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Financing in Elk Grove : Real Estate Advice

  • All296
  • Local Info11
  • Home Buying133
  • Home Selling16
  • Market Conditions10

Activity 26
Tue Jan 27, 2015
ronaldswanson55 answered:
I would recommend getting a divorce attorney. Going through a divorce is stressful enough. Going through it alone is worse. Divorce attorneys are there to support you, and not only financially. Your lawyer has your best interests in mind and will support you emotionally as you go through the divorce. Find one that you feel comfortable with and your divorce will go a lot more smoothly. ... more
0 votes 15 answers Share Flag
Tue Sep 23, 2014
JR Thrasher answered:
When you say "close on a house" do you mean buying or selling? If your are talking about your ex buying a house, probably not, but check with your lawyer. If you are talking about selling, maybe. It depends on whether or not he owned it before you were married, if funds were comingled; if you were ever on the deed, how long you were married and about ten other variables, again check with your lawyer.

J.R. Thrasher
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0 votes 8 answers Share Flag
Sun Jun 15, 2014
Jason Andrews REALTOR answered:
If have a Costco Card you can check your credit thru there company Idenity Guard. I believe it's a small fee. Also its give you calculator scenarios which can adjust your credit up or down depending on what you want to do. You also can try which is also a paysite that will give you all three credit scores monthly. Mostly the free sites only give you one score or like Identity Guard will give you one time three scores and following month they give you only one score.

Hope this helps during your recovery and if you need additional advice in your neighborhood I am down the street :)!!
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1 vote 2 answers Share Flag
Fri Apr 18, 2014
Joycelewis412 answered:
There is a site that will help you determine if you can qualify for a refinance after short sale, foreclosure, or filing bankruptcy. Check out
0 votes 7 answers Share Flag
Fri Sep 20, 2013
Jim Walker answered:
GSE guidelines for cash out refi limit your cash out to 70% on duplex property or up to 75% on a single family house. I expect the HELOC guidelines for most lenders to conform to that LTV maximum limit.
You indicated that it is now free and clear.
So if your property value is $200,000 the most you can pull out is $150,000 (less any lien that has to be paid off) if it is a house, or $140,000 if it is 2 to 4 units.
If it is 5 or more units. It is a whole nother ballgame.

You can get 90% to 100% of the value out if you sell it. First, get a estimate of value and marketing plan from one of the Realtors that responded to your post. Your best prospect to buy it if it is a single family house is the tenant that is living there now.

Because you own it free and clear, you could sell it with owner financing, take a large down payment for the cash you need, then take payments that are the same size as the monthly rent you are currently earning, without having to shoulder the insurance, maintenance, property tax, and utility bill that you currently carry.

These are just random ideas, may not fit your personal situation. But it is okay to consider alternatives before you commit to the equity loan.
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1 vote 6 answers Share Flag
Sun Jun 30, 2013
Roy Bush answered:
I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. After researching the web I found a loan program at, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. Good to see lending options coming back. ... more
0 votes 11 answers Share Flag
Fri Jan 4, 2013
Hi Bheadpictures,

That's a good idea but you're going to have a problem due to the county loan limits on conventional loans. In LA County Fannie Mae/Freddie Mac will only go to $625,500 and Sacramento County is $474,950 so you would have to pay down your balance to get under the county limit.

You may want to consider an FHA refi to a 15 year fix since FHA doesn't require the monthly MI on 15 year terms if your loan is 78% or less of the appraised value.

Please feel free to contact me for more information or help.

John Burke
Senior Mortgage Banker
Peoples Bank & Trust Co
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0 votes 3 answers Share Flag
Fri Jun 1, 2012
Bob Willett answered:
Well the biggest thing is you can’t pick your date to refinance without paying the pre-pay penalty. You will have to having to refinance the loan in 5 years, and you don’t know what the mortgage market will be like at that time. What if the value is less, and you can’t get a new loan? What if the value is OK, but you don’t qualify for some other reason?

You can get a 5/1 ARM loan today, and even one with an interest-only option, with a rate fixed at under 3% for the 1st 5 years right now. Unlike your seller’s loan, this loan will just become an adjustable rate mortgage at the end of 5 years instead of having to find a new loan.

In reality I would need to get more information about your financial situation and what your intentions and goals are to be able to give you all of the advantages and disadvantages of this proposal. The 1% is certainly attractive and may be a great deal for you. It just needs to be weighed against the potential issues down the road.
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0 votes 2 answers Share Flag
Tue May 22, 2012
Yes it can be paid by any party to the transaction, buyer, seller or lender. But whoever pays it must pay all of it, so if you roll it into the loan, all of it must be rolled into the loan. If the seller pays it, the seller must pay all of it, etc.

If you do not plan on staying there or keeping the loan very long, having the lender pay it from yield may be the best move.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
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0 votes 7 answers Share Flag
Fri May 6, 2011
Morgan Larson answered:
Valid points and advice have been given. I think it is clear that your first step toward home ownership would be to speak with a reputable mortgage broker who specializes in credit repair. If you need a referral, please don't hesitate to call or email.

I hope all of the professional answers have been helpful :)
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0 votes 9 answers Share Flag
Fri Apr 30, 2010
Steven Ornellas answered:
Hi Dave,

You correctly state that FHA loans carry a mandatory 5-year MI period regardless of LTV percentage, and after this 5-year period the your original LOAN AMOUNT must be paid down to 78% (not that the loan amount is 80% of current market value, which is typical for non-FHA MI removal). Hence, refinancing is the only way I am aware of to remove MI in your case. I am not aware of any FHA-to-conventional restriction.

This "78% or 5-year Rule" before Mortgage insurance can be terminated is covered here:

Also, any MI refund is based on a few things, and can be reviewed here:

Best, Steve
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1 vote 3 answers Share Flag
Fri Apr 2, 2010
Fnmimah7 - I'll echo Barbara's response, and ask a question of you: have you spoken with a loan officer to yet to learn the relatively new rules regarding converting your principle residence into a rental?

If not I'd love to bring you up to speed regarding the current 'buy and bail' rules that lenders have invoked...

best regards,

Jeff Marr
Stanford Mortgage
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0 votes 5 answers Share Flag
Thu Apr 1, 2010
Dave - the advice you've rec'd from Jim and Roswell is'll need to wait 12 months before a lender will allow another primary residence transaction.....the lender also won't consider your next purchase a 2nd home since you won't meet the general guidelines for these properties....

be very wary of any lending source who says they can get around this rule. This is an agency guideline. This means that should the lender underwrite the loan, they wouldn't be able to sell it to Fannie/Freddie.

From what I'm reading you're nearly half way there!

Let me know if you'd like any more clarification on underwriting guidelines!

Jeff Marr

Stanford Mortgage
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0 votes 10 answers Share Flag
Tue Mar 23, 2010
Lew Corcoran answered:
FHA charges mortgage insurance premiums for its loan products. But, they break up the premium in two parts to make owning a home more affordable. The best way to explain it is to compare it to a conventional mortgage.

With FHA, there's an Upfront Mortgage Insurance Premium (UFMIP) of 1.75% of the base loan amount. For a $200,000 mortgage, that would be $3500. With FHA, that can be rolled into the loan. That also reduces the monthly mortgage premium you will have to pay. Your annual premium would be .55% of the base loan amount - $1100/yr or $91.67/mo. Over 5 years, you will pay $9000 ($3500 + $91.67 x 60 = $9000) in mortgage insurance premiums.

Let's compare that with a conventional mortgage. If you were able to get a conventional mortgage with just 3% down payment, your monthly insurance premium would be $171/mo. Over the course of 5 years, you will pay $10,260 ($171 x 60 = $10.260) - more than what you would pay with FHA. So in this case, the mortgage insurance premium is actually cheaper with FHA than with a conventional mortgage.

If you were able to get a conventional mortgage with a 5% down payment, your monthly insurance premium would be $130/mo. Over the course of 5 years, you will pay $7800 ($130 x 60 = $7800). Compared to an FHA mortgage, that translates to $20 less per month over 5 years ($9000 - $7800 = $1200. $1200 / 60 = $20). But with the FHA mortgage, you saved $3000 in down payment because you had to put only 3.5% down. You come out ahead by $1800!

Today, because of declining markets, you can not get a conventional mortgage in most areas unless you put at least 10% down. But with FHA, you can buy a home anywhere with just a 3.5% down payment. So the question is, which would you prefer? A mortgage with a lower mortgage insurance premium and a higher down payment? Or would you prefer a higher mortgage insurance premium in exchange for a lower down payment?

If it were me, I'd opt for the FHA mortgage.
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1 vote 6 answers Share Flag
Fri Feb 19, 2010
Dave answered:
To answer Bill's query:
The question is for purchase of property from a relative.
Secondly, I'm not aware of 'gift of equity' process, especially in CA.

If there's a way to 'transfer the loan and title' to the family member without having to re-sell the property, you have my full attention..

I'm hoping there are other experienced professionals who can chime in here as well.
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0 votes 10 answers Share Flag
Sun Dec 27, 2009
Marty - if your current loan is FHA or VA, then there's the potential for having a qualified buyer assume your loan (current borrowers would have to be VA enabled if you currently have a VA loan).....if your loan is a conventional mortgage then assumptions aren't available...

however, since you state your renters had a recent foreclosure, sounds like they wouldn't qualify anyway (FHA has a 3 yr minimum waiting period since date of discharge for a chap 7 bk)....

it also sounds like you might have value related issues which could make your deal a short sale transaction....would you be willing to sell if you had to bring cash to close? Just curious...

Jeff Marr
Stanford Mortgage
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0 votes 2 answers Share Flag
Mon Jun 8, 2009
Sue Archer Reynolds answered:
the purchase agreement states when the seller accepts. That is why it is imperative that a short sale addendum is included with a purchase offer on a short sale. ON that addendum there are two fields that need to be checked to have all timeframes started upon LENDER's acceptance instead. One talks about when the deposit will be surrendered to the title company, the second for when the timeframes for inspections is to start. ... more
0 votes 4 answers Share Flag
Mon Jun 1, 2009
Kellen Gracey answered:
Rates have been up and down over the last month or so, and took a huge spike last week. If you're looking to lock in a rate, you might want to move quickly to take advantage of the historically low rates. If you need help placing your loan and finding financing, feel free to contact me.

Kellen Gracey
Mortgage Specialist
BayBurg Financial
Office: (954)764-7064 (ext 211)
Toll Free: (866)230-9050 (ext 211)
Cell: (386)237-7231
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0 votes 7 answers Share Flag
Thu May 28, 2009
Goat answered:

I would avoid real estate as an investment until 30 year fixed rates are hittin on or near all time highs near 20%.

At that time home prices will be very cheap and tenants will pay off your homes quicker.

Terrible time to invest in housing.

Instead invest in super liquid silver and gold. Metals bull market is ongoing and few Americans have any clue at all about it yet their currency is preparing to collapse.

There are two lines in real estate the line for people wanting to get out and a line for people wanting to get in.

The longest line by a long shot is the for those folks wanting to get out of real agnst ridden group for sure.

At some point the downtrend will change but that is several years in the future. When agents declare, "Now is a horrible time to buy." then we may be at a bottom in price depreciation.

In the meantime exploit the new bull market in gold like the Chinese are the dips and read:


Agents are here to peddle anything you want to hear in order to justify getting you to buy property. The problem is that there positivism is without a credible basis in reality other than the comish they receive from buyers.

Beware of used property salespeople. They atre the ones who claimed, "Buy now or be priced out forever" as the market was bubbling.
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0 votes 10 answers Share Flag
Sun Mar 29, 2009
Jim Walker answered:
I could write a visa check payable to cash (myself) deposit it to my checking account, ask my bank to draft a bank check (cashiers check) for the amount payable to the title company or trustee. The visa card company will charge me a 3% cash advance fee, and then bill me monthly at a rate currently 9.99% over LIBOR.

Sometimes they send me promotional checks with no fee and no interest for 6 months -
Still I risk a high rate and payment if I can't flip it or refinance in 6 months.
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