Marin Mortgage News 
The latest news on mortgages and green-lending practices in Marin County and the San Francisco Bay Area.
There are currently 44 blog entries related to this category.
Financing for Foreign Nationals and U.S. Citizens Living Overseas
Tuesday, January 24th, 2012 at 10:10pm. 149 Views, 1 Comments.
Although never a mainstream lending program for residential properties, many of the larger national banks used to offer loans for foreign nationals. Amid the major setbacks experienced by the housing and financial sectors over the past few years, most of these loan programs were discontinued. Nowadays, even U.S. citizens living abroad have a tough time securing financing and most foreign nationals eligible for any level of financing will find themselves obligated to put down at least 50% of a property's purchase price. Fortunately, lining-up financing for overseas citizens has improved dramatically and qualified foreign nationals can now secure excellent financing (up to $5 million) with down payments as low as 10%.
With interest rates…
Increased FHA limit to $729,750 - greater purchase power with less money down
Tuesday, January 10th, 2012 at 10:18pm. 172 Views, 0 Comments.
In a welcome reversal to loan limit reductions of $625,500 that were imposed on FHA, high balance, and super conforming loans on October 1, 2011, the FHA increased its high balance limits in mid-November to the former threshold of $729,750. The increased FHA limit should be effective throughout 2012, however both Fannie Mae and Freddie Mac’s high balance and super conforming products currently remain fixed to the lower amount.
The FHA’s higher limit of $729,750 affords borrowers superb financing, especially long-term, fixed pricing with 30-year mortgages currently around 4.0%. In contrast, the conventional high balance and super conforming loans, which cap out at $625,500, have rates of .125% to .25% higher. And, as soon as…
New conforming loan limits for single to 4-unit properties
Wednesday, September 7th, 2011 at 9:08pm. 441 Views, 0 Comments.
Beginning October 1, 2011, new limits will be implemented for conforming and FHA loan sizes. These changes will apply to single and multi-family properties (1 to 4-units) and will result in sizeable loan reductions for many counties. Loans above these limits are referred to as "non-conforming" and will still be widely available. Non-conforming loans, however, generally carry higher rates and are somewhat more demanding with respect to qualifying requirements.
The new maximum conforming limit, often referred to as "high balance" or "super" conforming, will be reduced from $729,750 to $625,500 for single family units in high cost areas. Eleven California counties qualify for this maximum conforming loan amount, including six of the Bay…
Reduced Jumbo Conforming Limit Means Higher Rates for Some Borrowers
Friday, August 19th, 2011 at 9:07pm. 311 Views, 0 Comments.
You've most certainly heard the news. The recent savaging of equities amid increasing concern over the U.S. economy's tenuous recovery, along with the growing storm enveloping European financial markets, have all contributed to a flight to Treasuries and to some of the lowest mortgage rates in history. 30-year fixed conforming rates (supporting loans to $417,000) have broken below the 4% threshold and high balance conforming loans (currently from $417,000 to $729,750 in most Bay Area counties) are in the low 4% range. While these low rates improve the purchasing power for many buyers, the pending reduction of the high balance conforming limit to $625,500 will translate to higher payments for others. The limit reduction is set…
Marin Real Estate Value - Why Now is a Good Time to Buy a Home in Marin County
Friday, July 22nd, 2011 at 7:56am. 293 Views, 0 Comments.
A question I'm frequently asked from home buyers considering buying a Marin County home is, "Will this home be worth less a year from now?"
Determining home value in the present day is tricky, let alone a year from now. There are so many factors to take into consideration. For example, what is someone willing to pay for a home? What will the jobs market be like a year from now? Most importantly and least discused is what will the interest rates be a year from now?
Huh? Did somebody say interest rates? (Drum roll please). Now I'm not an economist, or a fortune teller or a predictor of the future! But I'm going to take a guess that interest rates are bound to go up. The question is when and by how much? They've…
Navigating the FHA's Streamlined 203(k) Limited Repair Program
Saturday, June 11th, 2011 at 9:36pm. 376 Views, 1 Comments.
I recently assisted clients of Erika Davito in purchasing their first home with financing secured through the FHA's Streamlined 203(k) Limited Repair "Rehab" Program. This loan program is a great resource for some buyers, blending together purchase and construction financing into one loan. But the process is definitely far more involved than with conventional or even regular FHA loans and there is greater potential for fall out. It's therefore important to be aware of potential pitfalls in order to improve the odds of a favorable outcome and I thought I'd share a few thoughts. (For a more general outline on the Streamlined 203(k) loan program, please refer to my earlier post.)
First, although the Streamlined 203(k) Limited…
Jumbo-Conforming Loan Limit Set to Change in October!
Tuesday, May 31st, 2011 at 11:24am. 1457 Views, 1 Comments.
I wanted to make you aware of a highly significant change to the jumbo- conforming loan limits that are presently set to take effect on October 1, 2011. Both Marin buyers and sellers will feel the effect of this change. The loan limit will be decreased from $729,750 to $625,500. Should this change go into effect, here’s what can be expected:
Currently, buyers with strong credit, income and a 20% down payment can borrow up to $729,750 with relative ease and very favorable rates. FHA borrowers can borrow up to $729,750 with a minimum down of $3.5%. As of October 1, 2011, maximum financing for both jumbo-conforming and FHA will be limited to $625,500. Loan balances in excess of this amount will fall into traditional jumbo…
Stated Income Loans are Back for Qualified Borrowers
Wednesday, April 27th, 2011 at 7:09am. 454 Views, 0 Comments.
Originally developed to support self-employed borrowers earning more income than their tax returns otherwise suggested, stated income loans became the most popular (and widely abused) type of mortgage from roughly 2002 through 2007. Following the near collapse of the financial system in 2008, "no income verification" loans were exiled from the marketplace. While this correction was long overdue in the example of someone with earnings of $2500 per month stating income of $15,000, it has unfortunately blocked millions of would be borrowers whose income and overall financial status fully support their ability to repay a loan. Fortunately, there are now some excellent options for borrowers who fall into this category. And this includes…
97% Conventional Financing to $417,000
Tuesday, March 15th, 2011 at 9:42pm. 552 Views, 0 Comments.
Until recently, borrowers with down payment money representing less than 5% of a property's purchase price were limited to FHA loans. While Fannie Mae and many lenders offered financing beyond 95%, the 5% down payment threshold was imposed by mortgage insurance providers that had scaled back their coverage in California. (Any mortgage exceeding 80% of a property's value requires mortgage insurance.) In a bid of confidence for California's housing market, several mortgage insurance providers have recently increased their coverage to 97% for conventional loans.
For the right borrowers, conventional financing to 97% offers certain advantages over FHA loans. Conventional financing allows for just 3% down versus the FHA's 3.5%…
Good credit is more important than ever
Tuesday, February 8th, 2011 at 7:23pm. 393 Views, 0 Comments.
New pricing charges in the process of being implemented by Fannie Mae and Freddie Mac as part of the risk-based fee they factor into mortgage pricing will raise the cost of credit for most borrowers -even those with excellent credit scores. While these changes are slated to take effect April 1, most lenders have already levied new cost adjustments into their pricing to insure their loans are covered for eventual sale.
The litmus for what is considered excellent credit has been continually raised over the past few years, increasing from 700 to 720 and, over the past year or so, to 740. Although credit score ratings have long been used to balance out pricing and determine which loan options are available to a given borrower,…