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Financing in Santa Cruz County : Real Estate Advice

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  • Local Info1
  • Home Buying12
  • Home Selling2
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Activity 13
Sun Feb 19, 2017
Sheryl Arndt answered:
Yes 20% down hard money lenders are available now. You may qualify for better rates and terms with other financing so the hard money is a last resort.

Your qualifications will be determined by your credit profile, debt to income ratios, fico scores, loan program and how much you want to invest into the down payment and closing costs. Your fico scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary.

You will need to be pre-approved to be able to meet an agent to view and submit offers on any homes of your choice. You will need to gather some documentation for each applicant.

If you are buying a primary residence you could consider a down payment assistance program such as CalHFA or Sapphire Grant which can cover your down payment and closing costs. You may close with minimal out of pocket expenses. You may consider the CalHFA from a minimum 640 fico score and the Sapphire Grant from a minimum 620 fico score up to 424k.

You may qualify FHA from fico scores between 500-579 with 10% down or minimum 580 fico score may qualify FHA 3.5% down up to 424k. You may consider 3% down conventional from a minimum 620 fico score or even 5% down conventional with NO Mortgage insurance (Lender paid MI) up to 424k.

You may consider 5% down Jumbo with a minimum 720 fico score from 424k up to 1.5 million and 10% down from a minimum 680 fico score and up to 2.5 million. You will need 20% down to purchase over 2.5 million.

Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
Veteran and VA/CalVet Loan Specialist
REO and Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
24+ Years Experience
BRE# 01140252
NMLS# 297251
... more
0 votes 4 answers Share Flag
Mon Mar 30, 2015
Brian Martucci answered:
I have not heard of 90% cash out. I have heard of 80% on a Conventional loan and 85% on an FHA loan. Why don't you do an 80% LTV Conventional cash out, and then after settlement find a 90% CLTV HELOC, and then get an equity line for the last 10% that you need? ... more
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Mon Mar 30, 2015
Scott Godzyk answered:
You can get a FHA 203k mortgage which will include fix up money. Your loan officer can guide you with this type of mortgage and your buyer broker should easily be able to explain how it works to write your offer accordingly., ... more
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Mon Mar 23, 2015
Rich answered:
0 votes 6 answers Share Flag
Mon Mar 23, 2015
Rich answered:
it depends on the community you're buying in. In some communities you can buy the land and others you cant.. Be sure to find out before you buy
0 votes 10 answers Share Flag
Fri Jan 16, 2015
Elva Wormley answered:
Hi Dekkaia,

An FHA 203k loan might work for you depending on the purchase price. Please feel free to give me a call to discuss your options.

Best regards,

Elva Wormley
Mortgage Consultant
33+ Years Experience
Office (408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / BRE #01274093
... more
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Fri Nov 14, 2014
Elva Wormley answered:
Hi A Holen,

If you have found a lot, and you wish to use a “single close” construction loan to acquire that lot, you need to have a long enough “close of escrow” written into the purchase contract on the lot so that you can obtain plans and select a builder in that time period. A construction loan can only close with architectural plans, a signed contract, and a cost breakdown with a builder based on those plans. From a practical standpoint, if you enter into a contract to purchase a lot, and you haven’t yet begun the process of developing plans with an architect, you’re probably going to have to obtain a lot loan or pay cash for that lot.

How much you can borrower is based on two sets of criteria. There will be an amount for which you can qualify using full income and asset documentation and a maximum 43% debt ratio. The maximum loan amount will also be limited to 80% loan-to-value (to $1,000,000 loan amount) of the lesser of two numbers representing the value of the home to be built. One of those values is based on what the property would be worth in today’s market, if finished already as planned. The other number is a cost number based on the current value of the property plus new construction costs.

Best regards,

Elva A. Wormley
Mortgage Consultant
33+ Years Experience!
Office (408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / CA BRE #01274093
... more
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Tue Aug 20, 2013
answered:
Well, has your credit been ruined in this process?

If not maybe we can refinance it, and pay off the taxes at the same time. Call me even if has been ruined and let's see if we can figure something out, I am very creative.

949-297-1207

Rich Littlefield
Tri-Emerald Financial Group
NMLS 287206
... more
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Tue Aug 30, 2011
Natasha Nikolaeva answered:
Latest Update:
January 29, 2011, FHA formally announced the suspension of their 90 day Flip Rule to December 31, 2011, so this long standing FHA flip rule has been officially extended by FHA for another year.
The thing to remember is that not all lenders will also waive their flip rules; if you need to find one - please contact me.
This flip rule waiver is limited to sales of the homes meeting the following conditions:
~no identity of interest between the Buyer and Seller.
~Seller holds title to the property.
~property was marketed openly on MLS, auction, for sale by owner etc. Any contracts that refer to an "assignment of contract sale" maybe a red flag.
~no pattern of previous flipping evidenced by multiple title transfers within 12-month period.

There are also special reguirements for cases in which the sales price of the property is 20% or more above the Seller's purchase cost; it has to be justified by supporting documents or a second appraisal. There's more to know - please email me if you need more information.
Natasha Nikolaeva,
Bailey Properties
831.818-6605
natnik77@netzero.net
... more
0 votes 7 answers Share Flag
Mon Aug 22, 2011
Ron Thomas answered:
Three years ago, Foreclosures comprised about 5-10% of the market; they could be ignored:
Today, depending upon location, they can be 70-80% of the market and cannot be excluded.

Please understand how an Appraisal is made:
Visualize a series of COLUMNS, probably 4 or 5;
The First Column is the SUBJECT HOUSE and the others are COMP's.
Down the page we list FEATURES or FACTORS; such as # Bedrooms, # Baths, House Sqft, Lot Sqft, Fireplace, Pool, Roof, Garage, Fencing. Got it?
Now, in each box created, there will be a VALUE: Lets say the subject house is 915 sqft it would get --- or 0. And the first Comp house has 2500 sqft, it might get -100,000; which means that the house is WORTH $100,000 more because of the square-footage. (It is a negative number because the Selling price of that Comp house was approximately $100,000 more BECAUSE of the square footage and we have to deduct that $100,000 to bring them to equity.) Got it?

Now, lets say that the Subject house has $5,000 worth of new fencing and the Comp house has 25 year old OK fencing.: Then the SUBJECT house would get +5,000 and the Comp. house would get --- or 0.

When you go down the page, and enter everything, you get total Comparative Values on the two houses, which allows for the DIFFERENCES.

The two houses DO NOT have to be literally COMPARABLE, they MAKE then comparable with the VALUES.

So the house next door is larger, so what? They made up for that with the values.

Now, if you understand what I just did, then you will understand why;
1.) Two Appraisals can come so close together, and,
2.) Why the Bank will not listen to you about the results.

and in fact I will give you a third;

3.) If you hire your own Appraiser, he will end up with about the same numbers!

Also, please do not compare/equate the ASSESSMENT with the APPRAISAL: The ASSESSMENT is based on the LAST SELLING PRICE OF THE PROPERTY which might be last year. five years ago, or thirty years ago.

I hope I've helped.

Good luck and may God bless
... more
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Mon Oct 11, 2010
Rudi Hofmann answered:
Effective 10/5/2010 FHA reduced their upfront fee from 2.25% to 1%. Monthly insurance went up a tad.

Patrick, unless you are a veteran or hold a position were CalHFA comes into play, you'll need 3.5% down for a FHA loan.

You also will be smart to save some additional monies for emergencies. Owning and maintaining a home is not like calling the landlord to get it fixed. Now you pay for everything.

FHA requires Mortgage insurance. Some lenders offer lender paid PMI up to 95% loan-to-value. A 2nd trust deed won't happen with a small down payment.

Best wishes, Rudi
... more
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Thu Feb 4, 2010
Rudy McDowell answered:
Hi, Andy

After reading your situation, the best answer would be for you to talk to Wells Fargo directly. Lender guidelines are all over the place regarding this, but so long as the original foundation is still in place and is part of the new construction you may be fine regarding honoring your current note. Refinancing it is a diffrent story and where you need to talk to WF. ... more
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Tue Oct 7, 2008
Lynn Brier-De La Cruz answered:
Hi Pete,

A holdback typically refers to money "held out" from the seller's proceeds at closing to pay for various items, repairs (such as a new roof, new carpets, etc.). Can you provide a bit more information for a correct answer? ... more
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