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24 February 2010
Here is a list of the LOAN programs that are still available. Even if you are Self Employed!!
- Stated Income Verified Assets- UP TO 60% LTV (Self Employed Only)
- Verification Of Employment ONLY (VOE - NO INCOME, NO 4506T) - UP TO 80%
LTV (Wage Earner or Salary Only)
- Conventional A Paper Loans - UP TO 125% LTV
- Conventional and FHA High Balance Loans - UP TO $729,500
- Jumbo Loans - Up To $3million
- FHA - 580 Minimum FICO Score
- FHA 203K
- VA - 100% LTV
- USDA - 100% LTV - No money down!
- Calpers / Calstar /CalHFA
- Reverse Mortgage
- Hard Money Loans - 65% LTV - No Fico Score Requirement
- Commercial Loans
Please let me know if any of these loan programs would benefit you in your home purchase. I will put you in touch with my loan department here at eBroker with no obligation. They have access to all these different programs.
Thomas Ray:Cell-310-420-1149
Search the MLS for free on my website:
www.LAexclusiveProperty.com
Finances, Rates, Lenders, First Time Buyers, Self Employed Loan Programs, eBroker Loan Dept
01 March 2010
(New Law):Buyers:Please get a Good Faith Estimate (GFE) from your lender...for your protection
*At the bottom of this post is a Sample GFE in PDF.
If you plan to take out a mortgage or refinance any time soon, you might want to hear this blunt message from federal officials: Don't fly blind. When you're shopping among competing lenders for the best loan terms and fees, make sure you know which quotes come with a guarantee and which do not.
Depending upon how loan officers provide their quotes upfront -- on an informal "work sheet" that carries no federal consumer protections or on a new, three-page "good-faith estimate" mortgage shopping tool that comes with rock-hard guarantees -- there could be a world of difference.
A loan officer might quote you fees that are low-balled by hundreds of dollars on an informal work sheet to get your business. But if the quotes are made on a good-faith estimate, they've got to be accurate because, under federal rules that took effect Jan. 1, any significant excesses must come out of the lender's own wallet at closing.
This month the Department of Housing and Urban Development brought together representatives of the highest-volume mortgage lenders in the country -- who originate a combined 80%-plus of all new home loans -- to review the agency's reformed good-faith-estimate and closing documents.
Among the issues discussed: the widespread use of informal work-sheet estimates to quote loan shoppers mortgage rates and closing fees. HUD does not object to lenders using work sheets to give casual shoppers a rough idea of what they'll pay. But the agency says it wants lenders and loan officers to make clear to customers that work sheets are not good-faith estimates, and they are not guaranteed.
At the meeting with major lenders, HUD Deputy Assistant Secretary Vicki Bott warned that under no circumstances can work-sheet quotes be issued to a mortgage applicant "in lieu of a GFE." Once a consumer supplies the essential application information -- Social Security number, property address and estimated value, among other data -- lenders must issue a binding-cost good-faith estimate.
Also, loan officers cannot refuse to provide a good-faith estimate to an applicant who requests one, nor can they tell applicants that they can receive a GFE only if they commit to moving forward with their company to obtain the mortgage.
"By no means can they say you are bound to me as your lender" following issuance of a cost-guaranteed good-faith estimate, Bott said. Why? Because the whole concept of the revised GFE is to enable home buyers and refinancers to shop intelligently, with confidence in lenders' estimates.
You can now get cost-guaranteed quotes on a good-faith estimate from one lender, then take them and compare them with GFE quotes from competitors. The new form contains itemized boxes allowing comparison of up to four lenders' quotes -- including interest rates, loan fees, prepayment penalties and total settlement expenses.
The good-faith estimate also ties upfront estimates to later charges at closing, and encourages borrowers to check line by line for any discrepancies. The form explains which fees come with zero tolerance for changes between upfront estimates and closing -- generally the lender's own loan fees and local transfer taxes -- and which fees allow a 10% tolerance for changes higher than the estimate, such as certain title and closing-related services.
Here is how to be a smart mortgage shopper using the new federal rules to your advantage. If you are seriously looking for the best deal and are prepared to supply basic application information, ask for a good-faith estimate by name. If you're merely shopping for generic rate quotes, work sheets are fine as long as you understand their limitations.
Beware of look-alike ploys and substitutes. Bott told lenders to make sure their work sheets do not "look like a GFE" and that they "be clear [to the consumer] that they are not GFEs."
Some work sheets that have been used by lenders since Jan. 1 resemble good-faith estimates but have titles such as "estimated settlement costs" at the top of the page. Others indicate on the bottom of the form that the work sheet "is not a GFE," but the typeface is so small it's barely legible.
Finally, be aware that federal law requires that a good-faith estimate be issued within three days of any application.
Please let me know how I can assist you in your home purchase. I have 3 recommended Lenders that I have worked with for several years that will speak with you with no obligation.
Search the MLS for free on my Site:
www.LAexclusiveProperty.com
Thomas Ray,M.S.,Realtor
Cell:310-420-1149
*Please feel free to use the attached GFE
Filed under: Finances, Lenders, Good Faith Estimate Law, GFE attached Attachment(s):Fillable GFE.pdf
*Check out my Mortgage Calculator to see if you qualify!!
FHA loans have been around for a long time. Actually FHA (Federal Housing Authority) has insured more than 37 million home loans for Americans since 1934! It was primarily designed to help mainly first time homebuyers (even though you do not need to be a first time home buyer anymore) to purchase a primary residence with as little as 3.5% down payment and FICO scores as low as 620. In the recent past, FHA only accounted for about 3% of home loans originated but now accounts for close to 30%! The reason is that a first time homebuyer may not have 15% down payment or a 720 FICO score that a conventional loan requires. Anyone can qualify with full documentation (pay stubs, W2s, tax returns, bank statements), a 620 FICO, 3.5% down payment, no federal liens outstanding, and is looking to buy a primary residence should be able to qualify for an FHA Loan.
FHA charges an upfront MIP (Mortgage Insurance Premium) of 1.75% of the base loan amount. FHA allows this premium to be financed. Then there is also a monthly MIP until one reaches 20% equity in their home. The monthly MIP is required for a minimum of 5 years and run 55 dollars a month per every 100k borrowed. Example for a 300k loan your buyer will have $5,250 for the upfront MIP financed into the loan amount and monthly MIP will be 165/month.
There are no longer income restrictions either!
More and more sellers/listing agents are beginning to come around and accepting FHA loans. Look at it this way - As a seller, all things being equal, FHA financing opens the doors to more potential buyers as again, most first timers do not have 15% or a 720 FICO score. Sellers shouldn't be scared of FHA buyers as it's a full documentation loan so if they are Pre-Approved by a legitimate lender the buyer is just as qualified as a Conventional buyer.
FHA may be right for you! Please contact me for more information.
Thomas Ray,M.S.,Realtor
Cell/Txt:310-420-1149
Search the MLS like an agent on my site:
www.LAexclusiveProperty.com
My Daily (almost) RE Blog:
www.RealEstateBlogLA.com
Happy Thanksgiving everybody!!!....Tom
Use my Mortgage Calculator
*note:Please contact me regarding my Buyer's Rebate (up to 25% of my net commission) for first time homebuyer's.
*Thinking about purchasing a home of your own? Keep these critical considerations in mind and contact me, Thomas Ray:
How long you plan to live in the home.
If you purchase a home and get a job transfer or decide to move after only a short time, you may end up paying money in order to sell it. The value of your home may not have appreciated enough to cover the costs that you paid to buy the home and the costs that it would take you to sell your home.
The length of time that it will take to cover those costs depends on various economic factors in the area of the home. Southern California has a 5-8% appreciation rate per year. In this case, you should plan to stay in your home at least 3-4 years to cover buying and selling costs. If the area you buy your home in experiences an economic up turn, the length of the time to cover these costs could be shortened, and the opposite is also true.
How long the home will meet your needs.
What features do you require in a home to satisfy your lifestyle now? Five years from now? Depending on how long you plan to stay in your home, you'll need to ensure that the home has the amenities that you'll need. For example, a two-bedroom dwelling may be perfect for a young couple with no children. However, if they start a family, they could quickly outgrow the space. Therefore, they should consider a home with room to grow. Could the basement be turned into a den and extra bedrooms? Could the attic be turned into a master suite? Having an idea of what you'll need will help you find a home that will satisfy you for years to come.
Your financial health - your credit and home affordability.
Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? While you can always find a lender to lend you money, solid lenders are more skeptical if your credit history is not good. Generally, a couple of blemishes on a credit report will make you a good credit risk and could qualify you for the lowest interest rates. If you have more than a couple of blemishes on your report, lenders like Quicken Loans may still provide you with a loan, but you may just have to pay a higher interest rate and fees.
Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. This is a decision only you can make. Are you in a position where you expect to make more money soon? Would you rather be conservative and fairly certain that you can make your payment without stretching financially? Make sure that whatever you do, it's within your comfort zone.
To determine how much home you can afford, take a look at my mortgage calculator and speak with one of my preferred lenders. My calculator will give you a range of what you may qualify for. Then call one of my lenders and tell them you were referred by me. While some may say that the "28/36" rule applies, in today's home mortgage market, lenders are making loans customized to a particular person's situation. The "28/36" rule means that your monthly housing costs can't exceed 28 percent of your income and your total debt load can't exceed 36 percent of your total monthly income. Depending on your assets, credit history, job potential and other factors, lenders can push the ratios up to 40-60% or higher. While we're not advocating you purchase a home utilizing the higher ratios, its important for you to know your options.
Where the money for the transaction will come from.
Typically homebuyers will need some money for a down payment and closing costs. However, with today's broad range of loan options, having a lot of money saved for a down payment is not always necessary - if you can prove that you are a good financial risk to a lender. If your credit isn't stellar but you have managed to save 10-20% for a down payment, you will still appear to be a very good financial risk to a lender.
The ongoing costs of home ownership.
Maintenance, improvements, taxes and insurance are all costs that are added to a monthly house payment. If you buy a condominium, townhouse or in certain communities, a monthly homeowner's association fee might be required. If these additional costs are a concern, you can make choices to lower or avoid these fees. Be sure to make your realtor and your lender aware of your desire to limit these costs.
If you are still unsure if you should buy a home after making these considerations, you may want to consult with an accountant or financial planner to help you assess how a home purchase fits into your overall financial goals.
Please contact me for more information.
Thomas Ray,M.S.,Realtor
Cell/Txt:310-420-1149
Search the MLS like an agent on my site:
www.LAexclusiveProperty.com
My Blog:
www.RealEstateBlogLA.com
It may be a shortened work week due to the Thanksgiving holiday, but there will still be plenty of action in store. Both Monday's Existing Home Sales Report and Wednesday's New Home Sales Report will give us a read on the housing market. With many homebuyers jumping into the market to take advantage of the Homebuyer's Tax Credit - which was recently extended until June 30, 2010 and expanded to include certain qualifying existing homeowners - it will be especially interesting to see what these reports reveal. Let me know if you have any questions on the Tax Credit, or if you'd like to learn how it might benefit you or someone you know.
We'll also get several reads on the economy this week, first with Tuesday's Gross Domestic Product (GDP) Report, which is the broadest measure of economic activity. Following will be Wednesday's Durable Goods Report, which gives an update on consumer and business consumption and buying behavior via data on items that are "non-disposable", like appliances, cars, cameras, etc. Wednesday also brings the Fed's favorite gauge of inflation, the Core Personal Consumption Expenditure (PCE) Index, found within the Personal Income Report.
More auction action...the Treasury will auction $118B in securities this week, starting with a record $44B in 2-Year Notes on Monday, a record $42B in 5-Years on Tuesday, and another record - $32B in 7-Years on Wednesday. This is an enormous amount of supply, and the market's ability to digest it all will be tested.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. Bonds and rates recently neared their best levels of the year, but were unable to make further improvements. Rates are likely to be moving higher in the coming months - so give me a call to discuss how the current rate climate might work in your favor, before these great rates slip away.
Thomas Ray,M.S.,Realtor
Cell/Txt:310-420-1149
Search the MLS like an Agent on my site:
www.LAexclusiveProperty.com
My Daily RE Blog:
www.RealEstateBlogLA.com
Have a great Thanksgiving everybody!.....Tom
The media's recent analysis of the economy has run the gamut of late, some optimism, some pessimism...but also some confusion as they attempt to decipher recent economic reports, particularly relating to the job market. Let's look at a few of the recent reports, and get behind the headlines to decipher what they really mean.
Last week's Initial Jobless Claims Report showed that 505,000 people filed for unemployment benefits, which was about what was expected, and represented a ten month low for the report. The Continuing Jobless Claims Report, which indicates the total number of people collecting unemployment benefits, fell by 39,000 to a total of 5.61 Million.
The media often spins this data as good news - but the labor market remains in exceptionally tough shape. The Continuing Claims number declining from a record high of 6.82M in June to last week's 5.61M is the result of only two potential things happening: People are finding jobs and no longer need unemployment benefits, or they have been unemployed for so long that their benefits are running out before they've been able to find a job. With a 10.2% Unemployment Rate looking like it will move higher still, it is most likely the latter. Another clear sign of a very troubled labor market was back on November 6th, when President Obama signed a bill that will extend unemployment benefits by an additional 20 weeks...there would be no reason to do this if jobs were being created.
In other news, October Retail Sales were weak overall, which is concerning for several reasons. One somewhat overlooked impact is that tax receipts from retail sales help both the individual states and the country as a whole. If the consumer doesn't spend - perhaps due to job loss or lower family income - and there are therefore less tax receipts from retailers, the government runs an ever-deeper budget deficit. The only way to get out of a deficit is to either raise other taxes or cut spending - and neither option is very popular. Many states are in poor fiscal shape because of soaring budgets and lower tax receipts.
There aren't any easy answers - but it's clear that the labor market needs to see some serious improvement for the economy to recover in a significant way.
Bonds and home loan rates were unable to hang onto improvements made in the earlier part of the week, and ended the week around the same levels as where they began.
Thomas Ray,M.S.,Realtor
Cell/Txt:310-420-1149
Search the MLS like an Agent on my site:
www.LAexclusiveProperty.com
My Daily RE Blog:
www.RealEstateBlogLA.com
Have a great Thanksgiving everybody!.....Tom
The following is Part III of an ongoing series of interviews with my Preferred Lender:Dean Wong. His contact info follows the Interview.
Thomas Ray:Dean, how are you these days?
Dean Wong:Thomas, I am great! Hopefully we can help clear up some questions your clients might have with all the new regulations and products.
FHA questions:
1).Thomas Ray:Dean, my clients are showing renewed interest in FHA loans. Can anyone qualify? What is the upfront cost..2%? Are there income restrictions? Do Sellers respond well when they see offers with this loan?
Dean Wong:FHA loans have been around for a long time. Actually FHA (Federal Housing Authority) has insured more than 37 million home loans for Americans since 1934! It was primarily designed to help mainly first time homebuyers (even though you do not need to be a first time home buyer anymore) to purchase a primary residence with as little as 3.5% down payment and FICO scores as low as 620. In the recent past, FHA only accounted for about 3% of home loans originated but now accounts for close to 30%! The reason Thomas is that a first time homebuyer may not have 15% down payment or a 720 FICO score that a conventional loan requires. Anyone who can qualify full documentation (pay stubs, W2s, tax returns, bank statements), has a 620 FICO, 3.5% down payment, no federal liens outstanding as is looking to buy a primary residence can qualify for an FHA Loan.
FHA charges an upfront MIP (Mortgage Insurance Premium) of 1.75% of the base loan amount. FHA allows this premium to be financed. Then there is also a monthly MIP until one reaches 20% equity in their home. The monthly MIP is required for a minimum of 5 years and run 55 dollars a month per every 100k borrowed. Example for a 300k loan your buyer will have $5,250 for the upfront MIP financed into the loan amount and monthly MIP will be 165/month.
There are no longer income restrictions either.
More and more sellers/listing agents are beginning to come around and accepting FHA loans. Look at it this way - As a seller, all things being equal, FHA financing opens the doors to more potential buyers as again, most first timers do not have 15% or a 720 FICO score. Sellers shouldn't be scared of FHA buyers as it's a full documentation loan so if they are Pre-Approved by a legitimate lender the buyer is just as qualified as a Conventional buyer.
Buyer Tax Credit questions:
1)Thomas Ray:The President signed into law some new regs. as they relate to the Buyers Credit. What are the changes and who qualifies now?
Dean Wong:President Obama recently signed a bill extending the FTHB (First Time Homebuyer's) tax credit which was due to expire on 11/30/09. New provisions now include higher income limits as well as allowing "repeat" home buyers to take advantage of the tax credit! First timers receive 8k and repeat buyers can receive 6.5k now! I went ahead and attached a nice cheat sheet from NAR (National Association of Realtors) for you and your clients regarding the tax credit bill. Please call/email or have your clients do the same should you have further questions.
Finding a good lender:
1)Thomas Ray:My clients are worried that choosing the wrong or inexperienced lender could affect their escrow. How could this happen.
Dean Wong:This does happen far too often Thomas. The lending environment is much more detailed oriented now than ever before. Buyers should work with a trusted lender that has experience and know how to navigate the lending process from beginning to end. For example, I've seen very often lenders "Pre-Approve" a buyer for X price point without even asking for income data like pay stubs or tax returns! Problem is that improper expectations are set for a certain price point, you as a realtor show homes in this price point, get the offer accepted, buyer gets into escrow and when it's time to submit the income data to the underwriter for loan approval, guess what? Escrow needs to be canceled as the inexperienced lender did not do a good job Pre-Approving the buyer from the get go. This makes you look bad in the real estate community by representing unqualified buyers and buyers are now discouraged. They find out their real price point and of course it doesn't compare to the house they were in escrow on but wasn't qualified to buy! Everyone is frustrated.
Thomas Ray:Is using a "Lending Tree" type service a good idea to shop rates?
Dean Wong:It is not Thomas. Such sites are advertising portals for banks. A buyer's information is sold as "leads" to numerous lenders who pay for this information. A buyer consents to having their credit information run, not once, but as many times as there are buyers of these leads! It has always astonished me how people ask for referrals for restaurants but when it comes to one's most important purchase in their lives they look on the internet and are willing to trust someone they do not know. A buyer should work with someone their trusted realtor, accountant or attorney referred to them. Or possibly even working with a referral that a friend or family member recently worked with for their loan is okay too if they have glowing reviews about them closing on-time and as quoted.
But I'd never go blindly into a transaction of this size with someone I found on the internet because the closing costs is say 50 bucks cheaper. If you refer me a client Thomas, my main goal is to take care of your client to the best of my ability so you and the clients are comfortable in referring others to me. Unfortunately, someone you may find on the internet who "advertises" a too good to be true rate probably has no allegiance to you or the buyer outside of closing just that one deal. And unfortunately, what you and I have seen far too often I'm sure is one who fall victim of internet bait and switch advertisement, get too deep into an escrow to cancel and just "takes" the final rate as they really want the home. It's a shame. For me, you and my clients are life long.
I've been in the business close to 9 years now and my client satisfaction rate is 99.3%. My philosophy is simple - I do what I say and I deliver what I quote on time and with no excuses.
Thank you Dean!! Your knowledge and passion are unmatched in the industry. I look forward to our next mutually satisfied client.
Please contact Dean Wong and tell him you saw this interview on my Blog:www.RealEstateBlogLA.com
Dean Wong
First Capital Mortgage
Office:310-656-8210
Cell:310-344-3252
Dean Wong Link
Email: dwong@firstcapitalmtg.com
Please contact Dean AND also use our Mortgage Calculator.
Thomas Ray,M.S.,Realtor
Search the MLS like an agent on my Site:
www.LAexclusiveProperty.com
My Daily Blog:
www.RealEstateBlogLA.com
Have a great week everybody!!...Tom and Dean
Last week (11/13) the Federal Reserve stepped in with more buying of Mortgage Backed Securities (MBS), helping Bond prices recover from news of a weak Treasury Auction. Overall, home loan rates bounced around last week and ended the week very slightly improved.
But that said, we can't "push our luck" and think the Fed will continue to step in and help support home loan rates...we have to remember that the Fed is actually winding down exactly this type of buying support.
The Federal Reserve's purchases of MBS peaked at an average of $25 Billion per week back in May - and they are getting closer every day to being done spending their allotment of $1.25 Trillion. Since they announced that their remaining purchases would be rationed out until the end of March 2010 - but that they wouldn't be making any additional purchases beyond the original commitment - the average purchases per week have been moving lower, down to $14 Billion per week so far in November.
Why is this important? Because home loan rates are based on MBS - so when the Fed agreed to be a big buyer, it helped provide a market and helped keep MBS prices high and home loan rates low. So as the Fed's program wraps up and eventually stops, home loan rates are quite likely to be on the rise. So while rates are still very good, they may not be for long. Let's be sure to talk if you haven't yet explored how the current rate environment might benefit you or someone you know.
More employment news arrived, and it is interesting to hear the media and other experts proclaim it to be "all good news". Initial (or First Time) Jobless Claims came in at the lowest reading in 10 months and Continuing Unemployment Claims also fell lower as well - and at first blush, this seems to be very good news. But looking closer, we see that the lower Continuing Claims number was probably the result of unemployment benefits expiring before people could find work - rather than people dropping off of benefits because they found a job. Now that unemployment benefits have been extended by new legislation, we should get a more accurate look at how many people are actually unemployed.
Please let me know how I can assist you in your home purchase. I look forward to earning your business.
Thomas Ray,M.S.,Realtor,Cell:310-420-1149
Search the MLS like and agent on my site:
MLS Search Page
Almost daily Blog Updates on my blog:
www.RealEstateBlogLA.com
Element Lofts in Marina del Rey,CA are going to Auction in December..please see my post on this on my blog:
www.RealEstateBlogLA.com
*IMPORTANT UPDATE::If you plan to bid, you must be PRE-APPROVED by BANK OF AMERICA. This is part of the settlement judgement.
There is also an Auction Training Class in December that you need to attend.
With any of my clients interested in bidding, I will be with you at the auction (I have to be there), helping you understand the market value based on SOLD COMPS in the area. This will assure your bidding will be appropriately competitive.
For further assistance, please contact me:
Thomas Ray,M.S.,Realtor
Cell/Txt.:310-420-1149
Search the MLS like an agent on my site:
www.LAexclusiveProperty.com
My Daily Blog:
www.RealEstateBlogLA.com
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Thomas Ray
Santa Monica,
CA
More about me…
L.A. Exclusive Property - Santa Monica/LA/Marina/Culver City
Office Phone: (310) 420-1149
Cell Phone: (310) 420-1149
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Local up-to-date Real Estate news and activity for Buyers and Sellers in the Los Angeles California areas of Santa Monica, Pacific Palisades and the Westside.
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