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Thank you for your interest in our home loan programs.
Our goal at CW Mortgage is to not only handle your next purchase or refinance transaction, but to become your lifelong mortgage resource. We will work closely with you to find the loan program that best suits your individual needs.
In 2007, CW Mortgage was listed in the Southwest Airlines’ Spirit Magazine as one of the “Top Ten Most Dependable Mortgage Brokers” of Southern California.
We earned our spot as a top company by working hard, playing fair and giving our clients the service they deserve.
By working with a Premier Broker, our team of loan officers have access to special rates and programs that other lenders simply cannot offer.
When you work with CW Mortgage, you can expect:
- Personal contact with loan officers
- A Proactive Pre-approval process
- Competitive rates and programs
- Prompt responses to all of your questions
Follow these links to learn more about CW Mortgage.
- Meet the CW Mortgage Team
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- Just give us a call at (760) 746-7388 or email us. We are always available to answer questions!
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$8,000 Tax Credit As Down Payment? Almost…
Posted by Kevin Kueneke | Leave A Comment »
Last week, HUD announced that the new $8,000 first-time home buyer tax credit could be used towards the down payment of the purchase of a primary residence. The way that it would have worked is that a third party would front the tax credit money to the buyer. The buyer would sign some sort of promissory note with the third party promising to pay back the fronted credit amount when they file their taxes next year (or this year if they have not filed 2008 yet). The seller would pay a fee on the buyer’s behalf, as a seller concession, to the third party.
I had heard about this potential arrangement months ago, but did not want to advertise the idea until all of the details were known. Unfortunately, the cat was let of the bag so I began to discuss this idea with my business referral partners. And then…
HUD has rescinded this decision and has in fact pulled the Mortgagee Letter (how they announce things) from the HUD website. The following is an excerpt from a blog post on ActiveRain by Jeff Belonger explaining “why” in more detail:
“In regards to FHA loans, a borrower can only obtain monies for their down payment of 3.5% by the following :
- Their own funds
- up to 100% of a gift from a relative/family member
- From the Federal, state, and local governmental agencies and nonprofit instrumentalities of government
- FHA approved non-profits
- monies from their employer in a form of employee contribution
- monies from secured borrowed funds… IE. borrowing equity from your home to buy another home or borrowing against your car that is free and clear or borrowing from your 401-k, etc, etc
Here is the major confusion that was put out yesterday, in the body of the mortgagee letter, ML 09-15, at the bottom, it stated :
The Tax Credit: Short-Term Loan:
Entities that can offer the tax credit advance with short-term loans:
- Federal, state, and local governmental agencies and nonprofit instrumentalities of government, FHA-approved nonprofits, and FHA-approved mortgagees may provide short-term or “bridge loans” secured only by the anticipated tax credit due the homebuyer as collateral.
The confusion: It states “as collateral” and not as a secured lien against the home, but as a secured loan against the collateral. Which in this case would be the $8,000 tax credit.
Because of this, HUD does not allow for monies to be borrowed or given to in any form that I did not mention above, to be used for the down payment. The reality of it all, basically everything that was stated in the mortgagee letter, that has been revoked for now, is old school FHA. When it comes to FHA loans/FHA mortgages, you could get monies for your down payment from the items that mentioned above, which is mentioned in the mortgagee letter. Well, was mentioned… One caveat to all of this is that HUD was going to allow for lenders to secure a short term loan or bridge loan against the $8,000 to be used to purchase a home. But again, that can’t be used for the actual down payment, because it goes against the basic FHA guidelines of down payment monies of 3.5%. Now, unless HUD changed this, it does not clearly state this in the mortgagee letter, even though that letter is no longer valid.”
So for now, buyers must find their down payment the same way they have always had to. Regardless of whether the tax credit can be used as the down payment, it is still a fantastic benefit for first time home buyers especially when combined with the added tax deductions of mortgage interest and property taxes (thereby lowering taxable income).
Rates are low. Prices are reasonable. $8,000 tax credit. Now is a great time to buy real estate.
Questions? Please feel free to email me: Kevin@MyCWMtg.com
Related Posts: Buyers, CW Mortgage, Financial news, Home Loans, Mortgage News, San Diego
FHA, FNMA, and FHLMC Loan Limits In San Diego Returned To $697,500!
Posted by Kevin Kueneke | Leave A Comment »
Well, it looks like the “new and improved” stimulus bill will have an immediate effect on mortgages. Fannie Mae (FNMA), Freddie Mac (FHLMC), and the Federal Housing Administration (FHA) have announced that they are reinstating last year’s high balance conforming loan limits.
For 2008, FNMA and FHLMC, as well as FHA, would insure loan amounts up to $697,500 in San Diego. Any loan greater than that number was considered a Jumbo loan. Unfortunately, that loan limit dropped to $546,250 effective for loans closing on or after January 1, 2009. That meant that anyone looking to buy or refinance San Diego real estate could pay an interest rate as much as 2% higher than if borrowing the true conforming loan amount of $417,000.
However, the recently passed H.R. 1, also known as the American Recovery and Reinvestment Act, restores the higher limit of $697,500. In some areas, such as Los Angeles and Orange Counties, the restored loan limit is $729,750 up from $625,500 earlier this year.
These higher loan limits are often referred to as Conforming Plus or High Balance Conforming loans. FHA loans that exceed $417,000 in San Diego County may be referred to as FHA Jumbo loans.
This is great news for those borrowers that are looking to purchase or refinance in today’s low interest rate environment. Conventional buyer’s can now purchase a $775,000 home with only a 10% down payment.
Questions? Please feel free to email me today.
Related Posts: Buyers, CW Mortgage, Financial news, Home Loans, Homeowners, Interest Rates, Mortgage News, Real Estate News
Great News! Fannie Mae To Allow Up To 10 Financed Properties Again!
Posted by Kevin Kueneke | Currently 2 Comments »
One of the biggest hurdles many solvent investors have had these days is Fannie Mae’s (FNMA) limitation on the number of one- to four-unit financed properties. This limit dropped to four properties over the last year or so, which has hamstrung many investors looking to add to their real estate portfolio.
However, according to FNMA Announcement 09-02, borrowers may now have up to ten financed properties without having to pay the higher rates of private or hard-money resources. In the current lower price and low rate environment, this increased limit is an extremely beneficial change.
For those looking to purchase more properties, this new limit also comes with some new guidelines:
- Minimum credit score is 720
- The borrower(s) cannot have had a bankruptcy or foreclosure in the past seven years
- There can be no mortgage delinquencies (30-days or greater) within the past 12 months on any mortgage loan
- Maximum loan to value is 75% for purchase of a 1 unit second home or investment property
- Maximum loan to value is 70% for purchase of a 2-4 unit investment property
- Full income documentation is required including most recent two-year’s IRS 1040’s
- Refinances are allowed on a no cash-out basis and with a loan to value limit of 70%.
FNMA’s announcement also outlined new reserve requirements:
“When the borrower will own one to four financed properties (including the subject property) the reserve requirements are:
- two months of reserves on the subject property if it is a second home
- six months reserves on the subject property if it is an investment property, and
- two months reserves on each other financed second home or investment property.
When the borrower will own five to ten financed properties (including the subject property) the reserve requirements are:
- two months reserves on the subject property if it is a second home
- six months reserves on the subject property if it is an investment property, and
- six months reserves on each other financed second home or investment property.“
Keep in mind, that a month’s reserve encompasses the total housing expense including principal and interest, property taxes, property insurance, HOA’s, Mello Roos, etc., not just the loan payment.
Now, six months reserves for up to ten properties might seem a little steep, but this is an important step in the continuing effort to rebuild a solid home-ownership base. You want to buy a bunch of property? Then you better be able to show that you can afford to do so. Sounds fair to me.
If you would like to discuss this topic further, please email me at Kevin@MyCWMtg.com
Related Posts: Buyers, CW Mortgage, Financial news, Home Loans, Homeowners, Interest Rates, Mortgage News, Real Estate News
Aviara Rental - Relax and Entertain in Beautiful Carlsbad.
Posted by Donna Niksich | Leave A Comment »
Excellent neighborhood and schools - Aviara Oaks in the Serenata Community. This home is located on a very private, corner lot.
- Beautiful home backs up to canyon preserve.
- Excellent house for entertaining, backyard with fireplace and bbq, bar area, small refrigerator; owners kept some backyard furniture in place for your enjoyment.
- Nice floorplan includes open kitchen and family room, living and dining room all close together for more entertaining.
- Downstairs floorplan includes kitchen area with adjoining family room, dining room, living room, 1/2 bath, gated wine storage and office; attached two car garage and attached one car garage located on left side of entrance.
- Upstairs includes laundry room with full size washer and dryer, master bedroom with nice size outside deck with sliding door and nice view; spacious master bath with separate sink areas and separate walk-in closets; and large size luxurious bathtub; two bedrooms with walk-in closets and jack and jill bathroom; fourth bedroom is huge with walk in closet - can be used as second family room or playroom.
- Backyard is all about entertaining - with fireplace, huge grassy area backyard and sideyard, built-in barbeque with refrigerator and bar area. Owner will pay gardener and HOA fees.
- Very private home - corner lot - with lots of trees, lots of sun, birds. A nice place to go outside and relax after a hard days work….nice and quiet. Excellent for entertaining family and friends.
This beautiful home is available to rent beginning the first week of March, 2009.
For information on this Carlsbad - Aviara Rental, contact donnat@windermere.com or call direct at 760-470-1632.
Related Posts: Area Information, CW Mortgage, Carlsbad, Coastal Living, Find A Home, Golf, Rentals, San Diego
FHA Loans - Down Payment, Reserves and Mortgage Insurance
Posted by Paul Gonzales | Currently 1 Comment »
This is the fourth and final post in a series that deals with important aspects of FHA financing.
- The first post provided an overview of the program.
- The second post detailed FHA credit requirements
- The third post discussed the income and employment requirements.
- This post will discuss the down payment and asset requirements necessary to obtain an FHA home loan.
Minimum Down Payment
In today’s challenging market, this is probably the most attractive feature of the FHA home loan - the minimal down payment requirement. For years the minimum requirement has been 3% of the purchase price. Effective January 1, 2009 this will increase to 3.5%, still a great deal especially for first-time homebuyers. This benefit is enhanced further by the flexibility allowed for the source of those down payment funds, as discussed below:
Reserve Requirements
Reserves are funds that a buyer has “left over” after purchasing the home. Most conventional home loans require enough reserve funds to cover at least two months of mortgage payments including property taxes, insurance, mortgage insurance and home owner’s association (HOA) dues if required.
FHA financing does not have a reserve requirement if purchasing a 1 or 2 family property (a 3 or 4 family property requires at least three months of reserve funds).
Acceptable Sources of Funds
- Borrower’s depository funds - Funds owned by the Borrower in bank accounts, stocks and bonds, Certificates of deposit, retirement accounts such as 401k plans
- Gift funds - Can come from a wide variety of sources, including family members, a close friend with established close ties to the borrower, an employer or labor union, charitable or non-profit organization, government agency or a public entity such as a city through a homebuyer’s assistance program. A couple important caveats: the gift funds must be thoroughly documented and provide a clear paper trail. Depending upon the source of the gift funds, such documentation will include a detailed “gift letter”, copies of cancelled checks and bank withdrawal slips or evidence of bank wire transfer. There must be reasonable evidence that the qualified donor has the financial ability to give the gift. As of October 1st, 2008, funds from certain non-profit organizations which are matched by donations from the home seller can no longer be gifted to the buyer
- Sale of existing home - proceeds from the sale of an existing home may be used to purchase a new home with FHA financing
- Sale of personal property - the sale of a car or other personal property is acceptable as long as the funds can be paper trailed to the sale
- Cash or “mattress money” - this requires a written explanation describing the source of the cash, how it was accumulated and how long it took to accumulate. Such cash accumulation must make sense for the borrower, such as not having a checking or savings account or credit accounts.
- Commission from sale of property - acceptable if the borrower/buyer is a licensed real estate agent and entitled to a commission from the sale
Mortgage Insurance
A lesser appreciated, but very vital benefit of FHA financing, has to do with mortgage insurance, or MI. Until recently, it was generally easy to avoid having to pay for mortgage insurance when purchasing a home with less than 20% down payment. This was accomplished by getting a second mortgage to “piggy back” with an 80% first mortgage. Thus a qualified buyer could buy a home with little or no money down by obtaining two mortgages. In the reality of today’s markets such second mortgages are all but non-existant or exorbitantly priced.
The only remaining option for a homebuyer with less than 20% for a down payment is to pay for mortgage insurance. In certain areas such as California, most companies that provide such insurance have limited the maximum coverage to 90% (or less) of the purchase price. In addition, they have tightened their underwriting guidelines and it is indeed more difficult to actually qualify for the insurance.
Enter the FHA home loan. It is generally considered easier to qualify for MI under the FHA and it will go to 96.5% of the purchase price. In short there is a significant portion of the home-buying population who have no other option than FHA financing just for these two reasons alone.
In a Nutshell…
FHA financing may not necessarily be the best fit for everyone in the home-buying market. However, these hallmark features of the FHA home loan - minimal down payment and reserve requirements, flexible sources of funds and availability of mortgage insurance - are far and away the primary reasons that many home buyers, particularly younger first-time home buyers, seek FHA financing. It’s clear to see why.
Special Note: Pursuant to recent legislation addressing current housing issues, various departments of the Federal government are working on implementing new programs and expanding the role of the Federal Housing Administration (FHA) in dealing with these issues. As these programs are actually implemented and become available to consumers, look to PicturePefectSanDiego.com for new posts describing them in detail.
Read more articles and valuable tips about financing by Paul Gonzales
You can contact Paul at (800) 775-7334 or paulforloans@aol.com
Related Posts: CW Mortgage, Financial news, Home Loans, Homeowners, Interest Rates, Mortgage News
