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The Previous Claudia Gravelle Blog

By Claudia Muller Gravelle | Mortgage Broker
or Lender in Fremont, CA
  • Condos in Litigation? Can Do

    Posted Under: Home Buying, Home Selling, Property Q&A  |  October 20, 2014 11:27 AM  |  7 views  |  No comments

    With our current market conditions many condos are having issues getting financing.

    Here are a two of the most often of the condo exceptions we can finance:

    -complexes in litigation
    *primary and second homes 20% down minimum
    *investor 30% minimum

    -complexes with less than 50% owner occupancy
    *primary with 5% equity
    *investor with 30% equity

    Rates are slightly higher, but once the occupancy and the litigation is resolved, the values will increase (as the marketability increases) and refinancing will be possible. 

  • Previous VA Foreclosure? You CAN Use VA Benefit Again

    Posted Under: Home Buying in California, Financing in California, Military Movers in California  |  October 15, 2014 8:52 AM  |  17 views  |  No comments

    With all VA loans a borrower may purchase a home after only a 2 year waiting period. If the loan in question was a VA loan, the borrower may still utilize the VA loan benefits again, but the entitlement amount may be reduce.

    I recently closed a transaction where the borrower had a foreclosure in Tennessee ($60k loan amount) and was now purchasing in Alameda County (greater Bay Area where VA will go to $1Million loan amount) ($350k loan amount).

    Utilizing the remainder of entitlement calculations, we were able to get the borrower a new VA loan.  This worked because the veteran had foreclosed on a lower loan area than the area in which they were to be purchasing.

    I post this because, our Veteran had been to six other lenders who did not do the calculations properly and gave this borrower a max loan of $225k. 
  • 100% Gift Down Payment CONVENTIONAL!! My Community Mortgage

    Posted Under: Home Buying in California, Financing in California, Agent2Agent in California  |  October 15, 2014 8:30 AM  |  24 views  |  No comments
    The My Community Mortgage allows a first time home buyer (no ownership interest in the past 3 years), to purchase a home without the standard "5% of their own funds".  See below for details.

    Previously, FHA was the only 100% gift option.  However, the upfront mortgage insurance premium and the monthly (1.25% of loan amount) amount of mortgage insurance does make the FHA loan quite expensive.

    My Community Mortgage offers a mortgage insurance premium that is greatly reduced.  This premium can be as low as .48 if the borrower has a credit score of 760+.  This is 1/3 of the MI cost of an FHA loan.

    Income limits do apply and are 140% of the median income in the state of California.  In Alameda and Contra Costa counties where I am focused, that means for a family of 2 would $125,560 per year.  Add two more to the household (children or in-laws), income maximum would be $143,250.

    This is a great program for those with little or no down payment, but gift available, good credit and a sizable family!


    Borrower may not have an ownership interest in any other residential dwelling at the time of closing. (A manufactured home, regardless of the type of property ownership, is considered a residential dwelling for this purpose. Ownership in a timeshare is not.)


    • Personal Gifts
    • Grants From a Qualified Entity
    • Employer Assistance
    • Community Seconds Defined in All Regs Selling Guide B5-5.1-02, Community Seconds Loan Eligibility (09/24/2013) All Down Payment Assistance programs


    • If ALL buyers are first time home buyers, then ONE buyer must complete
      and submit a Home-ownership Purchase Home Buyer Education and Counseling Certificate.
    • Must be independent and adhere to the National Industry Standards for
      Home ownership Education and Counseling
  • Update on Gift for Down Payment Rules

    Posted Under: Home Buying in California, Financing in California, Agent2Agent in California  |  September 24, 2014 2:23 PM  |  48 views  |  1 comment

    Current changes to conventional underwriting guidelines have adjusted the amount of gift that may be gifted toward down payment.  If the borrower is purchasing a residential single family residence, the down payment may be 100% regardless of loan to value.  Previously the borrower needed to bring in 5% of their own funds for these transactions. 

    The borrower must demonstrate that 5% of the down payment is coming from their own funds if the property 2-4 units or a second home (vacation property).  This applies, as well, to conventional loans considered "high balance" or over $417k loan amount.

    If the borrower receives a gift from a relative or domestic partner who has lived with the borrower for the last 12 months, or from a fiancé or fiancée, the gift is considered the borrower’s own funds and may be used to satisfy the minimum borrower contribution requirement as long as primary residence transaction.

    Acceptable gift donors include relatives, fiancé', domestic partner and close friend with letter of explanation.  The donor can NOT have a third party interest in the transaction i.e.; seller, real estate agent, loan agent, etc.  Gift equity is acceptable from an acceptable gift donor as long as the gift is not an 'enticement' to buy.

    Documentation for gifts still include gift letter, copy of the donor's bank statement demonstrating donor's ability to gift and proof of transfer of funds.  Acceptable proof is copy of cancelled check or evidence of wire transfer into borrower's personal or escrow account.

  • HOME PATH Not Going Away Completely...but Large Changes Apply

    Posted Under: Home Buying in California, Financing in California, Agent2Agent in California  |  September 23, 2014 9:25 AM  |  61 views  |  No comments
    After October 6, 2014, Home Path, as we have known it, will no longer exists.  The following is a very clear and succinct description of those amendments.

    From Housing Wire:

    On October 7, 2014, government-sponsored enterprise Fannie Mae will retire its HomePath Mortgage and HomePath Renovation Mortgage products.

     In the updated selling guide, Fannie Mae recently announced three financing “flexibilities” for investing in Fannie Mae-owned properties.

    Here are those three new financing flexibilities:

    1. Interested Party Contributions (IPCs):

    For principal residences with LTV/CLTVs greater than 90%, Fannie Mae allows up to 6% interested party contributions (rather than the 3% standard per the Selling Guide).

    2. Multiple Financed Properties:

    For borrowers owning 5-10 financed properties, a maximum LTV/CLTV ratio of 75% for 2-4 unit investment properties is permitted (rather than the standard 70% per the Selling Guide) on fixed rate mortgage transactions only.  All other eligibility requirements for borrowers with Multiple Financed Properties continue to apply.

    3. Resale Restrictions:

    In the event the mortgaged property is subject to any resale restriction imposed by Fannie Mae as the property seller, the mortgage is eligible for sale to Fannie Mae, notwithstanding any Selling Guide restrictions on properties subject to resale restrictions.

  • VA Buyers CAN Pay NonAllowable Closing Costs

    Posted Under: Home Buying in California, Agent2Agent in California, Military Movers in California  |  September 22, 2014 9:16 AM  |  55 views  |  No comments
    Any seasoned 'veteran' (pardon the pun) real estate professional is aware that there are certain costs that the Veteran buyer is not allowed to pay.
    But did you know that IF the lender is NOT charging a loan origination fee, that the veteran is allowed to pay their nonallowable closing costs...
    Seller does not need to credit.
    Lender does not need to credit.
    Good stuff to know!!
  • FNMA States Medical Collections...New Rule After October

    Posted Under: Home Buying in California, Agent2Agent in California, Credit Score in California  |  September 20, 2014 8:07 AM  |  62 views  |  No comments

    below a $1000 total no longer need to be paid off prior to close.

    Disputed accounts must be paid in full or account must be taken out of dispute.

    Excuse the brevity.  I'm on vacay!!
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