FHA reduces upfront Mortgage Insurance for San Jose First Time Home Buyers

FHA today announced reduction in upfront Mortgage Insurance Premium (UFMIP) for San Jose First Time Home Buyers and FHA Streamline Refinance on San Jose homes. A change that has been prompted by passage of H.R. 5981 in the congress, will reduce the upfront mortgage insurance premium to 1% from the current 2.25%. At the same time, the annual mortgage insurance premium currently at .55% for the minimum downpayment of 3.5% will go up to .90%. For downpayments at 5% or more the annual mortgage insurance may go up to .85% from the current…continue reading →

Looking for a reason to Refinance – How about the lowest rates in 40 years!!

CNBC and Bankrate.com just reported that home loan rates are at their all time lows. Yes, all time lows! This is great news for anyone who has yet to refinance to take advantage of the lowest rates ever recorded, or to purchase that new home or investment property more affordably than ever before. Both 30 Year and 15 Year Fixed Rates clipped down to their lowest levels. All this is incredible as just months ago, many experts had anticipated that rates would be well above 5% this summer and on their way to…continue reading →

Fannie & Freddie make it difficult to qualify for ARM and Interest only loans

Fannie Mae and Freddie Mac are making the following changes to interest-only and 3/1 and 5/1 ARM Loan Programs. These changes go into effect immediately. Interest Only Product Changes Interest only transactions are no longer available for Cash-out refinances, Investment properties and 2 to 4 unit properties. Interest only loans are still eligible on following transactions: - unit purchase and rate/term transactions - Primary residences or second homes with a: - Maximum LTV and CLTV of 70% - Minimum credit score of 720 - The borrower must have minimum reserves of 24 months…continue reading →

FHA 203K Rehab loans for San Jose Homes

Have you found that almost perfect San Jose home in the right location that is selling at a reduced price because it needs a little rehab work? Unfortunately, most mortgage loan programs require homes "in need of work" to be complete before the financing can be secured for the purchase transaction. Whether the property needs a little or a lot of work, most First-Time Home Buyers simply don't have the up-front cash to invest in a property prior to actually securing the financing. However, the FHA 203(k) Rehab Loan may be your answer…continue reading →

Who pays for what in a Santa Clara County Home Purchase

Whether you are buying or selling a home in Santa Clara County, you should be aware of what fees is paid by which party. Note that the fees I have listed below vary by county to county and is negotiable by contract. These are not an all inclusive list, but I have tried to include the most common items. Fees generally paid by seller: Real estate commission Document transfer tax ($1.10 per $1000.00 of sales price) Any city transfer or conveyance tax Owner's title insurance premium Escrow Fee Tax proration (for any unpaid…continue reading →

Everything you wanted to know about FHA condominium approval

In this blog post I will try to answer all FAQs related to FHA condominium project approval. Beginning this year, FHA made some major changes to the Condominium process. I have done a lot of speaking on this topic and have written several blog posts. In this post, I am trying to get the most frequently asked questions and answers to those questions in one post: Where can I go to find if the FHA project is already approved? Go to FHA Condominium page to check if a project is approved with FHA.…continue reading →

It’s official – CA $10,000 Home Buyer Tax Credit has been extended

On March 25, 2010 Governor Schwarzenegger signed Assembly Bill 183 which provides $200 million for home buyer tax credits. The $200 million will be divided between first-time homebuyers and “move up homebuyers. The following a summary of the legislation: The Tax Credit: Eligible purchasers may qualify for a credit against their state income taxes in an amount equal to the lesser of 5% of the purchase price or $10,000. The credit will be applied over a three-year period. The credit may only be applied to the purchase of one qualified property. Property Eligibility:…continue reading →

$10,000 California First Time Home Buyer Tax Credit may be extended

As reported in my blog posted on Jan 14th the California governor is considering to extend the $10,000 First-Time Home buyer Tax Credit that expired last year. Here is the link to that blog post that gives you all the details - CA Proposes extension of $10,000 First-Time Home Buyer Tax Credit Download our FREE eBook "How to Buy Your First Home in the Bay Area - A Step-by-step guide to the Home ownership" by entering your information in the form below. Get the eBook NOW First Name: Last Name: Email: State: AL…continue reading →

Stimulus Deadlines Threaten Rates and Affordability; Act NOW!

The great author and speaker Og Mandino once said, "I will act now. I will act now. I will act now." This is great advice for prospective homebuyers over the next 45 days, as two key government programs that have kept home ownership more affordable than ever wind down to their completion. First, the Federal Reserve's Mortgage Backed Securities (MBS) purchase program will come to an end on March 31, just two weeks away! Without this program home loan rates could have been at least 1.00% higher...and potentially even higher...over the last year.…continue reading →