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 →

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 →

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 →

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 →