Bye Bye $729,750! Welcome Back $625,500 (Sigh!)

Bay Area Conforming and FHA Loan Limit goes down These loan amounts over $417,000 are known by several names like - Loan Limits for High Cost Areas, Super Conforming Loans, High Balance Loans or Conforming Jumbo loans. They are going down from the current $729,750 to $625,500. For the current loan limit of $729,750 the loan has to be closed by September 30, 2011 so no lender is accepting new applications anymore with that limit. The table below shows new loan limits for Conforming loans by both Fannie Mae and Freddie Mac. For…continue reading →

3.50% HomePath Financing bonus coming to end in June

Fannie Mae HomePath Financing for California homes come with added bonus in June - 3.5% towards closing cost assistance. Thats right, Fannie Mae is paying 3.5% towards your closing cost if you close your transaction by June 30, 2011. HomePath financing is available for houses that are currently owned by Fannie Mae. To get a full list of properties that qualify for HomePath financing go to the official HomePath website. Benefits of HomePath financing: Only 3% down payment required for Primary Residence (this can come as a gift) Available to Investors too with…continue reading →

Financing Options for California First Time Home Buyers – Free Web Class

As part of our Home Ownership Workshop of free Web Classes, Shashank Shekhar Mortgage Broker/Banker with Arcus Lending and author of the book "First Time Home Buying 101" will talk about: What are the different financing options for Home Buyers? When should you pick an Adjustable Rate Mortgage (ARM) vs Fixed Rate loan? What are the downpayment requirements? Are there any 100% loans available? FHA vs Conventional Mortgage - which is better? Reserve your Webinar seat now at: The web class will be followed by open Q&A session, where you are free to…continue reading →

California FHA Mortgage Insurance Premium goes up – AGAIN!

FHA recently announced an increase to the Annual Mortgage Insurance Premium on standard California FHA loan programs. This is a second increase in less than 6 months. FHA earlier increased Annual Mortgage Insurance Premium in October 2010. **The information to this post has been updated. Read our complete guide for FHA mortgage insurance premium for the latest information. Click here to go to that post.** Here are the 6 things you need to know about these changes: These changes are effective April 18th, 2011. The Annual Insurance Premium will increase .25% for standard…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 →

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 →