Home > Blogs > Garrick's Blog
30,927 views

Garrick's Blog

By Garrick | Mortgage Broker
or Lender in Alameda, CA
  • Home Owner Bill Of Rights on Foreclosed Properties in California San Francisco Oakland Alameda

    Posted Under: Financing in San Francisco, Agent2Agent in San Francisco, Foreclosure in San Francisco  |  April 24, 2012 11:28 AM  |  629 views  |  No comments


     Direct Link

    http://www.youtube.com/watch?v=4FqBL_NN22E&feature=plcp&context=C4774aeeVDvjVQa1PpcFNxIKhmLFmXvd2AG5sOq4XuvCSpfzvIpX4%3D

    San Francisco; Ca; A Homeowner Bill of Rights has been introduced to the California State Assembly in the form of seven bills entered Focused on the impacts of foreclosure.

    California Attorney General Kamala D. Harris’s office said that the proposed legislation seeks to protect homeowners from unfair banking practices related to foreclosures and provide remedies for communities threatened by blight from foreclosed properties.

    Two of the bills would provide local communities with the ability to bring increased penalties against the owners of blighted properties deterioration, faulty planning, inadequate or improper facilities, deleterious land use or the existence of unsafe structures, or any combination of these factors,, even taking control of the property.

    Another bill would protect tenants in foreclosed buildings. Purchasers of foreclosed properties would have to honor the terms of existing leases and allow tenants at least 90 days before commencing on eviction proceedings.

    There are two bills which would provide additional tools for the Attorney General to investigate and prosecute mortgage frauds and crimes.

    The final two bills in the clutch of legislation would allow the Attorney General to convene a special grand jury to investigate and indict the perpetrators of financial crimes when the victims are in multiple jurisdictions.

    All seven of the bills have passed out of the appropriate legislative review committees and are heading toward a vote of the whole assembly.

    If you have any questions or need help getting pre approved for a home loan to buy REO’s or any other property please email or call me 510.282.5456 info@garrick.biz

  • Do You Really Want to Close Your Mortgage Home Loan on Time in California or ANYWHERE?

    Posted Under: Home Buying in San Francisco, Financing in San Francisco, Agent2Agent in San Francisco  |  April 12, 2012 11:39 AM  |  558 views  |  No comments

    San Francisco Ca, As you have heard, basically…EVERYWHERE IN THE MEDIA, lenders require A LOT of documentation to close a loan when purchasing or refinancing a home in this day and age. Loans are definitely fully documented and without question YOUR BEST DEFENSE IS A GREAT OFFENSE!

    That being said here is what you must have prepared with your lender and agent when prepared to write offers:

    · A Cover Letter – Tell your story and make sure your lender know your story.  Don’t forget to include any skeletons dangling in your closet, collections, alimony, child support or unpaid IRS liens.  Paint a pretty picture but explain any skeletons.

    · A completed loan application – review for accuracy.

    · If you own property already tie all mortgages from your credit report to your properties.

    · If you own property already submit mortgage statements and proof of insurance and property taxes.

    · Tri Merge Credit report – your lender will pull this.  Get a copy, don’t pull your own.  Especially if you are writing on bank owned properties. Most bank owned properties want you pre approved with their institution.  That means if you go out and look at offers on 5 houses owned by 5 different banks you may have 6 credit checks!  Keep them to a minimum.

    · Photo ID.

    · Income documentation – 1 month paystubs, 2 years w2’s, 2 years complete tax returns, and business returns if the borrower owns more than 25% of a company.

    · Earnest money deposit receipt, copy of check and proof cleared borrower’s account.

    ·  Most recent months bank statements or (Per AUS findings).

    ·  Provide letter of explanation for all large deposits (Anything Greater than 10% of gross monthly earnings must also be documented) including paper trail- cancelled checks, corresponding bank statements, etc.

    · Gift Letter and Paper trail: Gift Letter, Donors ability to gift and transfer from donor to borrower with final balance in account.

    · Contract fully executed.

    · Short Sale approval.

    · Copy of any inspections and clearances (Per contract or appraisal).

    · Preliminary Title Report (Usually received 2 days after escrow is opened).

    · HOA certification form and copy of Master Liability Policy and Insurance Policy for a condominium.

    While this may sound a little overboard this is exactly what is needed upfront to close FAST in today’s market. For more information on getting pre approved for your California home loan text or call 510.282.5456, or email us at info@garrick.biz

  • Home Affordable Refinance Program HARP 2.0 Update San Francisco California Bay Area

    Posted Under: Market Conditions in San Francisco, Financing in San Francisco, Agent2Agent in San Francisco  |  April 12, 2012 11:36 AM  |  718 views  |  No comments


    San Francisco Bay Area Home Affordable Refinance Guidelines include:

     

    - Removing the 125 percent loan-to-value.

     

    - Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.

     

    - Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the GSEs

     

    - Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines

     

    - Extending availability of the program through the end of 2013

     

    For more information on getting pre approved for your California HARP 2.0 Refinance home loan text or call 510.282.5456, or email us at info@garrick.biz

  • Good news for SOME FHA Homeowners in San Francisco, CA– Streamline Mortgage Insurance is Going Down

    Posted Under: Market Conditions in San Francisco, Financing in San Francisco, Agent2Agent in San Francisco  |  March 13, 2012 3:14 PM  |  705 views  |  2 comments

     

    Direct Link:

    http://youtu.be/5N0ouGW1h-A

    On March 7th HUD announced that FHA mortgage insurance is going up on April 9th for ALL FHA loans.  A .10% increase.

    Not only that but FHA is raising the upfront mortgage insurance premium from 1% to 1.75%

    THEN they announced some good news – For case numbers assigned after June 11, 2012 which are refinancing an FHA loan which was endorsed prior to June 1st 2009 there will be a decrease to the monthly mortgage insurance to just .55%. 

    Now this is huge because rates were anywhere from the high 4’s to mid 5’s in 2009 and FHA mortgage insurance was .55%.  Since then, or course, we have seen rates go down but mortgage insurance keeps going up.  Every year!

    Let’s take a look at an example –

    Say you have a $300,000 Loan

    30 Year fix 5.25%     30 Year Fix 3.75%    *After June 11 2012* 3.75% (est)

    Payment = $1656     Payment = $1389     Payment = $1389

    MI .55% = $137.50   MI 1.15% = $287.50    MI = $137.50  

    Payment = $1793     Payment = $1676     Payment = $1526

    So this is a great step in the right direction for helping FHA homeowners who don’t want to throw away money on monthly mortgage insurance.

    If you are a homeowner looking to see if you are eligible contact me to see when your FHA loan was endorsed. If you are a Realtor make sure you dig through your closed database and see if your clients qualify.  There is never a better time to ask for a referral than after you save somebody Money.

    If you need further assistance please feel free to comment, call 510.282.5456 or email info@garrick.biz

    Related Links:

    http://the-buzzz.com/2012/03/02/fha-mortgage-insurance-is-on-the-rise-in-the-san-francisco-bay-area-again/

    http://the-buzzz.com/2012/02/10/how-long-until-you-can-buy-again-after-short-sale-foreclosure-or-bankruptcy-in-alameda-ca/
  • FHA Mortgage Insurance is on the Rise in the San Francisco Bay Area AGAIN!

    Posted Under: Home Buying in San Francisco, Financing in San Francisco, Agent2Agent in San Francisco  |  March 2, 2012 1:58 PM  |  588 views  |  No comments

     

    Direct Link

     

    http://youtu.be/GRLKjW9jJ3Y

    On April 1st the Federal Housing Administration is increasing both upfront and annual premiums for its insured single family loans.  The annual increase will be .10 % to make the annual mortgage insurance premiums 1.25% mandated by the Temporary Payroll Tax Cut Continuation Act of 2011.

     

    But that’s not all! FHA is exercising its authority to raise other fees for the specific purpose of strengthening FHA’s Mutual Mortgage Insurance Fund (MMI).

     

    The upfront premium, which went down in 2010 is going right back up to 1.75%.  A .75% increase from the current 1% premium. This change will happen on all FHA loans regardless of amortization terms. Borrowers WILL still be able to finance this charge

     

    But that’s not all…. June 1st there will be one last increase of an additional 0.25 percent on FHA-insured loans with principal balances over $625,000 bringing the total hike on “Extended Loan Limit High Balance” FHA to 0.35 percent. 

     

    Acting FHA Commissioner Carol Galante said, “After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the return of private capital to the housing market. These modest increases are one of several measures we are taking towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers.”

     

    FHA estimates that the premium changes will, in the aggregate, add more than $1 billion to the MIF based on the current volume projections through Fiscal 2013. 

     

    For questions on FHA financing Contact Wendy Werdmuller of Team Werdmuller at Wendy@garrick.biz NMLS# 242612 DRE Lic #01826247

     

    Related Links

     

    How Long Until You Can Buy Again After Short Sale Foreclosure or Bankruptcy?

     

     

    Guidelines for Buying a 3 to 4 Unit Property Using FHA Financing

     

  • Guidelines for Purchasing a 3-4 Unit Property with FHA Financing in San Francisco, CA

    Posted Under: Home Buying in San Francisco, Financing in San Francisco, Agent2Agent in San Francisco  |  January 19, 2012 11:54 AM  |  1,081 views  |  1 comment

     

    Direct link:
    http://www.youtube.com/watch?v=vRyNb2jdHZk&feature=channel_video_title

    Are you a first time homebuyer interested in purchasing a 3-4 unit property in San Francisco? Good news, with FHA financing you can do just that with a 3.5% down payment! Following are some of the guidelines for qualifying for this financing:

     

    For starters, the property has to be your primary residence- meaning that you must live in one of the units.

     

    Three to four unit self-sufficiency test:

     

    The maximum mortgage for three and four unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100 percent, regardless of the occupancy status.

     

    • The monthly mortgage payment calculation for three and four unit properties includes the following:

     

    Principal, interest, taxes, insurance (Principle, Interest, Taxes, and Insurance - PITI), including monthly mortgage insurance, and homeowner association dues computed at the note rate, if applicable.

     

    • Net rental income for three and four unit property is calculated using the following formula

    ⇒ the appraiser's estimate of fair market rent from all units, including the unit the borrower chooses for occupancy, and

    ⇒ minus the greater of the appraiser's estimate for vacancies, or

    ⇒ vacancy factor used by the jurisdictional HOC.

    This net rental income calculation is used to determine the maximum loan amount.

     

    In layman's terms, the total rents must be the same or greater of the total monthly mortgage payment, to include taxes, homeowners insurance, and the mortgage insurance. These rents must be determined by an FHA certified appraiser- meaning that you can't use rental leases for this specific test.

     

    So here is the biggest problem with writing an offer on a 3-4 unit building using FHA…

     

    You don’t know what the building qualifies for until you receive the appraisal. In speaking to a few account executives for mortgage banks regarding this issue we believe a good rule of thumb is to use the standard ratio for conventional rental income.  That is 75% of the gross rents.

     

    For example if a building grosses $400 take 75% of the income, $3000 and the Principal, Interest, Taxes, and Insurance must be no more than $3000 a month.

     

    Borrowers must still qualify for the mortgage based on:

    ⇒ income

    ⇒ credit

    ⇒ cash to close, and

    ⇒ projected rents received from remaining units.

    ⇒ 3 months reserves of borrower own funds (cannot be a gift)

     

    Projected rent may only be considered gross income for qualifying purposes. It cannot be used to offset the monthly mortgage payment.

     

    You still need to also qualify with the normal debt-to-income ratios in regards to your income, in which you can use the rental income. But you can only use 75% of the rental income for the purpose of this qualification.  As the primary borrower, you can't use what you would pay for that unit as rent to offset your mortgage. All you are including in order to qualify is your monthly gross income.

     

    Feel free to contact The Werdmuller Group for any questions on the housing and finance markets!

    Wendy Werdmuller, NMLS# 242612, info@garrick.biz, 510.846-3006.

     

     

    Related Articles:

     

    FHA vs Conventional Financing

    http://the-buzzz.com/2011/03/02/fha-vs-conventional-mortgages-what%e2%80%99s-the-difference-when-buying-a-home-for-sale-in-alameda-berkeley-oakland/

     

     

    What’s the Difference Between Getting Pre Qualified and Pre Approved for a Mortgage?

    http://the-buzzz.com/2011/03/09/what-is-the-difference-between-getting-pre-qualified-and-pre-approved-for-a-mortgage/

     

    Restoring FHA Loan Limits in Alameda, CA

    http://the-buzzz.com/2011/11/17/restoring-fha-loan-limits-in-alameda-ca/

     

    The Truth About 203k Rehabilitation Home Loans

    http://the-buzzz.com/2011/05/06/the-truth-about-the-203k-rehabilitation-loan-in-san-francisco/

     

  • HARP 2 Guidelines for Refinances Appraisals Waived San Francisco

    Posted Under: Market Conditions in San Francisco, Financing in San Francisco, Agent2Agent in San Francisco  |  November 1, 2011 2:19 PM  |  1,362 views  |  No comments

     

    Direct Link

    http://www.youtube.com/user/RealEstateBuzzz?feature=mhsn#p/a/u/0/FQw1fPRZuLM

    The big news this week is HARP.

    THE Home Affordable Refinance Program has been “re stringed”

    HARP was designed to assist distressed borrowers who are current on their mortgages but “underwater” meaning they owe more than their home is worth.

    It’s no surprise several studies identified these borrowers as being likely to strategically default on or walk away from their homes and foreclose.

    While regulations won't be finalized until November 15th the changes to “Harp 2” include -

    •Removing the 125 percent loan-to-value.

    •Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.

    •Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the GSEs

    •Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines

    •Extending availability of the program through the end of 2013

    These changes may allow double the homw owners the opportunity to refinance but still will help only borrowers who are current on their payment and who have loans guaranteed by one of the GSE's, Fannie or Freddie prior to July 2009.  Thus it will impact only a small percentage of underwater borrowers.

    Credit Suisse estimates 720k borrowers will be able to refinance which translates to between $2 and $3 billion in interest savings; so HARP 2 will not have a huge effect on the economy or on the real estate market.  

    To find out if your home is owned by Fannie or Freddie you can contact my team at info@garrick.biz .

    The program is set to come out November 15th  2011.

    Related Links…

    The New Government Refinance Program Alameda

    http://the-buzzz.com/2011/08/31/the-new-government-refinance-program-alameda-mortgage-minute-real-estate/

    Don’t Stop Believing – Camille and Kennerly -

    http://www.youtube.com/watch?v=XkINiWyyfyI&feature=related

    I searched “2 harps” and now my wife and I are huge fans!!!! J J

« Read older posts
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer