Posted December 4th, 2009 in Mortgage Loan Insights
In the midst of what appears to be a very limited recovery in the housing markets, there are a number of proposed changes currently under consideration that could, if passed, make qualifying for a FHA-insured loan more difficult after December 12th of 2009.
Changes to the FHA Streamline refinance program are already curtailing eligible borrower applications, but other pending amendments include the following:
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Posted November 10th, 2009 in General
For High-Cost counties across the U.S., the current "temporary" loan limits have been extended through December 31st, 2010,
In California, these figures are:
• $729,950 – 1 unit
• $934,200 – 2 unit
• $1,129,250 – 3 unit
• $1,403,400 – 4 unit
The "conforming" loan limit is still $417,000 — no changes there.
Posted November 10th, 2009 in Mortgage Loan Insights
In addition to First Time Home Buyers, existing homeowners purchasing a home for a primary residence can now benefit from the passage of the Home Buyers Tax Credit Extension.
I'll try to answer as many as I can in this FAQ and also provide you with some links to additional information and forms, but consult with your tax advisor for information relating to your specific circumstances.
Q: Who is eligible to claim the $6,500 tax credit?
Qualified move-up or repeat home buyers purchasing any kind of home intended as his/her primary residence are eligible to claim this credit. The tax credit does NOT apply to second homes, vacation homes, or investment property.
Q: What is the definition of a move-up or repeat home buyer?
The law defines a tax credit qualified move-up home buyer (long-time resident) as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
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Posted October 19th, 2009 in Mortgage Loan Insights
New data shows that cases of fraud involving the $8000 tax credit for first time homebuyers is on the rise, and the IRS is stepping up it's efforts to combat the issue. According to the Wall Street Journal today there are nearly 100,000 cases of suspected fraud currently being investigated, and nearly one million claims for the credit. Many of the fraud schemes involve people filing for the credit even when there was no real estate transaction as a basis, or claiming the credit even though they're not first-time buyers.
Here's ONE CONDITION every home buyer who has, or is in process of, receiving the $8000 credit absolutely MUST KNOW to avoid having to repay the tax credit in full, straight from the IRS:
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Posted October 19th, 2009 in General
My good friend and respected business consultant and educator Chris Banescu has published an elightening article The Assault on American Business.
Chris's in-depth article examines the five greatest threats to American business and the utterly terrifying consequences to our economy as a result of current government policy and proposed legislation.
Chris has a comprehensive blogsite chock full of useful and insightful information for those interested in the politics of our day, particularly as it relates to what I call the cramdown of US business and our personal freedoms in today's times.
Posted October 14th, 2009 in Mortgage Loan Insights
If you are purchasing a condominium using a conventional Fannie Mae / Freddie Mac loan (not FHA), you need to know that the minimum down payment you'll need to bring in is 15% of the sale price. That's because mortgage insurance companies will no longer underwrite insurance on loans for condos that carrying balances in excess of 85% of the purchase price or value, and there are rumors that number will be further reduced to 80% LTV in 2010, due in part to mounting condo foreclosures across the country (means 20% down will soon the the norm for condos).
What about FHA? Can I still use a FHA loan to buy a condo?
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Posted October 13th, 2009 in Mortgage Loan Insights
Governor Arnold Schwarzenegger approved seven new laws on October 11th that provide a range of new so-called consumer protections to home mortgage holders in a last-minute scamper session.
Absolutely NOTHING in the new legislation will help homeowners currently facing foreclosure, which was what the Democrat-sponsored bills were supposed to alleviate.
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Posted October 13th, 2009 in Mortgage Loan Insights
The current "temporary" higher loan limits for all California counties are due to expire at the end of the year. This applies to both FHA and conventional loans. As in 2008, I would expect many lenders to stop accepting submissions for these larger loans in late November/early December. At this time there is no current bill in Congress that would extend the current county loan limits for High Cost Areas another year.
Unlike 2008, we have new "permanent" loan limits to fall back on. For the Los Angeles area, the new limit will be $625,500. Limits on other counties will vary.
If you're procrastinating purchasing a home in the upper tiers of today's current "expanded" loan limits in any high cost area of CA, you have until the end of this year to act.
It's still a great time to finance jumbo loans — rates are very low for well-qualified borrowers.
Inquire about a California jumbo loan online.
