Archive for the ‘Financing’ Category

Calif. Real Estate Fast Facts

Thursday, September 27th, 2012

Calif. Median Home Price: August 2012: $343,820 (Source: C.A.R.)
– Calif. highest median home price by region/county August 2012: Marin, $806,450 (Source: C.A.R.)
– Calif. lowest median home price by region/county August 2012: Tehama, $89,170 (Source: C.A.R.)
 
Calif. Pending Home Sales Index: August 2012: 118.9, up 2.7 percent from July’s 115.8
 
Calif. Traditional Housing Affordability Index: Second quarter 2012: 51 percent (Source: C.A.R.)
 
Mortgage rates: Week ending 9/20/2012:
– 30-yr. fixed: 3.49% fees/points: 0.6%
– 15-yr. fixed: 2.77 fees/points: 0.6% 1-yr.
– Adjustable: 2.61% Fees/points: 0.4% (Source: Freddie Mac)


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Thanks for reading this blog and I welcome your comments.

-Sylvia E. Miller
Cell: 805-448-8882

Remember my virtual compatriots, until we blog again, “Always Look on the Bright Side of Life” (from Monty Python)!

New HARP 2 Streamlined Application Rules

Wednesday, September 26th, 2012




Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance Program (HARP), and you may be eligible to take advantage of these changes.

There is a new refinance program that went into effect in early Jan 2012 that allows underwater homeowners the ability to refinance into a lower interest rate, regardless of their Loan-to-Value (LTV).

Referred to as HARP 2.0, DU Refi Plus and the Obama Refinance Plan, the Home Affordable Refinance Program is a federal program under Making Home Affordable that is intended to help 4-7 million responsible homeowners lower their mortgage rates.

Below is a list of questions to help determine if you are potentially eligible for a HARP refinance:

  • Is your home loan owned or guaranteed by Fannie Mae or Freddie Mac?
  • Was your loan sold to Fannie Mae or Freddie Mac before May 31, 2009?
  • Are you current on your mortgage payments?
  • Do you owe more than your home is worth, or is there minimal equity in your home?
  • Have you made all of your mortgage payments on time in the last 6 months?
  • Streamlined application process: Borrowers will apply through a streamlined process designed to make it simpler and less expensive for borrowers and lenders to refinance. Borrowers will not be required to submit a new appraisal or tax return. To determine a borrower’s eligibility, a lender need only confirm that the borrower is employed. (Those who are not employed may still be eligible if they meet the other requirements and present limited credit risk. However, a lender will need to perform a full underwriting of these borrowers to determine whether they are a good fit for the program.)

    For more info go to Whitehouse.gov

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    Thanks for reading this blog and I welcome your comments.

    -Sylvia E. Miller
    Cell: 805-448-8882

    Remember my virtual compatriots, until we blog again, “Always Look on the Bright Side of Life” (from Monty Python)!

    FHA eases burdensome condo financing rules

    Monday, September 24th, 2012

    By Kenneth R. Harney

    September 23, 2012

    FHA Update

    WASHINGTON ― Here’s some encouraging news for condominium unit owners, sellers and buyers: The biggest source of funding for low-down-payment condo mortgages, the Federal Housing Administration, has revamped controversial rules that caused thousands of buildings across the country to lose their eligibility for FHA financing.

    The revised guidelines, which were issued Sept. 13 and took effect immediately, should make it easier for large numbers of homeowner associations to seek certification by the FHA. The certification process is intended to provide the FHA, a government-run mortgage insurance agency, with key information about a development’s legal, physical and financial status. Without approval of an entire development ― regardless of whether it’s a small complex in the suburbs or a massive high-rise in the center city ― no individual unit can be financed or refinanced with an FHA mortgage.

    One of the most significant changes the FHA made involves personal legal liability for condo association boards and officers. The previous rules required officers to attest that they had “no knowledge of circumstances or conditions that might have an adverse effect on the project or cause a mortgage secured by a unit” to become delinquent, of “dissatisfaction among unit owners about the operation of the project or owners association” or of “disputes concerning unit owners.” The penalty for officers who “knowingly” and “willfully” submitted information to the FHA that was found to be false: fines of up to $1 million and 30 years in prison.

    Although the previous rules focused on entire buildings, individual unit owners seeking to sell often have taken the brunt. The Community Associations Institute, the condo industry’s largest trade group, welcomed the relaxation of the FHA rules, predicting that “this will spark home sales and help tens of thousands of condominium communities begin to recover from the housing slump.”

    Not surprisingly, many board officers declined to take on what they interpreted as lifetime legal responsibility for such details as whether the condominium fully complied with state and local environmental and real estate requirements. Although the FHA insisted that the associations were overreacting, the new certifications contain much less scary language. The penalties for intentional frauds against the government remain the same, however.

    Among other key rule changes:

  • Greater flexibility on investor ownership. In existing developments, one or more investors are now allowed to own up to 50% of the total units provided that at least half of the units are owner-occupied. The previous rule required that no more than 10% of units could be owned by a single investor.
  • The previous treatment of unpaid condo association dues was raised to 60 days from 30 days. Under the revised rule, condo communities where no more than 15% of unit owners are 60 days late on payment of dues can be approved for FHA loans.
  • Clarification of certain insurance requirements that many communities found burdensome.
  • Source: L.A. Times

    Thanks for reading this blog and I welcome your comments.

    -Sylvia E. Miller
    Cell: 805-448-8882

    Remember my virtual compatriots, until we blog again, “Always Look on the Bright Side of Life” (from Monty Python)!