FHA Kiddie Condo…What Is That?
Posted by Kevin Kueneke | Currently 1 Comment »
Many of my referral partners have asked about the FHA “Kiddie Condo” program. I spoke about this several months ago, but now that FHA loans are more prevalent, I felt that it is a good time to revisit the details. Here are a couple questions I have been asked recently:
Question: My child is now attending college and I do not want to throw money away on their rent. Is there a way to buy a property for them to live in without having to pay an enormously high interest rate? Can I avoid a large down payment typically associated with investment properties? 
Answer: Absolutely. FHA allows a non-occupant family member (for example, mom and dad) to go on the loan and basically carry the load. Income and debt from all parties are used to qualify, but the occupying borrower is not required to have any income or assets of their own. As long as your college student does not have credit that would otherwise disqualify them for a loan, their income and assets (if any) are irrelevant. Hence the term “Kiddie Condo”. Better yet, rent the other rooms to your child’s friends to help with cash flow.
Question: My parents are looking to retire and relocate to a new home closer to my family. Unfortunately, their verifiable income is not enough to qualify for a loan, but they do have a small down payment. Since I had planned to help them with their new mortgage payment, can I help them purchase a new home?
Answer: Absolutely. The term “Kiddie Condo” does not just apply to parents helping their children. Adult children can help their parents!
By the way…in addition to condos, all 1-unit properties are eligible: attached and detached single family residences (SFR’s), and homes in a planned unit development (PUD’s).
Far better option than standard Conventional financing due to significantly lower down payment required (3% versus 25-30%) and still get owner-occupied interest rates! **The minimum down payment for FHA loans is going to 3.5% as of January 1, 2009. Still a dramatic difference.
Remember though: these are full documentation loans for all qualifying parties and property condition is important to FHA. At this time, FHA Jumbo loans do not allow a non-occupant co-borrower…so keep your loan amounts under $417,000.
Questions? Call me at (760)500-1919 or email me at Kevin@MyCWMtg.com
Related Posts: Buyers, CW Mortgage, Home Loans, Homeowners, Mortgage News
A Change In A Buyer’s Expectations
Posted by Kevin Kueneke | Leave A Comment »
The home buying landscape is significantly different than this time last year. For those of us in the industry, this is obvious.
The media has mentioned this in countless articles and news broadcasts, but there are still many homeowners looking to buy a new home that expect to get the same loan they got when they purchased their last home. They expect, and in some cases demand, a No-Documentation loan or a No Income Verification loan with little money down. 
These loans were so easily attainable that many people forgot what “real” qualifying is like. Questions like, “What do you mean you want to see a paystub?” or, “My tax returns… you need every page?” are becoming quite common.
However, I had a very refreshing meeting the other day with a new client. Refreshing in the sense that the client understood that lending guidelines have actually changed over the last 12-18 months…but it took a little time for it to sink in.
We first spoke on the phone two weeks ago and at that time he was determined to buy a home that was outside of his full-documentation price range, but well within his “stated income” or “no doc” price range of years past. He is a 100% commission employee with significantly lower income than two years ago, and has about 15% down payment (he is selling his current home and is fortunate enough to have equity). However, his loan amount will still be over $417,000 (but under $697,500 – the current Agency Jumbo limit in San Diego County) and his once high credit scores are now considered average.
Two weeks ago, he sounded obviously frustrated by the fact that his No-Doc loan was no longer available. I explained that lending guidelines have changed since the last time he purchased a home and options are far more limited, especially with a down payment of less than 20%. He was still in the year 2006, the year where anyone with a pulse could qualify for a home loan.
He then left for a week-long family vacation. It took another few days for us to finally meet, during which time I encouraged him to call several other lenders, including his servicing lender. They all told him the same thing…lending has changed and banks are stricter than before and that his ocean view dream home is outside of his budget. But they forgot to tell him how much home he can afford. 
We ran the numbers and found that if he was willing to live a little further away from the ocean, that he could still afford a nice home. Nicer than what he has now but for less money. He even said that his current payments are a little steep and that he always thought it was strange that he was able to purchase his last home even though he did not have a job at the time.
If the mortage market had not crashed and his No-Doc loan was still available, this client admittedly would have purchased a more expensive, more unaffordable home like so many others have. Fortunately, he was forced to re-evaluate. He was forced to change his expectations. And he was willing to do so.
Any questions or comments? Please feel free to call me at (760)500-1919 or email me: Kevin@MyCWMtg.com
Related Posts: Buyers, CW Mortgage, Home Loans, Homeowners, Mortgage News
Zero-Down VA Loans Up To $697,500 In San Diego County
Posted by Kevin Kueneke | Leave A Comment »
Continued good news from the recently passed Housing and Economic Recovery Act (HR 3221). The Veterans Administration (VA) has increased the VA guaranty amount. 
The VA will now guaranty up to 25% of the FHA one-unit high-cost county loan limit. This means that a veteran can borrow up to $697,500 in San Diego County with zero down payment. However, this $697,500 must include the VA Funding Fee (click here to see if funding fee is applicable). Effective January 1, 2009, the new VA zero-down loan limit will be 115% of the local area median home price which may be as high as $625,500.
You might ask then, through the end of the year, what is the maximum sales price in San Diego County? For a veteran with full entitlement and first time use of their guaranty, this equates to a sales price of about $682,800…with no money down! For reservists or national guard, the sales price would be about $681,100. If the veteran is exempt from paying the funding fee, then the sales price can be the full $697,500.
This is truly beneficial as it allows active duty servicemen, servicewomen, and veterans to purchase homes in high cost areas without having to come up with the standard down payment. Also, the mortgage interest rates are no longer set by VA so that the veteran can actually get a fair market rate. Keep in mind that the VA Funding Fee at these loan amounts is quite sizable since it is a percentage of the base loan. However, it is typically financed and can actually be paid by the seller.
Questions? Call me directly at (760)500-1919 or email me today to find out how much home you qualify for…it might be more than you think.
Related Posts: Buyers, CW Mortgage, Home Loans, Homeowners, Interest Rates, Mortgage News
Rates Are Moving…Are You?
Posted by Kevin Kueneke | Leave A Comment »
We have seen a nice drop in rates over the last few weeks or so, roughly 0.375% on 30 year fixed rate Conforming loans (up to $417,000) and 30 year fixed rate Jumbo Conforming loans ($417,001 to $697,500 in San Diego County). This drop equates to an increase in buying power and an increase in buying options.
Increased buying power, two examples: 
· A payment of $2,466 at 6.25% equated to a loan amount of $400,600. Same payment but at 5.875% equates to a loan amount of $417,000. Price range increase of $16,400.
· A payment of $3,897 at 6.375% equated to a loan amount of $624,650. Same payment but at 6.0% equates to a loan amount of $650,000. Price range increase of $25,350.
Increased buying options:
Let’s say you were already going to borrow $417,000 or $650,000. The recent reduction in interest rates would lower your payments by $100 at $417,000 and almost $160 at $650,000. This loan payment reduction might now allow you to look at communities with amenities such as a community pool, tot lot/playground, and common ground landscaping; amenities that many families are looking for but were unable to afford due to the $50 to $100 additional Homeowner’s Association (HOA) fee. The lower mortgage payment now leaves room for that HOA fee. This gives you more properties from which to choose.
Are lender’s guidelines stricter now than a few years ago? Yes, of course. However, buying opportunities are still abound. The real question is: Are you ready to take advantage of this market? As author Paul Fargis once said, “Luck is when preparation meets opportunity.” Be lucky. Be prepared. Get pre-approved today, and be ready to take advantage of that opportunity when it comes around.
Related Posts: Buyers, CW Mortgage, Find A Home, Home Loans, Interest Rates, Mortgage News
Picture Perfect San Diego — COMING SOON!
Posted by Erica Vautier | Currently 1 Comment »
Windermere Exclusive Properties is excited to announce that their new website Picture Perfect San Diego will launch July 8, 2008. The interact site will provide visitors with extensive information about San Diego and the Southern California lifestyle.
Expect to find all of the great tools you enjoyed from WindermereSanDiego.com, plus many more!
Here are just a few of the features you can expect to find at Picture Perfect San Diego: San Diego School Review, Community Events, Neighborhood Updates, Mortgage Rates, Real Estate News, Free Foreclosure Lists, Interactive Property Maps, Area Attractions…
Don’t forget to bookmark this page so you can easily find complete information about our Picture Perfect City.
Thank you for visiting Picture Perfect San Diego, we look forward to seeing you again!
Related Posts: Picture Perfect San Diego, Windermere
