Home > Blogs > Sergey Fednov's Blog
78,449 views

Sergey Fednov's Blog

By SERGEY FEDNOV *** 424-777-9377 | Agent in Beverly Hills, CA
  • Mortgage underwriting rules eased for seniors with assets

    Posted Under: Home Buying in Santa Monica, Home Selling in Santa Monica, Financing in Santa Monica  |  June 5, 2013 2:09 PM  |  326 views  |  1 comment

    Here's a heads-up for the growing ranks of seniors whose post-retirement monthly incomes aren't sufficient to qualify for a mortgage under today's tough underwriting standards: Thanks to a rule change by the largest players in the home loan business, you may be able to use imputed income from your 401(k), IRA and other retirement assets to qualify for the loan you want.


    That, in turn, could open the door to a money-saving refinancing to a lower-rate loan or a downsizing purchase of a new house or condo.


    Top credit officials at Freddie Mac, the giant federally controlled mortgage investment company, said recently that a little-known policy revision now allows seniors and others to use certain retirement account balances to supplement their incomes for underwriting purposes without actually tapping those balances or drawing down cash.


    Freddie's revised rule is aimed at the tidal waves of baby boomers heading into retirement status — 8,000 a day for the next 18 years, according to one industry estimate. Many of these seniors have seen their monthly incomes — heavily dependent on Social Security and limited pension plan payouts — plummet after retirement. Yet on paper they look relatively comfortable financially. They've got growing IRA and 401(k) retirement account balances, swelled by recent stock market gains. They often have solid equity in their homes, good credit scores and at least modest savings.


    But if these same people apply for a refinancing or a new mortgage to buy a home, suddenly they're told they don't look so great. They often can't qualify under the debt-to-income standards required for today's post-recession underwriting. Those rules sometimes set the bar for total household debt-to-income too low for retirees who are still making payments on auto loans, credit cards, home equity lines of credit and other debts.


    Freddie Mac's plan offers seniors a little extra boost on qualifying income if their financial assets permit. (Fannie Mae, the other big mortgage investor, has a similar option for seniors.) Take this hypothetical example provided by Freddie Mac credit officials: Say you'd like a new, low-interest-rate mortgage but your debt-to-income ratio doesn't make the grade. You have $800,000 sitting in a retirement account that you haven't touched yet and that you could access with no IRS penalty.


    The good news: Under the federal mortgage investors' policy change on qualifying income standards, your monthly income could be higher for underwriting purposes than it appears at first glance.


    Under Freddie's guidelines, the loan officer could use your $800,000 in untapped retirement assets as follows: First the lender essentially discounts the $800,000 to take into account possible market swings that could reduce what you have available. Freddie Mac requires loan officers to multiply your retirement fund assets by 70% to arrive at a conservative number. This brings your retirement funds — for underwriting purposes, of course — down to $560,000 ($800,000 times 70%).


    Next, the underwriter divides the discounted fund balance by 360 to arrive at what is in effect 30 years' worth of monthly draw-downs from the fund — in this case, $1,556 ($560,000 divided by 360 equals $1555.56). The lender then can add the $1,556 to your current Social Security, pension and other verified qualifying income for the purpose of computing your debt ratio. You may never have to draw down a dollar from your retirement funds to pay the mortgage, but the fact that you have easily accessible financial assets available to do so allows the change to the underwriting equation.


    The computations can get a little complex, and there are some technical rules and definitions that lenders are required to follow.


    For example, if you are already taking money out of a retirement account, procedures are a little different. Another example: Retirement-related financial assets can include lump-sum distributions you've received or even the proceeds of the sale of a business. Loan officers and underwriters unfamiliar with the program can consult Freddie's (or Fannie's) online technical guidance for more detail.


    But the bottom line is this: If a debt-ratio problem is preventing you from getting a new mortgage, and you've got substantial untapped retirement funds that might help qualify you on income, don't settle for a rejection. You may have more income — at least for underwriting purposes — than you thought.




    __________________

    Help with Any Real Estate Transaction - Buy or Sell 

    Call me 424-777-9377 -  FREE CONSULTATION! 



    Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855)  ext. 777.

    Sergey Fednov - Trust Sale










    Sergey Fednov

    President - Realtor®
    - Trust Sale Realty -

    Residential & Commercial Real Estate
    _______________________________
    Toll Free: 1-855-TRUST-55
    Toll Free: 1-855-878-7855
    Phone: 424-777-9377
    Fax: 310-356-4925
    www.TrustSale.com 
    Lic# 01896869
    TrustSale.com

  • Screenwriter Paul Haggis sells Santa Monica home for $5.25 million

    Posted Under: Home Buying in Santa Monica, Home Selling in Santa Monica, Celebrity Homes in Santa Monica  |  November 16, 2012 2:25 PM  |  347 views  |  No comments


    Oscar-award winning screenwriter Paul Haggis and his wife, actress Deborah Rennard, have sold their home in Santa Monica for its asking price of $5.25 million.

    The East Coast-inspired traditional house sits on nearly a third of an acre of grounds with mature trees, lawn and formal gardens. The home features skylights, French doors that open to terraces and an outdoor kitchen, two fireplaces, five bedrooms, seven bathrooms and 5,690 square feet of living space.

    Haggis, 59, has written for numerous television shows and created "Walker, Texas Ranger" (1993-2001) and "Due South" (1994-99). The writer/producer/director won two Academy Awards for his work on "Crash" (2004). He is directing the upcoming film "Third Person," for which he wrote the screenplay.

    Rennard, who turns 52 on Nov. 4, played J.R. Ewing's secretary on "Dallas" (1981-91).

    The couple paid about $2.618 million for the property in 2000, public records show. They put it on the market in mid-September.

    ____________________

    Help with Any Real Estate Transaction - Buy or Sell 

    Call me 424-777-9377 -  FREE CONSULTATION! 



    Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855)  ext. 777.

    Sergey Fednov - Trust Sale










    Sergey Fednov

    President - Realtor®
    - Trust Sale Realty -

    Residential & Commercial Real Estate
    _______________________________
    Toll Free: 1-855-TRUST-55
    Toll Free: 1-855-878-7855
    Phone: 424-777-9377
    Fax: 310-356-4925
    www.TrustSale.com 
    Lic# 01896869
    TrustSale.com

  • Sasha Vujacic lists home (yes, it has a basketball court)

    Posted Under: Home Buying in Santa Monica, Home Selling in Santa Monica, Celebrity Homes in Santa Monica  |  November 16, 2012 1:39 PM  |  304 views  |  No comments

    Yugoslavian-born Sasha Vujacic was a Laker from 2004 to 2010. With his move to Turkey to play for the Efes, he didn't need his Rancho Palos Verdes home and put it on the market in early 2012 at $2.749 million.


    ____________________

    Help with Any Real Estate Transaction - Buy or Sell 

    Call me 424-777-9377 -  FREE CONSULTATION! 



    Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855)  ext. 777.

    Sergey Fednov - Trust Sale










    Sergey Fednov

    President - Realtor®
    - Trust Sale Realty -

    Residential & Commercial Real Estate
    _______________________________
    Toll Free: 1-855-TRUST-55
    Toll Free: 1-855-878-7855
    Phone: 424-777-9377
    Fax: 310-356-4925
    www.TrustSale.com 
    Lic# 01896869
    TrustSale.com

  • Help for the Underemployed

    Posted Under: Market Conditions in Santa Monica, Home Buying in Santa Monica, Home Selling in Santa Monica  |  September 28, 2012 2:54 PM  |  385 views  |  No comments


    ONE of the best ways for homeowners to cut costs is to refinance their mortgage, but qualifying for a new loan that would lower monthly payments can be difficult for those who are underemployed.

    Besides earning less than they did in a previous job, these homeowners often have accumulated debt, and if they are living in an area where home values are depressed, they have the added burden of watching their home equity shrink. Both factors can adversely affect their ability to qualify for a refinancing.

    Last month, eight million people worked part time involuntarily because their hours had been cut back or they couldn’t find full-time work, according to a recent report by the Bureau of Labor Statistics, which reported separately that of those who did find full-time work, one in five earned at least 20 percent less.

    The “grave” condition of the job market led the Federal Reserve to announce recently that it would institute an economic stimulus plan in which each month it will buy $40 billion in mortgage-backed securities.

    Underemployed homeowners “want to refinance to make the mortgage more affordable,” said Martha Cedeno-Ross, a counselor with Neighborhood Housing Services in Waterbury, Conn., adding that many cannot meet lenders’ required debt-to-income ratios, because “they have so much credit-card debt or other liabilities.”

    Total debts, including the mortgage and all other bills, usually cannot exceed 45 percent of total income, industry experts say.

    Adding on a second part-time job just before beginning the application process won’t necessarily improve their situation, said Cari Sweet-Kristopolis, an assistant vice president of the Jersey Mortgage Corporation in Parsippany, because guidelines of government-sponsored agencies like Fannie Mae and Freddie Mac require borrowers to have held their second jobs for at least 12 months, and ideally 24, before refinancing or obtaining a home loan.

    But, “being at your desk a year and getting a raise, absolutely it will help you,” Ms. Sweet-Kristopolis said.

    What will also help is a change in the family income — say a spouse has found a higher-paying job or was promoted, or you inherited an annuity or another source of steady income. (Short-term sources like disability payments usually will not be counted in the income tally.)

    Mrs. Cedeno-Ross suggests that homeowners pay down their credit-card balances before applying to refinance and also that they seek the help of a housing counselor approved by the Department of Housing and Urban Development.

    Two federal programs that could be useful for refinancing are the HARP, or Home Affordable Refinance Program, which is intended to help financially troubled borrowers stay in their homes, and the Federal Housing Authority Streamlined Refinancing, which is available to people who have their loans through the Federal Housing Administration.

    HARP was created to simplify refinancing and place homeowners in loans with less onerous terms; it generally focuses more on a borrower’s repayment history than income.



    ____________________

    Help with Any Real Estate Transaction - Buy or Sell 

    Call me 424-777-9377 -  FREE CONSULTATION! 



    Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855)  ext. 777.

    Sergey Fednov - Trust Sale










    Sergey Fednov

    President - Realtor®
    - Trust Sale Realty -

    Residential & Commercial Real Estate
    _______________________________
    Toll Free: 1-855-TRUST-55
    Toll Free: 1-855-878-7855
    Phone: 424-777-9377
    Fax: 310-356-4925
    www.TrustSale.com 
    Lic# 01896869
    TrustSale.com

  • California consumer confidence at a 5-year high

    Posted Under: Market Conditions in Santa Monica, Home Buying in Santa Monica, Home Selling in Santa Monica  |  September 20, 2012 12:26 PM  |  302 views  |  No comments

    The California Composite Index of Consumer Confidence increased to 94.2 in the third quarter of 2012 compared with the second quarter revised reading of 89, according to Chapman University. Consumer confidence has been increasing steadily since hitting a low of 57.6 in the second quarter of 2008 and has been hovering between readings of 80 and 90 since the first quarter of 2010. The current reading of 94.2 is the highest overall consumer confidence since the beginning of the recession in the fourth quarter of 2007. An index level below 100, however, reflects a higher percentage of pessimistic consumers versus those who are optimistic.
     
    The California Composite Index is generated based on three indices: Consumers’ outlook on current and future economic conditions, and an index measuring consumers’ spending plan.
     
    The current economic conditions index increased from a revised May reading of 80.9 to 86.8 in August 2012. The index measuring future economic conditions increased significantly to a reading of 105.6 in August 2012 from a revised reading of 93.6 in May. Recent improvement in the job market positively affected consumers’ assessment of the current economic conditions and the outlook about future economic activity.
     
    The index measuring consumers’ planned spending on big-ticket items, however, decreased substantially from the revised May reading of 96.0. The decline in this index in August 2012 to a reading of 86.1 may be due to high and volatile gasoline prices. Higher gas prices are reducing consumers’ disposable income and negatively affecting consumers’ planned spending.____________________

    Help with Any Real Estate Transaction - Buy or Sell 

    Call me 424-777-9377 -  FREE CONSULTATION! 



    Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855)  ext. 777.

    Sergey Fednov - Trust Sale










    Sergey Fednov

    President - Realtor®
    - Trust Sale Realty -

    Residential & Commercial Real Estate
    _______________________________
    Toll Free: 1-855-TRUST-55
    Toll Free: 1-855-878-7855
    Phone: 424-777-9377
    Fax: 310-356-4925
    www.TrustSale.com 
    Lic# 01896869
    TrustSale.com

  • Calif. Pending Home Sales Index: July 2012

    Posted Under: Market Conditions in Santa Monica, Home Buying in Santa Monica, Home Selling in Santa Monica  |  September 19, 2012 12:43 PM  |  304 views  |  No comments

    Calif. Pending Home Sales Index: July 2012: 116.1, down 4.2 percent from June's 121.2


    ____________________

    Help with Any Real Estate Transaction - Buy or Sell 

    Call me 424-777-9377 -  FREE CONSULTATION! 



    Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855)  ext. 777.

    Sergey Fednov - Trust Sale










    Sergey Fednov

    President - Realtor®
    - Trust Sale Realty -

    Residential & Commercial Real Estate
    _______________________________
    Toll Free: 1-855-TRUST-55
    Toll Free: 1-855-878-7855
    Phone: 424-777-9377
    Fax: 310-356-4925
    www.TrustSale.com 
    Lic# 01896869
    TrustSale.com

  • Consumer confidence declines in August

    Posted Under: Market Conditions in Santa Monica, Home Buying in Santa Monica, Home Selling in Santa Monica  |  August 29, 2012 11:10 PM  |  296 views  |  No comments

    The Conference Board’s Consumer Confidence Index declined to 60.6 in August, down from 65.4 in July. The Expectations Index decreased to 70.5 from 78.4. The Present Situation Index, however, was virtually unchanged, at 45.8 in August compared with 45.9 in July.
     
    "At 55.2, the Consumer Confidence Index is now at its lowest level since November 2011. A more pessimistic outlook was the primary reason for this month's decline in confidence. Consumers were more apprehensive about business and employment prospects, but more optimistic about their financial prospects despite rising inflation expectations. Consumers' assessment of current conditions was virtually unchanged, suggesting no significant pickup or deterioration in the pace of growth," said Lynn Franco, director of economic indicators at The Conference Board.
     
    Consumers' assessment of current conditions was little changed in August, with those claiming business conditions are "good" improving to 15.2 percent from 13.7 percent, and those saying business conditions are "bad" remaining unchanged at 34.4 percent. Consumers' appraisal of the labor market varied. Those stating jobs are "plentiful" declined to 7.0 percent from 7.8 percent, while those claiming jobs are "hard to get" edged down to 40.7 percent from 41.0 percent.

    ____________________

    Help with Any Real Estate Transaction - Buy or Sell 

    Call me 424-777-9377 -  FREE CONSULTATION! 



    Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855)  ext. 777.

    Sergey Fednov - Trust Sale










    Sergey Fednov

    President - Realtor®
    - Trust Sale Realty -

    Residential & Commercial Real Estate
    _______________________________
    Toll Free: 1-855-TRUST-55
    Toll Free: 1-855-878-7855
    Phone: 424-777-9377
    Fax: 310-356-4925
    www.TrustSale.com 
    Lic# 01896869
    TrustSale.com

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