Government’s role in Housing, How far will it go?

This year Government has announced a ton of programs to prop up the Housing Market. Some of the major programs have been geared towards Foreclosure Prevention by launching 125% refinance program and incentivising Loan Servicers for modifying loans for struggling home owners. The Higher Conforming Loan Limits up to $729,750 would also be extended through 2010. Of course, all this has come with increased regulation. My focus on this blog is to talk about 3 actions that has had the most impact: Action #1 Buying Mortgage Backed Securities (MBS) The Government earlier this…continue reading →

95% LTV in Bay Area Now Available on Conventional Loans

Borrowers in San Jose and rest of California may now get 95% Loan on Conventional Mortgages. The increased Loan to Value Ratio (LTV) is available on following programs: Freddie's Home Possible (Fixed Rate only) FNMA MyCommunity (Fixed Rate, 5 yr ARM and 7 yr ARM) The Loan must meet the following criteria: Must be a First Time Home Buyer Purchase Transaction only 680 Minimum Score Requirement 1 unit property only (SFR and PUDs. Condos maxed at 90% LTV) 2 months PITI reserves required after loan closing Full appraisal required 3% Seller Concessions maximum…continue reading →

Fannie Mae HomePath for Bay Area – No Appraisal or MI Required

Homepath was created to facilitate the purchase of the bulk of REO properties currently serviced/guaranteed by FNMA (Fannie Mae). Highlights: As little as 3% down allowed for owner occupied! As little as 10% down for non owner occupied and 2nd Homes! No Mortgage Insurance! No Appraisal Needed - Value determined by Sales Price You may qualify even if your credit is less than perfect Loan Amounts up to $801,950 allowed Loan Term Available : 30 Year Fixed Transaction Purpose : Purchase Only Borrower Eligibility First Time Homebuyers allowed Non-Perm Resident Aliens not allowed…continue reading →

Senate close to extending First Time Home Buyer Credit

There has been a lot of buzz in the media over last couple of days about extension of First Time Buyer Credit. National Association of Mortgage Brokers (NAMB), National Association of Home Builders (NAHB) and National Association of Realtors (NAR), have been working with the Government for sometime now to extend the credit. Without the extension, the credit is set to expire on Nov 30, 2009. There have been lot of proposals including not only extending the credit but expanding it to cover all kinds of buyers (and not just the First Timers)…continue reading →

New changes to Conforming Loans for San Jose

Fannie Mae will change underwriting guidelines for conforming loans for San Jose and rest of the Bay Area. They are doing this to reduce their overall risk. Some of the changes announced recently and going into effect on the weekend of December 12, 2009 further tightens some of the guidelines. Here are the highlights: Credit Score: All Fannie Mae loans whether underwritten electronically or manually will now require a 620 credit score minimum. There are very few exceptions. Mortgage Insurance coverage: Borrowers loan-to-value exceed 80 percent of the property value now have a…continue reading →

3% CHDAP DownPayment Assistance for San Jose First Time HomeBuyers

This post will help you find all the details on 3% down payment assistance program (CHDAP) for San Jose and rest of the Bay Area First Time Home Buyers. I have earlier blogged about CalHFA 5% downpayment program & $8000 First Time Home Buyer Credit in my earlier posts. The California Homebuyers Downpayment Assistance Program (CHDAP) is a deferred payment, simple interest rate junior loan not to exceed 3% of the sales price or appraised value, whichever is less. The junior loan may be combined with a CalHFA first mortgage loan that is…continue reading →

CalHFA 5% Down Payment for San Jose First Time Home Buyers

California Housing Finance Agency (CalHFA) recently launched it's new program called Cal 30 - Conventional for First Time Home Buyers in San Jose, the San Francisco Bay Area and the rest of the state. This conventional first mortgage features a fixed interest rate, fully amortized loan over a 30-year term. It has a maximum Loan-to-Value (LTV) of 95%. Below are some of the other highlights of the program: Maximum Loan Amount -The loan amount is limited to the maximum Fannie Mae conforming loan limits. Currently, this is $417,000. Fannie Mae high balance loan…continue reading →

Buying a Condo in Bay Area – It won’t be easy getting a mortgage!

A lot of surge in current real estate market in San Jose & rest of San Francisco Bay Area is being driven by First Time HomeBuyers. Some sources estimate that they now account for 50% of the market. A lot of First Time HomeBuyers end up buying condominiums since it fits into their budget. In this market of low property prices, you may be able to buy a condo for almost the same mortgage payment as the rent that you are paying. However, in last few months Fannie Mae & Freddie Mac have…continue reading →

FHA Loan Requirements in San Jose & Bay Area

If you are a First Time HomeBuyer in San Jose or the rest of San Francisco Bay Area, you would have most likely heard of FHA loans. But like most of the other potential First Time HomeBuyer I meet and advise, you may not be sure whether you qualify for FHA mortgage or not. Below I have mentioned some of the major requirements that you should know of: Maximum Loan Amount - Varies by county. For Santa Clara, Alameda, Contra Costa, San Mateo and San Francisco counties it is $729.750. This loan amount…continue reading →

6 Myths of FHA Loans – What’s True What’s Not!

Though FHA Loans now represent more than 30% of mortgages, there are still a lot of misconceptions that both real estate agents and the borrowers have about this program. All the myths that I have listed below have been raised to me numerous times. I finally decided to post a blog on this so that I can clarify this to a much larger audience. 1. It takes longer to close an FHA Loan- Towards the 2nd half of last year when FHA loans started exploding, most of the lenders were caught off guard. They did not have enough trained underwriters to take decisions on the loans that were being sent their way. That resulted in longer turn times for FHA loans. Within months, lenders realized that this was soon becoming the fastest mortgage product on the block. Since then they have staffed themselves adequately on the FHA underwriting side and hence it's not atypical anymore for FHA loans to close in 30 days or less. (more…)