California Home Loan information

Questions, questions, questions

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Fri, 13 Nov 2009 00:43:44 -0600

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.

FHA loans in Sebastopol?

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Fri, 13 Nov 2009 00:40:55 -0600

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.

Sonoma County Art Trails

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Mon, 19 Oct 2009 03:02:35 -0500

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.

What is UP with interest rates?

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Mon, 08 Jun 2009 18:16:32 -0500

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 .

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

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Tue, 10 Mar 2009 00:10:15 -0500

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.

Barack Obama reads my blog!

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Mon, 09 Mar 2009 23:48:29 -0500

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.

Acronym Loans - who needs them?

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Tue, 24 Feb 2009 17:33:30 -0600

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

facebook - How do you handle it?

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Tue, 10 Feb 2009 20:44:38 -0600

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.

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

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Sat, 07 Feb 2009 19:48:55 -0600

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

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

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Sat, 07 Feb 2009 19:30:59 -0600

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!

Can I still buy a house with no money down?

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Sat, 07 Feb 2009 18:58:21 -0600

I was kind of stuck on what to write for this month’s article and so I started to look back at what I had written over the years and I saw headlines like these:

Is now a good time to buy a house? – January 2008
Risky Income Documentation? – August 2007
We have hit rock bottom and we are clawing our way back up! – March 2008
Time Travel for better interest rates. – May 2008
Can I still buy a house with no money down? – February 2008

I realized that I could take any one of these topics and write about it today. Yes, I know I said that we had hit bottom in March 2008 and there is a chance I was wrong…… the funny thing is I believed it then and I think I believe it now. What can I say, I’m a positive guy.

A lot has changed in a few short years, I was writing about risky income documentation in August 2007. Stated Income, NO DOC loans and the like were available then and a few short months later they were gone. So what I decided to do was steal my own headline from a year ago and write the article today with the rules and programs of February 2009… so here goes.

Last year I wrote that there were 5 different loan programs that will allow you to get into a home with no money down. Several of those programs are now gone along with DPA’s or Down Payment Assistance Programs but we do have 2 true no money down programs available today and we have a couple low down payment programs available as well.

We have USDA home loans and VA home loans available with no money down. Both of these are government programs and both are available to a very specific group of people. The VA is for veterans or a veteran and their spouse. The USDA loan is available to people who make less than 115% of the median income for their area and want to live in smaller cities and towns (all of west county is OK, Windsor, Sonoma, Agua Caliente fit also). The other commonality of these loans is that they require funding fees but no monthly mortgage insurance (that’s good!).

We have a very special loan just for teachers that is backed by their retirement system. I am talking about a Cal STRS loan with just 3% down payment. Teachers, you will need to have 1% of your own funds and 2% can be a gift from a family member. This loan is unique in that you get a regular 80% 1st mortgage and then we get you a 17% 2nd mortgage from Cal STRS and there are no payments due on that 2nd mortgage for 5 years. I would love to help some teachers with this loan, I want teachers to be a part of the community and own a home here and I do believe now is the time to make that happen.

Lastly we have good old FHA loans which was a huge part of my business in 2008. FHA requires a 3.5% down payment and it can all be a gift from an appropriate source. With this loan, there are no income or geographic restrictions and you don’t have to be a teacher or a first time buyer. FHA is a little more lenient on credit scores and job histories as well. This has proven to be a wonderful tool for many people and it is a good market for FHA loans.

So….. yes Virginia! There are no and low down home loans available today.

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 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.

2009 Loan Limits - SEXY!

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Mon, 26 Jan 2009 19:42:10 -0600

So……. Loan limits eh? Pretty exciting stuff Hans! Yeah well it may not be that exciting but if you are thinking about buying a home it is very important. So here’s the scoop, our loan limits in Sonoma County have gone up. Our basic conventional loan limit for 2008 was $417,000 but Congress voted in higher loan limits for conforming and FHA loans (as high as $729,750). It was a bit of a mess. We had one set of rules for loans up to $417,000 and an entirely different set of rules (and higher rates) for loans above $417,000. The bottom line is that Congress told my industry what to do but did not tell us how to do it and so it didn't help as many people as it could have or should have.

So for 2009 the new loan limits are..... insert drum roll here……… $417,000! HUH!?! Here comes my favorite part ……. There are provisions for higher loan limits in high cost areas. We've always had these in Hawaii and Guam but never anywhere else. Now we have them in any area that is determined to be a high cost area. Of course there are all kinds of rules and formulas but I will make it easy for you, here is the chart:

Units General High-Cost*

1 $417,000 $625,500

2 $533,850 $800,775

3 $645,300 $967,950

4 $801,950 $1,202,925

* The limit may be lower for a specific high-cost area; use the resources below to see limits by location.

In Sonoma County, our limit is $520,950 for 1 unit. In Marin and most of the bay area, the loan limit is the new maximum of $625,500. The limits are even higher in Hawaii and Guam.

The real news here is that there is only one set of rules and one set of rates. These new loan limits apply to FHA loans as well and that is a good thing. Normally if we had the kind of market that we have had this past year, our loan limits would have gone down. So we are actually making progress and on our way to actually helping the consumer.

As I write this, rates have just come way down and are currently hovering around 5% to 5.5% for a 30 year fixed rate loan. There is talk about the treasury investing in low priced mortgage backed securities. The goal is to drive mortgage interest rates lower. The plan is not fully cooked yet and they're not sure if they will include refinances in this new offering or not. Read between the lines people - it's just talk at this point.

So basically it is just another normal day in my crazy business. There's a lot of speculation, there's a lot of movement and volatility, and no one really knows what's going to happen from day to day because we don't have that crystal ball. If I did, I would be on white sand beach sipping a drink with an umbrella in it (virgin because I don't drink).

Now remember, we can get FHA loans with 3.5% down up to a $520,950 loan amount. We even have a great program with no money down called USDA. So not only is it a great time to buy but it could be a great time to refinance as well.

First Priority Financial, Inc. is licensed by the CA DRE #00654852.

Your Loan - Refi or Modify?

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Mon, 26 Jan 2009 19:33:50 -0600

OK, let’s start with my area of expertise – refinancing. With almost 2 decades in the real estate and mortgage business, I have helped thousands of people get into a home or refinance the home they are in. I have traveled the country and spent thousands of dollars to further my education and I am most definitely an expert and I am going to give you the exact same advice that I give to every one of my clients when they ask – Should I refinance?...... My answer is I DON’T KNOW!

Well there you go, you now have free expert advice. Here is the deal, I honestly don’t know until I run the numbers. If the answer is yes then I don’t know exactly what loan program or features you should get until we compare options on a spreadsheet. These days, most people are getting a 30 year fixed rate because they are so low (Yes, rates are 4.5% to 5.5% right now). There are a lot of choices when getting a 30 year fixed rate mortgage: Points or no points? - Pay the costs out of pocket or roll them in? – Should I pay off debts? – Should I take some cash? etc. etc.

The hardest part about refinancing today is that we have much different questions that we have to ask and some of the answers are making it impossible for people to refinance. Some people who would have qualified 2 years ago won’t qualify today. The house that I live in and the duplex I rent out have both lost equity to the point that I simply don’t have enough equity to refinance and so I can’t even get a loan for myself.

So, what happens when you can’t refinance? Well, in my case, I wait. I can’t get a better interest rate and selling doesn’t make sense so I wait. Luckily for me, that was my plan anyway. Some people will want to take a look at a loan modification and this is a completely different animal from a refinance.

A loan modification is when you contact your current mortgage holder and you ask them to modify the terms of your mortgage. The bank can lower the interest rate, take past due amounts and tack them on to the back of the loan, lower the principal balance, let you skip a couple of payments… Why would the bank do this you say? That is a good question and you need a really good answer or they won’t. If you are behind on payments and your mortgage has just adjusted from a low rate to a higher rate then you may be a good candidate for a loan modification. If you just don’t have enough equity to fit into a refinance and you want a better rate then you are not a good candidate for a modification.

You entered into a contract for a mortgage and the bank wants to get paid. If they feel you are in danger of losing the house to foreclosure then they will want to work with you to keep you in the home and save their loan. The bottom line is that you need to prove to the bank that you can’t continue on the path that you are on and then you need to show them what you can do and strike a bargain. A couple of things to consider….. Getting them to lower your principal is almost out of the question and getting them to even speak with you if you are current with your payments probably won’t happen either. I am not a loan modification expert and I do not do them for my clients. There are a lot of new companies out there and many of them are predatory companies looking to make a quick buck. I have been offering advice to clients and referrals to reputable companies and helping clients prepare to tackle these on their own.

Hope for Home Buyers!

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Sat, 08 Nov 2008 18:53:47 -0600

I know that I am always trying to write about the positive aspects of the real estate market and how you might take advantage of it and I have to admit that I was having trouble maintaining a positive attitude in the last few weeks of the presidential election.

I went out to dinner last night which was the Friday immediately following the election and the restaurant was completely packed. The owners of the restaurant said they did not expect this type of crowd but they figured that with the outcome of the election people were feeling relieved and excited and apparently willing to spend money on eating out again because they hadn't seen these type of crowds in a long time. That is the kind of hope I am talking about. You can read between the lines and see that I am a Democrat but I spoke with some Republican friends who were disappointed they lost but still excited about the change that they felt was upon us both in the economy and the world at large.

OK, OK so what about your positive spin for home buyers Hans? So, we all know that there are a bunch of foreclosures available for sale at good prices but we have been reading the paper and we see that we need to have 50% down payment, perfect credit and at least a 20 year sterling credit history to get a home loan.......

That is simply not the case my friends. I am closing 4-8 loans per month right now. These are not the kind of numbers that I am used to closing and I am working a lot harder to achieve this feat than I had to in the past. The majority of the loans I am closing right now are purchase loans on foreclosed properties with 97% FHA fixed rate mortgages. That is correct, I said that these first time buyers are putting 3% down and getting into homes in this market. If you want to buy a home as an investment, you need to put 20-25% down. The funny thing is that this is the way it was when I got into this business in the early 90's......

Here is what I am really excited about. There is a loan called an FHA 203k loan and it allows a person to buy a home that needs work and then finance that work into the purchase of the home. Let's say that you find a home that needs some work but it is a decent home at a great price. You do a little homework and get some bids on what it will take to fix up the house and we lend you a piece of the fix up money as well. There is a streamline 203k loan up to $35,000 in repairs that is pretty easy to do and then there is the regular 203k loan that requires quite a bit more time and effort to make happen but if you need that much work on the home, it is probably worth it in the end. The FHA loan is designed for people who plan on living in the home only. Did I mention that we can do this loan to 97% as well?

There is a conventional loan available as well called Fannie Mae HomeStyle Renovation which has a catchier name and offers similar options. This loan requires 10% down payment on the cost of the home + fix up costs. There is no streamline option on this loan. Fannie Mae does offer an investment option as well but the minimum down payment would be 20% on investment property.

I don't want to talk politics with you but I welcome questions about these home loans and the real estate market in general. Please let me know what you want to hear about in future articles.

www.AsktheLoanMan.com

I have no idea what to write........ so Bailout it is!

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Thu, 09 Oct 2008 22:36:14 -0500

Guys and gals, I am stumped. I need your help. I don't want to make this a question and answer column but I am looking for some questions that will help me write my article. I may be my own worst critic but I am excited about some columns and not quite as excited about others I write. Talk to me, tell me what is on your mind and I will write about it.

I know that you guys are sick of hearing about the bailout but I am going to give you my spin on it anyway. The name wasn't very smart to begin with because it just doesn't have a very good ring to it, I'll get to that later, here is the part that is really bugging me today: AIG was bailed out to the tune of $85 Billion dollars and some of their top executives went and had a party at the St. Regis Hotel in LA. These guys were living it up on our dime! I just heard that they are having a lush party for their top sales people as well. I am OK with recognizing the sales team but they aren't having it at the Stockton Ramada folks, they are having their party at the Ritz Carlton Hotel in Half Moon Bay........smooth! A friend of mine called the St. Regis and wanted to know how you spend $440,000 at their hotel and the answer was amazing. I have posted it on my video blog at www.HansBlog.com just click on the video at the right entitled AIG gets $85B.........

Ok, so back to the name. It should not have ever been called a bailout, that just sounds like a handout which it really isn't. What the recovery plan really does is a lot like welfare. They are offering a leg up to someone who really needs it and when they system works it is a beautiful thing and when the system doesn't work, well it's not so nice. The federal government is going to go in and buy up some pretty stale investments that no one else is buying and put some liquidity back into our market place. The idea is to jump start the economy so it can take care of itself again (see the welfare link here?). If this works then not only have we helped the economy but our investment may actually start to gain some value as well. So if the "bailout" works, then we have invested in something that we believe in and in so doing we have moved forward. Since it is a government program set up to simply help the economy then any return on our initial investment is a bonus! Think about it, if someone loses their job and needs some help and goes on welfare or unemployment and they then turn it around and get a job and get back on their feet and go back to being a productive member of society and get off welfare then the program is a success. This bailout program is exactly like that except we are actually holding onto some investments that may turn around as the economy gets better.

So just to bring it back to the real estate market and my area of expertise...... Now is the time to buy a house! Prices are low, rates are low and if the bailout works then rates will go up and slowly but surely home values will start to go up again also. In my nearly 2 decades in the real estate and lending business, I have seen 30 year fixed rates around 10.5% and in the early 80's, rates were well into the teens (as in 16, 17...) so are you kidding me when you are upset that the rate is around 6.00% and not 5.00%! You guys have been spoiled and you better get on it before you lose this great market that we are in.

What is up with this crazy market !?!

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Wed, 10 Sep 2008 18:58:35 -0500

Everyone knows that this is terrible real estate market, right? WRONG! It is true that it may not be the best time to sell a home. It is true that there are a lot of foreclosures and short sale homes on the market for sale that are helping to drive prices down.... Hello people, that means that there are plenty of opportunities to buy a home for a great price and walk away a big winner.

The best advice I can give in this market is don't wait for the bottom. Why, you ask?

You can only see the bottom of the market in the rear view mirror.
Even if you time it perfectly, you have no idea where interest rates will be.
If you find the house you want in a neighborhood you like at a good interest rate and you can afford it and you are not sure about buying it, refer to items 1&2 above and BUY THE HOUSE!

Buying real estate is not something to take lightly it is not something you should do for short term gains; it is a long term investment. I like to keep it positive and so I will share some real world scenarios.

First time buyers. This is probably the most active segment of the market right now. A lot of my clients are utilizing the FHA loan program which allows up to 97% financing. It is a program that is designed for first time buyers but you do not have to be a first time buyer to qualify. We do have ways to get in with no money down right now as well.

Move up buyers. Earlier I said this isn't the greatest time to sell a house. Well, think about it. If you sell your home at a reduced price right now..... You get to buy a bigger, more expensive home at a reduced price as well and the savings can be big. One of my clients is pulling some cash out of their current home, renting it out and then buying their move up home also. This gives them the opportunity to buy in this market and sell in a better market. This is a great way to go if you can pull it off. If they are able to sell within 3 years, they can still take advantage of some great owner occupant tax breaks (ask me about that one).

Investors. This is the best position to be in right now. With property values down and rents holding steady or increasing, it is a great time to buy. One customer I just spoke with today came to me with the idea of keeping her home and buying her dream home. When I presented the numbers to her, it was clear that it just wouldn't work. I was waiting for her to be upset with her new reality when she brilliantly said "Hey! If I can't get my dream home, I can still pull cash out of my current house and invest in more property right now!" She gets it, she can borrow money at a great rate right now and she can invest in real estate in a depressed market. When people ask me when is the best time to buy real estate, my answer has always been "Five years ago." Which is true in almost any market (except for 3 years from now).

I am looking on the bright side of things here but I simply can't get up in the morning if I don't. I am not saying that everything is perfect, I have to deliver bad news to people every day. I personally own a duplex that financially under water. BUT, if you are not part of the solution then you are part of the problem and if people are buying homes then we will get through this inventory of foreclosed homes and values will start to go up and everyone who owns a home will be a winner again and you will wish you listened to me.

Surprise presidential Candidate

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Wed, 03 Sep 2008 02:02:37 -0500

I tried to embed a video here but I guess I can't. Please CLICK HERE to see a 2 minute news reel on a surprise presidential candidate.

Time travel for better interest rates.

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Mon, 12 May 2008 11:27:58 -0500

I love technology but I am crippled by it many times. Technology is supposed to help us out, save us time and make things easier..... I took a trip to San Diego to visit relatives recently and I ended up taking a trip back to a simpler time and I was very tempted to stay there. I flew out of the Santa Rosa Airport (small airport with 1 airline about an hour north of San Francisco). My friend dropped me off in front of the airport and I had to walk 20 feet to security. I made it through in about 1 minute (yes, I had to remove my shoes) and forward to THE gate. When it was time to board, I walked out onto the tarmac and a courtesy valet took my larger carryon bag for me while I walked the short distance to the plane, up the stairs and to my seat. A few minutes later, the captain started both engines (with props) and we were on our way. I had to make a connection at LAX and there I discovered that they have a secret little airport deep in the recesses of the huge international airport that seemed to be stuck in 1962. I walked across the tarmac and up some stairs to the tiny commuter terminal. I pulled out a book preparing to wait the 1 ½ hours for my next short flight when I heard someone calling me to another gate. When I showed up at the other gate, they asked if I would like to board a flight immediately and I went right back to the tarmac, handed my bag to another courtesy valet and got on my next plane. I had a window seat AND an aisle seat at the same time! It was a very nice trip.

This all reminded me of the time I bought tires for my car..... yes, really! I was determined to get the best price so I shopped online and got thoroughly confused. Then I headed straight for Costco to get the best deal. At Costco I gave them the make and model of my car and the guy at the counter used his computer to look up options. He promptly came up with one choice at an amazing price and since I am a modern guy, I wanted at least a gazillion choices and so he looked again and came up with one more choice which was a lot more expensive. I asked him the "what's the difference?" and he actually said "About $90 per tire". This is the point where I thanked him and promptly headed to a small local tire shop near my house. I have to admit that I expected to pay more but I knew I would speak with someone who actually knew what they were talking about, spend money in my back yard and feel good about my purchase. The guys at Benedetti gave me several choices but almost insisted that I buy a specific tire because it would work perfectly for my car. He explained some technical aspects of the tire that I don't remember but he told me it would last longer and they would look really good on the car as well. I ended up spending somewhere in between what I would have spent at Costco but I ultimately saved a ton of money and I got peace of mind for FREE.

The tire story is the perfect parallel to the mortgage business. You may find a better deal on the internet but you get no real advice and you may get the wrong loan. The internet or calling a big bank directly is a do it yourself proposition. My favorite argument is "I just want a 30 year fixed at the best rate". If you call a bank directly and you know all of the rules of the game and you have impeccable timing, you could save a couple hundred dollars this way. You may also lose tens of thousands of dollars by not getting good advice on how to structure the loan or when to lock it in. You may lose the house you are trying to buy or get a huge surprise at the end and find out your deal wasn't such a deal after all.

We can't go back in time but we can be smart about how we shop. We can step away from the computer and walk down the street and talk to real human beings in our community. Keep going and take a stroll in the park. If you feel too disconnected, take your Crackberry with you so you don't miss that all important email from the next client who asks "Can you beat blah de blah blah's online quote.... Take a deep breath and tell them the story of a little local tire dealer vs big bad Costco.

Just for fun, I went to Dictionary.com and looked up tarmac and this is what I came up with:

Tar·mac /ˈtɑr mæk/ Pronunciation Key - Show Spelled Pronunciation[tahr-mak] Pronunciation Key - Show IPA Pronunciation

Trademark. a brand of bituminous binder, similar to tarmacadam, for surfacing roads, airport runways, parking areas, etc.
- noun (lowercase ) a road, airport runway, parking area, etc., paved with Tarmac, tarmacadam, or a layer of tar.

Please feel free to contact me with any questions, comments or ideas for future articles.

Hans Bruhner, CMPS is licensed in CA & HI. If you have a question, please contact him at (707) 887-1275 or hans@hansblog.com or stop by my web site at www.PlanAMortgage.com

FHA LOANS ROCK!, seriously, they do.

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Sat, 12 Apr 2008 13:13:00 -0500

FHA loans are going to help us out tremendously in the near future and beyond. I used to do a ton of FHA loans but I have not done more than a handful in the last decade. That is all changing this week for me, I am doing a lot of FHA loans again and here is why:

Approximately 97% loan to value.
FHA does not change LTV if the property is in a declining market.
The 3% down payment can come from a gift.
6% of the sales price can come from the seller towards closing costs.
There are down payment assistance programs that will provide the 3% for true 100% financing.
Co-Borrowers can actually make a difference and help qualify buyers.
Non occupant co-borrowers can be on title or not.
It is NOT credit score driven, there is no minimum score.
Alternative credit is acceptable.
Loan limits have been raised to as high as $729,750 in high cost areas.
95% Cash out refinances available up to $417,000
85% Cash out refinances available above $417,000
Streamline refis do not need an appraisal.
See above. You can refinance an FHA loan even if you are under water on your loan.

There are some downsides:

There is a lot of paperwork. SO WHAT! Fill it out Sparky!
You have to qualify......see above.
There are slightly different rules for loan amounts above $417,000. Again, see above!

FHA is great but won't work for everyone. Call a professional mortgage consultant who knows what they are doing and see if it works for you. Did I mention I am licensed in CA and Hawaii........

Call me, let,s do FHA!

We have hit bottom and we are clawing our way back up!

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Sat, 12 Apr 2008 13:00:06 -0500

Values are down. Interest rates are down. The first statement is tough when trying to sell and great if you want to buy. The second statement is great for everyone! Well, almost everyone. OK, that's it, that's my article, have a nice day!

Values are basically down in Sonoma County except for some bright spots here and there. The brightest spots are The Sea Ranch, Bodega Bay and west county homes on an acre or more. What do these 3 spots have in common? They are the high end of the market and the areas on the coast are vacation home spots as well. What is happening here is that we are seeing longer marketing times, a small drop in value from the high times and some houses not selling at all. What is happening here is that people who need or want to sell their homes need to price it aggressively to sell it in this market but if it doesn't sell, they take it off the market instead of lowering the price too much.

Some of the hardest hit areas are Northwest & Southwest Santa Rosa, Rohnert Park and condos in general. These areas have the highest concentration of short sales, foreclosures etc. and they have to sell and so the prices are driven down hard and quick. It's pretty simple really, if you are a bank and you take back a bunch of properties, you have one goal: SELL THEM! They look at the market objectively and then they put their homes on the market at the lowest price they can to effect a sale. They don't care if they hurt the value of the neighborhood. All they want to do is get the house off of their books as quickly as possible.

People always ask me.... when is the best time to buy a house? Here is my new answer and you can quote me on this "Twenty years ago. If that's not possible, then right now!"

Here is the deal; no one knows when we have hit bottom when we are in it. We only know by looking back. It feels like we have hit bottom to me and we could be flat for a year or we could see values rise. I do know that I am seeing multiple offers on homes and I have seen several home prices being bid up. People who need to sell are pricing very aggressively and it seems that there are other people who agree with me that we have hit bottom.

Here is the big news in the mortgage world - FHA loans are hot! FHA was not a big deal in years past in Sonoma County because the loan amounts were too low. Well, the loan amounts have been raised to $662,500 and values have come down so FHA is able to meet in the middle. We can do a lot with this crazy little government program. You don't need perfect credit, we can do 97% financing on purchases and refinances. If you already have an FHA loan, we can even refinance if you owe more than the home is worth. These loans are a little complicated and not every lender can do them so make sure you are working with someone who has the ability and knowledge.

The other thing that has been a big deal is the conforming loan limit increases. FNMA and FHLMC raised loan limits to $662,500 under the economic stimulus package. It has not been all we were hoping for but it is still helping some people. The rates are not nearly as good as regular conforming loans (up to $417,000) but they are much better than jumbo loan rates that have been available in the recent past.

ROCK ON!

Waiting to be stimulated by higher loan limits!

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Tue, 01 Apr 2008 23:53:43 -0500

OK, I have been waiting to be stimulated by the new conforming loan limits and it just isn't happening!

It was signed into law in Mid February and we waited to see when HUD would come out with the new median home values.
That happens in Mid March and we get excited for a minute.
Then FNMA comes out with the rules and we get down but we realize the rules are tough but the rates will be worth it and we get excited again.
A week later they start hitting the market and the pricing on them is terrible!
Then I start thinking (I know, scary) about how things might improve in April when FNMA starts buying these things and here we are and it is April Fools for me for sure!

I know we fund the loans and then they get sold to FNMA and I understand that there are a bunch of age old rules and regs blah, blah blah.... I just found out that there is a group called SIFMA ( www.Sifma.org ) who steers these things and here is what they had to say:

...............SIFMA Publishes Revisions to Good Delivery Guidelines, Settlement Recommendation for Jumbo-Conforming Pools

Publication of Revised "Good Delivery Guidelines"
New York, NY, March 20, 2008 - Today SIFMA published a revision to the Good Delivery Guidelines for TBA MBS trading (Chapter 8 of the Uniform Practices Manual). The revisions to the guidelines more explicitly define the characteristics of the "standard" loans which are acceptable for inclusion in TBA-eligible MBS pools and reflect SIFMA's decision that jumbo-conforming mortgages should not be included in TBA-eligible pools. Concurrently, the revisions implement modifications to the "non-standard" loans section to codify existing market practice and further delineate which non-standard loan products are eligible for de-minimus inclusion in TBA-eligible pools.
As previously stated, SIFMA's decision to make jumbo loans non-TBA eligible was viewed as the most expeditious and least disruptive option currently available to facilitate securitization and secondary market activity for the higher balance loans, bringing added liquidity and rate relief to higher balance loan borrowers, while not imposing additional costs or impairing the liquidity for loans falling within the pre-existing loan limits.

Settlement Recommendation for Conforming-Jumbo Pools:
New York, NY, March 20, 2008 - SIFMA recommends that securities containing Conforming-Jumbo loans settle on the class settlement date used for securities most similar to the specific conforming-jumbo product involved.
Class A - 30 yr fixed rate FNMA, FHLMC jumbo-conforming pools
Class B - 15yr fixed rate FNMA, FHLMC, GNMA jumbo-conforming pools
Class C - 30 yr GNMA jumbo-conforming pools
Class D - ARMs jumbo-conforming pools

Roughly translated, it says BLAH, BLAH, BLAH we want to further separate these new higher loan limits but here is the big news for me after all of this waiting:

FNMA auctions take place around the 10th to the 12th of the month so my clients who have been waiting need to get ready and do a little more waiting. FHLMC is supposed to start buying their higher loans in May!

I stand, ready to be stimulated and it is still not happening! I have posted a video blog about this as well, just go to: https://www.thinkbigworksmall.com/public/showArchiveVideo/161/742

Have fun out there!

Sonoma County market statistics for March 2008

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Tue, 01 Apr 2008 01:30:44 -0500

Some interesting statistics about the market right now for Sonoma County CA as of March 14th, 2008. My appraiser put these numbers together for me to get an idea of what is going on in each section of western Sonoma County (basically, along the hwy 101 corridor).

A short sale is when a seller plans to sell a home for less than what is owed on the home and the bank agrees to take less than what they are owed.

An REO is a home being sold by a bank's Real Estate Owned department. The banks only own real estate after they have foreclosed on a home.

Santa Rosa

Area	Total Listings	Short Sale/REO's/Defaults	% of Market
NW Santa Rosa	356	229	64.3
NE Santa Rosa	327	76	23.2
SW Santa Rosa	222	166	74.8
SE Santa Rosa	182	73	40.1

West County & Coastal

Area	Total Listings	Short Sale/REO's/Defaults	% of Market
Sebastopol	91	11	12.1
Russian River	97	16	16.4
Coastal	51	2	3.92

Other Areas:

Area	Total Listings	Short Sale/REO's/Defaults	% of Market
Petaluma East	157	77	49.2
Petaluma West	114	22	19.3
RP/Cotati	233	132	56.7
Windsor	149	70	47.0
Cloverdale	58	27	46.6

I like cold hard facts and this will show you exactly what is going on with listing on one given day. This was sent to me by my appraiser. He pulled the information from the BAREIS MLS.

Please contact me if you have specific questions regarding real estate.

97% Government Loan Programs - YES, I said 3% down! NOW!

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Thu, 13 Mar 2008 18:57:14 -0500

OK, here's the scoop. We can utilize government loan programs to buy homes with only 3% down payment. In some high cost areas, you can buy a home up to $750,000. I am going to try and embed a video here for your viewing pleasure.....

California Conventional Loan Limits

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Fri, 07 Mar 2008 15:57:16 -0600

OK. We have the new loan limits and I am posting them below. Here is the big deal. FNMA, FHLMC & FHA have the same limits. One big difference is that FNMA & FHLMC will not accept 2, 3 & 4 unit properties on the new higher loan limits. They have more restrictions as well but here is a list by county in California of how it breaks down. Mortgage Limits List - FHA & Conventional

Mortgage maximums as of Friday March 07, 2008
(58 records were selected, records 1 through 50 displayed)

MSA Name	MSA Code	Division	County Name	County Code	State	One-Family	Two-Family	Three-Family	Four-Family	Last Revised
OAKLAND-FREMONT-HAYWARD, CA METROPOLITAN DIVISION	41860	36084	ALAMEDA	001	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
NON-METRO	99999		ALPINE	003	CA	$547,500	$700,900	$847,200	$1,052,900	03/05/2008
NON-METRO	99999		AMADOR	005	CA	$443,750	$568,050	$686,650	$853,350	03/05/2008
CHICO, CA (MSA)	17020		BUTTE	007	CA	$400,000	$512,050	$618,950	$769,250	03/05/2008
NON-METRO	99999		CALAVERAS	009	CA	$462,500	$592,050	$715,700	$889,450	03/05/2008
NON-METRO	99999		COLUSA	011	CA	$397,500	$508,850	$615,100	$764,400	03/05/2008
OAKLAND-FREMONT-HAYWARD, CA METROPOLITAN DIVISION	41860	36084	CONTRA COSTA	013	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
CRESCENT CITY, CA (MICRO)	18860		DEL NORTE	015	CA	$311,250	$398,450	$481,650	$598,550	03/05/2008
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)	40900		EL DORADO	017	CA	$580,000	$742,500	$897,500	$1,115,400	03/05/2008
FRESNO, CA (MSA)	23420		FRESNO	019	CA	$381,250	$488,050	$589,950	$733,150	03/05/2008
NON-METRO	99999		GLENN	021	CA	$287,500	$368,050	$444,900	$552,900	03/05/2008
EUREKA-ARCATA-FORTUNA, CA (MICRO)	21700		HUMBOLDT	023	CA	$393,750	$504,050	$609,300	$757,200	03/05/2008
EL CENTRO, CA (MSA)	20940		IMPERIAL	025	CA	$325,000	$416,050	$502,900	$625,000	03/05/2008
BISHOP, CA (MICRO)	13860		INYO	027	CA	$437,500	$560,050	$677,000	$841,350	03/05/2008
BAKERSFIELD, CA (MSA)	12540		KERN	029	CA	$368,750	$472,050	$570,600	$709,150	03/05/2008
HANFORD-CORCORAN, CA (MSA)	25260		KINGS	031	CA	$325,000	$416,050	$502,900	$625,000	03/05/2008
CLEARLAKE, CA (MICRO)	17340		LAKE	033	CA	$401,250	$513,650	$620,900	$771,650	03/05/2008
SUSANVILLE, CA (MICRO)	45000		LASSEN	035	CA	$285,000	$364,850	$441,000	$548,050	03/05/2008
LOS ANGELES-LONG BEACH-GLENDALE, CA METROPOLITAN D	31100	31084	LOS ANGELES	037	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
MADERA, CA (MSA)	31460		MADERA	039	CA	$425,000	$544,050	$657,650	$817,300	03/05/2008
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLI	41860	41884	MARIN	041	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
NON-METRO	99999		MARIPOSA	043	CA	$412,500	$528,050	$638,300	$793,250	03/05/2008
UKIAH, CA (MICRO)	46380		MENDOCINO	045	CA	$512,500	$656,100	$793,050	$985,600	03/05/2008
MERCED, CA (MSA)	32900		MERCED	047	CA	$472,500	$604,900	$731,150	$908,650	03/05/2008
NON-METRO	99999		MODOC	049	CA	$271,050	$347,000	$419,400	$521,250	03/05/2008
NON-METRO	99999		MONO	051	CA	$462,500	$592,050	$715,700	$889,450	03/05/2008
SALINAS, CA (MSA)	41500		MONTEREY	053	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
NAPA, CA (MSA)	34900		NAPA	055	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
TRUCKEE-GRASS VALLEY, CA (MICRO)	46020		NEVADA	057	CA	$562,500	$720,100	$870,450	$1,081,750	03/05/2008
SANTA ANA-ANAHEIM-IRVINE, CA METROPOLITAN DIVISION	31100	42044	ORANGE	059	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)	40900		PLACER	061	CA	$580,000	$742,500	$897,500	$1,115,400	03/05/2008
NON-METRO	99999		PLUMAS	063	CA	$410,000	$524,850	$634,450	$788,450	03/05/2008
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)	40140		RIVERSIDE	065	CA	$500,000	$640,100	$773,700	$961,550	03/05/2008
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)	40900		SACRAMENTO	067	CA	$580,000	$742,500	$897,500	$1,115,400	03/05/2008
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (MSA)	41940		SAN BENITO	069	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)	40140		SAN BERNARDINO	071	CA	$500,000	$640,100	$773,700	$961,550	03/05/2008
SAN DIEGO-CARLSBAD-SAN MARCOS, CA (MSA)	41740		SAN DIEGO	073	CA	$697,500	$892,950	$1,079,350	$1,341,350	03/05/2008
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLI	41860	41884	SAN FRANCISCO	075	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
STOCKTON, CA (MSA)	44700		SAN JOAQUIN	077	CA	$488,750	$625,700	$756,300	$939,900	03/05/2008
SAN LUIS OBISPO-PASO ROBLES, CA (MSA)	42020		SAN LUIS OBISPO	079	CA	$687,500	$880,100	$1,063,850	$1,322,150	03/05/2008
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLI	41860	41884	SAN MATEO	081	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
SANTA BARBARA-SANTA MARIA, CA (MSA)	42060		SANTA BARBARA	083	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (MSA)	41940		SANTA CLARA	085	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
SANTA CRUZ-WATSONVILLE, CA (MSA)	42100		SANTA CRUZ	087	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
REDDING, CA (MSA)	39820		SHASTA	089	CA	$423,750	$542,450	$655,700	$814,900	03/05/2008
NON-METRO	99999		SIERRA	091	CA	$285,000	$364,850	$441,000	$548,050	03/05/2008
NON-METRO	99999		SISKIYOU	093	CA	$293,750	$376,050	$454,550	$564,900	03/05/2008
VALLEJO-FAIRFIELD, CA (MSA)	46700		SOLANO	095	CA	$557,500	$713,700	$862,700	$1,072,150	03/05/2008
SANTA ROSA-PETALUMA, CA (MSA)	42220		SONOMA	097	CA	$662,500	$848,100	$1,025,200	$1,274,050	03/05/2008
MODESTO, CA (MSA)	33700		STANISLAUS	099	CA	$423,750	$542,450	$655,700	$814,900	03/05/2008

Selection criteria

Sorted by:	County
State:	CA
County:
County Code:
MSA Name:
MSA Code:
Limit Type:	FHA Forward
Last Revised:

The current basic standard mortgage limits for FHA insured loans are:
		One-family	Two-family	Three-family	Four-family
	FHA Forward	$271,050.00	$347,000.00	$419,400.00	$521,250.00
	HECM	$200,160.00
	Fannie/Freddie	$417,000.00	$533,850.00	$645,300.00	$801,950.00

High cost area limits are subject to a ceiling based on a percent of the Freddie Mac Loan limits The ceilings are currently:
		One-family	Two-family	Three-family	Four-family
	FHA Forward	$729,750.00	$934,200.00	$1,129,250.00	$1,403,400.00
	HECM	$362,790.00
	Fannie/Freddie	$729,750.00	$934,200.00	$1,129,250.00	$1,403,400.00

Section 214 of the National Housing Act provides that mortgage limits for Alaska, Guam, Hawaii, and the Virgin Islands may be adjusted up to 150 percent of the new ceilings. This results in new ceilings for these areas of:
		One-family	Two-family	Three-family	Four-family
	FHA Forward	$1,094,625.00	$1,401,300.00	$1,693,875.00	$2,105,100.00
	HECM	$544,185.00
	Fannie/Freddie	$1,094,625.00	$1,401,300.00	$1,693,875.00	$2,105,100.00

MSA Name	MSA Code	Division	County Name	County Code	State	One-Family	Two-Family	Three-Family	Four-Family	Last Revised
YUBA CITY, CA (MSA)	49700		SUTTER	101	CA	$425,000	$544,050	$657,650	$817,300	03/05/2008
RED BLUFF, CA (MICRO)	39780		TEHAMA	103	CA	$312,500	$400,050	$483,550	$600,950	03/05/2008
NON-METRO	99999		TRINITY	105	CA	$271,050	$347,000	$419,400	$521,250	03/05/2008
VISALIA-PORTERVILLE, CA (MSA)	47300		TULARE	107	CA	$325,000	$416,050	$502,900	$625,000	03/05/2008
PHOENIX LAKE-CEDAR RIDGE, CA (MICRO)	38020		TUOLUMNE	109	CA	$437,500	$560,050	$677,000	$841,350	03/05/2008
OXNARD-THOUSAND OAKS-VENTURA, CA (MSA)	37100		VENTURA	111	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)	40900		YOLO	113	CA	$580,000	$742,500	$897,500	$1,115,400	03/05/2008
YUBA CITY, CA (MSA)	49700		YUBA	115	CA	$425,000	$544,050	$657,650	$817,300	03/05/2008

Selection criteria

Sorted by:	County
State:	CA
County:
County Code:
MSA Name:
MSA Code:
Limit Type:	FHA Forward
Last Revised:

The current basic standard mortgage limits for FHA insured loans are:
		One-family	Two-family	Three-family	Four-family
	FHA Forward	$271,050.00	$347,000.00	$419,400.00	$521,250.00
	HECM	$200,160.00
	Fannie/Freddie	$417,000.00	$533,850.00	$645,300.00	$801,950.00

California FHA Loan limits

California Home Loans - Hans Bruhner (Benchmark Mortgage) — Fri, 07 Mar 2008 15:37:30 -0600

FHA Mortgage Limits List - FHA Forward

Mortgage maximums as of Friday March 07, 2008
(58 records were selected, records 1 through 50 displayed)

MSA Name	MSA Code	Division	County Name	County Code	State	One-Family	Two-Family	Three-Family	Four-Family	Last Revised
OAKLAND-FREMONT-HAYWARD, CA METROPOLITAN DIVISION	41860	36084	ALAMEDA	001	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
NON-METRO	99999		ALPINE	003	CA	$547,500	$700,900	$847,200	$1,052,900	03/05/2008
NON-METRO	99999		AMADOR	005	CA	$443,750	$568,050	$686,650	$853,350	03/05/2008
CHICO, CA (MSA)	17020		BUTTE	007	CA	$400,000	$512,050	$618,950	$769,250	03/05/2008
NON-METRO	99999		CALAVERAS	009	CA	$462,500	$592,050	$715,700	$889,450	03/05/2008
NON-METRO	99999		COLUSA	011	CA	$397,500	$508,850	$615,100	$764,400	03/05/2008
OAKLAND-FREMONT-HAYWARD, CA METROPOLITAN DIVISION	41860	36084	CONTRA COSTA	013	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
CRESCENT CITY, CA (MICRO)	18860		DEL NORTE	015	CA	$311,250	$398,450	$481,650	$598,550	03/05/2008
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)	40900		EL DORADO	017	CA	$580,000	$742,500	$897,500	$1,115,400	03/05/2008
FRESNO, CA (MSA)	23420		FRESNO	019	CA	$381,250	$488,050	$589,950	$733,150	03/05/2008
NON-METRO	99999		GLENN	021	CA	$287,500	$368,050	$444,900	$552,900	03/05/2008
EUREKA-ARCATA-FORTUNA, CA (MICRO)	21700		HUMBOLDT	023	CA	$393,750	$504,050	$609,300	$757,200	03/05/2008
EL CENTRO, CA (MSA)	20940		IMPERIAL	025	CA	$325,000	$416,050	$502,900	$625,000	03/05/2008
BISHOP, CA (MICRO)	13860		INYO	027	CA	$437,500	$560,050	$677,000	$841,350	03/05/2008
BAKERSFIELD, CA (MSA)	12540		KERN	029	CA	$368,750	$472,050	$570,600	$709,150	03/05/2008
HANFORD-CORCORAN, CA (MSA)	25260		KINGS	031	CA	$325,000	$416,050	$502,900	$625,000	03/05/2008
CLEARLAKE, CA (MICRO)	17340		LAKE	033	CA	$401,250	$513,650	$620,900	$771,650	03/05/2008
SUSANVILLE, CA (MICRO)	45000		LASSEN	035	CA	$285,000	$364,850	$441,000	$548,050	03/05/2008
LOS ANGELES-LONG BEACH-GLENDALE, CA METROPOLITAN D	31100	31084	LOS ANGELES	037	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
MADERA, CA (MSA)	31460		MADERA	039	CA	$425,000	$544,050	$657,650	$817,300	03/05/2008
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLI	41860	41884	MARIN	041	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
NON-METRO	99999		MARIPOSA	043	CA	$412,500	$528,050	$638,300	$793,250	03/05/2008
UKIAH, CA (MICRO)	46380		MENDOCINO	045	CA	$512,500	$656,100	$793,050	$985,600	03/05/2008
MERCED, CA (MSA)	32900		MERCED	047	CA	$472,500	$604,900	$731,150	$908,650	03/05/2008
NON-METRO	99999		MODOC	049	CA	$271,050	$347,000	$419,400	$521,250	03/05/2008
NON-METRO	99999		MONO	051	CA	$462,500	$592,050	$715,700	$889,450	03/05/2008
SALINAS, CA (MSA)	41500		MONTEREY	053	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
NAPA, CA (MSA)	34900		NAPA	055	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
TRUCKEE-GRASS VALLEY, CA (MICRO)	46020		NEVADA	057	CA	$562,500	$720,100	$870,450	$1,081,750	03/05/2008
SANTA ANA-ANAHEIM-IRVINE, CA METROPOLITAN DIVISION	31100	42044	ORANGE	059	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)	40900		PLACER	061	CA	$580,000	$742,500	$897,500	$1,115,400	03/05/2008
NON-METRO	99999		PLUMAS	063	CA	$410,000	$524,850	$634,450	$788,450	03/05/2008
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)	40140		RIVERSIDE	065	CA	$500,000	$640,100	$773,700	$961,550	03/05/2008
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)	40900		SACRAMENTO	067	CA	$580,000	$742,500	$897,500	$1,115,400	03/05/2008
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (MSA)	41940		SAN BENITO	069	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)	40140		SAN BERNARDINO	071	CA	$500,000	$640,100	$773,700	$961,550	03/05/2008
SAN DIEGO-CARLSBAD-SAN MARCOS, CA (MSA)	41740		SAN DIEGO	073	CA	$697,500	$892,950	$1,079,350	$1,341,350	03/05/2008
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLI	41860	41884	SAN FRANCISCO	075	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
STOCKTON, CA (MSA)	44700		SAN JOAQUIN	077	CA	$488,750	$625,700	$756,300	$939,900	03/05/2008
SAN LUIS OBISPO-PASO ROBLES, CA (MSA)	42020		SAN LUIS OBISPO	079	CA	$687,500	$880,100	$1,063,850	$1,322,150	03/05/2008
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLI	41860	41884	SAN MATEO	081	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
SANTA BARBARA-SANTA MARIA, CA (MSA)	42060		SANTA BARBARA	083	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (MSA)	41940		SANTA CLARA	085	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
SANTA CRUZ-WATSONVILLE, CA (MSA)	42100		SANTA CRUZ	087	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
REDDING, CA (MSA)	39820		SHASTA	089	CA	$423,750	$542,450	$655,700	$814,900	03/05/2008
NON-METRO	99999		SIERRA	091	CA	$285,000	$364,850	$441,000	$548,050	03/05/2008
NON-METRO	99999		SISKIYOU	093	CA	$293,750	$376,050	$454,550	$564,900	03/05/2008
VALLEJO-FAIRFIELD, CA (MSA)	46700		SOLANO	095	CA	$557,500	$713,700	$862,700	$1,072,150	03/05/2008
SANTA ROSA-PETALUMA, CA (MSA)	42220		SONOMA	097	CA	$662,500	$848,100	$1,025,200	$1,274,050	03/05/2008
MODESTO, CA (MSA)	33700		STANISLAUS	099	CA	$423,750	$542,450	$655,700	$814,900	03/05/2008

Selection criteria

Sorted by:	County
State:	CA
County:
County Code:
MSA Name:
MSA Code:
Limit Type:	FHA Forward
Last Revised:

The current basic standard mortgage limits for FHA insured loans are:
		One-family	Two-family	Three-family	Four-family
	FHA Forward	$271,050.00	$347,000.00	$419,400.00	$521,250.00
	HECM	$200,160.00
	Fannie/Freddie	$417,000.00	$533,850.00	$645,300.00	$801,950.00

High cost area limits are subject to a ceiling based on a percent of the Freddie Mac Loan limits The ceilings are currently:
		One-family	Two-family	Three-family	Four-family
	FHA Forward	$729,750.00	$934,200.00	$1,129,250.00	$1,403,400.00
	HECM	$362,790.00
	Fannie/Freddie	$729,750.00	$934,200.00	$1,129,250.00	$1,403,400.00

Section 214 of the National Housing Act provides that mortgage limits for Alaska, Guam, Hawaii, and the Virgin Islands may be adjusted up to 150 percent of the new ceilings. This results in new ceilings for these areas of:
		One-family	Two-family	Three-family	Four-family
	FHA Forward	$1,094,625.00	$1,401,300.00	$1,693,875.00	$2,105,100.00
	HECM	$544,185.00
	Fannie/Freddie	$1,094,625.00	$1,401,300.00	$1,693,875.00	$2,105,100.00

MSA Name	MSA Code	Division	County Name	County Code	State	One-Family	Two-Family	Three-Family	Four-Family	Last Revised
YUBA CITY, CA (MSA)	49700		SUTTER	101	CA	$425,000	$544,050	$657,650	$817,300	03/05/2008
RED BLUFF, CA (MICRO)	39780		TEHAMA	103	CA	$312,500	$400,050	$483,550	$600,950	03/05/2008
NON-METRO	99999		TRINITY	105	CA	$271,050	$347,000	$419,400	$521,250	03/05/2008
VISALIA-PORTERVILLE, CA (MSA)	47300		TULARE	107	CA	$325,000	$416,050	$502,900	$625,000	03/05/2008
PHOENIX LAKE-CEDAR RIDGE, CA (MICRO)	38020		TUOLUMNE	109	CA	$437,500	$560,050	$677,000	$841,350	03/05/2008
OXNARD-THOUSAND OAKS-VENTURA, CA (MSA)	37100		VENTURA	111	CA	$729,750	$934,200	$1,129,250	$1,403,400	03/05/2008
SACRAMENTO--ARDEN-ARCADE--ROSEVILLE, CA (MSA)	40900		YOLO	113	CA	$580,000	$742,500	$897,500	$1,115,400	03/05/2008
YUBA CITY, CA (MSA)	49700		YUBA	115	CA	$425,000	$544,050	$657,650	$817,300	03/05/2008

Selection criteria

Sorted by:	County
State:	CA
County:
County Code:
MSA Name:
MSA Code:
Limit Type:	FHA Forward
Last Revised:

The current basic standard mortgage limits for FHA insured loans are:
		One-family	Two-family	Three-family	Four-family
	FHA Forward	$271,050.00	$347,000.00	$419,400.00	$521,250.00
	HECM	$200,160.00
	Fannie/Freddie	$417,000.00	$533,850.00	$645,300.00	$801,950.00