High Cost CA Counties!
Conforming and FHA loan limits
went up as Janurary 1, 2018 to $679,650.00 from $636,300.00 for
High Cost Counties, also the floor as well as the ceiling has
been raised by The Federal Housing Administration. The floor
is $453,100.00 in non-high cost counties. See High Cost Counties
Chart for the up dated max. loan amounts for the high cost counties.
explores general information regarding interest rates, discussion
of mortgages, lending products, including the HARP Program/ For
specific products check-out the menu at the top and bottom listing
various mortgage and other products.
Safe and Secure!
with Jaren since 2003, and he has belped us and our family members
get through the mortgage process many times.
He is very well versed
in the mortgage process, and is very patient. He is by far the
best broker we've have ever worked with, and always has his customers
well being at the forefront of all that he does. To this day
anytime, I have a mortgage question I ask Jaren.
I had him help my
parents, and my children in financing their properties as well.
Anytime any of my friends took to financing I send them to Jaren.
Hands down I do not think there is a better mortgage broker than
Gregory and Elizabeth
H., Lathrop, CA
out how to make Leverage work for you! At the bottom of this
a Qualified Mortgage?
Qualified Mortgage is a category of loans that have a certain,
more stable features that help make it more likely that you'll
be able to afford your loan. ..."
CFPB, Consumer Financial Protection Bureau
Out - $2,000 in Income Tax Savings!
are in the moderate or low income category (determined by County
FHA median income) there are programs you should check out a
great one on Niche Products page is the Mortgage Tax Certificates
issued by California Counties that save up to $2000.00 additional
credit off your Federal Income Tax liability. This a tax credit,
not a tax decduction. For details click here to go to: Loan Assistance page.
wife and I strongly endorse and recommend Jaren Dahlstrom, for
your real estate needs. Five years ago, he helped us in acquiring
our house, and two years latter assited us in lowering our mortgage
payment. He is an expert, honest, trustworthy, and meticulous
in securing purchase and refinance home mortgages and it will
benefit anyone looking for home financing to use him."
Alberto and Eugenia
L., San Pablo, CA
"Jaren has helped
me with a home purchase loan and 2 refinances. I would certainly
rely on him again should I need another home loan. He dedicated
himself to finding the best loan for me, and went the extra mile
to make it work. I know he will do the same for you!"
Christina H. Kelseyville,
Is A Conventional Home Loan?
There is confusion as to difference between
conventional and conforming home loans. Conventional home mortgages
are all loans that are not made or guaranteed by the U.S. Government,
which are FHA, USDA or VA. Conventional loans included: Conforming
Home Loans, which conforms to the standard loan guidelines set
by Fannie Mae and Freddie Mac. Conventional loans also include
everything from Qualified Mortgages to Subprime.
In case you are still confused?
Conventional vs Conforming: As mentioned above Conventional
Loans are not made or guaranteed by US Government. So if
it is not a government backed loan, it is a Conventional Loan.
However, conforming loans conform to the Fannie Mae and Freddie
Mac Guildelines and these mortgages can be sold to one or
the other of these GSEs. Government-Sponsored Enterprise's that
invests in home mortgages. Which allows the originating lenders
to recover their original investment, make a profit and to continue
to make new mortgage loans. These Conventional and Conforming
loans are not guaranteed by the US Government. To keep them straight
it is easy: all mortgages are either Conventional or they are
A "Qualified Mortgage"
or "QM" loan is a category that meets specific borrower
guideline requirements for new conforming loans. These new "QM"
mortgages are being phase in and being established industry wide
by Fannie Mae and Freddie Mac by January 2018. The primary rules
governing a Qualified Mortgage is the "Ability to Pay",
a limit on your debt-to-income ratio (43%), no excess upfront
points and fees, no harmful loan features (like negative amortization,
excessive loan terms, interest only loans or balloon payments)
and it also provides certain legal protection for lenders otherwise
known as "Safe Harbor" mortgages. Non-qualified loans
are basically everything else.
Non-conforming Mortgages: Are
those loans that do not fit either Fannie Mae or Freddie Mac
Guidelines. These loans include Jumbo, Portfolio, Alt-A, Longer
Term (more than 30 years) and Subprime loan products.
I have a program with one lender,
where you get up-to $550.00 credit for your appraisal costs at
the close of escrow on ALL conventional home loans!
Loans: The guidelines
have restrictions on amount of the loans. There are two conforming
loan amount limits mentioned in the guidelines. A conforming
maximum loan amounts of the standard loan limit is $417,000 for
a single unit property and for high-cost areas the limit increase
up to $721,050. The high-cost CA counties limiting out at $625,500.
The loan size limit is also governed by the number of units from
2 to 4 additional units have equivalent higher maximum loan limits.
I have provided a chart showing the high-cost counties for the
conforming CA home loans. These high-cost California Counties
are generally the most populated. To look up the maximum amount
for the county, where you want purchase, and select the number
of units you are interested in purchasing, the result
is maximum dollar amount to qualify for a Conforming Home Loan
(Click Here To Go To
Conforming Loan High Cost Limits for 2018 Chart). Additionally,
there are other guidelines, which deal with loan-to-value, the
borrower's credit history, FICO scores, and debt-to-income ratios,
as well as, specific "overlay guidelines" set by the
individual mortgage lenders. Contact your loan officer, or call
me, and I will guide you through these requirements. If the home
you wish to purchase, would require a loan more than the conforming
high cost limits for the given your county, you will need to
look at a Jumbo loan option. Jumbo loan information
Historically, the public often
understood a Conventional Loan required a 20% down payment, but
that is not the case. With today's higher property values, programs
have been developed to help the home buyers qualify with lower
down payments with very attractive interest rates. While benefiting
the lender with this less risky mortgage investments and increasing
the pool of home buyers, these lower down payment programs also
benefits the borrower . Today, the down payment can be substantially
less. A Conventional mortgage can be almost any amount to 95%
loan-to-value depending on the lender. However, the Home Possible
(Freddie Mac) and Home Ready (Fannie Mae) programs go down to
97% loan-to-value or just 3% down. I have a specific lender,
who's program, provides an additional lender "equity boost"
as a free grant of 2% to combine with the 93% programs leaving
just 1% down payment required by the borrower. Yes, I
did say a 1% down payment! Leaving the home buyer with 3% equity
at closing. All combined with great low rates in this qualified
home loan. You need to know this is an exclusive 1% down
program, which is not available from other lenders I have it
available for well qualified borrowers and you can contact me
at phone number to left or click here to contact me directly to learn
more. The current low
rates make this a real mortgage bargain, plus it can close in
just of 30 days or less. FHA typically can take 45 to even 60
days, and only goes down to 3.5% down payment and carry a
higher mortgage insurance costs!
Loans - These loans traditionally
are used to provide additional funds for a down payment or provide
cash to make to add another bath or bedroom, or provide a down
payment for a future real estate pruchase. Please note if you
are purchasing a home the first loan is 80% LTV and for expamle
15% second and you put 5% down none of the loans would be subject
to mortgage insurance. This can also be true for non and owner
occupied properties. Credit requirements are much stricter for
a second loan. With fewer lenders are willing to make these loans.
See niche products for Silent Seconds, which don't have to be
repaid and are often offer by cities or community non-profits.
Lines of Credit - These are
second deed of trust home loans that allow a home ower to take
out cash from there home they are either a HELOC or HELOAN. A
Heloan is a fixed loan amount and loan rate and Heloc is a variable
or adjustable rate loan. which allows the loans to be made available
as the need arises to loan limit. They can go to 80% loan-to-value
of the currrent value of your home and can have flexible terms
up to 15 years and can often be extended at the discression of
the lender. The funds can be used for anything you want . Perhaps
a new roof or to pay for college. Since it is a line of credit
as the borrower pays down the loan they can reborrow those funds
by using a credit card or bank checks.
Insurance - When a Conventional
Home Loan down payment drops below 20% a required Mortgage Insurance
(PMI or MI) usually kicks in, and is paid monthly along with
the mortgage payment. Mortgage Insurance is designed to cover
the first 22% of the loan and is paid to the lender in case of
a borrower default. Because, the borrower must pay MI, (Borrower
Paid MI) in addition to the mortgage amount , which can effect
a borrowers Debt-to-Income Ratio negatively (see Home Buyer
section for more details).
Some lenders offer "Lender Paid Mortgage Insurance",
which comes with a slightly higher interest rate. However, often
the Lender Paid MI can have a more positive (less negative) impact
on the borrower's overall mortgage payment and DTI ratio and
could be the difference in qualifying for the loan.
property, 1-to-4 units. The down
payment requirement can vary from lender to lender, but expect
a typical down payment of 25% to 35% of the purchase price. Investment
property carry more risk and will carry a commensurate higher
interest rate than an owner occupied property. Because a non
owner property carries more risk , the lender want a larger financial
commitment to the project. from the borrower. However, if you
choose to live in one of the units you can qualify for a possibly
a lower down and an owner occupied interest rate.
a investment property, 1-to-4 units: The down payment requirement can vary from lender
to lender, but expect a typical down payment of 25% to 35% of
the purchase price. Investment property carry more risk
and will carry a commensurate higher interest rate than an owner
occupied property. Because a non owner property carries more
risk , the lender want a larger financial comitment to the project.
from the borrower. However, if you choose to live in one of the
units you can qualify for a possibly a lower down and an owner
occupied interest rate.
Loan: Homestyle by Fannie Mae
The alternative to FHA 203k is
the Fannie Mae Homestyle Renovation home loan. For a quick look-upRenovation Loan Chart
Click Here. This conventional loan is for both home buyer
and/or home owners that require funds to repair or remodel a
property. Homestyle can be used a purchase or a refinance an
existing property. The property can be an owner occupied single
unit or an investment property 1 to 4 units, which can be a primary
residence, a vacation home (second home) or an investment rental
unit, whether a house, condo or townhouse property. Where a FHA
203k is limited only to owner occupied properties. The repairs
must be completed by a license contractor and costs based on
specific plans for the rehab work.. The future appraisal must
be based on those contractor provided plans. The contingency
requirements for unforeseen costs can come from the borrower
or financed into the loan, and any unused construction funds
must be returned to the lender to reduce the outstanding loan
balance. However, if those funds were from the borrower, the
actual costs of supplies or additional repairs for which paid
receipts are provided, then they will be returned. For example
funds left over from a kitchen rehab, the borrower could use
their surplus funds to buy new appliances. Which was not in the
original budget and wishes to use those funds. Also, assuming
the borrower could not live in the property for up to 6 months
additional funds can be budgeted into the mortgage to cover mortgage
payments, property tax escrows, insurance escrow and private
mortgage insurance. This aspect of Homestyle can be very helpful
when you consider you will also be paying rent or the mortgage
on your old home,as well as your new mortgage costs.
There is no requirement or restriction
for the type of repairs or minimum cost level, as long as it
is a permanent part of the home. and the maximum is subject to
no more than 50% of the improved future appraised value. Even
pool and spa renovations are permitted. If you would like more
information concerning the Homestyle or any loan program please
give me a call, whether you are buying or refinancing and want
to make improvements to the home. You can reach me at 510.215.1743 or simply go to contact page. Just let me a know convenient time to
call you and you want to learn more about Homestyle home loans.
You can also visit : www.fanniemae,com/singlefamily/loan-limits.
For a quick look-up Renovation
Loan Chart Click Here.
How to Refinance a Property
in a Living Trust:
If you own a
property that is held in a "Living Trust", which is
a legal document used to protect a home from probate, as well
as other personal property. With a living trust, a trustee, which
could be you the homeowner, who makes decisions concerning the
trust has the legal responsibility for the trust. I would suggest,
it is always wise to get legal advice for guideance prior to
making major decisons regarding the trust. If you or the trustee
still wishes to refinance the property, he or she will follow
the guidelines set by the mortgage company, however, some lenders
do not extend loans to trust properties. You can ask your loan
broker. If your lender does not then you will need to take the
property out of the trust for purpose of getting the loan. You
can have your attroney or your escrow/title company to do this
for you. Since you will need two deeds one to take it out of
trust and a second to put in again immediately after the refinance
is completed. A warrenty, by the trustee, will need to drawn
stating that the property can be used as collateral on the new
mortgage. If you are looking to refinance a property held in
trust contact, Jaren, Your CA Mortgage Advisor to review the
trust documents. he will help you with what needs to done and
walk you through the entire process.
Tip! Paying points will allow you buy down the rate.
One can always ask the seller to pay the points as part of your
purchas contract. "Points" are a cost paid for a lower
interest rate, than the borrower would normally qualify, and
results lowering your monthly payment. Allowing the borrower
to save thousands of dollars in interest payments over the life
of the loan. This is available to owner and non-owner occupied
home buyers. Buying down your rate or paying points is also available
for a refinance. When buying down points, when the borrower uses
their your own funds, one wants to weight the length of time
it will take to recapture the cost vs. the savings calculated
over months or years to re-coup the point's cost in interest
savings. Savings should, also be weighed against the estimated
time the borrower intends to hold the mortgage before selling
property or refinancing the loan. Then make a judgment if the
additional cost actually makes sense for a lower rate. It usually
only makes dollars and cents if borrower is going to hold for
more than 3 years. But do the math! To make sure it is to your
benefit in your specific case.
on the 1% Down Ad Below, It's a Link To Lean More About This
Our Down Payment Protection
Plus Program !
Is the only next generation mortgage
protection program that protects up to the full amount of the
home buyers or refinance transactions for the full amount of
your down payment in a down market. With our lender's Down Payment
Plus Program, you can protect your hard-earned assets, now and
in the future. Anyone can offer a lower rate. Any loan officer
can offer you a low rate, but CA Mortgage Advisor can offer peace
of mind and a low rate.
Our lender's Down
Payment Protection Plus Program is available on the following
fixed rate (including High Balance)
Fannie Mae Home Ready and Freddie
Mac Home Possible - (30 year fixed
rate, including High Balance)
year fixed rate, including High Balance)
year fixed rate, including High Balance)
(30 year fixed rate, including High Balance)
FlexKey Expanded and Restart: (Non-Agency Expanded Prime)
upfront cash required
> Must be used for primary residence
> Covers the first 7 years of home's
> 24-month waiting period
> Covers down payment up to 20%
of the home's value (max. of $200K)
> FHFAm data used to determine market
> Sale must be unrelated third party
and leasebacks are not permited
Today, Fast, Safe and Secure!
Tip! Paying points will allow you buy down the rate.
One can always ask the seller to pay the points as part of your
purchas contract. "Points" are a cost for a lower interest
rate, than the borrower would normally qualify, and results lowering
your monthly payment. Allowing the borrower to save thousands
of dollars in interest payments over the life of the loan. This
is available to owner and non-owner occupied home buyers. Buying
down your rate or paying points is also available for a refinance.
When buying down points, when the borrower uses their your own
funds, one wants to weight the length of time it will take to
recapture the cost vs. the savings calculated over months or
years to re-coup the point's cost in interest savings. Savings
should, also be weighed against the estimated time the borrower
intends to hold the mortgage before selling property or refinancing
the loan. Then make a judgment if the additional cost actually
makes sense for a lower rate. It usually only makes dollars and
cents if borrower is going to hold for more than 3 years. But
do the math! To make sure it is to your benefit in your specific
CLick on the 1%
Down Ad Below, It's a Link To Lean More About This Exciting Program!
The interest rate is 4.294% APR,
30 year term, fixed rate and subbject to change without notice,
our convenient online BLINK application form for a quick approval,
or if you have questions or want more information about this
great program call 510.215.1743. Jaren he will walk you throught
the process. To e-mail, Click Here
or call and Jaren will contact you ASAP! Apply online in a blink,
it is fast, easy, safe and password protected! If you need help
any time in the application process Jaren can help you by sharing
screens with you. Just call, he is here to help!
does leverage work for you when you are buying a home?
for the home buyer in a growing real estate market by magnaifing
the return on investment on a percentage basis. Using a 7 year
arbituary period to measure returns on actual investment, it
could be 10, or 20 years. Basically the borrower/investor is
putting up a small portion of the property's value to control
or own and benefit from it's eventual growth.The larger the leverage
the bigger the return on the investment. Here is an example:
Let's assume we have two buyers who bought identical homes with
identical values and the homes went up exactly the same in market
value. We will call the two buyers, Bill and Sally. Bill put
20% down on his $300,000 home, or $60,000. Where as Sallly put
only 3% or just $9,000 down and both homes closed with the same
closing costs. The payment difference was about $247.32 a month
higher for Sally, because of her smaller down payment. If the
homes went up at the historic rate of 4% average per year for
7 years the value of the homes would have grown by $141,100 approximatly.
Bill paid about $20,816 less in payments which was mostly interest
and has a tax advantage, which we did factor in. Both homes grew
by 68.80%, however Sally returned was15.667 times on her investment,
and Bill just got a 2.35 times return on his investment. Sally
paid a higher payment than Bill, but after that is substracted
from the total return how did she do? She had an adjusted return
of 12.681 times her investment. If Sally would have taken advantage
of CA Mortgage Advisor's HOME ADVANTAGE loan program with1% down,
with the 2% equity boost she would have gotten and additional
$6,000 in equity to add her total return as a gift, from the
lender. That would have made Sally's adjusted return on actual
investment was 6 to 7 times better than Bill's. That is why the
more leverage makes a lot of dollars and sence! (For our example
we used the interest rate of 4.125%, 4.294 APR for each borrower,
the loans were both 30 year term, with a fixed interest rate.
Please understand and know all interest rates can and will change
until they are locked, and they do change daily, so expect your
interest would be different. This comparison is for educational
purpose only. The only difference in the loans are the loan amounts,
because of the difference in the down payments made by each borrower.)
The only advantage
a larger down payment has is when your in a declining market.
If the homes went down say 10%. Sally would be underwater on
her loan and Bill would not. As long as Sally & Bill can
continue to make a payments and just waited out recovery and
even major set back is not a problem for either borrower. But
if they both could not keep the up payments Sally lost would
be $9000 and Bill's would $60,000. So, looking at our example
the down side risk is less with the greater leverage, and the
return much larger. Given both investors are financially sound
borrowers being more highly leverage is an advantage. This is
particularly true with real estate as an investment. Because
under California real estate law the creditor can only take the
property in foreclosure. They can't sue for any losses the mortgage
lender suffered in loan transaction even if the value of property
dropped to "0'". So the lesson here is even if you
have all cash to pay for the property, and you are on a sound
financial footing, it is better to leverage the purchase as high
as possilble. Take the rest of the money that could been used
for the purchase, and put it into other investments and see all
them all grow. A wise man said "use other people's money
to make more for yourself". The above example is presented
for educational purposes ONLY and is not an offer to lend or
a solication to borrow. Nor should this example be taken as a
gurantee of any kind. Rates change daily and programs are subject
to change without notice.
Click here to learn more about out Home Advantage
Home Loan with 1% down and 2% (up to $5,000) free lender paid
equity boost at the close of escrow!