FHA waives 90-day flipping rule for Bay Area mortgages

Great news for First Time Home Buyers - FHA is eliminating the 90 day flipping rule for mortgages on San Francisco (SF) Bay Area homes. With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. Currently such homes are mostly bought by investors with large down payments or an all cash transaction. Due to lack of financing options Bay Area First Time Home Buyers were not able to make offers on such homes. This temporary waiver will give FHA borrowers access to…continue reading →

California proposes new $10,000 First-Time Home Buyer Tax Credit

In the final state of the state address of his gubernatorial career, Gov. Arnold Schwarzenegger proposed a second round of $10,000 first time home buyer tax credit. The previous tax credit depleted eight months before the deadline after benefiting almost 10,700 California home buyers. The Franchise Tax Board stopped taking new applications at the start of July, 2009. What this means is if this proposal is indeed passed California First Time Home Buyers can potentially get $18,000 in Tax credits. At a press conference in Fresno this is what the Governor has to…continue reading →

Good Faith Estimate (GFE) 2010 is here for Bay Area Borrowers

After more than 4 years of discussions with various trade and consumer groups, HUD implemented the new Good Faith Estimate (GFE) on January 1, 2010 for San Francisco (SF) Bay Area borrowers. The goal was greater clarity and transparency for borrowers. I do not want to get into the details of every single field of this 3 page document, and make this a 10 page post. I would rather write about what I like about the New Good Faith Estimate form and what I don't like. Here we go! Things I like: All…continue reading →

San Jose Weekly Mortgage Market Commentary 01/03/2010

Your weekly dose of economy and mortgage market news that affects mortgage rates for San Jose Home Home owners and buyers. The Week that was: Another bad week for the bond and mortgage markets. The 10 yr treasury note and mortgage rates have now increased 60 basis points in the past three weeks. Freddie Mac reported in its Primary Mortgage Market Survey that 30-year fixed-rate mortgage (FRM) averaged 5.14 percent with an average 0.7 point for the week ending December 31, 2009, up from last week when it averaged 5.05 percent. The 5-year…continue reading →

Mortgage Rates go up sharply for Bay Area Homes

In last 3 weeks, 30 year fixed mortgage rates have gone up 34 basis points for San Francisco (SF) Bay Area homes. In the latest results of its Primary Mortgage Market Survey® Freddie Mac reported 30-year fixed-rate mortgage averaged 5.05 percent with an average 0.7 point for the week ending December 24, 2009. The 15-year Fixed Rate this week averaged 4.45 percent with an average 0.6 point. The 5-year adjustable-rate mortgage (ARM) averaged 4.40 percent this week. These rates are for conforming loan amount $417,000 and lower. Higher loan amounts come with higher…continue reading →

FHA Energy Efficient Mortgages for California Homes

FHA's Energy Efficient Mortgage program (EEM) helps California homebuyers or homeowners save money on utility bills. This is done by enabling them to finance the cost of adding energy efficiency features to their house as part of their FHA insured loan. EEMs recognize that reduced utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy efficient improvements…continue reading →

FHA delays HVCC for Bay Area Home Loans

FHA delays HVCC for San Francisco (SF) Bay Area Home Loans until February 15, 2010. FHA announced today that the enactment of Appraiser Independence has been delayed. This was originally planned for a January 1, 2010 implementation. On the lines of HVCC, the FHA policy prohibits mortgage brokers and commission-based lender staff from the ordering the appraisal or communicating directly with the appraiser at any stage during the transaction. Since implementation of the Home Valuation Code of Conduct (HVCC) for conventional loans in May 2009, many challenges and difficulties with appraisals have been…continue reading →

San Jose Weekly Mortgage Market Commentary 12/20/2009

The week that was: The statement from the last FOMC meeting wasnt much of a change. The fed stuck to keeping the rates low for "extended period". But how "extended" is "extended" - now that's anybody's guess! Freddie Mac's weekly Primary Mortgage Market Survey reported 30-year fixed-rate mortgage (FRM) averaged 4.94 percent with an average 0.7 point for the week ending December 17, 2009, up from last week when it averaged 4.81 percent. Last year at this time, the 30-year FRM averaged 5.19 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.37…continue reading →

Had a Short Sale – Do I now qualify for an FHA Loan in California?

Short sale is increasingly becoming a common option to sell a house in San Francisco (SF) Bay area and rest of California. A short sale is a transaction where a seller sells the property for less that what was owed. If you went through a short sale you could have this question - Do I now qualify for a loan? FHA recently came with a guideline on this question. Below are the highlights: You are not eligible for a new FHA mortgage if you pursued a short sale agreement on your principal residence…continue reading →

Holiday decorating 9-1-1

How to create a Chic, Easy, and Cheap holiday table setting in no time! So the big holiday countdown is on! It's nine days before Christmas.  No matter what holiday you celebrate, chances are you will be hosting or attending some type of seasonal gathering. For those of you brave enough to be hosting the gathering at your home, you are probably finalizing menus, drinks, desserts, seating, and activities to keep all the kiddos occupied. Well if we've learned anything from Martha Stewart, a huge part of a fantastic event is presentation!  Here…continue reading →

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