ukiah: Can you really save enough money to keep up? - 09/15/16 01:12 AM
Why do borrowers think that they must have a 20% down payment to buy a house? Where did they learn that from? If you are in the real estate industry, it is important that we are educating the home buying community on the programs that exist today that allow them to get into a home for -0- money down in rural areas and 3% down in all other areas. 
In my lending area of #NorthernCalifornia, and more specifically, #UkiahCalifornia, USDA Rural Development works for every property. If you are not aware of this program,  it doesn't require a down payment. But, i am … (2 comments)

ukiah: The Time Is Now! - 08/18/16 02:00 AM


ukiah: Assets, a major component of a mortgage loan! - 07/14/16 01:56 AM


ukiah: Don't Max Out Your Credit Cards - 07/07/16 01:08 AM
Credit scores are a major component in getting approved for a mortgage loan.  Maxing out your credit cards can have a major impace on your credit scores. 

Yesterday I met with a client who had a $300 limit on a credit card, but had  a balance of $275. Becuase of this, the credit scores were 30-50 points less than they could have been if that balance was -0-!
If you, or you have clients that are comptemplating getting approved for a mortgage loan, reveiw your revolving debt and take a look at your limits and balances and see what you can do to get … (1 comments)

ukiah: No Money Down or Low Down Loans Do Exist - 06/02/16 02:03 AM
I see many a borrower who thinks that they need to come up with a large down payment in order to become a homeowner. In some cases, that could be a requirment. But, for the average home buyer looking to purchase a single family home in which to live in with thier family, that is not the case!
#USDA Rural Development offers a program that will finance 100% of the home price. There are many requirements in which you must qualify for to get the loan, but if you live in an area of less than 15,000 people, have a decent job, … (0 comments)

ukiah: Lender Paid Cost, Are Your Buyers Aware? - 04/21/16 01:16 AM
First time home buyers are usually short cash to get into a home, at least in the markets I work of #Ukiah, California, Willits, California and Lakeport, California. These #Northern California areas are about 110 miles north of #San Francisco and have a serious shortage of inventory of homes. Thus, the values continue to rise (supply and demand) which makes it harder and hard for buyers to keep up with the cost of rising house prices. 
When i sit down with a prospect, them being able to come up with a 3.5% down payment (FHA) is  usually about all they can come up … (0 comments)

ukiah: VA Loan Benefit: A gift that keeps giving! - 04/07/16 12:18 AM
Honorably discharged veterans are able to purchase a home using their VA benefit with -0- down payment up to $417,000. But did you know that a veteran can use this benefit over and over and over again?
As long as the loans are paid in full at the time the veteran sells the home,  the veteran can use the VA benefit to purchase real estate continuously over their life time. 
The difference is that on the first time use of this benefit, the VA funding fee (cost to use the program) is 2.15% of the loan amount. On future loans, the VA funding fee is increased … (1 comments)

ukiah: Are You Pre-Qualified? - 03/14/16 01:50 AM
Spring is almost here and it is one of the busiest times of the year in the real estate markets. As a potential home buyer, one of the first questions a good real estate agent will ask you is:
"have you met with a lender? AND, what have you been pre-qualfied to purchase?"
Showing property you cannot afford to purchase isnt going to be helpful in your agent helping you achieve your dream. It is easy to know what you can afford. There are many good lenders who can, in a matter of 20 minutes, review your credit and income and tell you … (0 comments)

ukiah: Rents Continue To Rise - 02/28/16 11:59 PM
If you look at the chart below, you will notice that rents continue to rise and isnt any reason this will stop!
What can you do to lock in  your housing cost? Become a home owner !
In many markets it has been cheaper to actually purchase a home than to rent a home. With home values continuing to rise, this is becoming less the norm, but still you can purchase, with your monthly payment not being much more than what you have been paying your landlord.
When you factor in that mortgage interest and property taxes are a tax deduction, it may … (0 comments)

ukiah: GSFA Grant Program for California - 02/16/16 05:29 AM
Looking for a down payment assistance program that gives free money? The Golden State Finance Agency offers grants (it does not have to be paid back) for use for down payment. Grant amounts can range from 3%-5% of the sales price of the loan and interest rate will depend on the grant amount plus credit score. 
Today, February 16th, 2016, rates for a 4% grant with a 660+ credit score is 4.125% on an FHA loan. Assuming that FHA requires a 3.5% down payment, one could have their entire down payment requirement handled with the GSFA grant. 
In #Ukiah, California, it is very … (0 comments)

ukiah: Existing Home Sales Report..What if We Had Inventory? - 01/25/16 12:44 AM
The Existing Home Sales report that came out last Friday, showed an increase over the previous month. Some think this is becuase of TRID delay in the closing of transactions. I wonder that that report would be if every buyer i have in my database could actually find a home and buy it? 
Becauase of the lack of inventory and the price appreciaion, i have propsect that will never convert to a homebuyer! Prices are now getting out of the range of many home buyers who have been actively seeking to find something for months. What is the solution? More new housing … (0 comments)

ukiah: Are the markets in a bubble? - 01/14/16 12:43 AM
I was listening this morning to one of the financial channels on TV and some real estate guru was talking about markets that have been appreciating to such a degree that they may be reaching a "bubble"! 
This got me to thinking about #Ukiah, California, and the surounding areas of #Willits, California and #Lake County, California. These are the areas that i work in. I have seen values in these areas climb 50-60% since the bottom of the market in 2011. The cost of housing in these areas are now pricing many borrowers out of the market. 
However, there is still not enough inventory to satisfy … (2 comments)

ukiah: December a busy month for sales? - 12/21/15 12:32 AM
This month of December has been an active month and many buyers are not slowing down their hunt for a new home even though its the holiday season! 
Great news for all of us in the real estate and mortgage lending industry. Though 2015 was an adequate year, i think 2016 could be a "block buster" year!
As the markets continue to get healthy and we start to see an inventory build, perhaps we will begin to see more listings and a market that doesnt favor buyers or sellers but a neutral/normal market!
Now is not the time to slow down your prospecting, but … (2 comments)

ukiah: Dont Quit in December - 11/30/15 12:32 AM
This time of the year with the holidays, parties, families, shopping, etc. it is really easy to start to coast into 2016. The problem with this is that January and February end up being a slow income month and can destroy your income goals for the entire year. There are many buyers and sellers out there who are still looking at what their options are and who are able to enjoy the holiday season while at the same time ponder their real estate goals! 
I like to take this time of the year to reflect on what I am doing right, and … (1 comments)

ukiah: 2016 A Banner Year? - 11/19/15 12:18 AM
Thanksgiving 2015 is approaching,  and i am noticing that there is steady buyer activity.  I find this interesting since we are approaching the holiday time of the year where things are busy but most of that busyness is getting existing contracts closed!
What I am seeing is plenty of buyers willing to look for a home and write contracts. I am finding myself doing pre-approvals, writing pre-approval letters for new contracts and seeing new deals go into escrow. Could this mean that 2016 is finally going to be that "banner year" for our industry? Things have been just fine, but in my area, Ukiah, California, in … (0 comments)

ukiah: Is Saving $17 Per Month Worth Taking A Risk? - 10/12/15 02:31 AM
Is Saving $17 Per Month Worth Taking A Risk? That's the title to this blog and refers to borrowers who disregard a realtors referred lender of choice, all in saving 1/8 to the rate. Yep, on a $250,000 loan amount (the average loan size for Ukiah, CA. in Mendocino County, CA.)  the difference between 3.875% and 4% is $17 per month. I spend more on coffee at my favorite coffee place on a weekly basis, but yet many a home buyer will risk their home buying process to somebody they meet online, and never will meet in person and most likely … (0 comments)

ukiah: Downsize Your Home with a Reverse Mortgage - 10/01/15 07:36 AM
When thinking about retirement, does it make sense to downsize and use all of the equity from the big home to have no mortgage on the little home? Those are thoughts I think about even though retirement is some time off. The other option I have is to buy the little home with a Reverse mortgage loan. This requires a minimum down payment of 50% of the sales price. If your not familiar with a Reverse mortgage purchase loan, there are no payments on this type of mortgage. This allows me to buy the home, with no payments but also not … (0 comments)

ukiah: Consumer Direct Leads vs.The Telephone - 10/10/14 12:36 AM
Are you one of those who rely heavily on consumer direct leads? I label those as anything NOT coming from a referral source of business. These  includes  Zillow, Trulia and  Facebook leads. I also label these as "cold leads", with a success rate that isn't very high. We all market ourselves via social media, web pages, and other internet lead generation sites, but what happened to picking up the telephone and making a sales call and creating a referral relationship? 
Our business is one of creating relationships with people. People want to do business with people they like and trust. Creating referral relationships means that any … (0 comments)

ukiah: Never give your power away to an event that has not yet occurred - 10/03/14 12:04 AM
"Never give your power away to an event that has not yet occurred", are words i read this morning. What does this mean? For somebody who has experienced call reluctance when prospecting for new leads, it means that we let our thinking of the past, dicate to us the events of that moment. Why do i have call reluctance? Is it based on past failures of previous phone calls?  Why should i let that past experience, now dictate this very moment? 
Today I must remember that failure is part of being successful. I must remembef of the ten phone calls I make, if … (0 comments)

ukiah: 2015 is around the corner, how's your biz plan coming? - 09/26/14 03:03 AM
Though i know its only September, it is time to start thinking about how your year is coming along and will you hit your goals? Better than 2013 or not so much? What will you do differently next year? I have been comtemplating this over the last few weeks and sharing my thoughts  with a few referral partners. 
I have figured out how much I make an hour, by taking my gross gross income and dividing  it by 2080 work hours in a year. Why this excercise? So that I can see how much its costing me while I am messing around at Starbucks! I believe … (2 comments)

Rick Costa, FHA/VA/USDA expert (Primary Residential Mortgage Inc. NMLS 3094)

Rick Costa

FHA/VA/USDA expert

Ukiah, CA

More about me…

Primary Residential Mortgage Inc. NMLS 3094

Address: 704 East Perkins Street STE E, Ukiah, CA, 95482

Mobile: (707) 529-3374



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