irvine first time buyer: Will Lower Mortgage Rates Spur Activity in Orange County, CA? - 12/14/08 07:37 AM
A week ago, the Treasury announced that they had a target mortgage rate in mind of 4.5%.  Mortgage rates are already very low, as evidenced by a sudden increase in refinance activity. Orange County cities such as Irvine, Tustin, Orange and Newport Beach are seeing a big rise in refinances, helped by the fact that a larger percentage of homeowners have equity in their home, as compared to some other California Counties, like Riverside and San Bernardino.
Lower rates will definitely spur more activity in sales, as seems to already be happening. The LA Times recently reported an interesting thing that happened after … (0 comments)

irvine first time buyer: How Much Will Orange County, CA Home Purchase Power Increase with a Drop in Interest Rates? - 12/04/08 11:52 AM
So how much of a difference will a significant interest rate drop make for Orange County, CA home buyers? For some people it will be a mean lower payment. For others, the increased buying power will afford them a better home, extra bedroom, bigger yard, or whatever it is that will meet a home buyers needs.
It is estimated that a .5% drop in interest rates will result in approximately a $15,000 to $25,000 higher purchase price without increasing the monthly payment, depending on the actual purchase price the buyer is targeting.
Below are 3 scenarios, each based on an FHA loan, which only currently only … (1 comments)

irvine first time buyer: Orange County Mortgage PreApproval - FHA and Conventional Loans - 12/01/08 05:54 PM
What is the difference between getting a PreQualification versus PreApproval? Why do I need either? I hear these questions quite a bit. There are very good reasons why a potential home buyer would want to get PreApproved, and there are important differences between a PreQualification and a PreApproval.
PreQualification
A PreQualification is based on verbal information received from a borrower, many times just over the phone. Answers to questions such as:
What do you do for work? How long have you worked for your current employer? Are you paid hourly or on salary? Full time, 40 hours per week? Overtime or bonuses? How much … (1 comments)

irvine first time buyer: The FHA 203K Streamline is a Great Loan Program for Orange County, CA Home Buyers - 11/27/08 03:42 AM
The 203K program has been around for a while, but a few years ago the "Streamline" version of the program was released by HUD. The 203K is a Rehab loan program. The more popular "Streamline K" program is good for up to $35,000 in improvements. When this is combined with the fact that you can buy a home with an FHA loan with only 3% down (will be 3.5% in 2009) and then get an additional $35,000 to improve the home, the program really stands out as something to be considered.
This program is not just for purchasing a home. It can also be … (1 comments)

irvine first time buyer: Two Great Reasons to Purchase an Orange County, CA Home Before January 1 - 11/25/08 04:57 PM
It's that time of the year once again. Time to decide if you will put that home purchase you've been planning off until after the holidays, or try to close escrow on a home before the end of the year. This year there are a few things to consider that may push you to take action now.
The Jumbo FHA limits are going away. The good news for many Orange County home buyers is that the new FHA limit will still be fairly high at $625,500, but the temporary limit of $729,750 is about to expire. Any buyer who is shopping … (0 comments)

irvine first time buyer: An Orange County CalSTRS Mortgage is a Terrific Program for Teachers Buying a Home - 11/19/08 01:28 PM
The CalSTRS (California State Teachers Retirement System) offers a great 97% loan program. It is actually a "80/17" program, where the 17% is a Silent 2nd with deferred payments for the first 5 years of the loan. For California teachers who are eligible, and in my market, First Time buyers in Orange County who are teachers, this is a great alternative to an FHA loan.
A 3% down payment is required, but only 1% is needed from the borrowers own funds. The 17% Silent 2nd, which will have an interest rate equal to the interest rate on the 1st mortgage, eliminates the … (0 comments)

irvine first time buyer: Orange County FHA Lenders are Already Transitioning to the new FHA Limits! - 11/16/08 09:39 AM
At least in my office, on November 14 we began getting new pricing for FHA loans that previously would have been priced as FHA Jumbo. In Orange County, CA, any FHA loan that was greater than $362,790 was considered FHA Jumbo and was priced almost .5% higher in interest rate. I actually have a new home buyer I'm working with who fell into that category. Their loan amount is just under $415,000. On November 12 I was quoting them an FHA Jumbo rate but told them I expected (hoped) is would be better with the new limits being activated. Two days … (1 comments)

irvine first time buyer: FHA is Becoming the Loan of Choice for First Time Buyers in Orange County, CA - 11/10/08 11:59 AM
FHA has become the loan of choice for not only First Time Buyers, but any home buyer who has less than 10% for down payment. FHA only requires 3% (3.5% as of 1/1/2009) down, although that will change on January 1, 2009 to 3.5%, still a small amount compared to a Conventional loan.
Also, FHA is flexible on the source of the down payment. It can , or course from the checking or savings account of the buyer. It can also come from a 401K, however on a Fannie Mae or Freddie Mac loan, if the a loan from a 401K is … (2 comments)

irvine first time buyer: Orange County FHA Limits Annouced by HUD - 11/09/08 07:09 AM
HUD just released MORTGAGEE LETTER 2008-36  which listed the new FHA loan limits for Orange County, CA. The new limit is $625,500, which is good news. This new limit will be effective for FHA case numbers issued after January 1, 2009. The currently temporary limit of $729,750 will go away, but that shouldn't be much of an issue since very few FHA loans have closed at a loan amount anywhere near $729,750. As a metter of fact, mpst FHA loans, even in Orange County, have been under the old limits of $362,790. Part of the reason for this may be a pricing … (0 comments)