California Home Loan information

HARP 2.0 - Sweet tune or bitter note?

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Wed, 25 Jan 2012 22:37:32 -0800

OK, everyone is talking about HARP 2.0 and so let's define it. um.... no!

cute, but still no. Nice but a different kind of HARP.

It is an acronym and it stands for Home Affordable Refinance Program

First of all, since it is 2.0 that means that the program was already around and what everyone is buzzing about is the new changes. So let's show you what it looks like now and then discuss changes that are sort of in effect December 2011 but really in effect in March 2012.

Currently the program allows you to refinance a mortgage if you owe more than the home is currently worth and it allows you up to 125% Loan To Value (LTV). There are different rules up to 95%, up to 105% and up to the 125% cap. The loan has to have been funded prior to June 1st, 2009 and must be currently owned by Freddie Mac or Fannie Mae and you still need to qualify to make the payments and have decent credit.

The rules on the new program are written but lenders interpretations are not quite in stone yet. Fannie and Freddie will not have their updates to the automated underwriting systems updated until March 2012 and most lenders are waiting for that to start funding these loans. It is complicated but basically if we lenders have an automated approval from Freddie or Fannie and they are buying the loans, we are in a better position.

What is changing is the LTV limit is being tossed out and you can finance no matter how far under water you are. They are also loosening credit and qualifying guidelines and will be putting more emphasis on payment history and less on debt ratios and perfect credit. This is the part that is most unclear until we get the automated underwriting updates. We have heard that guidelines will be looser but there are no definitions and that is what is being built into the system.

Lastly, there will be caps on fees charged on these loans. Currently if you have a higher LTV or lower credit score there will be an extra fee charged. Some of these are being removed and for the ones that are staying, there will be a maximum and that is good for a lot of people and really good for investment properties.

So...... what should you do?

What you should do is contact your favorite lender (I can help in CA) and have them get you started in their system so when the underwriting guidelines are updated they can just plug you in when things get started in March. You may just qualify now but if not, at least you will be first in line.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Home buyers - CAVEAT EMPTOR!

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Thu, 26 May 2011 14:55:18 -0700

Caveat emptor - Let the buyer beware!

I have just read a bunch of blog posts here in Active rain discussing how people choose their real estate or mortgage professional. These seem to have been from peer to peer blogs and I wanted to write this one to the public. All of the blogs had one thing in common - passion. I think that if you take the time to write about how to choose a professional and you are frustrated with how people choose then you are passionaate and you care about your business and that is the person I want on my team.

First of all, to put it in perspective, think of my good friend Ernie "Spaghetti" Buletti down at red Spaghetti tattoo in Forestville (where I get ALL my work done). Before you ask, YES! I am comparing choosing a tattoo artist to choosing a Realtor or Loan Professional. Think of the ultimate cost of getting a cheap tattoo.... Yes you saved fifty bucks today but you are stuck with a bad tattoo for the rest of your life. Think of your own business and how that works and how people choose you. Think about calling around to different brain surgeons and comparing costs when deciding on that upcoming surgery you need.

People do not necessarily understand how our business works and what they get for their money. There are some differences between mortgage companies for sure but we all sell our loans to the same places at relatively the same prices so you need to choose based on service, honesty, integrity and knowledge. Here is a real simple example: If your Realtor suggests you call a certain lender because they have been working with them for the last 15 years and this person is a full time professional who has an office near you and does what they say and has a long list of satisfied clients who also refer them on a regular basis...... but your half sister's, babysitter's cousin has a son who just got into the business and really needs the business so he can pay his rent this month...... which one do you choose? The really scary part is that you will pay about the same fees and get about the same rate but you just won't get good advice from the part timer or newbie.

It works the same way with a Realtor, you want to hire an agent who will work on your behalf and have your best interests at heart and you want someone with local expertise and knowledge. A full time agent networks with other agents and has a good relationship with their peers, they know the inventory and can tell you how to price your home for sale or what to offer on your next home and they will have your back when negotiating a contract.

The way that good loan professionals and Realtors work is that they give you all of their time and expertise up front and they get paid when you finally find the right home and navigate you through the escrow and the loan process and get you to a successful closing. We get paid nothing until you get what you want. For this reason, it is important for you to give 100% commitment to that professional if you want 100% devotion in return. It is fine to shop around for the right person and ask questions but it is not OK to work with several Realtors or lenders at the same time, you will not get the attention you deserve.

Ultimately, if you the home buyer or seller are wary of who you choose in the first place, you will be represented well and be taken care of now and well into the future.

I am fortunate to have worked in Sonoma County since 1995 and getting to know the best agents in the county. If you want a referral of a good Realtor, I can listen to your needs and give you a good match. If you need a mortgage professional, I have some ideas there too...........

Please email or call me with any real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

I have my own smart phone APP!

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Sat, 26 Feb 2011 16:47:37 -0800

I have my own APP!

I used to joke that if you needed to get a home loan, I had an App for that! Get it? I have a loan APPlication for that....... Yeah, nobody else thought it was that funny either.

Now I actually do have my own App at the apple store and I have a Blackberry App as well and it will soon be made into an Android app so I have all the bases covered.

It is pretty simple really. It is free and I can share it with anyone I like and they can use the mortgage calculator or the prequal tool or simply check my rates if I decide to post them (yes, it is interactive and the rates can be changed as often as I like). Right now I have it set to simply contact me for rates since it is a volatile market.

I am excited at the prospect of sharing this with Realtors who can do a quick basic prequal and email it to a client right from the app or simply calculate a payment right there. Of course the goal here is to have Realtors running around with ME in their pocket all the time and hopefully that drives some business my way.

My clients can also use the tool to calculate payments and that will be helpful as they are out looking at homes or considering refinancing. The app can be shared right from the app itself by hitting the "tell a friend" button.

Have you heard of QR codes? They are kind of like bar codes and when you scan them, they can give you messages in text or send you directly to a web site. They are pretty cool and the QR code to the right when scanned with your smart phone will determine what type of phone you have and send you to the right download spot.

You can also download at http://www.workingbusinesscard.com/download.php or simply search in your apps for LoanApps and download

You need a code to enable the app and my code is 7075299951 Try it if you like.

Loan Professionals: I did not create this app myself, I licensed it from a great company out of Canada and they have a US and a Canadian version and you can get it by clicking the banner below.

HAVE FUN OUT THERE!

Hans Bruhner

www.AskTheLoanMan.com

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Be yourself with pink flamingoes and video

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Tue, 23 Nov 2010 21:48:56 -0800

I have sort of forgotten to be whimsical lately and it had really helped me in the past. I was inspired just today by Irene Kennedy and her blog post is the impetus for this blog. See below:

Irene Kennedy - Dancing Realtor from New Jersey

I have been working with video with my clients for years and I used to have a lot of fun with it and I forget to do that sometimes. I have started having fun again but irene wanted to see the pink flamingo video so it is below.

I was working with a client who lived about 45 minutes from my office and we were about to close on her sizeable loan and she said "Hey!, I don't even know you and have not even met you and I am working with you on one of the biggest transactions of my life." and so I made a short sweet intro video and I happened to be wearing a pink Flamingo shirt and matching socks

Nice huh? I shot that video 2 1/2 years ago, she laughed her %$# off and we have been great friends ever since. The funny part is that she had viewed that video several times that first day and it had been seen almost 25 times by the end of the week.

SHE WAS SHARING MY GOOFY SOCKS VIDEO!
I am personally OK with looking like a goofball as long as they also say what a great job I am doing on their loan and she was sharing me with her friends and I did get referrals from it.

The main thing with video is to be yourself and have that come across. If you are sincere and give good information and you can add humour, you will have a winner. I keep most of my videos online at www.AskTheLoanMan.biz and you can see what I am talking about.

Have a great day.

Hans Bruhner

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

How to pick a lender

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Fri, 22 Oct 2010 11:30:21 -0700

I speak with people all day long about home loans and what they want and how to get it for them. Many times there is confusion about how the system works and whether they should go with a big bank, local credit union, loan broker or a mortgage banker. The reality is that there are some clients who could go to any of these and be served well. Other times the client would be wasting their time with any but one of these options and I will try and point out the difference here.

Mortgage Broker - A few years ago, 68% of all loans were brokered and now it is down to about 11% and I think that is sad. It is sad because brokered loans are typically the lowest cost option with the most choices for most consumers. A broker is someone who can shop for the best loan for you at hundreds of different wholesale lenders. Brokers can offer basically any kind of loan program available under the sun and are licensed by the DRE and NMLS.

Mortgage Banker - Similar to a broker, but a banker will lend you their own money and then sell the loan to a larger bank. Most bankers offer conventional loans as well as FHA, VA & USDA and they have broker relationships set up to handle loans they do not do in-house. They typically carry the same licensing as brokers as well but some are licensed by the Dept. of Corporations. This is the channel that many brokers have migrated to over the past few years.

Credit Union - Most Credit Unions that are active in real estate lending will act like a cross between a mortgage banker and a big bank. Most do not handle government loans and they do not broker much if they broker anything at all, they fund and sell conventional loans. What credit unions do better than anyone else is help when people or houses do not fit in the box. They are able to do this with loans they keep in-house. These are known as portfolio loans and they typically carry a higher interest rate and a shorter term like a 5 year fixed rate. If you need this type of loan, it is well worth it and I refer clients to Credit Unions regularly. Credit unions licensing is similar to banks and their loan officers do not typically require any licensing at all.

Big Banks - These are the guys that are typically buying the loans that the rest are funding. There are certain basic rules that are pretty constant for everyone but big banks have overlays to these rules. If you go to one of them and they have a rule that stops you from getting your loan then you picked the wrong one. It is a one shot deal and if they can't help you, then you are done. Typically the big banks are a little more expensive and take more time to get things done but they may have some streamline options on loans they currently service which may make it easier for that client to refinance with them. Banks are licensed and regulated by the federal government and their loan officers need no licensing at all.

I have been doing this for 20 years and for most of that time I have been a banker and broker so I am biased towards that type of lending. In my current capacity, I feel I have the best of all worlds. I am able to handle most loans that come across my desk but I maintain relationships with many of my peers at banks and credit unions and trade referrals with them back and forth. I hope that your travels bring you fortune and happiness and that you find the home of your dreams.

Please email or call me with any real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.

Hans Bruhner is a branch manager for First Priority Financial. Hans is licensed by the CA DRE # 01085398 and NMLS #243454. If you have a question, please contact him at (707) 887-1275 or hans@hansblog.com .

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Reverse Mortgage.....HUH?!?

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Thu, 23 Sep 2010 04:16:23 -0700

Reverse Mortgage.....HUH?!?

Well a reverse mortgage is basically when we pay you instead of you paying us. Sound good? You can take your money in a lump sum, equity line or monthly payments for the rest of your life. You can even get a reverse mortgage to buy a house. So what's the catch?

There are a few catches. These loans are only for people that are 62 or older and live in the home as their primary residence. There is no other qualifying other than your age and the value of the home. Typically this loan is used by someone who has good equity in their home but needs to pay off debts or the current mortgage or could use some income or a lump sum of money to pay for health care costs, estate planning, helping a child or grandchild to buy a home or even to travel and have a bit of fun and freedom in the golden years. The money is not considered income since it is a loan and so it is not taxed. Some of my clients who have IRA's have used a reverse mortgage to supplement their income and make the IRA stretch further. Others have simply paid off their current mortgage and lived with the relief of not having a monthly mortgage payment.

There are a lot of myths surrounding this loan and how it works. The most common mistake is that people believe that the bank will take their home. This is not true. If you took out a regular mortgage, you would make payments to the bank that would typically be part interest and part principal and the balance would go down a bit every month and eventually be paid off. With a reverse mortgage, you make no payments on the amount you borrowed and the interest would be tacked on to the loan balance every month and grow until the homeowner moved out of the home or passed away. When that happens, the homeowner or their heirs can sell or refinance the home to pay off the loan just like you would with a regular loan.

It is a great tool for the right situation and a terrible loan in the wrong situation just like any home loan. Most seniors are quite concerned about jumping into a loan like this and I love that. They should be concerned because this is a huge decision. I really enjoy talking with the senior's family members. Many are afraid that the loan will eat up all of the equity in the home and they will be stuck with no inheritance. Usually after explaining the loan in detail, the family members are excited about the possibilities for the senior and they are the ones that really want it for mom and dad. This takes a lot of pressure off of the senior and allows them to take advantage of the program with their children's approval.

These loans are insured by FHA and conform to HUD guidelines and the senior needs to go through extensive counseling before obtaining a reverse mortgage. This is a very time intensive process and this only starts AFTER I have been speaking with and counseling seniors sometimes for years before they decide the time is right and they officially start the process.

I have always liked helping seniors with this loan but it has been difficult to devote the proper energy to it until now. My friend and colleague Margaret "Marty" Kotta has just joined me in my office specifically to help me facilitate reverse mortgages to seniors. Marty worked in the equity department at Wells Fargo for 27 years and helped me personally and many of my clients with equity lines over the years. Marty has retired and obtained a reverse mortgage herself and so she is in a perfect position to offer help and guidance on these unique loans. If you know Marty, you know she is not a fan of sitting still. If you email or call me, I will give you a free CD to listen to that goes into greater detail.

I have also created a website specifically for reverse mortgages at www.HeyThatsMyEquity.com where you can get more information including a detailed online workshop free CD's and a reverse mortgage calculator.

Please email or call me with any real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.

Hans Bruhner is a branch manager for First Priority Financial. Hans is licensed by the CA DRE # 01085398 and NMLS 243454. If you have a question, please contact him at (707) 347-9250 or hans@hansblog.com .

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Congratulations, you are Brilliant!

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Mon, 23 Aug 2010 11:52:06 -0700

Yes, you are absolutely brilliant for not buying a house a few short years back when house prices were peaking and it felt like it would never end. Even though rates were low and you could have done it, you just thought it was the wrong time to buy. As you waited, the housing bubble burst and the prices started coming down and your friends jumped on the band wagon but you (being brilliant) waited still. After two years of price corrections and rates staying low, you still were not convinced and you waited some more. In the past year, we have seen house prices come down a bit in some areas, stabilize in others and come up a tiny bit in other areas while the interest rates have come down to the lowest they have been in recorded history and you are still on the fence. In order to maintain your brilliance, you need to buy a house and show everyone you were right. When all of you brilliant people get off the fence and decide that now is the best time to buy, that is when the housing market will start to come back. What we need now is not brilliance but confidence.

Sure, I am poking fun a bit. Some people may not have been in a position to buy a house at the peak because prices were just too high. Some people were just not willing to get caught up in the frenzy. I came into this business at the tail end of 1989 just as the housing market was peaking. I helped people get into houses at the peak, on the way down, at the bottom and as it rose again. The same thing happened this time, I have been helping people get into homes at every stage of the game and I have learned a few things. If you buy a house for the long term, you usually come out OK no matter what part of the cycle you bought your home. The best thing I learned was........

You can only see the bottom of the market from your rear view mirror.

I am reminded of the story of a religious man whose neighborhood was flooding. The water was lapping at his front steps and the neighbor came in a 4 wheel drive truck and the man said "God will save me" and sent the truck away. When the water was in his living room, a boat was sent and he said "God will save me" and sent the boat away. Then the house was almost underwater and the man was on his roof and a helicopter was sent and the man said "God will save me" and sent the helicopter away. As the house was going under and the man was being swept away, God appeared and the man said "why have you forsaken me?" and God said..... I sent a truck, a boat and a helicopter, what more did you want?

So what's my point? My point is that the people who bought a house at the peak were not stupid and the people who waited were not brilliant, no one has a crystal ball. A house can be an excellent investment but that is not all it is. A house is a home and should always be looked at as a long term investment and now is a good time to buy since it is affordable and rates are so low. I am not sure if this is the helicopter or the boat that I am sending but I know for sure it is not the truck and my money is leaning towards helicopter so grab a hold and let's go for a ride.

Please email or call me with any real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.

Hans Bruhner is a branch manager for First Priority Financial. Hans is licensed by the CA DRE # 01085398 and NMLS 243454. If you have a question, please contact him at (866) 385-1650 or hans@hansblog.com .

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

A day late and $65/mo. Short

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Tue, 10 Aug 2010 19:49:10 -0700

I wanted to take a moment and write about the FHA MI changes that are coming down the road on September 7th, 2010 October 4th, 2010. I waited one day to post the news because I was thinking that change is coming down the pike awfully quick, what if it is delayed or altered and lo and behold, the date of implementation changed to 10/4/10. I could write about it but I would rather show you in a video. If you need the source material from this video, please email me hans@hansblog.com

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Ethics, not just a class

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Mon, 24 May 2010 11:27:50 -0700

I became a licensed real estate agent in 1990. In order to obtain my license, I needed to take several classes and one of them was an ethics class. In California, you need to have a real estate license to broker loans or broker real estate or manage real property. If you are a member of the national Association of Realtors, you have to adhere to a code of conduct and ethics in order to call yourself a Realtor.

If you were brought up right, you know the difference between right and wrong. Your parents taught you ethics from the day you were born. My own thoughts on the subject are that by the time you reach adolescence, your own personal ethics are pretty much a part of who you are and will shape the adult that you will become.

I was on a message board last week with several of my peers in the mortgage business and an interesting topic came up. A husband & wife lived in a home that was foreclosed upon and the loan had been in the husband's name alone. The wife wanted to buy the home back from the bank and the loan officer turned to his peers for advice on how to do this loan. Many people came down on this guy and called him unethical. Of course, the story was not black and white. These people were scraping by and times were tough and they tried to modify their mortgage and they were taking advice from a loan modification company not to pay the mortgage and the house was foreclosed upon. They got bad advice and it cost them their home. Another loan officer told of a woman who came to him to get a loan to buy a home being sold in a short sale. The home was her boyfriend's house and she had been living there for years. The loan officer said he would not help her and she went somewhere else and got the loan done. My friend lost a commission but he did not put his ethics or his license on the line.

I am reminded of a quote. "When your values are clear, making decisions become easier." - Roy Disney

I shared this with my peers on the message board and a lot of people sympathized with this guy who just wanted to help a good person in a bad situation (and make a commission too!). I had to point out that most mortgage fraud is not some big banker working with a dirty appraiser to make millions of dollars in fraudulent loans; most mortgage fraud is a one time offender helping what they thought was a good person who simply did not fit in the box and most of the time they are caught because the loan goes bad. In both cases above, the only way to get these loans done is to lie about where these women lived for the last few years. Someone else on the message board said; Forget ethics for a minute and ask yourself if helping someone buy a house is worth risking your career, huge fines and jail time? Are you doing it for them or the commission?

Another quote. "If you always tell the truth, you never have to remember what you said." - unknown.

Over the years I have had many clients try and do things the wrong way and I am happy to report that after counseling, many of them do decide to do things the right way and the ones that don't are no longer clients. Ethics is not just a class but sometimes it doesn't hurt to have little reminders along the way.

Please email or call me with any real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.

Hans Bruhner, CMPS is a branch manager for First Priority Financial. Hans is licensed by the CA DRE # 01085398. If you have a question, please contact him at (707) 887-1275 or hans@hansblog.com or stop by www.AskTheLoanMan.com

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Buy high and sell low!

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Fri, 23 Apr 2010 02:44:37 -0700

Sound like bad advice? When you put it like that, anyone can tell that it's bad advice but this is what people are telling others to do all the time in the stock market.

Think about it, everyone seems to have a friend who put a chunk of money in the stock market and now its worth a lot less and so they sell it and get out before they lose any more money. These people usually put the balance of their money into a checking account or money market account which pays almost nothing at all. If they just waited, there is a good chance that the investment would have rebounded and come back for them. They don't understand that the loss is not created until they sell the asset. Investing for most people is not a short term investment and real estate NEVER should be a short term investment.

In the good old days if you bought a house for $100,000, you would probably have an $80,000 mortgage so if the house loses 15% of its value, it is now worth $85,000 and you have a small amount of equity. If someone suggested selling you would say "No way, do you think I'm crazy!?!" and you would wait and live there and enjoy the neighborhood until there was a better time to sell.

Now, fast forward to the year 2006 where you can get a home loan with no money down, a decent credit score and not even have to prove your income. House values are going up in a huge way and you should get in on this action so you do. You buy a $500,000 home with a $500,000 loan and you are happy. You have nice low payments and life is good..... until 2008 hits and your home is now worth $350,000 and you still owe $500,000 and you feel that life is not so good any more. When you look at this situation, you can see why people are letting their homes go back to the bank and if you add exotic mortgages to the mix, payments might even be going up so this is a recipe for disaster.

Now we get into our current market and we are closer to the way things were when I got into this business 20 years ago. You have to prove your income and have a down payment and actually qualify for a mortgage. The good news is that home prices have dropped and interest rates are low but the best news is that people buying homes today are being realistic and buying homes they can afford to live in with fixed rate mortgages that will remain constant.

Some people got hit a little harder than others and so the homes they are selling short or getting foreclosed upon are being purchased by first time buyers at a reduced price and the circle of life in real estate goes on. I hope there are a decent number of people who are able to hold on to their homes and work through this time until the values do start to come back. Many are able to modify their loans with their current lenders and even refinance with special rules for special circumstances. These are two groups of people that we need to stay strong right now.

The third big group that seems to be coming out to play is the group that has owned their homes for a long time and have a lot of equity and they want to sell and move up to that bigger nicer home. You may be sad that you will only get $350,000 for a home that was worth $500,000 at one time but just think what your money will get you today and rejoice.

It takes a village to create a real estate market. Wow, that was corny but I don't care, I am leaving it in!

Please email or call me with any real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

ECO-Green Home Loans?

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Fri, 23 Apr 2010 01:27:03 -0700

Earth day is here today (for 32 more minutes) and being green is a hot topic these days. Since I am in the mortgage banking industry, I will speak about what can be done in and around home loans and real estate to be a little greener. I have always done what I could to make my business as earth friendly as possible but I have always been a little leery of trying to say I was in fact a green business because there is no specific certification in my industry and I did not want to come across as someone simply trying to look good (known as greenwashing).

My business is a paper intensive business and so I buy recycled paper and I have contributed to American Forests Global ReLeaf program (www.americanforests.org) where every $1 donated plants a tree. It is a way to "replant" a mortgage. For years I wanted to use an electronic signature program but the industry would not let me. Last year, I found a few places that would accept these documents and I made the switch completely. This year I am sad to say that I have stopped using the program as many key players do not accept these electronic signatures anymore. We have one major player in our industry that uses electronic documents at the closing table but they require the escrow officer to print out about 80% of the documents and have them signed in person as well so it is not very effective (and really irks the escrow officers). As an industry, we seem to be moving 1 step forward and two steps backwards in this area.

I do everything I can to keep all documents electronic and not print them unless I absolutely have to. I use an Efax service and have for at least 12 years. I scan all documents instead of copying and I encourage clients to fax or scan and email their documents to me. As an industry, for the most part, our files are electronic now and not paper so we are doing well there. For the last 3 years I have used the web and videos and email to communicate with clients almost exclusively. I regularly have web meetings with clients to save on gas (and time).

There is a program for local real estate agents in Sonoma County to become EcoGreen Certified and you can find out more at www.ecogreenrec.com . I honestly don't know much about this program but I intend to find out more. A lot of great local agents have become certified and it seems to be run with integrity and for all of the right reasons.

One of my favorite loan programs has had a very green element available since 1995. If you are getting an FHA home loan, you can obtain an EEM (Energy Efficient Mortgage) on top of the regular loan to pay for items that are..... you guessed it, energy efficient. Since it is a government program, it is rich with acronyms and you need to get a HERS report from a certified CHEERS participant to qualify. Basically, you can get an additional $8,000 on top of your regular mortgage if your improvements will save you more in energy costs than it will cost you in the mortgage. You can also get up to $2,000 for weatherization as well in some cases on this program.

Also check out my interview with Steve from Pipedreams Plumbing about FREE water saving toilets at www.AsktheLoanMan.com and clicking on the FREE toilets video.

There is a lot we can do now and I am sure there is much more that I could be doing. I am going to continue to do what I can and look into getting eco green certified myself this year. My wife drives a Prius that gets 50 MPG and I drive a diesel Jetta that gets 40 MPG. Hers is a more obvious green vehicle but I am happy to be doing my part and I am always pleased at the pumps and I am looking into bio diesel as well.

Please email or call me with any real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Shredding party in Forestville on 4/24/10 from 1 - 4 PM.

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Mon, 29 Mar 2010 12:19:04 -0700

Financial Spring cleaning is here. You may be asking what a shredding party is and I am here to tell you that we bring a mobile shredding truck to my back parking lot at 6550 Front Street in downtown Forestville and you bring in anything that you need to get rid of and shred and recycle it. If you have tax returns older than some world wars or you have been hanging onto all of your credit card receipts and decide you don't need to any more, this is the place to be. You can look around on the web and ask your financial advisors how long you should keep something. There are some documents that you should keep for 3 years and others that you should keep for 7 years.

You do not need to worry about staples and paper clips, this shredding machine is seriously powerful. This is not the home office version of shredding, we have hired Integrity Shred who we have been using for years for all of our shredding needs. They are local, honest, reliable and they have given us great service for years. We do ask that you not bring more than 10 boxes per person. We simply don't want one person using a free community service to take care of their professional needs here.

As a mortgage professional, I shred everything that has any personal information on it just to protect my clients. Plus, it makes life a whole lot easier when you are not getting sued. I was speaking with a client of mine who had several boxes of old tax returns that he needed shredded and he asked where to go and I could not find a good place to go so that hatched the idea of having a shredding party in the community. I will be there to chat and answer questions about real estate and home loans. We can talk about ancient Egypt as well but I am not an expert in anything but real estate.

The timing is perfect as it is right after tax time. We are going to try and make the event fun and have a hot dog cart etc. We really just wanted to give back to the community where live and work. Come and meet your neighbors and have some fun and get some financial spring cleaning done.

We will be holding a similar event in Monte Rio at the community center from 11-2 on 4/17/10

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Shredding Party in Monte Rio CA on 4/17/10 from 11-2

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Mon, 29 Mar 2010 11:32:37 -0700

Financial Spring cleaning is here. You may be asking what a shredding party is and I am here to tell you that we bring a mobile shredding truck to the Monte Rio community center and you bring in anything that you need to get rid of and shred and recycle it. If you have tax returns older than some world wars or you have been hanging onto all of your credit card receipts and decide you don't need to any more, this is the place to be. You can look around on the web and ask your financial advisors how long you should keep something. There are some documents that you should keep for 3 years and others that you should keep for 7 years.

Hans Bruhner from First Priority Financial (mortgage banker/broker) and Don Fulkerson with RE/MAX and West Coast Solar have teamed up to bring you this event. We will be there all day to just say hello and to answer questions in our respective fields of expertise.

We will be holding a similar event in Forestville at 6550 Front Street from 1-4 on 4/24/10

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Where to eat in Forestville CA

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Wed, 24 Mar 2010 21:09:39 -0700

So.... are you talkiing about that little town between Sebastopol and Guerneville? YES! that's the place!

Forestville is a lovely and diverse spot along the Russin River in western Sonoma County. It is truly in the heart of wine country and on the way to the redwoods and the rugged northern CA coast. Today I just wanted to share a little about some of the diverse places for every day eating in this quaint little town.

You may have heard that Mosaic is a great spot and you would be correct. Some of you may have even heard about a nice meal at the Farmhouse Inn and again, you would be correct but there is way more to Forestville eating than theese2 fine dining restaraunts and as somebody whose office is in downtown Forestville, I think I am well qualified to write this article.

Roasters Espresso Bar serves great coffee and pastries and they are open from 6 AM to 5 PM. True to the name, they roast their own coffee and they sell it to many local establishments. They are located downtown next to El Molino Pharmacy and they have a shop in Sebastopol on the south side and at Andy's market as well (new location)

Off the Track Cafe is opening 3/27. They serve the morning coffee crowd and they have a more expanded breakfast and lunch fare. They are not open as I write this but they seem to know how to get a restaraunt ready and the menu in the window looks great! This is in the spot where Front Street Coffee was until last month. They are on the other block of the 2 block downtown.

Carr's Drive In for great burgers and fries and excellent shakes. located right at the entrance to town next to Forestille School and right down the street from the high school. It is a good time old fashioned burger drive in like you saw on Happy Days. The kids hang out there after school as it is the unofficial meeting spot for kids and parents and 2nd parking lot to the school when there is a play or event.

La Rosa Market and Taqueria is across from Off the Track in between the gym and the dog groomers. It seems that this is the spot for the kids from El Molino High to hang out and I have been known to eat there once or twice since it is across the street from my office. They have big burritos like I am used to getting in the mission district in San Francisco but my absolte favorite are the fish tacos. They do not use cabbage and the fish is not deep fried. The fish is a nice fresh talapia and the sauce they use is the best I have ever had.

Aioli Deli right next to the barbershop near the Forestville club is not your typical deli. You can get a nice frsh panini sandwich and choose from a plethora of fresh home made salads and specialty take out food. The owners are classically trained in the culinary arts. I don't know too many deli's where duck confit is on the daily menu. I absolutely love the food here and you can eat on the patio or take it to go.

There is a new restaraunt coming that will be right across from Ideal hardware and I understand it is to be called Sarah's restaraunt. It has been coming for a while but there is work happening daily and from what I understand it will be a breakfast/lunch spot and they won't be doing dinners. There have been some changes so this could have changed also. This one is being broought top you in part by Greg Hallinan who brought us Stella's and the El Mo Steakhouse. These other restaraunts were more of a fine dining experience so it will be interesting to see wht Greg brings us here.

Next up we have Mosaic. My goal with this post was really to highlight all of the daily spots to eat in Forestville and not the fine dining nightlife spots but Mosaic fits in both actually. It is a lovely place to go for a special evening of fine dining and it is also really nice for appetizers and wine on the back patio AND there is a really great, well priced lunch menu as well. If you want an excellent burger or fish and chips and you have the time for a sit down meal, this is the place.

At the top of the hill by the post office, we have 2 more spots for you and I will start with Andorno's Pizza. This is your basic pizza parlor and I mean that in the best way. Bring the little league team here for a team celebration or get it to go. With a full salad bar, the freshest ingredients and wine and beer, you can't go wrong. I once complimented Jim the owner about his linguica and I got a little more backgorund on linguica than I really wanted but the man is passionate about his pizza. He also owns the original Andorno's pizza in downtown Guerneville.

Tahoe Chinese is also at the top of Mirabel Road by the post office and they serve traditional chinese fare. This is a great place for lunch as it is quick and well priced lunch packages to get you in and out while still having the luxury of a sit down meal. Bing & Lisa really make you feel at home and it is really nice for take out as well.

I really wanted to focus primarily on downtown restaraunts but there area few more that deserve honorable mention.

I am ashamed to say that I have not ever eaten at the Farmhouse Inn. I have heard nothing but rave reviews from everyone I have ever spoken to. I have friends who live in Sacramento who have come back year after year to the Farmhouse Inn (I guess they lost my number). It is a local favorite and a destination as well. Maybe they will read this and send me a gift certificate so I can properly reccomend it to my friends & clients. The Farmhouse Inn is located at 7871 River Road near Wohler Road.

At the edge of town on HWY 116 just past the welcome to Forestville sign is Mom's Apple Pie and the Henweigh Cafe. Mom's serves tons of apple and other fresh pies as you might have guessed but they also have an excellent deli and I had a turkey & Bacon sandwich there this afternoon. The problem with Mom's is that I also had a piece of Pecan Pie with vanilla ice cream.

The Henweigh Cafe is currently in the spot that used to house Stella's and the the El Mo Steakhouse. This is good comfort food/fine dining and the one meal I had there was excellent. The menu was well thought out and prepared and served in an extremely confortable setting. We were there sort of in between lunch and dinner so we dined pretty much alone so we got lots of attention and we felt like we were in our dream home with servants.

Start with coffee and end with coffee..... I just have to mention Full Throttle Cafe down by the Hacienda bridge on River road on your way to Guerneville. This is a unique spot with good coffee and espresso drinks and pastries. They are only open from 6 AM to 2 or 3 in the afternoon so it is a great spot mto stop at on your way to the beach and check out their unique decor.

So......... lots of choices to eat in the little burg of Forestville. If you are passing thorugh or just need a change of pace from another little burg, stop on by and tell them that Hans sent you.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Jim & Natalie almost lose their home!

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Sun, 31 Jan 2010 13:34:22 -0800

Recently Jim & Natalie came to me for advice. I had helped them get into a house a few years earlier when a large national lender changed the game on them at the last minute and asked for a larger down payment. I won't name names but..... it was Bank of America, shhhh. I got them an FHA loan with a 3% down payment (currently you need 3.5% down) and we closed the loan fairly quickly and they were able to move into their new home and everyone was happy.

Today they were stressing out because they had been trying to refinance with the lender who currently had their home loan (I guess they misplaced my number) and they had been getting nothing but a lot of grief and running around and ending up with no refinance after months of trying. They were down to one income and they needed to get a lower payment to be able to afford to stay in their home. The lender who shall remain nameless.....ok, it's Wells Fargo, had been supposedly working on their loan for months and then turned them down because their debt ratios were too high to qualify. First of all, when you take a loan application, you gather information such as let's say INCOME! These guys should have known that the debt ratio was too high to qualify the moment that they finished taking the loan application and spared these guys months of agony. Jim & Natalie went on to tell me that since they have had less income, some bills had recently been paid late, also I knew that the value of the home had gone down since they bought it and there was not much equity to begin with (not good). I told them that I had the same criteria as the big bad bank but wait a minute....

I had gotten these guys an FHA loan and we can do an FHA streamline refinance with no income qualifying, no appraisal and looser credit guidelines. All we need to do to get someone a better rate on their FHA or VA loan is to make sure that they have paid the mortgage on time for 12 months and make sure they are getting a better rate or better terms. There was still one issue to deal with and that was the fact that we could not raise the loan amount higher than the original loan balance and so they may need to come in with some cash to close the loan. Actually, just as we were getting prepared to do this loan for them, FHA made the rules a little tighter and that meant that these guys would need to come up with even more cash than my original estimate and they just plain did not have it. They told me that they were just going to quit paying and stay until the bank took the house back. They had given it their best shot and they were just done.

I could not figure out what to do for these guys, I had cut my fees as much as I could and still make a profit. I looked at the numbers one more time and realized that if I made absolutely nothing then the numbers worked and so I did it. I am not tooting my own horn or offering free loans, what I want to share is how good it felt knowing that I am the small local lender who can do that sort of thing and truly make a difference. It was a good way to end a hard year and I look forward to a profitable 2010 for everyone.

Please email or call me with any real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Questions, questions, questions

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Fri, 13 Nov 2009 00:43:44 -0800

My industry has seen more changes in the last 20 months than I have seen in the last 20 years. I just take all of the changes that come down the pike and I roll them into my business and move on. I usually have a pretty sunny disposition but sometimes it just gets to me....

A big question these days is what loan to use and why. There is a basic rule of thumb here that if you want to put less than 10% down, then FHA is a better loan for you and if you want to put 10% down or more, than a conventional loan is a better deal. Rules of thumb are guidelines and I find myself feeling like a ping pong ball sometimes in conversations with clients. In order to avoid this feeling, I try and gather as much information as I can before giving advice. Here are some subtle differences:

FHA is an insurance program; if you meet the criteria then your loan is approved and able to be insured by FHA. This means that you pay an upfront Mortgage Insurance Premium (UFMIP) and monthly MIP as well. FHA loans allow you to have lower credit scores, lower down payment, higher debt ratios and one set of guidelines and one underwriter on your loan. A special FHA loan even allows you to finance the fix up costs on that home that the Realtors advertise as "Needs TLC" or "Contractor Special".

Conventional loans are stricter on debt ratios, credit scores and down payment. If you put between 10% and 20% down then you will have Private Mortgage Insurance (PMI) and that is managed by another company with their own stricter guidelines than the loan itself. This makes sense because PMI insures the lender against losses just like FHA but they are a private company and they decide what they will and won't accept. Many times we are able to approve a conventional loan but not able to obtain a PMI approval and so we either have to have the client put 20% down and avoid PMI altogether or switch to FHA. Are you feeling like a ping pong ball yet?

As a mortgage professional I need to analyze my client's needs and qualifications and match them to the right loan program. If I don't choose the right mortgage program from the outset, we may lose a lot of time and money. If we get a conventional appraisal and we have to switch to an FHA loan, somebody ends up buying two appraisals. Of course, I don't' want to charge clients for appraisals they don't need at $400 a pop but I also don't want to pay for unnecessary appraisals myself (it's just bad business).

So when a client calls me and asks me "What is your rate?" and I tell them that is the wrong question to ask, usually the next question is "What is the right question?" and the answer changes depending on what I have been dealing with that day and my general mood but usually the answer is something along the lines of; " Can you help guide and educate me through the loan process in this day and age?" or "How many purchase transactions have you closed in the last 90 days?". The bottom line is that you want someone who is a full time professional who is closing loans in this market and someone who comes highly recommended by real estate agents and someone that you feel has your best interest at heart and is working from a place of honesty and integrity.

So to find the right home, it is always Location, location, location and to find the right home loan it is always question, question, question.

Happy House Hunting.

Please email or call me with any real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

FHA loans in Sebastopol?

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Fri, 13 Nov 2009 00:40:55 -0800

Historically, Sebastopol and most of the north bay home prices have been too high for FHA to make sense. Today, we have incredibly low rates combined with low home prices and the FHA loan limits is $662,500 in Sonoma County. The limit is as high as $729,750 in Marin and many other bay area counties.

Remember kids, this is a loan that has been around since 1938, this is not a new program. FHA loans are guaranteed by the Department of Housing and Urban Development (HUD) and it is one of the few remaining loan programs allowing a very small down payment-specifically, 3½% of the purchase price.

FHA loans have opened the door to home ownership to millions of deserving people since being introduced and I have been closing them for over 17 years.

FACT: FHA loans are exempt from the requirements of the Home Valuation Code of Conduct (HVCC). We use certified, dependable and trustworthy appraisers, professionals we have known and worked with for years. We avoid the risks and uncertainty associated with unknown, possibly inexperienced appraisers from the HVCC "pool."

FACT: The requirements for the property are reasonable. An FHA-certified appraiser performs an expanded inspection of the property, but only for obvious health and safety issues. A termite clearance is required only if the appraiser notes specific evidence of termite damage, or if there is special notice of termite work in the purchase contract.

FACT: FHA underwriters tend to be more experienced than their conventional counterparts. They operate under common-sense guidelines and issue approvals with fewer loan conditions

We are a nationwide FHA Full Eagle direct lender, we can close on time. If you have any questions or concerns, please email or call me for more information.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Sonoma County Art Trails

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Mon, 19 Oct 2009 03:02:35 -0700

Some of my fondest memories are when I get to wander down a country lane to a friends house and just hang out, listen to music, have nice conversations while eating and drinking and looking at some really great art. Today was even more fun because I got to do this over and over and we did not even know half of the people we dropped in on and we were welcomed like old friends.

I am talking of course about Art Trails which just wrapped it's 24th year. I am sorry to say that it is over, today was the last day but you should put it on your calendar for next year because it is a lot of fun and a great way to get next to some great art and some great artists right in your own back yard.

You can get all of the information you need at http://www.sonomaarts.com/artrails/ so you can plan for next year.

We live in an amazing place and I feel quite blessed to be a part of this wonderful west county community.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

What is UP with interest rates?

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Mon, 08 Jun 2009 18:16:32 -0700

What are you looking down here for? The answer is in the title. Interest rates are UP! Just a few short weeks ago, we were locking loans at 4.75%, I even had a client buy down and lock in a rate of 4.375% for a 30 year fixed rate mortgage. It has been a good year for refinances for many people. The market has shifted to closer to 5.5% for a 30 year fixed and about 5% for a 15 year fixed currently. You can go to www.BankRate.com and on the top right of the page it will tell you the overnight averages that people are actually locking in and is a pretty true snapshot of the market at this moment. The funny part to me is that a little farther down the page you have a company advertising that they can get you 4.625% for a 30 year fixed rate...... LIARS!

Folks, the market changes every day, every hour and nobody knows exactly where interest rates will be tomorrow. I study Mortgage Backed Securities and FNMA and GNMA in real time every day so I can have an educated guess and offer my client's decent advice when obtaining a new mortgage. Some of my clients locked in because the rates offered at the time worked for them and some of my clients waiting for the market to improve may have to wait a little longer or may have missed the boat completely.

This recent bump in rates may have left some people out in the cold as far as refinancing goes and it may come back in the next few weeks. The reason that rates went up so much recently is that the economy seems to be rebounding a bit and the first sign of an economic recovery with regards to interest rates is short term volatility followed by higher rates. It is hard to tell if this is the first sign of an economic recovery or simply a short term trend.

We have to remember that the government is buying mortgage backed securities in an effort to keep rates low. It has been working fairly well all year and let's face it, rates are still low. The problem is that other investors are not so excited about investing in mortgages if they can get a better return in the stock market or even other bonds. All of this leads me to believe....

What if the Hokey Pokey IS what it's all about?

So, what does this mean to the average consumer and what is going to happen to interest rates? Remember I said we would start with volatility..... they may be swinging back down if investors start to worry about the economy and put their money back into Mortgage Backed Securities. If you are looking to refinance, it is just a math problem - it either makes sense or it doesn't. If you are looking to buy a home, this recent bump in rates may force you to look at a less expensive home to keep your payments down or it may simply mean that your payment won't be quite as nice as you had hoped.

For someone looking to buy a $400,000 home with 10% down, The principal & interest payment at 4.75% would be $1,848 and if you change the rate to 5.5% the payment would be $2,012 so it can make a big difference in your monthly budget.

I welcome questions about home loans and the real estate market in general. Please let me know what you want to hear about in future articles.

Hans Bruhner, CMPS is the branch manager for Benchmark Mortgage. If you have a question, please contact Hans at (866) 385-1650 or hans@hansblog.com or stop by www.AskTheLoanMan.com .

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

FHA loan limits put it firmly at the top of the heap!

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Tue, 10 Mar 2009 00:10:15 -0700

One little recurring theme in my articles over the last 14 months has been that FHA loans have become increasingly more useful in this market. In the last round of stimulus rules, FHA went back to 2008 loan limits.

That means that in Sonoma County, the conventional loan limit is $520,950 but you can borrow up to $662,500 with FHA. In Marin County you can go to $729,750 on an FHA and you are limited to $625,500 on a conventional loan. FHA did not work well in the north bay for decades and now it is almost the loan of choice and I happen to be an FHA expert - woo hoo!

In many parts of the San Francisco Bay Area, the FHA loan limits are $729,750 where conventional limits are limited to $625,500. Those are the highest limits out there folks and we see this all over California. To look up the actual limits in your area, you can do so directly at:

https://entp.hud.gov/idapp/html/hicostlook.cfm

Realtors and home buyers have not had much experience with FHA in the San Francisco Bay area. I started my career in Sacramento and 65% of my business used to be FHA. From 1995 through 2007 after moving to Sonoma County I did a whopping total of 2 FHA loans. In 2008, I did a ton of them and I realized that I am an expert on these loans and I rather enjoy FHA.

One of the things I love best is destroying myths about FHA. Here are a few:

1. You have to get a pest clearance - WRONG!

2. They are very strict - WRONG!

3. There are certain fees the seller has to pay - WRONG!

4. You have to be a first time home buyer - WRONG!

Stop by my web site and look at the video titled FHA for Realtors. This is good for agents and home buyers and it can be found here:

https://www.thinkbigworksmall.com/public/showArchiveVideo/161/2411

FHA loans are great loans and one more little tidbit that conventional lending should follow. If you keep your payments up, you can do streamline refinance without an appraisal or verification of income or employment. That means that if you pay your mortgage on time and you can get a better rate, you are approved. This would really help a lot of upside down homeowners today if this was applied to FNMA and FHLMC.

Remember to Ask the Loan Man!

Hans Bruhner, CMPS is licensed in CA & HI. If you have a question, please contact Hans at (707) 887-1275 or hans@hansblog.com or stop by www.AskTheLoanMan.com . First Priority Financial, Inc. is licensed by the CA DRE #00654852.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Barack Obama reads my blog!

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Mon, 09 Mar 2009 23:48:29 -0700

Back in January in this very blog I posed the question – Refi or Modify? You can imagine my thrill when I saw in the latest round of stimulus packages that President Obama not only had read my article but came up with some answers and he was fairly quick about it. On March 4th 2009 the guidelines were handed down to loan originators and servicers the new rules concerning loan modification and addressing some issues with refinancing. My mother will be so proud of me ; )

But seriously, there are new rules here and this is timely. In the new plan, there are bonuses paid to loan servicers for helping people modify their loans if they fit certain criteria. There are even stipulations that if the servicer helps someone who is not behind on their mortgage that they get a little extra cash (emphasis on little). It is effective right away and the banks still need a little time to digest the information and figure out how to implement the plan. If you want a copy of the document, email me and I will send it right to you. I do not help people with loan modification but I do help my clients with my advice.

The new rules on refinancing are designed to help people who do not have enough equity to get a regular mortgage. Normally if you owe $98,000 on a home that is worth $100,000 then there is no conventional loan available to you. The new rules will allow you to refinance your home under these circumstances even up to 105% of the current value. It is nice that they are helping people in this situation but there are plenty of people who owe even more than that. This program works for you if you currently have a FNMA or FHLMC loan only. I have links to web sites that will tell you if you have this type of loan. I also have the rules on this process and if you email me, I will shoot them over to you right away. If you want to do some digging on your own, the rules and basic outline is at www.FinancialStability.gov

I was speaking with a bankruptcy attorney; don’t worry honey, I was networking and gathering information for my clients….. And I asked him a very powerful question. I asked him if someone got into a Chapter 13 bankruptcy, could the court modify that person’s mortgage as part of the reorganization process? He lit up and told me 2 things:

1. If the person has a 1st and 2nd mortgage and they owe more on the first mortgage than the value of the home, the 2nd mortgage would be “stripped away”.

2. In some instances, if the 1st mortgage is higher than the value of the home, then that mortgage can be “crammed down”.

He further told me that these were fairly new rules and that he did not want to be quoted as the rules can easily change again. Of course, I am not an attorney and I am not giving legal advice here. I am simply suggesting that you may want to speak with a bankruptcy attorney if this situation might be a fit for you. DON’T call or email with questions about bankruptcy.

I welcome questions about home loans and the real estate market in general. Please let me know what you want to hear about in future articles.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

Acronym Loans - who needs them?

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Tue, 24 Feb 2009 17:33:30 -0800

You do! If you are looking to buy a home today or you are a real estate agent working with buyers OR sellers, you need these acronym loans. Ok, Ok, I need them but what the heck are you talking about?

FHA, VA, FNMA, FHLMC, USDA, PERS, STRS, CalHFA, CHDAP, DPA etc. are the acronym loans I am talking about. I probably left some out but you get the picture. I just threw the last 3 in for fun, they aren't so hot today so I am not even going to talk about them.

I started my career in 1989 in Sacramento CA and we used all of these loans back then and that is when I learned how to read tax returns and calculate down payments for FHA loans and how to interpret a credit report (without a FICO score) and write a cover letter to an underwriter...... Stated income loans did not exist, option arms did exist but only for investors and the really savvy borrowers.

Today, we have gone back to those simpler times but they are not quite as simple. We have the government involved and looking over our shoulder because of the way our business has been done for the past 5-7 years and we have loan officers leaving the business in droves (BYE!, good riddance...). I am being a little harsh but I am really glad to see the bad and the unprofessional loan officers go. I know that there were also good, hard working ethical loan officers that are having a tough time in this market but I digress.....

FHA - This is a great program that has been around since just after the great depression. It is designed with first time buyers in mind. You do not need to be a first time buyer to get an FHA loan but you don't need perfect credit or job history, you only need 3.5% down payment and it is a pretty reasonable loan. Moving to Sonoma county in 1995, I rarely did an FHA loan until 2008 when the values came down and the loan amounts went up and it made perfect sense. I was glad that I had started my career doing a ton of these loans and I feel very comfortable with all of the rules and regulations and paperwork also.
FNMA & FHLMC - I lump these 2 together because they are almost interchangeable. They are commonly referred to as Fannie Mae and Freddie Mac and they were designed to buy home loans on the secondary market to keep mortgage money flowing. They were pseudo governmental agencies until quite recently. These days, they have even more government than they ever have. The bottom line here is that these 2 agencies write the rules for conventional or conforming loans. They tell us the limit to which they are willing to buy these loans and the rules we must follow to get the loans approved.
USDA - Yes folks, the same people that put a safety seal on your beef is in the home loan business and they have been for a loooong time. The goal of this organization id to get average folks in rural communities into basic housing. You need to make 115% or less of the area's median income in order to qualify for the program but you also need to make enough money to qualify for the house payments. If you qualify and your home qualifies for this program, then you can get a mortgage with NO MONEY DOWN and no mortgage insurance. If this loan fits, it is a good deal.
VA - This is a Veteran's Administration loan and is available for veterans and their spouses. This program does not have income limitations but you do need to qualify for the house payments and fit within the VA's guidelines. This program also allows for NO MONEY DOWN and no mortgage insurance and so if it fits, it is a great deal for veterans. It does require a pest report and clearance and that can be an issue in some markets.
PERS - having started my career in Sacramento, I am very familiar with this one. This is a loan guranteed by the Public Employees retirment System. This can be a good loan for a PERS member and it is basically very much like a conventional loan and they have little perks and bonuses available to PERS members. Good stuff but a very specific clientelle here.
STRS - Much like PERS, this is a program run by the State Teachers retirment System. It is also basically a conventional loan for teachers in California. There is a very cool feature in that you can get an 80% 1st mortgage with a 17% 2nd mortgage from STRS and just 3% down from the teacher buying the home. STRS will let us qualify the teacher without counting the payment on the 2nd mortgage in their debt ratios and they won't even make you pay on the loan for 5 years. This is great for the first 5 years but you don't want to let this one sneak up on you. The beauty of having a 1st and 2nd mortgage is that you can avoid mortgage insurance altogether and so this is a better loan than FHA for many teachers.

That is basically it. In today's market, many people think that we just have plain vanilla loans and that is basically true but we do have several different toppings for those loans and you need to be working with a professional loan officer who understands these loans and has access to them all.

Hans Bruhner, CMPS

hans@hansblog.com

www.AskTheLoanMan.com

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

facebook - How do you handle it?

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Tue, 10 Feb 2009 20:44:38 -0800

I have a business coach who told me about facebook and that I should get on there and do some social networking and I did not listen to him....

I have a friend who got on facebook and loved it and wanted me to get in there too and so I did. I started cruising around, finding old friends and sharing photos and letting it all hang out. That is when I remembered my business coach and how he thought I should be using the site. My coach would not be pleased with me sharing photos of my tattoos, sordid tales from college and the like. Just FYI, I live a pretty much PG life so it's not that big of a deal.

I then realized that this is what I wanted to do on facebook and so I was going to do it. Honestly if one of my clients wants to add me as a friend, that is Ok with me but it is not about business here..... and it is about business as well.

People want to work with someone they can relate to. If I am speaking to a teacher I am happy to share that my mom was a teacher and my wife works at the local high school. If I find a common bond between me and my client, it strengthens the client relationship at the same time. For me, that means that I am who I am on facebook, period. Of course I have rock posters lining ALL the walls of my office so this was already my philosophy.

If you are thinking about using facebook for business, in my opinion, you just can't be that transparent. I think that once you share real interest, real political views and photos of your family that you will find people who relate to you and once they find out you are a mortgage broker or real estate agent, that makes it that much easier to choose you when they need your service.

For me, the bottom line is be yourself, have fun and don't be afraid to let people know what you do.

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

NEW Fannie Mae rules - if current house turns to rental, watch out!

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Sat, 07 Feb 2009 19:48:55 -0800

Ok, things are good, you have some money in the bank and a stable job and you want to go buy a house and take advantage of this great real estate market. The trouble is that you won't make much money on your current house because of the very same market.

Hey! I have an idea. You can rent out your current home and move into the next home and you can wait and see how the market treats you over the next few years. Heck, if you sell within 3 years you still qualify for the capital gains exclusion because you have lived in that home as your primary residence for 2 of the last 5 years.....

Not so fast! It is a good idea, it does make sense. The problem is that fannie mae and freddie mac instituted new policies because they are operating from a place of fear. At the end of last year, they created a policy that says that if you move out of a primary residence and plan to rent it, that you need to have at least 30% equity in that home as a condition of getting the new loan. Their fear is that people will move from one house to the next and then let the original house just go back to the bank. There is only one exception and that is if you can afford to make the payments on both houses and maintain an adequate debt ratio then they don't care how much equity you have in that house.

I have run into this several times and a while back, I switched someone over to an FHA loan to avoid this issue and we closed the loan. 2 weeks after I closed that loan, FHA instituted a similar ploicy and they need to see 25% equity in the home yoiu plan to rent.

The landscape is changing rapidly, now is the time to work with true professionals.

I am licensed in CA and HI.

Hans Bruhner, CMPS

hans@hansblog.com

www.AskTheLoanMan.com

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone

This just in from Fannie Mae! - Multiple Mortgages to the Same Borrower OK

Hans Bruhner - Sonoma County Home Loans (First Priority Financial) — Sat, 07 Feb 2009 19:30:59 -0800

Towards the end of last year, Fannie Mae announced that they would not make a loan on investment property to anyone who had 4 or more mortgages. This was quite a blow to many people who are investors in real estate. The new rule did not care hoe many mortgages the borrower had when lending on their primary residence. Of course, Freddie MAc followed suit soon afterwards and they may here as well.

It looks like they re-thought this new rule and are almost repealing it. At least they have made some changes that should be positive for investors. here is the wording from Fannie Mae:

To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower. We will allow five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70-75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower's other mortgages.

This is good news for investors. As always, call or email me if you have questions or scenarios.

Make it a great day!

I have been in business for over 21 years and I still love what I do. Please give me a call and find out why most of my business is referred to me.

(707) 887-1275 Office (866) 385-1650 Toll free (707) 347-9250 Cell Phone