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Changes to California FHA Streamline Refinance Loan Programs

FHA announced changes to California Streamline refinance transactions. The FHA issued Mortgagee Letter provides guidance on the changes as well as clarification on existing streamline refinance guidelines. *** To Read the Complete Guide on California, Washington and Oregon FHA Streamline Refinance and to request a mortgage rate quote go to my new blog post -  https://www.mortgageblog.com/fha-loans-streamline-refinance-and-mortgage-rates-a-complete-guide/**** Here are the 6 things you need to know about these clarifications and changes: Borrower must be current on their mortgage for the month of closing AND the month prior to closing (The payment due the month…continue reading →

Mortgage Rates at the highest levels in 10 months – Over 5% Now

30 Year Fixed, 15 Year Fixed and 5/1 ARM California Mortgage Interest Rates continue to rise.According to Freddie Mac Primary Mortgage Market Survey® both long- and short-term mortgage rates rose last week too. 30-year fixed-rate mortgage (FRM) averaged 5.05 percent with an average 0.7 point for the week ending February 10, 2011, up from last week when it averaged 4.81 percent.15-year FRM this week averaged 4.29 percent with an average 0.7 point, up from last week when it averaged 4.08 percent.5-year adjustable-rate mortgage (ARM) averaged 3.92 percent this week, with an average 0.6…continue reading →

CalHFA helps California First Time Home Buyers to buy with 1% Down Payment

CalHFA 1st mortgage + CHDAP 2nd mortgage = 99% LTV or 1% downpayment loan for California First Time Home Buyers. Here's how it works: CalHFA (California Housing Finance agency) FHA loan offers financing up to 96.5%. California Homebuyer's down payment assistance program (CHDAP) provides a deferred payment junior loan (2nd mortgage) up to 3% of the purchase price; 2.5% of which can be used towards downpayment and the rest .5% can be used towards closing cost. See below: How to qualify for CalHFA FHA loan and the Downpayment Assistance Program: You have to…continue reading →

FHA extends 90 day flip rule for California Mortgages

FHA today extended the 90 day flip rule for California FHA Mortgage Loans. In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Federal Housing Administration (FHA) today extended FHA's temporary waiver of the agency's 'anti-flipping rule.' The extension announced today is intended to accelerate the resale of foreclosed upon homes in neighborhoods struggling to overcome possible property abandonment and blight. With certain exceptions, FHA regulations prohibit insuring a mortgage on a California home owned by the seller for less than 90 days. Early last year,…continue reading →

Will a good Rental Payment history improve your Credit Score?

Very soon a good Rental Payment History will help you improve your credit score. Experian recently announced, it is now incorporating positive rental data from its RentBureau Division into the traditional credit file, opening a new avenue for the estimated 50 million underbanked consumers which can include everyone from college students and recent graduates to immigrants to build credit with continuous on-time rental payments. Brannan Johnston, vice president and managing director, Experian RentBureau said Given that one-third of the U.S. population rents, we felt it was imperative to reflect the true creditworthiness of…continue reading →

How to calculate Debt-to-Income (DTI) Ratio For My California Mortgage?

Debt-to-Income (DTI) Ratio is one of the many new mortgage related terms many First-Time Home Buyers in California will get used to hearing. DTI is a component of the mortgage approval process that measures a borrower's Gross Monthly Income compared to their credit payments and other monthly liabilities. Debt-to-Income Ratios are designed to give guidance on acceptable levels of debt allowed by particular lenders or programs. There are actually two different Debt-to-Income Ratios that underwriters will review in order to determine if a borrower's monthly income is sufficient to cover the responsibility of…continue reading →

Is Mortgage Insurance (MI) Tax Deductible and other FAQs about MI

Is Mortgage Insurance (MI, also called Private Mortgage Insurance PMI) tax deductible in California? We will address this question and some other FAQs about Mortgage insurance in this post? Q. What is mortgage insurance (MI) tax deductibility and how does it work? A. The law provides for an itemized deduction on federal tax returns for the cost of private mortgage insurance paid by eligible borrowers. Prior to 2007, borrowers could not deduct the cost of their mortgage insurance payments. Now the law has been extended through 2011. (Update - Jan 2nd, 2013 -…continue reading →

What is causing the spike in California Mortgage Rates?

California mortgage rates have gone up every single week for last 5 weeks - now up ~.75%. (Get the mortgage rate update in this post). It all started with Fed announcing Quantitative Easing 2. The big question is why so sudden and why so steep! There are several possible reasons: Markets are increasingly more optimistic that 2011 economic growth will be stronger than what had been expected. Expectations until a couple of weeks ago were for GDP growth in 2011 to be 3.0%, now the consensus is for growth to be at 4.0%…continue reading →

California Mortgage Pre-approvals from one month back are worth nothing

It's time to revisit the pre-approval amount that you qualified for your mortgage application, if that was done more than 2 weeks back.  The biggest reason - the mortgage rates have spiked by ~.75% in just over 4 weeks. Last week Freddie Mac released the results of its Primary Mortgage Market Survey, which found that both fixed- and short-term mortgage rates continued to rise.  This was the fifth week in a row where fixed-rate mortgage rates were up. 30-year fixed-rate mortgage averaged 4.83 percent with an average 0.7 point for the week ending…continue reading →

California Mortgage Rates rise for the 4th straight week – Now up .50%

California Mortgage Rates rise for the 4th straight week - Now up .50% Freddie Mac today released the results of its Primary Mortgage Market Survey, which found that once again, both fixed- and Adjustable mortgage rates rose this week. This was the fourth week in a row where fixed-rate mortgage rates were up. 30-year fixed-rate mortgage (FRM) averaged 4.61 percent with an average 0.7 point for the week ending December 9, 2010, up from last week when it averaged 4.46 percent.15-year Fixed Rate Mortgage this week averaged 3.96 percent with an average 0.7…continue reading →