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Garrick's Blog

By Garrick | Mortgage Broker
or Lender in Alameda, CA
  • Buy Again After Part 3 of 6 Conventional Financing

    Posted Under: Home Buying, Agent2Agent, Foreclosure  |  June 19, 2014 1:25 PM  |  105 views  |  No comments

    A short sale is the sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. The lender agrees to a payoff of a lesser amount than is actually owed, even on a current mortgage, to facilitate the sale of the property to a third party.

    If a property is surrendered or included in a bankruptcy, it is considered a foreclosure and must follow the foreclosure seasoning rules.

    A foreclosure is a legal procedure in which a mortgaged property is sold by the trustee to pay the outstanding debt following a default. A foreclosure is evidenced by the delinquency status on the credit report or a Verification of Mortgage, a notice of default or a notice of sale filed against the property.

    Now here are the basic guidelines as to when you can buy again AFTER a short sale with conventional financing:

    Foreclosure – Home was given back to the bank – no owner participation.

    • 7 years from the date the foreclosure was completed and transferred back to the bank if the borrower had NO extenuating circumstances. Minimum FICO of 680 required.
    • 3 years from the date the foreclosure was completed and transferred back to bank with acceptable extenuating circumstances, AND 10% down payment. Primary home purchase and rate/term refinance only. Non‐owner and second homes not allowed

    Short Sale / Deed in Lieu of Foreclosure

    Short Sale- Home sold, but sales price didn’t cover amount owed.

    Deed‐in‐Lieu- Home returned to lender in exchange for canceling the loan.

    • 7 years from date sale closed and transferred to new owner or transferred back to the bank for less than 10% down payment and minimum FICO 680.
    • 4 years from date sale closed and transferred to new owner or transferred back to the bank with 10% down payment and minimum FICO 680.
    • 2 years from date sale closed and transferred to new owner or transferred back to the bank may be possible with acceptable extenuating circumstances and 10% down payment.

    Bankruptcy Chapter 7- Debts are discharged through BK, client does not pay any debts owing.

    • 4 years from date of discharge
    • 2 years from discharge date may be possible with acceptable extenuating circumstances

    Bankruptcy Chapter 13- Debts are paid back on a monthly scheduled payment plan by client.

    • 2 years from date of discharge or
    • 4 years from dismissal date

    If you have experienced any of these events and are ready to get back into the housing market, we are here to help! You can contact me either via email at Garrick.werdmuller@guaranteedrate.com or direct 510-282-5456.

  • Buy Again After, Part 1 of 6....What Exactly is a Boomerang Buyer?

    Posted Under: Home Buying in San Francisco, Agent2Agent in San Francisco, Foreclosure in San Francisco  |  June 19, 2014 1:12 PM  |  149 views  |  No comments

    “Boomerang buyers”— former home owners who have gone through a short sale, foreclosure, or bankruptcy in the past few years are coming back. They have exceeded their waiting periods to buy again and in the meantime have saved down payments as well as repaired their credit.

    According to RealtyTrac Since the housing bubble burst, 4.8 million borrowers have lost their homes to foreclosure, and another 2.2 million gave them up in short sales,. The good news is a growing number of buyers have rebuilt their credit and are looking to buy again.

    Past homeowners typically have a homeownership mentality. They think and feel like home owners and want a place to call their own. They don’t like paying rent and miss being able to claim the mortgage interest deduction on their taxes. Therefore, many are jumping back in the real estate market as soon as they can qualify.

    It can take 3 to 7 years for your credit score to recover after a foreclosure or bankruptcy.
    If defaulters show that extenuating circumstances caused the foreclosure -- such as a health issue that prevented them from working, a layoff or other one-time event -- the waiting period may be reduced.

    The Federal Housing Administration has recently announced in Mortgagee letter
    2013-16 they are loosening the wait times for borrowers to buy again with extenuating circumstances to 12 months! For more information on the FHA Back to Work- Economic Event announcement, click here.

    Rising rent prices, and the strong desire to own once again now that the economy is growing, are prompting these boomerang buyers back into the market.

    If you or someone you know is looking to “boomerang buy” and are ready to get back into the market we are here to help!

    Contact us at garrick.werdmuller@guaranteedrate.com 510.282.5456

    BRE 01368202 NMLS 242952

  • FHA Releases New Restrictions on Reverse Mortgages in San Francisco

    Posted Under: Financing in San Francisco, Agent2Agent in San Francisco  |  November 7, 2013 11:20 AM  |  553 views  |  No comments
    The FHA released Mortgagee Letter 2013-27 in September, which changes the guidelines to their Home Equity Conversion Mortgage (HECM) program, more commonly known as reverse mortgages.

    According to the FHA, “its HECM portfolio had experienced major changes in demographics and borrower preferences in recent years.  Borrowers had originally tended to select adjustable rate mortgages associated with lines of credit which they could draw down over time.  Then borrowers shifted to fixed rate mortgages with all available equity drawn out at closing.   Falling home prices and use of the program by younger borrowers with higher debt levels also contributed to risk.”

    Here are a few of the new changes as announced by the FHA:

    ·         Initial disbursement limits

    ·         New Single Disbursement Lump Sum payment option

    ·         Initial mortgage insurance premiums

    ·         Initial mortgage insurance premium calculation for refinance transactions

    ·         New principal limit factors

    ·         Financial assessment requirements

    ·         Funding requirements for the payment of property charges based on the financial assessment

    This mortgagee letter and a Financial Assessment and Property Charge Guide were released at the same time, and provide guidelines for the financial assessment referenced above. The Guide explains “the specific requirements that the mortgagee must use in performing credit history and cash flow/residual income analysis, documenting and verifying credit, income and property charges as well as valuing extenuating circumstances and compensating factors.  The Guide also sets out parameters for determining if funding sources for property charges from loan proceeds can be required and evaluating the results of the financial assessment in determining HECM eligibility. The guidance is effective for loans assigned an FHA case number on or after January 13, 2014.”

    In announcing the revisions FHA Commissioner Carol Galante said, "The changes being announced today will realign the HECM program with its original intent which will aid in the restoration of the MMI fund and help ensure the continued availability of this important program. Our goal here is to make certain our reverse mortgage program is a financially sustainable option for seniors that will allow them to age in place in their own homes."

    Click here for the full Mortgagee Letter 2013-27 and HECM Financial Assessment and Property Charge Guide

    Other recent HUD announcements-

    FHA Back to Work – Economic Event Brings New Opportunity to Boomerang Buyers in Alameda

    As you know the mortgage industry is constantly changing! For more information on reverse mortgages contact me at 510.282.5456 or via email at garrick.werdmuller@fpfmail.com.

  • Standalone Seconds Are Back in San Francisco, CA

    Posted Under: Financing in San Francisco, Agent2Agent in San Francisco  |  September 27, 2013 11:28 AM  |  696 views  |  1 comment

    Can you believe it??  Standalone seconds are back on the market!  Standalone seconds were widely popular and offered several advantages over other types of financing.  When the housing bubble burst, lenders stopped offering these second mortgages.  Well they are back, and available to qualified buyers and homeowners!

    Standalone seconds are a valuable tool and depending on your personal financial situation, one that may greatly benefit you. Here’s what you need to know before you apply for a home equity line of credit (HELOC).

    Important Second Mortgage Facts:

    1.      * A second mortgage takes a backseat to your first mortgage.

    2.      * The process is similar to a first mortgage. Just like your first mortgage, you will need to complete the application process, your credit and income must qualify as well as obtain an appraisal.

    3.      * There are fees involved.  You are getting an entirely new mortgage and some fees will apply including lender, appraisal and/or title fees.

    4.      * Having a second mortgage means you have two sets of payments to make every month instead of one.


    Top Uses and Benefits for HELOCs:

    1.     *  Purchase loans for borrowers with less than 20% down, who do not want mortgage insurance.

    2.      * You can pay off an existing high balance loan with a new high balance first and HELOC.

    3.      * Obtain cash out or use it as a tool for debt consolidation purposes.

    4.      * Get completive jumbo pricing when you combine a high balance first plus a HELOC.

    5.      * Refinance to get out of an existing FHA loan.

    6.      * Replace an existing HELOC nearing end of the interest only “draw period” instead of waiting for a subordination.

    7.     *  If your property appraisers below 80%, you can obtain a second instead of mortgage insurance.

    Guidelines for Helocs:

    1.      * OWNER OCCUPIED ONLY– no second homes or non-owner (investment) properties.

    2.      * No non-occupant co-borrowers.

    3.      * Single family homes, condos and O/O duplexes OK. No triplexes or fourplexes.

    4.     *  No I/O’s –OK behind amortized ARMS –TCF qualifies at First Lender’s Qualifying Rate.

    5.      * Cannot have more than 6 “non subject” properties – financed or free and clear.

    6.      * Max 89.99% CLTV -Combined liens of $750,000 or less.

    7.      * Max 85.00% CLTV - Combined liens to $1,275,000 !!!

    Based on your specific needs, a second mortgage may be a wise financial move.  If any of these situations sound familiar, or you would like to learn more, please contact me, Garrick Werdmuller at 510.282.5456 or email me at garrick.werdmuller@fpfmail.com.

  • HUD Counseling for the Back to Work - Extenuating Circumstances Program

    Posted Under: Home Buying in San Francisco, Financing in San Francisco, Agent2Agent in San Francisco  |  September 16, 2013 1:28 PM  |  1,297 views  |  1 comment

    SAN FRANCISCO, CA - Back to Work - Extenuating Circumstances Program, the new FHA program that allows for shortened waiting periods is a great opportunity for people looking to get back into the housing market after short sale, bankruptcy or foreclosure.  The first thing a home buyer needs to do to get qualified for this program is take a counseling class.

    The counseling must address the cause of the economic event and the actions taken to overcome the economic event and reduce the likelihood of reoccurrence. The housing education may be provided by HUD-approved housing counseling agencies, state housing finance agencies, approved intermediaries or their sub-grantees, or through an on-line course, and be completed a minimum of thirty (30) days but no more than six (6) months prior to submitting a loan application to a lender, as application is defined in Regulation X, implementing the Real Estate Settlement Procedures Act, 24 C.F.R. §3500.2(b).

    The lender must verify and document that the borrower has completed the required pre-purchase housing counseling by obtaining a letter from the borrower issued by the Participating Housing Counseling Agency on agency letterhead and that includes the agency’s Tax Identification Number (TIN). The letter must state: the borrower’s name, the counselor’s name, that counseling was delivered in accordance with ML 2013-26 requirements, the date upon which counseling was completed, borrower’s signature and the signature of an authorized official of the counseling agency providing the counseling, and the borrower received the proper disclosures (C. Required Disclosures) from the housing counseling agency.

    List of Local Counseling Agencies:


    250 Macarthur Blvd.

    San Leandro, CA 94577

    Phone: 510-430-9020

    Email: N/A          

    Website: site.notavailable.org

    NDI-HCA RIVERA                             

    Phone: 510-268-9792     

    The Towers- 2200 Powell Street # 530

    Emeryville, CA 94608

    Email: N/A                                                          

    Website: site.notavailable.org                  


    3801-3805 Broadway

    Oakland, CA 94611

    Phone: 510-652-6622

    Toll-free: 888-297-5568

    Email: wgant@naca.com

    Website: www.naca.com



    1070 Concord Ave #105

    Concord, CA 94520

    Toll-free Phone: 866-232-9080

    Email: counselinginfo@moneymanagement.org                                              

    Website: www.moneymanagement.org


    2301 Mission Street #301

    San Francisco, CA 94110

    Phone: 415-282-3334, xtn. 112

    Email: mmartin@medasf.org

    Website: www.medasf.org

    For more information or to apply contact Garrick Werdmuller at 510-282-5456 or Garrick.werdmuller@fpfmail.com.

    Related Article:

    FHA Back to Work Economic Event Brings New Opportunity to Boomerang Buyers


  • Bridge Loans, Construction Loans, and Short Term Private Money in San Francisco 2013

    Posted Under: Financing in San Francisco, Agent2Agent in San Francisco  |  May 10, 2013 11:59 AM  |  1,783 views  |  1 comment


    Many investors and home buyers today are in need of creative financing. Investors making all cash offers may be looking to acquire more property but their money is tied up in other properties.  Cash buyers may need short term construction loans that are largely unavailable. Buyers looking to acquire a great bank owned REO foreclosure at a great price due to deferred maintenance can’t get conventional financing, even with 30% down!

    We have helped investors, business owners, and buyers do amazing things in 2013 with short term Construction, and Bridge Private Money loans to help investors and home buyers get into or get out of properties quick.

    These Short Term Construction and Bridge Private Money loans offer:

    • No Prepayment Penalty
    • Will go to a 65% loan to value (can be higher with exception)
    • Are fixed and due in 5 years
    • Have 40 Year amortization
    • Interest only payment options
    • Fast funding  (about two to three weeks)

    Qualified Properties are as follows:

    • Single Family Residences
    • 2-4 Unit Investment
    • Industrial
    • Warehouse
    • 5+ Multi-Family Apartment Buildings
    • Non-Conforming
    • Owner Occupied Properties

    This is a great niche product for fast acquisitions, and fix and flips.

    Alameda Mortgage Information Guide:


    Homes for Sale in Alameda California:


    Down Payment Assistance in California:


  • Home Purchase Down Payment Assistance in the Bay Area San Francisco

    Posted Under: Home Buying in San Francisco, Financing in San Francisco, Agent2Agent in San Francisco  |  March 21, 2013 12:01 PM  |  1,741 views  |  No comments

    Are you or is someone you know a first time buyer with a limited down payment?

    One great option the CHDAP- California Homebuyer Down Payment Assistance Program! This is a deferred payment simple interest junior loan that can be used to help a borrower cover the down payment allowing the borrower to come in with only a half a percent down!

    The program is through CalHFA so for more information you can also go to http://www.calhfa.ca.gov/

    Requirements are:
    • 640 score
    • Owner Occupied Only.
    • .50% down payment (gift okay)
    • Must be a first time homebuyer. Homebuyer education is required on all first time homebuyer programs CALHFA offers.
    • Must have Fannie Mae approval. No manual U/W allowed.
    • No Cap on DTI with a Fannie Mae approval
    • Need last 3 years’ 1040’s to verify that no mortgage interest deductions were taken for that time period.
    • Cannot be used with a 203K Rehabilitation Loan.
    • Must not exceed income limits (based on total occupants living in the home)
    *** Click this Link for Income Limits***

    Property Requirements:
    • Can be a single family, one unit residence, PUD or Condo
    • Cannot have additional units or an in-law space
    • No manufactured housing
    • Must meet the requirements of the mortgage insurer/guarantor
    • No leaseholds, land trusts or Co-ops allowed
    • 5 acre maximum
    • Defects or repairs identified by the appraiser must be corrected prior to the close of the purchase

    For more information on getting pre approved for a home loan with down payment assistance please contact us at 510.282.5456, or contact us directly through our Virtual Purchase Assistant:

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