San Diego Buyers Can Now Use Rental Income to Qualify!

Posted on May 9, 2012 by Shanne Sleder - San Diego Mortgage Broker & Banker

Over the last few years as a San Diego Mortgage Broker, I have seen one huge hurdle continue to surface for homeowners who are looking to move up and buy bigger homes.  The issue is they have a current home or condo that they can’t sell because it is underwater or they don’t want to sell because they have so much money invested in it.  This is making it difficult for them to qualify for a new San Diego purchase loan.  Why is that?  Before the mortgage meltdown of 2008 potential buyers who were turning a departing residence into a rental property and buying a new house would simply show a rental agreement and a deposit and be able to use 75% of the rental income to offset the mortgage and other  expenses.

This has not been the case for the last several years.  Fannie Mae and Freddie Mac instituted a new guideline on conventional loans that states in order to use the rental income on a departing residence as qualifying income that property must have 30% equity.  FHA requires 25% equity.  If you do not have the required equity, you cannot use the rental income and must qualify with the mortgage payment, taxes, and insurance on the departing residence as well as the mortgage payment, taxes, and insurance on the new residence.  This makes it very difficult for many potential buyers.  In most cases people are not able to qualify with 2 mortgages and in other cases they could qualify to purchase a  come, but it limits them on the maximum purchase price the can qualify for.

I am happy to announce that as San Diego Mortgage Brokers, we now have a solution for this.  We have a lender who will now allow us to use 75% of the rental income based off of a
rental survey that is done at the time of the new San Diego purchase loan.  This program  does not require 30% equity.  In fact they require no equity.  The house can actually be  upside down.  The only condition is that the borrower has not taken cash out of the property in the last 2 years.  This program will allow loan amounts up to $750,000 to an 80% Loan to Value (LTV) or $3,000,000 up to a 75% LTV.

I believe this program is going to help many potential buyers be able to qualify for their San Diego purchase loan, when before they could not.  If you would like more information on this program please feel free to call or email me.  Due to the fact that I am a San Diego Mortgage Broker as well as Banker, I have a vast number of programs and lenders  available no matter what your situation.

 
The Mortgage Planners
619-312-0612
10636 Scripps Summit Ct. Ste. 130

San DiegoCA, 92131

USA
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New Option to Avoid Mortgage Insurance up to a 90% Loan to Value

Posted on April 25, 2012 by Shanne Sleder - San Diego Mortgage Broker & Banker

As a San Diego Mortgage Broker, we are always getting set up with lenders who offer new loan programs and unique solutions.  Over the last couple of years the only way to get a loan above an 80% loan to value was to get a San Diego conventional loan with Mortgage Insurance or a San Diego FHA loan with Mortgage Insurance.  This was due to the fact that most lenders were not willing to offer second mortgages above 80%.  Many borrowers don’t like the idea of having mortgage insurance because it is not deductable on their taxes, whereas the interest on a second mortgage would be.

Recently, a few lenders have started to offer second mortgages up to 85% combined loan to value (CLTV), but I have a new program that will allow us as San Diego Mortgage Brokers to go to a 90% CLTV with no mortgage insurance by using a second mortgage.  This loan is an equity line with a 10 year interest only period and then a 20 year repayment term.   The rate is Prime + 1.99% or currently 5.24%.  The equity line limits are a minimum of $10,000 up to a maximum of $350,000.  This equity line second allows the combination of a first mortgage and second mortgage up to a loan amount of $750,000 at a 90% CLTV with a 700 Fico score or up to $1,000,000 at an 85% CLTV with a Fico score of 720.

If you would like more information about how this loan program can help you avoid mortgage insurance and qualify for a loan amount up to $750,000 at 90% CLTV please contact me. The Mortgage Planners are a San Diego Mortgage Broker who offers multiple loan programs like San Diego Jumbo Loans and San Diego FHA loans.

 
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San Diego HARP 2.0 Update

Posted on April 9, 2012 by Shanne Sleder - San Diego Mortgage Broker & Banker

It has now been a few weeks since the introduction of the HARP 2.0 program in San Diego, which allows homeowners who are upside down with their mortgage be able to refinance up to an unlimited Loan to Value if Fannie Mae or Freddie Mac own their loan.  In just the short time before the introduction of the San Diego HARP 2.0 program and the few weeks since it has been available I have been inundated with calls and emails requesting information and quotes from the past articles I have written about the HARP program.  A number of these request have already turned into loan applications and are now in underwriting.  A few examples of some recent San Diego HARP 2.0 loans that I have in process are a refinance on a home at a loan to value of 190%, a refinance of a rental condo with a loan to value of 134% and a debt to income ratio of 59%, and a refinance of a condo with a combined loan to value of 145%.

There are a few new things that we have learned about the San Diego HARP 2.0 program since its release and I wanted to make you aware of them.  First off, we have seen that Fannie Mae is being much more lenient than Freddie Mac with their approvals.  Fannie Mae is approving rental properties at LTVs in the 125%-150% range and allowing debt to income ratios up to 60%.  Freddie Mac is not approving rental properties over 100% LTV and they are capping debt to income ratios at around 45% with some exceptions up to 50%.  Freddie Mac is also denying approvals when clients have over 50% balances on their credit cards.

Second, Fannie Mae came out with new risk classifications on the San Diego HARP 2.0 program.  They now have expanded approvals I, II, and III.  These usually occur at the higher LTV’s, on rental properties, and higher debt to income ratios.  Many lenders are deciding not to accept these loans or if they do accept them, they will carry a slightly higher rate.  As a San Diego Mortgage Broker who is specializing in the San Diego HARP 2.0 Program, I do have lenders who are accepting all 3 expanded approvals.

The last thing we have learned about the San Diego HARP 2.0 loan program is that we are not receiving as many appraisal waivers as we believed we would.  I have received appraisal waivers on about 50% of my files.  This may change as more transactions are done.

Although, the San Diego HARP 2.0 refinance program is not exactly as we thought it would be, it is still helping a number of homeowners who are underwater.  In many cases I am saving clients between $350 – $500 per month by using this program.  If you have any questions concerning the San Diego Harp program or would like to receive a free quote, please feel free to contact me.  I am happy to help and hopefully be able to save you thousands of dollars a year.

 
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2012 San Diego FHA Loan Limits

Posted on March 30, 2012 by Shanne Sleder - San Diego Mortgage Broker & Banker

The 2012 San Diego County FHA loan limits are unchanged from 2011 for 1-unit properties.  

The San Diego FHA loan limit is $697,500. FHA loans in San Diego with loan amounts below $417,000 are considered “conforming” and will have slightly lower rates and less stringent guidelines.  San Diego FHA Loans that exceed $417,001 to the maximum of $697,500 are considered “jumbo” or “High Balance”.  They will have rates that are about .25% higher and more restrictive guidelines.  Be aware of this when speaking to your San Diego Mortgage Broker and FHA expert.

The FHA loan program is used many times by First Time Homebuyers in San Diego because of the low down payment and program flexibility, but you do not need to be a first time homebuyer to use an FHA loan in San Diego.

There are other benefits to the San Diego FHA loan program for buyers and borrowers. The whole 3.5% down payment on a purchase can be gifted to the buyer by relatives. This allows a client to buy a home in San Diego without having to accumulate the down payment on their own.  FHA loans in San Diego also allow non-occupying co-borrowers. This is a great way for San Diego First Time Homebuyers to get into the housing market.  San Diego FHA loans also allow the seller to pay up to 6% of the purchase price to cover the buyer’s closing costs.  Please feel free to contact The Mortgage Planners, a San Diego Mortgage Broker if you would like to get a free quote.

 
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2012 San Diego Conforming Loan Limits

Posted on March 16, 2012 by Shanne Sleder - San Diego Mortgage Broker & Banker

The 2012 conforming loan limits for San Diego County are staying at $417,000 for the traditional conforming mortgage and $546,250 for the San Diego high balance conforming program.  Remember that loans from $417,001 to $546,250 will have about a .25% higher interest rate and slightly more restrictive guidelines requiring higher FICO scores and lower debt to income ratios.  I have included a chart below that shows the 2012 conforming loan limits for other areas of California as well.

San Diego home loans that exceed the high balance loan limits of $546,250 will have to use a San Diego Jumbo Loan and will be subject to stricter underwriting guidelines and usually higher rates.

As a San Diego Mortgage Broker, I do have access to all three categories, traditional conforming, high balance conforming, and true jumbo loans.  Please let me know if you have any questions or would like an interest rate quote.

County One Unit Limit
ALAMEDA $625,500
ALPINE $463,450
AMADOR $417,000
BUTTE $417,000
CALAVERAS $417,000
COLUSA $417,000
CONTRA COSTA $625,500
DEL NORTE $417,000
EL DORADO $474,950
FRESNO $417,000
GLENN $417,000
HUMBOLDT $417,000
IMPERIAL $417,000
INYO $417,000
KERN $417,000
KINGS $417,000
LAKE $417,000
LASSEN $417,000
LOS ANGELES $625,500
MADERA $417,000
MARIN $625,500
MARIPOSA $417,000
MENDOCINO $417,000
MERCED $417,000
MODOC $417,000
MONO $529,000
MONTEREY $483,000
NAPA $592,250
NEVADA $477,250
ORANGE $625,500
PLACER $474,950
PLUMAS $417,000
RIVERSIDE $417,000
SACRAMENTO $474,950
SAN BENITO $625,500
SAN BERNARDINO $417,000
SAN DIEGO $546,250
SAN FRANCISCO $625,500
SAN JOAQUIN $417,000
SAN LUIS OBISPO $561,200
SAN MATEO $625,500
SANTA BARBARA $625,500
SANTA CLARA $625,500
SANTA CRUZ $625,500
SHASTA $417,000
SIERRA $417,000
SISKIYOU $417,000
SOLANO $417,000
SONOMA $520,950
STANISLAUS $417,000
SUTTER $417,000
TEHAMA $417,000
TRINITY $417,000
TULARE $417,000
TUOLUMNE $417,000
VENTURA $598,000
YOLO $474,950
YUBA $417,000
 
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FHA Loans in San Diego will See Increased Mortgage Insurance Soon

Posted on March 1, 2012 by Shanne Sleder - San Diego Mortgage Broker & Banker

The Federal Housing Administration (FHA) just announced on Monday February 27th, 2012 that they will be increasing the annual mortgage insurance premium on new San Diego FHA loans for all purchase and refinance transactions. 

FHA loans in San Diego will have their annual mortgage insurance premium (MIP) increased by 0.10 % for loans under $625,500 and by 0.35 % for loans above that amount up to the San Diego FHA Loan Limit of $679,500.  On a $300,000 30 year fixed FHA loan in San Diego with a Loan to Value (LTV) ratio of 95% or greater the premium will be increasing from 1.15% to 1.25%.  That is approximately $25 more per month.  On a $625,500 loan the premium will be increasing to 1.50% and will cost $182 more per month.  To calculate the monthly mortgage insurance payment on a FHA loan in San Diego, take the base loan amount and multiply it by the annual mortgage insurance premium percentage and divide by 12. 

There are multiple reasons for the increases.  The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual Mortgage Insurance Premium it collects by 0.10 percent.  This change is effective for case numbers assigned on or after April 1, 2012.   FHA is also exercising its statutory authority to add an additional 0.25 % on top of the .10% increase to mortgages exceeding $625,500. This change is effective for case numbers assigned on San Diego FHA loans on June 1, 2012. 

The Upfront premiums will also be increased by 0.75 % to 1.75% of the base loan amount for FHA loans in San Diego. This increase applies regardless of the amortization term or LTV ratio.  FHA will continue to allow financing of this charge into the mortgage.  This change will be effective for case numbers assigned on or after April 1, 2012. 

Acting FHA Commissioner Carol Galante stated “After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the return of private capital to the housing market.” “These modest increases are one of several measures we are taking towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers.”

These changes will not affect you if you currently have an FHA loan in San Diego, but if you or anyone you know were thinking of purchasing or refinancing with an FHA loan, now would be the time to pursue it before the changes take place.  Feel free to contact me, a 10 year San Diego Mortgage Broker veteran, with any questions you may have.

 
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Los Angeles HARP Program Available for Underwater Homeowners

Posted on February 22, 2012 by Shanne Sleder - San Diego Mortgage Broker & Banker

The new Los Angeles Home Affordable Refinance Program will be available starting March 19, 2012 to California Mortgage Brokers and Bankers. Guidelines for the Los Angeles HARP program will not have the 125% Loan to Value limit it currently has for fixed-rate Los Angeles Refinances owned by Fannie Mae and Freddie Mac. The Los Angeles HARP Program will now allow homeowners who are severely upside down
with their loan be able to get a Los Angeles Mortgage Refinance.

In addition, the Los Angeles HARP program will eliminate certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers who refinance. The Los Angeles Harp program will also be removing the requirement for a new property appraisal if there is an accurate AVM (automated valuation model) estimate provided by Fannie Mae or Freddie Mac.  In addition, the termination date for the Los Angeles HARP program has been extended till December 31, 2013 for loans originally sold to the Fannie Mae or Freddie Mac before May 31, 2009.

If you are considering a refinance in Los Angeles and your current loan would fall under the 125% limit currently in place for the Los Angeles HARP Program, it may make sense to look at starting the process now. In fact, I just closed a loan using the HARP program for a
client who owns a condo and the LTV was just above 120%. The HARP Program worked great for this client. We were able to get a 30 year fixed in the mid 4% range and save the client about $280 per month.

This client had mortgage insurance built into their current mortgage, which meant that we had to have mortgage insurance on the new refinance. The great thing is that mortgage insurance companies are making the process easy to transfer over the mortgage insurance to the new loan if you are using the Los Angeles HARP Program.

There are many lenders will only allow a Los Angeles HARP refinance with mortgage insurance if they are the current servicer, but as a California Mortgage Broker, I do have lenders who are allowing the Los Angeles HARP refinance program with MI even if they are not the current servicer of the loan.

If you would like to see how much you can save today by using the Los Angeles HARP
program or would like to find out more information and get your name on a list to be contacted after the new guidelines are released on March 19th, simply give me a call or fill out the quick quote and get your free interest rate quote today!

 
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HARP Program in San Diego for Upside Down Homeowners

Posted on February 21, 2012 by Shanne Sleder - San Diego Mortgage Broker & Banker

The new San Diego Home Affordable Refinance Program will be available starting March 19, 2012 to San Diego Mortgage Brokers and Bankers.   Guidelines for the new San Diego HARP program will not have the 125% Loan to Value cap it currently has for fixed-rate San Diego Refinances owned by Fannie Mae and Freddie Mac.  The San Diego HARP Program will now allow homeowners who are heavily underwater with their mortgage be able to get a San Diego Mortgage Refinance.

In addition, the San Diego HARP program will be eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers who refinance.  The San Diego Harp program will also be removing the need for a new property appraisal if there is an accurate AVM (automated valuation model) estimate provided by Fannie Mae or Freddie Mac.  In addition, the termination date for the San Diego HARP program has been extended until December 31, 2013 for loans originally sold to the Fannie Mae or Freddie Mac before May 31, 2009.

If you are considering a refinance in San Diego and your current loan would fall under the 125% limit still in place for the San Diego HARP Program, it may make sense to look at starting the process now.  In fact, I just closed a loan using the San Diego HARP program for a client who owns a condo and the LTV was just above 120%.  The San Diego HARP Program worked great for this client.  We were able to get a 30 year fixed in the mid 4% range and save the client about $280 per month. 

This client had mortgage insurance built into the previous loan, which meant that we had to have mortgage insurance on the new refinance.  The great thing is that mortgage insurance companies are making the process easy to transfer over the mortgage insurance to the new loan if you are using the San Diego HARP Program to refinance.  There are many lenders will only allow a San Diego HARP refinance with mortgage insurance if they are the current servicer, but as a San Diego Mortgage Broker, I do have lenders who are allowing the HARP refinance program with MI even if they are not the current servicer of the loan. 

If you would like to see how much you can save today by using the San Diego HARP program or would like to find out more information and get your name on a list to be contacted after the new guidelines are released on March 19th, simply give me a call or fill out the quick quote and get your free interest rate quote today!

 
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San Francisco HARP Refinance Helps Upside Down Homeowners

Posted on February 20, 2012 by Shanne Sleder - San Diego Mortgage Broker & Banker

The new San Francisco Home Affordable Refinance Program will be
available starting March 19, 2012 to California Mortgage Brokers and Bankers. Guidelines for the San Francisco HARP refinance program will not have the 125% Loan to Value limit it currently has for fixed-rate San Francisco Refinances owned by Fannie Mae and Freddie Mac. The San Francisco HARP Refinance Program will now allow homeowners who are severely under water with their mortgage be able to get a San Francisco Mortgage Refinance at today’s great interest rates.

In addition, the San Francisco HARP refinance program will eliminate some risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers who refinance. The San Francisco Harp refinance program will also be removing the requirement for a property appraisal if there is an accurate AVM (automated
valuation model) estimate provided by Fannie Mae or Freddie Mac. In addition, the termination date for the San Francisco HARP program has been extended till December 31, 2013 for mortgages originally sold to the Fannie Mae or Freddie Mac before May 31, 2009.

If you are considering a refinance in San Francisco and your current mortgage
would fall under the 125% limit in place for the San Francisco HARP Program, it may make sense to look at starting the process now. I just closed a loan using the HARP
program for a client who owns a condo and the LTV was just above 120%. The HARP Program worked great for this client. We were able to get a 30 year fixed in the mid 4% range and save the client about $280 per month.

This client had mortgage insurance built into their current mortgage, which meant
that we had to have mortgage insurance on the new refinance. The great thing is that mortgage insurance companies are making the process easy to transfer over the mortgage insurance to the new loan if you are using the San Francisco HARP Refinance Program.

There are many lenders will only allow a San Francisco HARP refinance with mortgage
insurance if they are the current servicer, but as a California Mortgage Broker, I have lenders who are allowing the San Francisco HARP refinance program with MI even if they are not the current servicer of the loan.

If you would like to see how much you can save today by using the San Francisco HARP
program or would like to find out more information and get your name on a list to be contacted after the new guidelines are released on March 19th, simply give me a call or fill out the quick quote and get your free interest rate quote today!

 
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Best Mortgage Rates in San Diego

Posted on February 17, 2012 by Shanne Sleder - San Diego Mortgage Broker & Banker

If you listen to the radio on your daily commute, you will hear multiple commercials for San Diego Mortgage Brokers saying that they can offer the best mortgage rates in San Diego.  Those same San Diego Mortgage Brokers also advertise low closing cost or no closing cost options.  My 10 years of experience as a San Diego Mortgage Broker has shown me that I can usually beat those other mortgage brokers 9 out of 10 times and truly offer the best mortgage rates in San Diego combined with the lowest closing costs.  

Currently I am helping a client refinance in San Diego and I have locked in an interest rate of 3.875% on a 30 year fixed and I am paying all his closing costs.  These are the best mortgage rates in San Diego I have ever seen!  Can you imagine a rate of 3.875% with no closing costs?  If you are looking for a mortgage in San Diego do not let this opportunity pass you by.  Please contact me or submit a quick quote and I will let you know what rates are available for your situation.

If you are looking to purchase a home in San Diego, the current low prices combined with the best mortgage rates in San Diego make this a perfect time to buy.  I am not only a San Diego Mortgage Broker who can offer the best mortgage rates in San Diego, but I also offer excellent customer service, a free pre-purchase consultation, and a on time closing guarantee.  I would be happy to give you a free pre-approval or interest rate quote when you contact me.

 
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