truth-in-Lending fees, etc.
Notary fees
Escrow fees or charges
Commitment fees or marketing fees of secondary purchasers
Trustee fees
Fees charged by third parties, regardless of affiliation with lender
Tax service fees
Termite inspection fee for a purchase transaction
Attorney fee that benefits the lender
Broker fee
Brokerage fees or commissions charged by real estate agents or real estate brokers in connection with a VA loan
Prepayment penalties financed through a refinance transaction – When the payoff states a pre-payment penalty is due, veterans may pay pre-payment penalties out-of-pocket only
FHA/VA inspection fees for builders (Normal new construction inspections of the dwelling are permitted when required by the appraiser)
Any portion of the seller’s lien(s) or short sale fees
For purchase transactions, the cost of required repairs and inspections must be paid by the seller. This policy applies to all purchases, including purchases of REO properties. VA does not permit the veteran to pay for repairs other than minor termite damage repairs

For more information about VA financing feel free to call 510-282-5456 or email info@garrick.biz.

VA Interest Rate Reduction Loan

VA Loan Requirements and Eligibility

Approved Property Types and Loan Limit for VA Loans

How to Purchase a Home with a VA Loan

Home Affordable Refinance Program Update Harp 2 Bay Area Piedmont California March 2012

Garrick Werdmuller (First Priority Financial) — Fri, 27 Jan 2012 16:42:35 -0800

Direct Link: http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/u/0/8GWw3OWohcI

The Buzzz is growing for the "Home Affordable Refinance Program" revisions, referred to as HARP 2.0. Well HARP 2 is finally coming Spring of 2012!

Feds Announce Bay Area Real Estate Mortgage Interest Rates to Stay Low Until 2014 in Alameda

Garrick Werdmuller (First Priority Financial) — Fri, 27 Jan 2012 16:38:03 -0800

For the past couple weeks mortgage rates have been inching up. That changed today, January 25th 2012 when we saw a huge rally in interest rates largely in part to the FOMC statement that rates are staying low until “late 2014”!!!

Let’s flashback to the December 13th meeting…

“The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013."

Now this week, January 25th meeting…

“The Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014."

According to RateAlert’s David Shirmeyer outside of a dramatic failure overseas we shouldn’t see rates go much lower than where they are. That being said we shouldn’t see rates getting much higher either thanks to the fed announcement.

Mortgage rates are once again at all-time lows! While mortgage interest rates certainly don’t seem like they will go higher overnight there is more risk than reward in waiting once rates get below 4%. Lenders get very busy when rates are this low and often times raise rates just to slow down the volume.

To request accurate information including a quick rate quote online visit "http://www.garrick.biz".

Obama Signs Bill Extending FHA and VA Loan Limits

http://the-buzzz.com/2011/11/21/president-obama-signs-bill-extending-fha-va-loan-limits-hitting-gses-with-fee-in-alameda-ca/"

Home Affordable Refinance Program HARP 2 to Hit March 2012!

"http://the-buzzz.com/2011/11/01/harp-2-guidelines-for-refinances-appraisals-waived-alameda/"

Guidelines for Purchasing a 3-4 Unit Property with FHA Financing in Oakland, CA

Garrick Werdmuller (First Priority Financial) — Thu, 19 Jan 2012 15:12:01 -0800

Direct link: http://www.youtube.com/watch?v=vRyNb2jdHZk&feature=channel_video_title

Are you a first time homebuyer interested in purchasing a 3-4 unit property in Oakland? Good news, with FHA financing you can do just that with a 3.5% down payment! Following are some of the guidelines for qualifying for this financing:

For starters, the property has to be your primary residence- meaning that you must live in one of the units.

Three to four unit self-sufficiency test:

The maximum mortgage for three and four unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100 percent, regardless of the occupancy status.

• The monthly mortgage payment calculation for three and four unit properties includes the following:

Principal, interest, taxes, insurance (Principle, Interest, Taxes, and Insurance - PITI), including monthly mortgage insurance, and homeowner association dues computed at the note rate, if applicable.

• Net rental income for three and four unit property is calculated using the following formula:

⇒ the appraiser's estimate of fair market rent from all units, including the unit the borrower chooses for occupancy, and

⇒ minus the greater of the appraiser's estimate for vacancies, or ⇒ vacancy factor used by the jurisdictional HOC. This net rental income calculation is used to determine the maximum loan amount.

In layman's terms, the total rents must be the same or greater of the total monthly mortgage payment, to include taxes, homeowners insurance, and the mortgage insurance. These rents must be determined by an FHA certified appraiser- meaning that you can't use rental leases for this specific test.

So here is the biggest problem with writing an offer on a 3-4 unit building using FHA…

You don’t know what the building qualifies for until you receive the appraisal. In speaking to a few account executives for mortgage banks regarding this issue we believe a good rule of thumb is to use the standard ratio for conventional rental income. That is 75% of the gross rents.

For example if a building grosses $400 take 75% of the income, $3000 and the Principal, Interest, Taxes, and Insurance must be no more than $3000 a month.

Borrowers must still qualify for the mortgage based on:

⇒ income

⇒ credit

⇒ cash to close, and

⇒ projected rents received from remaining units.

⇒ 3 months reserves of borrower own funds (cannot be a gift)

Projected rent may only be considered gross income for qualifying purposes. It cannot be used to offset the monthly mortgage payment.

You still need to also qualify with the normal debt-to-income ratios in regards to your income, in which you can use the rental income. But you can only use 75% of the rental income for the purpose of this qualification. As the primary borrower, you can't use what you would pay for that unit as rent to offset your mortgage. All you are including in order to qualify is your monthly gross income.

Feel free to contact The Werdmuller Group for any questions on the housing and finance markets!

Wendy Werdmuller, NMLS# 242612, info@garrick.biz, 510.846-3006.

FHA vs Conventional Financing

http://the-buzzz.com/2011/03/02/fha-vs-conventional-mortgages-what%e2%80%99s-the-difference-when-buying-a-home-for-sale-in-alameda-berkeley-oakland/

What’s the Difference Between Getting Pre Qualified and Pre Approved for a Mortgage?

http://the-buzzz.com/2011/03/09/what-is-the-difference-between-getting-pre-qualified-and-pre-approved-for-a-mortgage/

Restoring FHA Loan Limits in Alameda, CA

http://the-buzzz.com/2011/11/17/restoring-fha-loan-limits-in-alameda-ca/

The Truth About 203k Rehabilitation Home Loans

http://the-buzzz.com/2011/05/06/the-truth-about-the-203k-rehabilitation-loan-in-san-francisco/

Buy and Bail Can Kill Even the Most Qualified Buyer IN Escrow in Alameda

Garrick Werdmuller (First Priority Financial) — Tue, 17 Jan 2012 12:53:24 -0800

Buy and bail is the result of buying a new home with the intention of bailing on the old. It is considered mortgage fraud. A Borrower must have 30% equity AND two years of Rental Income to use market rents on their current property.

If you have questions comment below or give me a jingle! Please forward if you know someone who could benefit.

http://the-buzzz.com/2012/01/14/buy-and-bail-can-kill-even-the-most-qualified-buyer-in-escrow-when-moving-to-alameda/

http://www.youtube.com/watch?v=EnsY8p6ugG8&list=UUYaeeFGDw9mMlseItLXHf1A&index=1&feature=plcp

How to Have Your Best Year Ever!

Garrick Werdmuller (First Priority Financial) — Tue, 13 Dec 2011 18:20:23 -0800

http://www.youtube.com/user/GarrickWerdmullerSho?feature=watch#p/a/u/1/Pljq-sIqYFs

Without a doubt, this is, and probably will be the most personal video I have or will make. I had an epiphany of sorts at the Mortgage Success Source Mastery Business Plan when I saw and met Jeffrey Gitomer.

I made this video mainly so his presentation would stay fresh in my head and to help me strive to have the best year ever. My hopes are that you get the same motivation to have a great year, whatever year, month, or day it is on the calendar.

If you like this video please share, click the like button, etc. and thank you so much for watching!

To skip the intro in the future go to –

http://www.youtube.com/watch?v=xQV2dgz0T5Y&feature=channel_video_title

Other News:

Home Affordable Refinance Program Harp 2

http://www.youtube.com/user/RealEstateBuzzz?feature=watch

President Obama Signs Bill Extending FHA Loan Limits

http://the-buzzz.com/2011/11/21/president-obama-signs-bill-extending-fha-va-loan-limits-hitting-gses-with-fee-in-alameda-ca/

President Signs Bill Extending FHA, VA Loan Limits, Hitting GSEs with Fee in Piedmont, CA

Garrick Werdmuller (First Priority Financial) — Mon, 21 Nov 2011 14:27:17 -0800

Friday President Barack Obama signed a bill that reinstates the recently expired higher loan limits that were in effect for FHA and VA loans through December 31, 2013 but does not provide this extension to Freddie Mac and Fannie Mae.

According to the article on Mortgage News Daily, “The new legislation also sets an annual fee for loans guaranteed by Freddie Mac and Fannie Mae. This fee is in the amount of 15 basis points on the outstanding principal balance of the loan and is "independent of any guarantee fees upfront on ongoing, charged to the borrower, and the premium loan fee shall not be affected by changes in guarantee fees." The fee, according to the bill, is expected to achieve an annual income of $300 million in revenue which "shall be used to pay for costs associated with maintaining loan limits established under this section. “

This is great news for homebuyers who are refinancing or purchasing a home with FHA financing! Feel free to contact The Werdmuller Group for any questions on the housing and finance markets at info@garrick.biz or 510.282.5456.

To read the full article click here:

http://www.mortgagenewsdaily.com/11182011_revised_loan_limits_loan_fees.asp

Restoring FHA Loan Limits in Piedmont

Garrick Werdmuller (First Priority Financial) — Thu, 17 Nov 2011 19:22:20 -0800

The House of Representatives today voted to restore higher loan limits to $729,750!! This is great news considering that the high limits returned to $625,500 in October.

Here is a brief excerpt of an article published today at Bloomberg.com “For all of the objections from Republican lawmakers and interest groups, the measure survived congressional negotiations on the strength of last month’s Senate vote in favor of an amendment to boost limits for FHA loans and those purchased by Fannie Mae and Freddie Mac. The increase for Fannie Mae and Freddie Mac loans was dropped during the talks, and today’s vote leaves the FHA increase needing only a Senate vote and President Barack Obama’s signature to become law.

Lawmakers who back higher limits say withdrawing federal support could undermine a housing market that has struggled to recover from the 2008 credit crisis. The limits automatically returned to $625,500 in October, spurring lawmakers and housing lobbyists to press for a return to the higher level.”

Feel free to contact The Werdmuller Group for any questions on the housing and finance markets at info@garrick.biz or 510.282.5456.

To read the full Bloomberg Article click here:

U.S. House Backs FHA Loan-Limit Boost Over Republican Objections

HARP 2 Guidelines for Refinances Appraisals Waived Montclair Oakland Piedmont

Garrick Werdmuller (First Priority Financial) — Tue, 01 Nov 2011 17:12:02 -0700

Direct Link

http://www.youtube.com/user/RealEstateBuzzz?feature=mhsn#p/a/u/0/FQw1fPRZuLM

The big news this week is HARP.

THE Home Affordable Refinance Program has been “re stringed”

HARP was designed to assist distressed borrowers who are current on their mortgages but “underwater” meaning they owe more than their home is worth.

It’s no surprise several studies identified these borrowers as being likely to strategically default on or walk away from their homes and foreclose.

While regulations won't be finalized until November 15th the changes to “Harp 2” include -

•Removing the 125 percent loan-to-value. •Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.

•Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the GSEs

•Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines

•Extending availability of the program through the end of 2013

These changes may allow double the homw owners the opportunity to refinance but still will help only borrowers who are current on their payment and who have loans guaranteed by one of the GSE's, Fannie or Freddie prior to July 2009. Thus it will impact only a small percentage of underwater borrowers.

Credit Suisse estimates 720k borrowers will be able to refinance which translates to between $2 and $3 billion in interest savings; so HARP 2 will not have a huge effect on the economy or on the real estate market.

To find out if your home is owned by Fannie or Freddie you can contact my team at info@garrick.biz .

The program is set to come out November 15th 2011.

Google Plus For Real Estate Professionals

Garrick Werdmuller (First Priority Financial) — Fri, 21 Oct 2011 14:25:55 -0700

You Tube Link to video

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/a/u/0/fWdak57zMwo

I was invited to Google Plus a few months ago by a friend in the mortgage business and completely forgot about the email for the most part. Finally, after seeing a webinar on Google Plus put on by Trulia and I dug up the email and subscribed.

Know that in 2008 and 2009 I was addicted to Facebook, it was the first social media site I really invested time in. Before that I really never wanted to connect on MySpace or Friendster and was not interested in tracking people down from high school, college etc.

I was invited to Facebook by a Realtor and saw it as the new way to communicate for business initially. Then once on Facebook of course the world eventually finds you. I think I was at a point in time of my life (mid 30’s) where it was great to hear from all these people from the past I may not have been interested in prior to that. I have done well generating business on Facebook as well; making connections with agents and helping old friends buy homes. I never really went out of my way to market my fan page…

That being said, lately isn’t it just too big? – I think I am ready for Google Plus and believe it could be a nice change. It allows us to be organized upfront. A fresh start! Check out the video above for more details but here are a few highlights of Goggle Plus…

Circles are Google Plus’ way of managing contacts. As a user of Google Plus, you’re able to group contacts together the same way you do in real life. For example, you can have Circles for your family, friends, clients, and business contacts, then choose what information is shared with which Circles each time you post. When using Google Plus for real estate, circles makes it easy to keep your personal life and business life separate.

Huddles is basically a group messaging system. Instead of having to call, text message, or email multiple people about a single event or topic, you can start a Huddle, allowing everyone involved to contribute to the same conversation. Group messaging everyone involved in an upcoming meeting is a great way to use Huddles and Google Plus for real estate.

Hangouts are video chats in which multiple people are able to participate.

Right now Google Plus is still in its beta stage which means you need an invite to get on. Having said that the site received more users the first 20 days than Facebook or Twitter did in their first three years so it’s safe to say Google Plus will have a huge impact on the social media world.

If you are successful at marketing on Twitter and Facebook keep up the great work but don’t ignore Google Plus!

Trulia Mike Mueller Webinar:

http://the-buzzz.com/2011/10/06/trulia-google-plus-webinar-with-mike-mueller/

Hot Cars Hot Models and Hot Mortgage Insurance Returns to the Real Estate Purchase Market in Piedmont

Garrick Werdmuller (First Priority Financial) — Tue, 18 Oct 2011 16:14:10 -0700

Having trouble viewing?

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/u/0/1dhV0cuEX9s

Did you know that Conventional Mortgage Insurance is back?

Home Buyers have more opportunity than they have had since January 2008!!!

With National Conforming Loan limits of $417,000 and below home buyers can once again put just 3% down if they have a 680 fico credit score! FHA currently still requires 3.5% down and a 96.5% loan to value. Conventional mortgage loan pricing does have pricing hits associated with higher loan to value loans so FHA financing may have a lower interest rate. FHA financing however, has both upfront and monthly mortgage insurance. As a consumer, it’s important to go over both options very carefully with your mortgage professional.

On High Balance Loans now going to $625,500.00 from $729,750 in high cost counties like Alameda, Contra Costa, Santa Clara, and San Francisco, Conventional Financing has a minimum down payment of 10%. A borrower must have a 620 fico however with a lower credit score there will be hits to both mortgage insurance and interest rate. The maximum purchase price for conventional high balance loans in high cost areas is $695,000.

FHA also goes to $625,500. FHA allows just 3.5% down on their high balance loans as well allowing a borrower to purchase upwards of $648,186 in high cost areas like Alameda, Contra Costa, Santa Clara, and San Francisco.

Loans above 625,500 are available and still very favorable, however because this is primarily portfolio money the most attractive terms are adjustable rate mortgages fixed for a maximum of 10 years. The good news is Mortgage Insurance is available for Jumbo Loan as well. Currently a home buyer can purchase a home using jumbo financing and 10% down to borrower up to 2 Million!

Related Videos: FHA vs Conventional Financing:

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/u/18/9aCQ0pI2Ky8

The Top 5 Questions Home Buyers Have When Getting a Home Loan

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/u/17/TjV5MPWETK0

How 203K Financing Can End the Foreclosure/REO Epidemic in Piedmont

Garrick Werdmuller (First Priority Financial) — Tue, 18 Oct 2011 15:54:51 -0700

http://www.youtube.com/watch?v=RvHhBy8rbhY

In San Francisco, Oakland, and Alameda, we are getting more and more requests for 203K Financing which is very exciting. This is the best product in the real estate finance industry hands down! It may not make you the most money, purchase prices can be on the low end. It definitely isn’t the easiest loan out there but there is no such thing as an easy loan anymore . And yes, there is more paperwork in a 203K.

That being said the 203K is the only loan that appreciates months after funding. There are a lot of things put into place to cut values in recent years, expiring high balance loan limits, HVCC, risk based pricing by GSE’s the list goes on….

The 203K takes a property unfundable by conventional means and makes it appreciate within months!

For More information on 203K Financing:

4 Marketing Tips for 203K financing:

http://the-buzzz.com/2011/10/05/tips-for-real-estate-agents-to-market-themselves-for-203k-financing-in-san-francisco-alameda/

The Truth About 203K Financing

http://the-buzzz.com/2011/05/06/the-truth-about-the-203k-rehabilitation-loan-in-san-francisco/

203K Full vs Streamline

http://the-buzzz.com/2011/05/20/what%e2%80%99s-the-difference-between-a-full-203k-and-streamline-mortgage/

Tips for Real Estate Agents to Market Themselves for 203K Financing

Garrick Werdmuller (First Priority Financial) — Wed, 05 Oct 2011 16:20:16 -0700

As a Real Estate Agent you have a great 203K marketing opportunity!

Think about it, What if you marketed yourself as the “Rehabilitation Queen?” Maybe we could improve the name but how many agents are out there seeking clients with little money and selling them brand new kitchens and bathrooms? At this time this article is being posted I can’t think of a single agent I know doing that.

I am doing that…and LOVING IT!

Here are a few tips to get started:

1 – Know your product. I recommend online research after going straight to the source:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou

Information from us:

The Truth About 203K Mortgages (w/ Contractor)

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/u/8/HYOx19MyStw

How 203K Financing can end the Foreclosure/REO epidemic

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/a/u/0/RvHhBy8rbhY

What’s the Difference Between a Full 203K and Streamline Mortgage?

http://the-buzzz.com/2011/05/20/what%e2%80%99s-the-difference-between-a-full-203k-and-streamline-mortgage/

2 - Know how to write the offer. While I do not write offers I do know the construction costs are not included in the initial offer, just the fact it’s a 203K. Typically 60 day escrows and 30 day appraisals are best.

3 - Know a good lender. There are a lot out there. If you are reading this of course I vouch for me, in California, the Bay area, Oakland, Berkeley, San Francisco, Alameda, this is where we are doing most our 203K loans. The truth is they are not hard. They take a little longer, require a lot more paperwork on our end, and do have additional costs and often slightly higher rates than standard FHA or conventional, it is a great thing for all parties involved especially the buyer and the neighborhood. That is what is important about the 203K.

4 – Sell the Bathroom and Kitchen. Find that young deserving couple this Sunday and sell that brand new bathroom and kitchen to the one that cooks, the well groomed one etc.! This is what most people remodel first. Do it before you move in!

I hope this helps your business!

For 203K info:

Wendy Werdmuller

203K Specialist

510.846.3006

wendy@garrick.biz

DRE Lic #01826247

NMLS# 242612

The New Government Refinance Program ALAMEDA MORTGAGE MINUTE REAL ESTATE

Garrick Werdmuller (First Priority Financial) — Thu, 01 Sep 2011 18:53:46 -0700

Having trouble viewing? Watch on You Tube! http://youtu.be/tLW3_dfS_SI


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Life After Short Sale The True Story of Ricky and Liz

Garrick Werdmuller (First Priority Financial) — Fri, 19 Aug 2011 13:35:31 -0700

What a AA+ S&P Credit Rating Means to Real Estate ALAMEDA MORTGAGE MINUTE

Garrick Werdmuller (First Priority Financial) — Thu, 11 Aug 2011 14:27:37 -0700

ALAMEDA CA; August 5th at night, Standard & Poor’s rating agency lowered the long-term rating of the U.S. government and federal agencies from AAA to AA+, for the first time in U.S. history.