Mortgage Industry News and Events

The Opportunity Have you been shopping for a home, but feel like you are priced out of the market? It may not be too late for you to buy. With the right property and a little imagination, you can now finance the purchase and the renovation expenses together in a single loan. A California HomeStyle Renovation or the FHA 203(K) mortgage allows you to purchase an affordable distressed property with some deferred maintenance for as little as 3% down of the total purchase price and renovation cost. Get Preapproved. It’s easy! The loan process is it much [...]

This post is for you home shoppers and/or investors who found a great house that needs some work, but you don’t have the cash for both the needed repairs and for the down payment up front. It’s also for you if you found a great fixer-upper opportunity, but you can’t get conventional financing because of the current condition of the home. And for fix-and-flip investors looking for some help financing the repairs. If you’re any of these three situations, or know somebody who is, read on. The challenge. Nobody’s home budget is unlimited. Buying and then [...]

Real estate is a time-tested long-term wealth generator. Few other investments offer the same qualities in combination as real estate does: • Current rental income/cash flow • Potential for price appreciation • Tangible value • Built-in hedge against inflation • Ready availability of leverage • Tax deductions for depreciation If you are a real estate investor, or if you are thinking of buying your very first rental property, chances are we have a mortgage program that suits your needs – designed specifically for the real estate investor. No tax returns necessary. If you want to buy [...]

For many years, buying a home has been difficult for small business owners, contractors, and the self-employed. If you own a small business or you’re one of the many self-employed and gig economy workers in California, take heart: we know you’re out there—and we offer the alternative document mortgage programs for people just like you. We look beyond tax returns. Look, we get it. Lots of small businesses owners, independent contractors and self-employed professionals don’t quite fit in the box for conventional home mortgage underwriting criteria. Self-Employed, Independent Contractors, and Asset Depletion You may have excellent [...]

Among main mortgage products, only applications of “non-conforming” increased on a quarterly basis in the third quarter of 2018, according to a new ranking and analysis by “Inside Non-conforming Markets.” The sector includes non-qualified mortgages, non-prime loans, mortgages with alternative documentation and any other non-jumbo mortgages not eligible for delivery to Fannie Mae, Freddie Mac or Ginnie Mae. Origination of expanded-credit loans rose 10.5% in the third quarter. In the first three quarters of 2018, expanded-credit volume was up by 22.7% from a year ago. “The entire mortgage industry has come to recognize the potential and significance of non-QM,” said one of the [...]

Why Reverse Mortgages Have Surged in Popularity: 1. 90% of Seniors want to age in their own home 2. 83% of Americans have not saved enough for retirement 3. People are living longer/outliving their money 4. Consumers are becoming educated to improvements to the Reverse Mortgage program 5. More Financial Advisors are touting the benefits of the Line of Credit feature that grows in value over time - providing access to more money for the senior homeowner in the future California Leads the Nation. Why? Demographics: California has the Largest Population with 14% Over 65 Years of age [...]

The fastest growing sector in mortgage financing this year has been creative alternative & niche programs. This has been a boon for self-employed borrowers who traditionally have had difficulty qualifying with traditional methods. Here’s a sample of some of the easy options: Qualify on Assets, Not Income: Borrowers may qualify by having assets greater than the loan amount after the close of escrow Qualify on Cash Flow using deposits on Bank Statements instead of tax returns Qualify on Rental Income of Subject Property when buying or refinancing Qualify based on a Profit & Loss Statement Features: [...]

If you have student loans, you can still qualify for a home mortgage! Have you been putting off buying a home because of your student loans? You no longer have to. Recent changes in the way mortgage companies treat student loan debt have made it much easier for those with education-related debt to qualify for a mortgage. Fifty-six percent of those with student debt say that their debt has prevented them from buying a home, but thousands of student loan borrowers are getting approved! According to the 2018 Homebuyer’s Report from the National Association of [...]

Had a bankruptcy or foreclosure? We have some good news: The Federal Housing Administration (FHA), Fannie Mae and Freddie Mac have all recently announced they were shortening the mandatory waiting period for qualifying for a home loan down to two years after a bankruptcy discharge or foreclosure. FHA announced it was shortening its own minimum waiting period to just one year, in its “Back To Work” program announced last spring. Under the old rules, each agency imposed a four-year waiting period before they would be willing to approve a new mortgage loan. Fannie Mae reduced the waiting [...]

The better your credit, the better the mortgage you can qualify for. The most attractive loan programs have minimum credit scores, and your credit score will probably determine your interest rate - affecting your monthly payment substantially. The difference between excellent credit and fair credit can translate to thousands of dollars per year in interest charges. If your credit is less than perfect, don’t worry – you can turn things around! But there are no shortcuts or magic bullets to improving your score quickly. It takes time. The sooner you begin, the sooner you’ll be qualifying [...]