Not a bad deal! The key is purchasing a property owned by Fannie Mae through it’s HomePath program. These homes are eligible for special financing terms that are available no where else.
Financing Benefits to You
- 3% down payment – can be your own funds or a gift from a qualified person or organization
- No mortgage insurance (unlike FHA financing which requires both up-front mortgage insurance (MI) premiums and also monthly MI payments)
- No appraisal required – that’s a biggie, just ask your real estate agent!
- The Seller can also contribute to your closing costs
There are many HomePath properties available in the San Diego and Riverside county areas. Contact your local Real Living Lifestyles agent (WWW.RLLIFESTYLES.COM) for information on HomePath homes available in your area. I’ll be happy to discuss your HomePath financing options with you as well!
Paul Gonzales, Countywide Mortgage Lending (760) 746-7388 [email protected], NMLS #CA-DOC290493
HEADS UP! The cost of real estate financing may be going up, and the size of cheaper loans may be going down – all very shortly! Since I last reported on this in April, the Federal government has done nothing to change either of these two prospects.
On June 30th the Federal Reserve is scheduled to end its subsidy of interest rates including mortgages, by terminating its purchase of U.S. Treasuries. While arguments abound about whether this program, known as “Quantitative Easing” or “QE2” has helped or hurt the economy, many analysts are concerned that the ending of this program could put upward pressure on interest rates, particularly mortgage loans.
More Costly Loans
The current “jumbo” or high-balance loan limits for both conventional (Fannie Mae and Freddie Mac) and FHA loans are scheduled to be rolled-back to considerably lower loan amounts on October 1st. The Obama Administration has signaled that it does not intend to press Congress to extend the current (higher) loan amounts beyond that date. This may not be an issue in the Midwest but could impact real estate markets such as Southern California. In San Diego County that will likely mean the maximum conventional and FHA loan limits could drop from $697,500 to below $600,000 depending on what formula HUD uses to compute the new lower limits. Loan amounts above the new limits will fall into the more expensive, higher interest rate and tighter underwriting rules for true jumbo loans.
Home Buyer or Home Seller?
For either party with an interest in real estate today, these two events should prompt urgency in buying or selling that home. Whether you are shopping for or looking to sell that home, you may be well served by being proactive and getting ‘er done. Contact your Real Living Lifestyles agent today, get the facts and get moving now!
For more information – Paul Gonzales, Countywide Mortgage Lending (760) 746-7388 [email protected], CA-DOC290493
Related Posts: Area Information, Buyers, Coastal Living, CW Mortgage, Escondido, Home Loans, homes for sale, Interest Rates, Investment Properties, Lifestyle, Mortgage News, Real Estate News, Real Living, Real Living Lifestyles, San Diego
Ron Phipps, President of the National Association of Realtors, issued a press release today lobbying to maintain the current FHA loan limits as well as the current 3.5% minimum down payment. As things stand today the maximum FHA (and Fannie Mae / Freddie Mac) “High Balance” loan limit in San Diego County is $697,500. Barring (literally) an act of Congress before June 31st, this loan limit will fall to somewhere in the ranges of $625,000 to $650,000 in San Diego County. Additionally, there is an effort in Congress to increase the minimum FHA down payment from 3.5% to 5.0%.
The NAR press release argues the obvious fact that the current real estate market is far from being as robust as everyone would like it to be. It further states that underwriting guidelines have been tightened considerably and the quality of FHA loans being written today are better than ever. The paper also points out that further restricting otherwise qualified home buyers is hurtful and not helpful to healing that market.
Paul Gonzales, Countywide Mortgage (760) 746-7388 [email protected]
Related Posts: San Diego
Countywide Mortgage Update – Home Buyers and Sellers: Two Important Events That Will Affect You Very Soon
If you are planning to either purchase or sell a property this year, there are two scheduled events coming up rapidly that may have a significant impact on you:
Higher Interest Rates?
On July 1st the Federal Reserve will complete its $600 Billion dollar purchases of US Treasury Bonds. Many analysts believe that with the Fed pulling out of the Treasury market, demand for such bonds will lessen, causing interest rates including mortgages to rise.
More Expensive Loans?
On October 1st the current conforming “jumbo” loan limit in San Diego County is scheduled to be reduced from $697,500 to $625,500 (or lower). For home buyers looking to purchase a home in the approximate price range of $500,000 to $900,000, this will push them into the limited, “true” jumbo loan category. Such jumbo rates and prices are significantly higher than current conforming rates.
What This Means
While no one knows what, if anything, the Federal government may do about these two scheduled events, the impacts are quite clear:
- For home buyers higher rates will mean higher payments and reduced buying power. For those buyers in the $500-$900,000 price range these effects will be magnified by the lack of conforming jumbo loans resulting in even higher rates and costs to obtain financing.
- For home sellers these two events will reduce the number of available buyers, especially in the price range noted above.
** THE MESSAGE IS CLEAR ** The next several months may prove to be the absolute best time this year (and beyond) to buy or sell that home. Contact your Real Living Lifestyles real estate agent today, get the facts and get moving now!
for more information – Paul Gonzales, Countywide Mortgage Lending (760) 746-7388 [email protected], CA-DOC290493
Although Congress passed this law back in 2007 and extended it through this year (2011), this remains a common question for owners of real estate. Mortgage insurance is typically a monthly expense that occurs when a property is purchased with less than 20% down payment or refinanced with less than 20% equity.
Homeowners who itemize their income tax deductions on the Federal Schedule A tax form can claim the PMI by entering it on line 13, in the section entitled “Interest You Paid”. You should find this figure on the form 1098 mailed to you by your lender at the beginning of each new year. The deduction may be taken for coverage issued by the Federal Housing Administrations (FHA), Veterans Administration and the USDA Rural Housing Service as well as private insurers.
There are, of course, limitations and restrictions. For example, the PMI deduction is allowed provided you took out the mortgage on or after January 1, 2007. The total amount you may deduct may be limited or reduced based on your income and how you file (for example, married filing jointly vs. married filing separate returns). Above those maximum income limits the percentage of PMI you may deduct is reduced for every $1,000 that your income exceeds your particular limit. The current law allows this deduction through the end of this year.
For more general information checkout the following link on Bankrate.com:Deducting private mortgage insurance http://www.bankrate.com/finance/taxes/deducting-private-mortgage-insurance.aspx#ixzz1Gand6lk2
Nothing discussed above should be construed as tax advice. Heed the caveat and always seek advice from a tax professional.
Paul Gonzales, Countywide Mortgage Lending (760) 746-7388 [email protected] NMLS CA-DOC290493