Category Archives: Uncategorized

FHA “Announces” Potential Loan Limits Starting October 1st, 2011

We have heard that the current FHA Jumbo loan limits and Fannie/Freddie High Balance Conforming and Super Conforming loan limits will decrease after September 30, 2011. FHA finally put it in writing in their FHA Market Analysis Brief released yesterday. 

In the article, FHA mentions that there are 669 potentially affected counties and county equivalents (major metropolitan areas). The smallest decreases will occur in four Ohio counties (Greene, Miami, Montgomery, and Preble) and one Texas county (Jeff Davis). These counties will see their maximums drop from $271,250 to $271,050. Seriously…?
 
However, the majority of “high limit” counties in Puerto Rico will drop by $221,000 from $606,250 to $385,250. The largest decrease ($250,750) will occur in Hawaii County from $618,750 to $368,000. California’s Monterey County is a close 2nd with a potential decrease of $246,750 (from the current national maximum of $729,750 to $483,000).
For those purchasing a home using FHA insured financing in San Diego County after October 1st, 2011, the limit will drop by $151,250 down to $546,250 from the current level of $697,500.  Although the percentage of CA FHA insured loans from 2010 that would have been affected is only 6%, the dollar volume that would have been affected would have been over $4.2 billion.

 

Personally, I close one FHA Jumbo in San Diego County for every four FHA conforming loans I close. Of those, about one out of four exceeds the potential new limit of $546,250. It will be interesting to see how this all unfolds as we approach the September 30th deadline.

Have any questions regarding FHA loans in San Diego County or anywhere in California? Call or email me today.

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Cash Recapture – No Waiting Period

Many people purchase San Diego County properties “all cash” these days, whether on the court house steps, or as part of a regular sales transaction. All cash offers can usually close quicker than those requiring financing, so some of these buyers use the all cash method with the idea of pulling the cash back out with a refinance.

Cash Recapture - No Waiting Period

Our Cash Recapture is a nice feature for a borrower who bought a property and owns it free and clear. Maybe the borrower bought it for cash because he/she got it for a great price and didn’t want to deal with a bidding war and the loan process. Now, one week later, he/she wants to pull cash out and they want it now!

Fannie and Freddie require a 6 month seasoning period on the purchase of San Diego County real estate before allowing a cash-out refinance. Some folks do not want to wait that long, they want to continue to build their real estate empire now!

Contact me today if you have any clients in California that could benefit from our program.

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How Do You Feel About Your Parents Selling The House You Grew Up In?

Karen Bernetti with Staging4Smooth Transitions wrote a great post yesterday: So, Your Parents Are Selling The House You Grew Up In. My parents remodeled my room when I went away to college, not the greatest idea as far as I was concerned, but it was nicer after the work was complete. 

Home Sweet Home In The Ground

They eventually sold the home, and after the home had been sold a couple times, the most recent buyer last year decided to level it and build new.

Now THAT was disturbing. Didn’t the new owner know about all of the great parties I threw at that house while the parents were away…?

Home Sweet Hole In the Ground.

So, your parents are getting ready to sell the house you grew up in. If you’re like many adult children, you might not be happy with their decision. Even though you don’t live there any more, you’re probably attached to that house and all the memories it contains. The thoughts of someone else living there could be absolutely unbearable to you.

While it’s not uncommon for adult children to be sad to see their parents sell the family house – try not to interfere with their decision. The house could be getting too difficult or too expensive for them to maintain. And depending on their health, the house might not even be safe for one or both of them any more. Sure you might be willing and able to help them take care of it – but they might be too proud to ask.

Parents [typically] make a lot of sacrifices for their children and at some point that has to stop. Parents should not be forced to stay in a house that longer serves them just to appease their adult children.

No doubt, making the decision to sell was very difficult, and they’re probably emotional about it too. You parents need to do what is best for THEM. They need your support and maybe even your assistance. Try to put your own feelings aside and help them. Talk to them about their decision. If they’re excited about their move, try to get on board with those feelings (even if it means pretending at first).

For seniors who have lived in the same house for a number of years, the process of sorting through years of accumulated stuff can be very overwhelming. There are lots of things you can do to help your parents, here are just a few:

1. Round up your siblings and get rid of all the stuff your parents have been storing for you in their attic or basement. They have enough of their own stuff to sort through right now, they shouldn’t have to decide what to do with your old clothes, toys, comic books, baseball card collections and/or college text books.

2. Offer to help them but let them stay in control of the process. Allow them to go at their own pace.

 3. If you’re worried that your parents will get rid of some things that are precious to you, talk to them openly about it. Be sure not to ask for something unless you’re certain they’re ready to part with it.

 

4. Parents often start giving things away that their children might not want. While you shouldn’t be forced to keep something you don’t want, do try to be as tactful as possible about it. Emotions run high during times like these and feelings could very easily be hurt.
5. If you can’t help out because you live too far away or if your work and/or family obligations are too excessive, offer to research professionals in your area who may be able to assist them. Look for professional organizers, move managers and stagers that specialize in helping seniors with their downsize moves.

 

Even if you are close enough and are not too busy to help, you might still want to seek out the assistance of a professional. An unbiased, unemotional third party might be just what your family needs right now!

Perhaps you feel your parents are making bad decisions about the sale of their house or are being irresponsible. Share your concerns with a trusted family member, friend or attorney. Remember that in the end it’s ultimately up to your parents to decide what’s best for them – even if that means they’re spending your inheritance.

 

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