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2011 FHA maximum Loan Limits announced for Bay Area Mortgages

The maximum FHA loan limits for most Bay Area counties (the ceiling) by property size for fiscal year 2011 are as follows: One-Unit $ 729,750 Two-Unit $ 934,200 Three-Unit $ 1,129,250 Four-Unit $ 1,403,400 Properties located in the counties of Santa Clara, San Mateo, Alameda, San Mateo, Contra Costa, San Francisco, San Benito and Santa Cruz are eligible for these maximum loan amounts. Most Single Family homes, Townhomes and Condominiums are considered 1 unit properties. These limits are in effect from January 1, 2011 through September 30, 2011. These limits apply to mortgages…continue reading →

California Mortgage Rates jump to their highest levels since August

Last week I was asked several times about Mortgage Rates, The Trends and my Predictions of where it was moving. All this I guess was triggered by the Freddie Mac Primary Mortgage Market Survey, which found that the 30-year fixed-rate mortgage (FRM) and the 15-year (FRM) rose dramatically last week, as did the 5-year ARM. Per Freddie Mac California 30-year fixed-rate mortgage (FRM) averaged 4.39 percent with an average 0.9 point for the week ending November 18, 2010, up from last week when it averaged 4.17 percent. California 15-year Fixed Rate Mortgage this…continue reading →

Common Documents Required For A Mortgage Pre-Approval

Even though many mortgage lenders are still quoting quick 10 minute pre-qualification over the phone or online, a true mortgage approval that holds any weight is one that has been issued by an underwriter who has had an opportunity to review all of the necessary documents. With a constant stream of new lending guidelines, volatile mortgage rates and tightening regulation from Washington, very few real estate agents will show new homes to a First-time-buyer without at least a pre-qualification letter. A Pre-Approval Letter will help you in three ways: It lets you know…continue reading →

How will Fed’s Quantitative Easing impact San Jose Mortgage Rates

How will Fed's Quantitative Easing impact San Jose Mortgage Rates for Refinance and Home Purchase? But before we get into how will this impact home loan rates for San Jose and SF Bay Area home owners, lets find out what does Quantitative Easing means! Wikipedia defines Quantitative Easing as - "Quantitative easing (QE) is a monetary policy used by some central banks to increase the supply of money by increasing the excess reserves of the banking system, generally through buying of the central government's own bonds to stabilize or raise their prices and thereby lower long-term interest rates. This policy is usually invoked when the normal methods to control the money supply have failed, i.e the bank interest rate, discount rate and/or interbank interest rate are either at, or close to, zero. It has been termed the electronic equivalent of simply printing legal tender." (more…)

Home Buyer Seminar for First Time Buyers, Trade up Buyers and Investors in San Jose, CA

Home Buyer Seminar for First Time Home Buyers, Trade up Buyers and Investors in San Jose, CA. As part of Home Ownership Workshop (HOW) series, Arcus Lending is presenting a live *free* seminar for Home Buyers in San Jose. With the drop in home prices over the last few years, and record low interest rates, 2/3 of Bay Area residents can now afford to buy the median priced home. This creates a unique opportunity for: First time home buyers - Low down payment loans, Record low interest rates and discounted property prices create…continue reading →

What’s ahead for Interest Rate for San Jose Mortgages

What lies ahead for Mortgage Rates for San Jose Refinance and Home Purchase? And the dangers of following Media when it comes to Mortgage Rates for your Home Loan. Last week on 10/14 after Freddie Mac released its weekly survey of Fixed and ARM mortgage rates, media was abuzz with the news that interest rates have fallen to a level not seen since 1951. The very next day however, Mortgage Bonds went down 43 basis points causing the rates to worsen multiple times in a single day. That's the risk of following the…continue reading →

Lets get the San Jose FHA Loan Pre-Approval done again

If you are pre-approved for a San Jose FHA loan, I have news for you. That pre-approval is not good anymore. I will tell you why! Starting today, FHA is making changes to the mortgage insurance premium. If you do not know it already, FHA has both Upfront and Monthly mortgage insurance for (almost) all loans. For loans originated till Oct 1st, it was 2.25% for upfront mortgage insurance premium and .55% for most 30 year fixed loans with 3.5% down payment. For FHA loans originated starting today, the good news is upfront…continue reading →

It’s the season of Great Home Loan Rates for San Jose Homeowners

For San Jose homeowners, this summer has brought some of the best home loan rates on record. If you've been wondering whether you could benefit from today's low rate environment, read on. There are two programs that may help you. What about My Home's Value? Not only were San Jose home loan rates at their lowest in August, we also learned last month that home prices continued to climb nationally since reaching a bottom in the first quarter of 2009. According to the S&P/Case-Schiller Index, home prices in both their 10 and 20…continue reading →

California FHA Loans after Foreclosure, Bankruptcy, Judgment and Collection

In this post I am talking about eligibility guidelines for a FHA Loan after you have gone through Judgment, Collection, Bankruptcy or Foreclosure. This applies to residents of California, Washington, Oregon and rest of the country. FHA Loan after Collection and Judgment: FHA does not require that collection accounts be paid off as a condition of mortgage approval. However, court-ordered judgments must be paid off before the mortgage loan is eligible for FHA insurance endorsement. Exception: An exception on a court-ordered judgment may be made if the borrower has an agreement with the…continue reading →