Long Beach, Ca.In our lives it is worthy to aspire to greatness.Sometimes society only recognizes success by revenue, money, or sales statistics which is wrong when you look at the big picture.There are many ways to measure success.What we need to do as a society is to rediscover who we are as a nation.The human spirit is a grand creation that has unlimited potential.It is only when we surrender our dreams that we lose.For most people, life is a struggle, scratching out an existence in this very challenging world.However, just surviving is not living life to its fullest.
Recently, I interviewed a real estate agent who was on a National Championship team under the great Hall of Famer, John Wooden.Unfortunately, for this past champion player, the lessons learned on the basketball court did not transfer into success in the real estate profession, he had not made a sale in over twelve months.This is sometimes the case, a great player used to a certain type of success in physical sports languishes in the mental challenges of the business world.
But whatever your opinion, let us take a quick look at the success of John Wooden,he started coaching College basketball back in 1946.It took him twenty years to win the National Championship.Wow, what was he doing for 20 years?---building his finely tuned basketball machine, his philosophies, his character, his pyramid of success.
The point is that too many people put the emphasis on the actual Championships rather then the road that was travelled to get there.Let us all reflect on that even when our lives feel challenged or depressed that there is a Championship with your name on the Trophy, if you really desire it.
Some great quotes from John Wooden
"Consider the rights of others before your own feelings, and the feelings of others before your own rights."
-John Wooden
"Be more concerned with your character than your reputation, because your character is what you really are, while your reputation is merely what others think you are.”
-John Wooden
"You can't live a perfect day without doing something for someone who will never be able to repay you."
-John Wooden
Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing. Contact him at: 562-989-4608 ext. 110
Long Beach, CA.As California grapples with the largest State deficit on record, it has cut off the $10000 tax credit for first time home buyers seeking money back for investing in new constructed housing, Sacramento announced last week.
Will California be able to balance its budget in time to avoid massive lay offs?Or, will it continue to, “kick the can down the alley,”as the Governor likes to say in regard to the legislatures inability to address formulating a government that spends within its means?
Last Thursday, the State of California began issuing IOUs in lieu of its normal checks as an emergency measure on how to deal with the situation….Today, Wells Fargo decided to tell the State of California they will accept their IOU's until July 10th. Thereafter, they will no longer accept the IOU's for deposit. We understand BofA has said the same thing:
Wells Fargo & Company (NYSE:WFC) said today it will accept registered warrants issued by the State of California from its retail and business customers for a limited time. It will begin accepting the registered warrants for deposit on July 2, 2009 and stop accepting them no later than July 10, 2009. “We’re very disappointed, as are many Californians, that California has taken the unfortunate step of issuing IOUs in lieu of its payments to some businesses and individuals,” said Lisa Stevens, head of Community Banking for Wells Fargo in California. “Wells Fargo has a long history of taking extraordinary measures to help our customers and will accept registered warrants from our customers, but only for a limited time, to allow them time to make other arrangements. We are reluctant to take this step, but are doing so to help our customers who are not at fault and with the expectation that the Legislature and Governor will complete the budget within days. We join all Californians in urging our Legislature and our Governor to take the appropriate steps as soon as possible to resolve this budget crisis.”
This week a flood of treasuries:
There will be an auction this week of 65 Billion in treasuries.If demand is not real strong, it will mean that our rates cannot go lower than the level you are currently seeing and you should consider locking your rate depending on how the market absorbs this large amount of bonds.
Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing. Contact him at: 562-989-4608 ext. 110
Long Beach, Ca. As you may be aware, last week on Friday,the House passed by a 219-212 vote and energy bill commonly referred to as "Cap and Trade" because it puts "caps" on the carbon emissions from every U.S. company and industry and imposes trade limits and tariffs on imports.Proving no industry is immune from the hand of the Federal government and global climate activism, the Cap and Trade bill has some provisions that are very detrimental to the real estate industry, and especially in Southern California where real estate short sales consist of over 50% of closings and many sellers simply do not have the funds to bring their propertiesup to the standards required by the new law if it passes through the Senate and is signed into by Obama.
As part of the legislation every existing home sold in the United States using FHA financing will require an energy audit, paid for by the seller.The audit will cover all appliances, water, gas, heat, cooling; all energy systems will be audited to see if they meet federal standards.If any system or appliance fails to meet the standards the house cannot be sold until it is retrofitted to meet the new standards.The standards are being set to achieve a 20% improvement in energy usage.
You list a home built in 1960 with elderly owners who have lived in the home since 1988 and have not retrofitted the home since purchasing the home almost 21 years ago.What are the chances the home will meet the new federal standards?If the buyer is not an FHA buyer they may not need to worry about it but the market is now limited to mostly FHAbuyers because conventional loans require a minimum of 10% down wherein FHA only requires 3.5% down.What if you have a qualified buyer, but they are only qualified using FHA financing? Many sellers may not take their offer because they do not want to go through the energy audit and retrofit.Many banks may wait until a conventional loan offer comes in; thus, shutting out many sales opportunities in an already hurting industry.
The Cap and Trade bill as passed by Congress is discriminatory against FHA buyers and sellers--typically the lower income and first time buyers in our market.Our current market in Long Beach, Californis and indeed; the nation is still reeling from a devastating period.Fortunately because of FHA financing we have increased sales, Cap and Trade will kill much of this market.
The real estate industry needs to fight this bill and specifically this provision before it gets adapted by the Senate.Please contact CAR, NAR and Senator Feinstein and Boxer, plus encourage your colleagues to do the same to kill this bill before it goes any further.
Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing. Contact him at: 562-989-4608 ext. 110
Long Beach, CA. We wanted to share information about how buyers finance in today's marketplace. Below is a lot of information for your review. Our job is answer questions and help guide you for the best decision.
As we know, the $8,000 federal tax credit for first time buyer's drove the marketplace the past several months to where it is primarily a seller's market for entry level home prices Six months ago, it was a buyer's market. To qualify for this rebate you wlll have to fill out IRS form 5405 that when you file with your 2009 federal taxes determining the amount and eligibility of this important tax credit. Please review with your tax preparer.
The State of CA through CalHFA has down payment/closing cost assistance available based on household income. A first time buyer (someone who has not owned property in three years) is eligible for 3% of the sales price for down payment and/or closing costs assistance. Please visit www.calhfa.ca.gov where you may become more familiar with their programs. Currently, 1st mortgages from CalHFA are difficult to acquire due to lack of product. As a result, buyers will get a standard FHA or a FHA Energy Efficiency Mortgage and combine it with a CalHFA CHDAP 2nd mortgage (3% of the sales price) for closing cost assistance. The CHDAP is a silent second mortgage with no payments and a 3.25% interest rate as long as you live; do not refinance; or sell the property. The buyer makes the traditional 3.5% FHA down payment.
Cities have down payment assistance programs based on income and property sales prices. The income limits are often mirrored by the income limits we see with CalHFA. Also, cites have these programs based on specific properties too. This allows the buyer an opportunity to purchase a home that otherwise would not exist.
FHA has three standard popular programs available for buyers.
1. The standard FHA 1st mortgage has only a 3.5% down payment requirement. Two years ago less than 10% of all owner occupied purchases utiilized FHA. Now, more than 75% of the same purchases use FHA financing and the percentage grows as conventional financing is more restrictive and difficult to get.
2.The FHA Energy Efficiency Mortgage allows up a buyer to finance energy efficient improvements (i.e. windows, doors, hot water heater, dishwasher, insulation, heating/air conditioning). The amount of money is based on the sales price (generally 5% of the sales price may be available for improvements). This was increased from a previous limit of $8,000 just a few weeks ago!
3. The FHA 203(k) Streamline allows a buyer to finance improvements and non structural repairs (flooring, paint, kitchen and bathroom fixtures/cabinets, appliances, pool equipment). The maximum amount is $35,000. Please see the attached HUD document outlining this valuable program.
Given the condition of many properties, the FHA 203(k) Streamline is more and more popular. I have personally provided this mortgage and have a couple in escrows right now with more buyers out shopping using this financing. The FHA Energy Efficiency Mortgage may be combined with the FHA 203(k) Streamline for maximum financing. The repairs/upgrades require use of a licensed general contractor and allow the normal close of escrow. A buyer of mine in San Diego bought a duplex with a pool that was bank owned for $340,000. We financed $43,000 (using 203(k) and Energy Efficiency combined) for the repairs/upgrades. The bottom line is the improved property value exceeded $400,000! The client made money day one! The beauty is ONE 30 year fixed payment!
One important aspect of FHA is the FHA Sreamline Refinance programs the home owner may utilize if interest rates decline after the home is purchased. This important refinance allows the buyer to refinance with a benefit to the buyer (lower home payment) without the cost of an appraisal; without declaration of income and assets! This simplified refinance right now is being/has been utilized by home owners who utilized FHA last year. Many are financing 6% plus interest rates into interest rates in the middle 5% range with the issue of an appraisal!
There are teacher and veteran programs available. The VA financing allows 100% financing. The CALSTRS financing for those who work for a public school system allows an 80% 1st mortgage and a 17% second mortgage with no payments for five years! Plus, there are other specialty finance programs.
About me and Golden Empire Mortgage (GEM). This has been my full time job for more than seventeen years. I work/am available six and one half days a week. Focus, listening, and execution of a game plan is how I operate. My client (you) is the only person I care about in a transaction by law and ethically. It is my job to protect your interests period.
GEM is a direct lender processing, underwriting, loan documenting, and funding the loan in our name. Our underwriters have delegated underwriting authority from numerous banks. What this means is we can approve a mortgage for Bank of America without having to ask B of A for permission to fund the mortgage. Our FHA underwriters are approved by HUD and banks for approving FHA loans. This allows us to look at many of the national lenders on a daily basis for the best rates and programs. For example, Bank of America has been very aggressive with their FHA interest rates. The past few weeks, GMAC (now that they have some issues resolved) has become aggressive too. The bottom line is the client (you) benefit as we seek out the best rates and terms. All of our lending functions are done here in California by Californians. We do not outsource our operations.
Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing. Contact him at: 562-989-4608 ext. 110
Long Beach, Ca.I remember one day my father took me to some homes he was building in Hacienda Heights in the early 1970’s.He was so proud to show me how the homes were built into the hills.I was nonplussed and told him that I wanted an “action job like being an army man, a fireman or maybe even a policeman.”He laughed and found much pleasure in those statements. Although not a civil servant, a guess today proved that being a real estate broker can be an action packed job.
Fast forward almost 40 years and I find myself putting together an open house in Bixby Knolls.A beautiful listing by Mr. Mike De Martino.The property at 4641 N. Cerritos, in Bixby is a beauty with over 2000 sq. feet featuring 3/4 inch oak floors throughout, brand new Dynasty Omega cabinets in the kitchen and baths.Definitely a handsome contribution to Long Beach, California’s real estate repertoire.
I smile when I think of the hectic day we had when holding this home open.There were no less then 15 couples that came through the open house, all interested and most were definitely qualified.
Although the home appears rather humble on the outside, after you pass through the courtyard wall, you enter into an enchanted and peaceful world.The pineapple fountain dribbles and splashes a greeting to you as you enter through the courtyard giving the home a feeling of privacy.
You stroll down the path to the main entrance door which is all glass.A benefit of having a security door at the courtyard is that you can have a lot of glass doors opening up into the courtyard which really makes the house breath and flow.
As you enter the foyer, there is a partition wall separating the Family/Living area and Kitchen form the bedrooms’ hallway.The layout is an open plan which makes the home feel very large.In fact, the spacious 10000 sq. foot lot is well utilized.Even more French doors open into the garden in the rear which makes the back patio feel like another outdoor room.
If you are considering purchasing inBixby Knolls and interested in seeing a finely staged home, take the time to see this home.
Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing. Contact him at: 562-989-4608 ext. 110
Subscribe to this site at: www.longbeachrealestateandloans.com
Long Beach, Ca. Unfortunately, in today's world, when we hear the words "customer service," too often we draw a blank when thinking of when was the last time we really experienced it. However, good service is still there, you just have to look out for it and when you find it, acknowledge it and make sure that you support the institutions that provide it.
For those of us over forty years of age, we can still remember the marvel of, "Full Service," at the local filling station growing up. If you opted for the full service, you would have a young man greet you at your vehicle, he would pump the gas for you, check your oil and tire pressure; of course, he would notify you if there was something awry, then he would finish off by cleaning your windshield to a sparking clarity. Can you imagine this approach in your local "service station," today?
Another example of great customer service is easily understood when having a positive fine dining experience. The entire dining affair becomes a pleasant and memorable adventure. You are greeted by the maitre d', welcomed and seated by the host, acknowledged by the waiter, played to by the musician and even possibly visited by the Chef. Each person that you meet enhances the experience, fills the voids, and rounds out and completes the evening. Like the layers of servers, the food also comes in waves or courses. It proves that there is an exchange going on between the service provider and the customer.
Still another way to witness good service is if you have ever traveled First Class across the Continent or overseas, there is simply no comparison to "Coach." You are pampered, given hot towels to rejuvenate your skin, complimentary cocktails, and the best meals, normally, you have plenty of legroom and a protective steward at your call ready to assist you in any matter. It makes the time go faster and can actually be fun not to mention comfortable.
This concept of good customer service is dumbfounding to most Americans these days, but it doesn't have to be that way. You see, understanding how to provide excellent customer service should be a primary and mandatory philosophy of every enterprise and every customer, too. . Let us revisit the idea of customer service and really hammer out what it means to, "Serve others."
And now something that may shock you.....your success in experiencing service depends on your own disposition. This idea of providing service is what life is all about. Learning how to take care of your fellow man is a simple and basic exercise of etiquette and civility. Learning how to communicate, treat, and relate to others is paramount to understanding the fundamentals of providing good service.
If you want to find out quickly how another person really is on the inside, just buckle up and drive through a heavy traffic jam with him. Here, the real person will definitely come out. You will soon see either total profanity, crass shouting and screaming, and lewd gestures issuing from the driver if he has no concept of decency and service or; on the other hand, the refined citizen will drive in a more giving and generous style that is not only safer and steady, but can actually make the whole experience enjoyable. What is the real difference between the two drivers?
Although there are countless ways to better serve each other, we can boil the whole concept of good service down to several factors:
Creativity. This is where you can discover the service artist in yourself. What is it about your product or service that gives your own custom signature and style of doing business.
Attention to detail. Here, in what appears to be the smallest of matters in a transaction, we see where the true Masters of Service really shine. What happens, is that by carefully thinking out every step and stage of the experience of working with the customer, and making sure that each stage runs smoothly, the entire experience is raised in the level of service that the client experiences.
Acknowledging others. Learning how to address your clientele, and making sure that they understand that you are aware of their presence and quickly respond to their needs makes the customer secure and happy.
Knowing your clients. Building personal relationships creates longevity and loyalty in a customer base.
Planning for success. Structuring and designing the experience your clients are going to participate in requires careful attention and a blue print for the direction of how your customers will be treated.
Putting other needs above our own. Sacrificing or giving yourself up to your client is a great act. Putting them above yourself in regard to giving them the necessary time, attention, and service, even when you have other things to do.
Learning to listen to the customer. Remembering that body language communicates a lot more then what we can verbally. Understanding how to listen and observe a customer so that you can read between the lines and take care of their concerns.
Consistency and discipline of routine. Clients come back to a business because they are attempting to return to the same positive experience that they had during a previous exchange.
Being aware of the big picture. Almost like a pilot who is flying a jumbo jet, you have to be aware of the big picture of what is going on, where you are at in the process, what are the prevailing weather conditions, and constantly in communication with the passengers.
Follow up. Reaching out to the customer after the close of the transaction. This sets a service provider above the rest of the competition
Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing. Contact him at: 562-989-4608 ext. 110
Subscribe to this site at: www.longbeachrealestateandloans.com
Long Beach, Ca. Just the idea of a physical road block may conjure up frustration and lost time on the road to where you are going in life. But I would like to point out that within every roadblock that you may be facing, that there are probably some good reasons for them and that there are strategies on how to deal with them in your lives.
Roadblocks, in the physical sense, are often built by authorities, civil servants, to protect the traveler from unseen dangers. If the traffic was allowed to pass through unhindered, there may be a tragic accident resulting from unseen road conditions ahead.
So, as much as you may want to proceed, we need to figure out what is really in your best interests. It is more likely that a roadblock can be a good thing; that is, a signpost to adjust your aim, to rethink and reassess your plans, to slow down, an to reconfigure your approach.
Roadblocks are like loud neon signs that say, "Danger, caution, do not approach this way," and further evidence that life does not unfold perfectly into every whim that you may have. That true success comes from reinventing an idea over and over again until the idea is perfected. Because there is no true perfection in this world, we are faced with ever changing conditions which must be adapted to in order to survive and prosper. Learning about life means learning about the road conditions that we face on it. Having knowledge about what obstacles are on the road will make us more knowledgeable drivers and better pilots.
Roadblocks come in many varieties. For example, small business not being able to get a business loan from a bank. This is very evident in the current market dynamics. Everyone who actually needs a loan can't seem to get it. So, the traditional approach of going to a bank for a business loan has to be re-analyzed.
What are the options that a small business has in lieu of the traditional bank loan? Carefully delineate what all your options are. Instead, consider raising capital from private sources instead. There are many types of private investors. The market itself will dictate whether or not your business plan is worthy to be financed. You might check out local venture capital firms, or investment clubs. Be prepared to pay higher interest rates and even to give up part of your ownership in order to get your dream off the ground.
The whole process is part of living. The roadblock is pointing you to another direction. Find the right way and have fun getting there!
Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing. Contact him at: 562-989-4608 ext. 110
Subscribe to this site at: www.longbeachrealestateandloans.com
Long Beach, Ca.Wow, with more and more workers getting laid off (depending on your State, unemployment figures are shifting up between 8.25% -15%), we have to address the credit issue as both agents and home buyers.You see, the old models are quickly becoming archaic when you have a good family, suddenly late on payments, because of a lay off or less hours at work.This is transcending into the home buying and refinance markets in that more and more people’s credit scores are dropping below 620, which is an industry standard now for the minimum FICO required by HUD on FHA purchase money loans.There are a few lenders that go below that but charge a premium in points.Below is an open letter written by my friend Steve Manos describing how your credit scores are calculated.It is adviseable to retain someone like Steve, who can periodically review your credit, and for a nominal fee, keep your scores high.
A credit score is a number that lenders use to help them determine their creditworthiness. It is generated through statistical models using elements from your credit report; however, your score is NOT physically stored as part of your credit history on the credit file. Rather, it is typically generated at the time that a lender requests your credit report, and is then included as part of the report.That is because your credit score is a "fluid" number, and it changes as the elements on your credit report change. For example, payment updates or a new account could cause your scores to fluctuate. Designers of credit scoring models review a set of consumers, often over a million, who opened loans at the same time, and determine who paid their loans and who did not. The credit profiles of the consumers' who defaulted on the loans are examined to identify common traits they exhibited at the time they applied for the loan (such as number of open accounts ;amount of outstanding balances; number and severity of late payments;type, number and age of accounts ;recent credit inquiries, etc.) The designers then build statistical models that assign weights to each variable, and these variables are combined to create a credit score. Below is a pie chart breaking down the percentages of each considered category that is used to calculate your score:
Few consumers get a perfect FICO score, and nearly half get under 700. Here is a breakdown of the U.S. population :
Score of 800-850 :13%
Score of 750-799 :27%
Score of 700-749 :18%
Score of 650-699 :15%
Score of 600-649 :12%
Score of 550-559 :08%
Score of 500-549 :05%
Score under499 :02%
For years I have been warning my clients to ignore all the fake credit score companies and fake credit score monitoring companies, and only purchase your credit scores from www.myfico.com/12, or get your free credit reports from www.annualcreditreport.com. Experian is making a killing promoting their fake report/report monitoring site to unsuspecting consumers who do not read the fine print when they obtain their "free" credit reports, and end up actually subscribing to a monthly credit report monitoring service.I recently watched a video countering Experian's profitable little scam...When I found out who made the video I was shocked !It was made by the Federal Trade Commission (FTC). This new commercial is the FTC'slatest attempt to warn the public about these catchy commercials featuring " singing pirates".Watch the video here:
How are FICO credit scores calculated and what determines your FICO score?The formula for creatingthose scores works like this :
FICO first sorts each person into one of ten credit categories so that , for instance, people with " thin files " -not a lot of credit history-are compared only against other people with" thin files " .
The FICO formula then starts with a neutral score - about 600 points - and begins adding and subtracting points based on the activity shown in the consumer credit file, said Craig Watts, a Fair Isaac spokesperson.
FICO scores are based only on what is in the consumer's credit file - and that file can be different from one credit bureau to the next. So it's not uncommon for the same person to find that his or her FICO scores at Trans Union is different from that at Equifax or Experian.
That is why at Center for Better Credit we feel it is more important than ever to enter into any long term financing deal with as high a FICO credit score as possible from all 3 of the major credit bureaus. Not just to save a lot of money on interest over the life of the loan, but in todays lending "climate" it is important to have higher scores just to even be approved. Please contact us with any specific questions. All of our contact information is at bottom of e-mail.
Sincerely;
Steven J. Manos
President
Center For Better Credit
3857 Birch Street No.630
Newport Beach, CA 92660
A Non-Profit Corporation Dedicated To Informing And Helping Consumers
Deal With Their Credit Issues & Resolve Their Credit Problems.
Long Beach, Ca. There has been a lot of confusion in the marketplace about what are the exact tax credits that a home buyer may receive from both the State of California and the Federal government. Chuck Barger, of Prudential California Realty, has prepared the simply summary below which makes is very easy to understand. If you are a homebuyer, this makes buying a property even more attractive this year! If you are an agent, you should be screaming this from the roof tops! Everyone benefits from tax credits, and you might just qualify for both of to $18,000.00 in credits.
I.Federal Tax Credit
1.Credit is 10% of Purchase Price, not to exceed $8,000.
2.Escrow must close between January 1, 2009 to November 30, 2009, inclusive.
3.Federal Credit is a “Refundable-Credit” earned whether or not taxpayer owes Federal Tax. Example, home-buyer owes zero Federal Tax, would receive a tax “refund” of $8,000.
4.Credit does not have to be repaid to Government, unless home-buyer sells or moves to another principle residence within THREE years of purchase.
5.Home-buyer is “First-Time” or has not owned a home from July 1, 2006 to June 30, 2009. Must be Owner Occupied as Principle Residence.
6.Income Levels: Tax Credit starts to phase out for an Individual Taxpayer with a modified adjusted gross income from $75,001 to $95,000 (or $150,001 to $170,000 for joint filers). The credit is eliminated entirely for an individual over $95,000; jointly $170,000.
7.Taxpayer can claim credit for either tax year 2008 or tax year 2009. If 2008 returns already filed, taxpayer can file an amended return and receive tax “refund”. Use IRS form 5405.
8.If Escrow closed from April 9, 2008 to December 31, 2008, would fall under 2008 law.
II.State of California Tax Credit
1.5% of purchase price, not to exceed $10,000
2.Escrow must close between March 1, 2009 to February 28, 2010
3.Property must be “New Home”; that is, must be certified that the home has never been occupied; single family residence only.
4.Must be Owner Occupied as Principle Residence; must reside in home for TWO YEARS minimum to avoid paying back State Tax Credit.
5.Tax Credit is NON-REFUNDABLE; that is, it must be taken as an offset against State Taxes owing. It is taken over THREE successive taxable years. Starting in 2009 or 2010- maximum credit is $3,333 per year.
6.Home-buyer does not have to be a First-Time buyer to receive State Tax Credit.
7.Income Levels- no maximum income levels.
8. Tax Credit year begins in 2009 or 2010, depending on escrow closing date; use form FTB 3582A.
Summary: Credit may not be given if buying from relative or as gift. Home-buyer can receive BOTH credits. Time is of essence; must close within deadlines.
Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing. Contact him at: 562-989-4608 ext. 110
Subscribe to this site at: www.longbeachrealestateandloans.com
Long Beach, Ca. More good news on the loan origination front.We are seeing both more production in regard to loan applications, since February, the estimated US fundings this year have increased by $400 billion dollars.A lot of that is due to conventional refinancing.In the first quarter, we are expected to fund $.43 trillion that’s up from $.294 trillion in the fourth quarter of 2008.
Three Ways that FHA Underwriting is becoming tighter
Somethings to be aware about with FHA financing:Pretty much FHA financing is the only game in town right now for home purchases because there are no more 100% financing sub-prime loans. Understand that FHA is a full doc program that requires lenders to prove up that the borrowers are employed and have the funds to close. Nevertheless, what we are seeing is the FHA loan program morphing into a quasi-conventionaltype of product.This is not good for the borrowers or the real estate agents.
More and more banks are requiring a minimum FICO score of 620 wherein in the past you could fund a loan with a 580 score or less.The requirement has raised to640 to 660 for jumbo FHA loans.
In addition, as of today, many lenders are no longer are accepting alternative lines of credits from home buyers that don’t have three lines of credit established on their credit reports.
You are currently required two FHA appraisals instead of one if you are funding an FHA Jumbo loan, this could cost a home buyer $700-$1000 up front for appraisals vs. the old
$350-$500 that we used to pay.
We are hearing more information on the 105% refinance program from the agencies. And it is not good if it is a Freddie Mac loan. The Wall Street Journal article reports that the new refinancing program doesn't allow borrowers to shop around for the lowest fees. “Brad German, a spokesman for the government-backed provider of funding for mortgages, said any borrower with a Freddie-backed loan who wants to refinance under the program needs to do so through the company that services his current loan. Borrowers with Fannie-backed loans will be able to seek refinancings under the program from more than 30,000 lenders nationwide. While Fannie is letting borrowers shop around, those deemed a higher risk are hit with fees that can total 3% or more of the loan balance, the WSJ reported. Freddie's maximum fee on these refinancings is 0.25%.
Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office" and a Net Branch of GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing. Contact him at: 562-989-4608 ext. 110
Subscribe to this site at: www.longbeachrealestateandloans.com
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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