***UPDATE*** CA State Tax Credit - 04/30/10 12:55 PM
This is an update to a post I wrote a few weeks ago...
The Franchise Tax Board has updated their site to include the application required (Form 3549-A) to claim the CA 1st Time Buyer Credit as well as the form required (Form 3549-RR) to reserve money for purchasers of new construction properties (New Home Credit). 
Please note that the money allocated for the 1st Time Buyer Credit, $100mil, is expected to be depleted by the end of this May and that the application must be faxed after escrow closes.  Information from both the buyer and seller is required.  Unlike the … (0 comments)

Buyers Concerned About Rising Rates? Try Our "Lock And Shop" Program - 04/27/10 07:38 PM
On a purchase loan, most lenders will tell you that you cannot lock in a rate until a property is under contract.  Not true!
Primary Residential Mortgage, a mortgage banker and direct lender in Carlsbad, offers a "Lock and Shop" product which gives a prospective buyer the ability to lock in today's rates without having a specific property in mind.
This program also allows a buyer to lock in a rate on a property in which they are currently in negotiations, but not yet under contract.
Here are some of the highlights:
•·        "To Be Determined" address is allowed
•·        Property changes … (0 comments)

Fed Tax Credit...T-Minus Five Days And Counting - 04/25/10 06:26 PM
We are well aware of this coming Friday's importance related to the Federal $8,000 1st Time Buyer Tax Credit as well as the Federal $6,500 Repeat Buyer Tax Credit. 
Per the IRS website, "an eligible taxpayer must buy, or enter into a binding contract, to buy a principal residence on or before April 30, 2010, and close on the home by June 30, 2010."
As I mentioned in a post the other day, some members of the military (and some other government employees) that were on deployment outside of the United States for at least 90 days between December 31, 2008, and … (0 comments)

Affects Of Mortgage Lates On Your Credit Score - 04/23/10 07:27 PM
As a mortgage professional, I am frequently asked about the effects of mortgage lates and foreclosure on credit scores.  CNN.com has a pretty good article regarding this.
Per Fair Isaac, your credit score will take an average hit of 40-110 points for a 30-day mortgage late payment, 70-135 point hit for a 90-day mortgage late, 85-160 point hit for a foreclosure, short sale, or died-in-lieu, and a 130-240 point hit for a bankruptcy.
Pretty scary stuff, especially if you have other derogatory accounts, but good to know.
… (2 comments)

NSDCAR Carlsbad Beach Clean-Up - 04/22/10 01:18 PM
As an affiliate member of the North San Diego County Association of Realtors (NSDCAR), I like to participate in their program REALTORS Building A Better North County. 
This program provides community service opportunities for San Diego real estate professionals such as Habitat for Humanity and the Carlsbad Beach Clean-Up. 
Last Saturday, a group of Realtors and affiliates (and lots of kids) joined together at Carlsbad's Tamarack Beach located at the intersection of Tamarack and Highway 101.
We started just after 9am and walked the beach picking up items that did not belong. I will have to admit that the beach … (1 comments)

Federal 1st Time Buyer And Repeat Buyer Tax Credit For The Military - 1 More Year! - 04/21/10 04:49 PM
Did you know that members of the uniformed services, members of the Foreign Service, and employees of the intelligence community are eligible for the $8,000 Federal 1st Time Buyer Tax Credit and the $6,500 Federal Repeat Buyer Tax Credit after they expire for everyone else?  
This applies to any individual who served on a qualified official extended duty service (i.e. deployment) outside of the United States for at least 90 days between December 31, 2008 and May 1, 2010.  These eligible buyers must enter into a binding contract by April 30, 2011, and close by June 30, 2011. 
The same 1st Time … (0 comments)

The IRS 4506T...Some Buyers Are Still Liars - 04/20/10 03:58 PM
In years past, closing documents would include an IRS Form 4506T which would allow the lender to verify with the IRS that the tax returns provided by the buyer are in fact the ones on file with the IRS.  Lenders would typically only execute the form, or actually order the transcripts, as a quality control measure.  Maybe one out of every 50 closed loan files.
However, as part of the crackdown on lending fraud, lenders now verify with the IRS on every transaction.  Loans will be approved, but this verification will always be a "prior to doc" condition.  This is not … (1 comments)

FHA "Kiddie" Condo - 04/09/10 12:28 PM
FHA has a nice little niche guideline nicknamed the "Kiddie Condo".  This guideline allows a non-occupant family member to go on the loan and basically carry the load.  These are full documentation loans and income and debt from all parties are used to qualify, but the occupying borrower is not required to have any income or assets of their own.  However, their credit still has to be reasonable.
The term Kiddie Condo does not apply to just condominiums.  All 1-unit properties are eligible (attached and detached SFR's and PUD's).  Very popular for parents buying their adult children a place while in … (0 comments)

Make Sure The Power Of Attorney Is Reviewed Early On - 04/09/10 12:19 PM
Just a quick note for the weekend.  San Diego obviously has a large amount of active duty military personnel, some of which purchase homes while they are deployed, as well as many out of state sellers. 
For the transaction, they will use a power of attorney giving someone else the power to sign for them in their absence.  Lenders are fairly lenient on the language of the POA, but the last word is ultimately up to the title company. 
The type of POA required is known as a "specific" power of attorney which mentions the specific address involved in the purchase … (0 comments)

CA State Tax Credit - 04/09/10 12:15 PM
Last year, the State of California earmarked $100mil for a tax credit available to purchasers of newly constructed homes.  This money was used up in just over 3 months. 
Fortunately, the State passed bill AB 183 last week with another $100mil for this purpose as well as an additional $100mil for 1st Time Home Buyers.  The CA Franchise Tax Board will have the official posting on their website by tonight.  Here are the some of the details:
Newly Constructed Homes $100mil pool of money:
•·         Property cannot have been previously occupied
•·         Qualified purchases from 5/1/2010 to 12/31/2010 (must be in … (0 comments)

A Few FHA Topics - 04/09/10 12:03 PM
I was asked the following questions regarding FHA insured financing this past week and thought that the answers were worth sharing:


Q: Are modular homes treated in the same manner as manufactured homes?
A: Fortunately, no. Modular construction is also a factory-built home, but is treated the same as stick-built housing.

Q: Can the Upfront Mortgage Insurance Premium (UFMIP) be paid in cash or must it be financed into the loan?
A: The UFMIP must be either entirely financed into the mortgage or paid entirely in cash.  Along those same lines, a seller concession may be used to … (1 comments)