Here are some of the details:

INELIGIBLE LOANS FOR THE HARP DEAL:

• any loan currently in default
• existing loan delivered to Fannie or Freddie on or after 6/01/2009
• government loans
• reverse mortgages
• not a 1st lien

MAXIMUM LTV AND LOAN AMOUNT FOR THE HARP DEAL:

• LTV and CLTV is unlimited for all Occupancies and all Property Types
• Loan amounts are Conforming and High Balance Conforming
• Loan purpose is Rate and Term Refinance only; loan amount can include pre-paids and closing costs

ELIGIBLE OCCUPANCY AND PROPERTY TYPE FOR THE HARP DEAL:

• primary residence
• second home
• non-owner occupied
• 1-4 units
• condos, PUDs, manufactured homes

NUMBER OF FINANCED PROPERTIES FOR THE HARP DEAL:

• DU – no limit
• LP – no limit if loan is primary residence, max 4 properties if loan is 2nd home or investment property

NO MINIMUM CREDIT SCORE IS REQUIRED FOR THE HARP DEAL!

MORTGAGE HISTORY FOR THE HARP DEAL:

• DU  – must be current
• LP – 0×30 in last 6 months, 1×30 OK in last 7-12 months

The HARP Deal is only for mortgage loans owned by Fannie Mae or Freddie Mac.  To see if your mortgage may be eligible for The HARP Deal, check these two sites first:

Fannie Mae HARP Deal lookup: www.fanniemae.com/loanlookup/

Freddir Mac HARP Deal lookup: www.freddiemac.com/mymortgage

More information to follow for The HARP Deal, but this is a great start.  Contact Kevin Kueneke today to see if you may be eligible for The HARP Deal: www.kevink.amerifirst.us

Credit Issues: These days, a buyer’s credit is monitored until the end. Not only will the lender find out if a new account is opened, but also if anyone else even inquired into the buyer’s credit after the lender’s credit inquiry. If the new furniture will require financing, best bet is to wait until the loan is closed. If the new home’s garage is incomplete without a new car, wait until the loan is closed!

Remember To Keep Your Paperwork Handy

Employment: Changing jobs during an escrow is always an obvious no-no. But sometimes internal changes can destroy the deal. Examples include being switched from an employee (w-2) to an independent contractor (1099), or compensation switching from salary/hourly to commission. And lenders will call to verify that the buyer is still gainfully employed right before they hit the big “fund” button.

Assets: Many conventional loan programs require a minimum amount of assets or reserves in the bank. Although FHA and VA loans do not have minimums, some loan approvals are given based on compensating factors such as money in the bank after closing.

A loan may be approved based on an older bank statement with a certain amount of cash in the account. However, the approval might require that the most recent account statement be provided. If the new balance is lower, this could jeopardize the loan approval EVEN if there is still sufficient money in the account to cover down payment and costs.

I think every loan officer has had a loan die, or have a closing significantly delayed, from one or all of the above. Properly prepping buyers at the beginning helps, but sometimes you can only do so much. Have to admit, these things keep the industry interesting.

Q: Are modular homes treated in the same manner as manufactured homes?

A: Fortunately, no. Modular construction is also a factory-built home, but is treated the same as stick-built housing.

Q: Can the Upfront Mortgage Insurance Premium (UFMIP) be paid in cash or must it be financed into the loan?

A: The UFMIP must be either entirely financed into the mortgage or paid entirely in cash. Along those same lines, a seller concession may be used to pay for the UFMIP, but the concession must cover the full amount. As of late 2010, the UFMIP is 1.0% of the base loan amount (purchase price minus down payment).

Q: Is it acceptable to get a loan for the down payment?

A: Yes. Funds can be borrowed for the total required investment as long as satisfactory evidence is provided that the funds are fully secured by investment accounts or real property. This includes stocks, bonds, real estate (other than the property being purchased).

In addition, certain types of loans secured against deposited funds (401k, cash value of life insurance, etc) do not require consideration of repayment for qualifying purposes.

Q: Can gift funds come from an employer?

A: Yes, gift funds may come from the borrower’s employer. However, the gift donor may not be a person or entity with an interest in the sale transaction. Salary advances are considered unsecured loans and are therefore not an acceptable source of funds for closing.

Q: Are the debts of a non-purchasing spouse required to be included in the debt-to-income ratios?

A: Yes, in community property states such as California. However, the non-purchasing spouse’s credit scores are not factored into the loan decision.

Gone are the days when you could remove an unemployed spouse from the loan because they had a large car payment, but no income. Keep in mind that if the non-purchasing spouse refuses to give consent for the credit report then the loan will not be eligible for FHA insured financing.

Q: Is a borrower eligible if they have delinquent Federal debt?

A: If the borrower is presently delinquent on any Federal debt (VA-guaranteed mortgage, Title I loan, Federal student loan, SBA loan, delinquent Federal taxes), then they are not eligible for FHA insured financing until the debt is brought current, paid or otherwise satisfied.

I had a client within this past year that had a delinquent Federal student loan and was therefore ineligible. The client worked out a deal with the student loan servicer and was then able to purchase a home with an FHA loan.

Q: Can an FHA appraisal be transferred between lenders?

A: Yes. When a borrower has switched lenders, the first lender must transfer the FHA case number and appraisal to the second lender upon borrower request. FHA does not require that the lender name on the appraisal be changed when it is transferred to another lender.

Sometimes, a deal will fall out of escrow due to a particular lender’s overlays, i.e., tighter guidelines than actually required by FHA. This way, the buyer can switch lenders and not be forced to pay for a 2^nd appraisal.

Hope these tidbits help your business.

• Make french toast for the kid
  

  What Are You Doing Today?

• Mow the yard
• Return emails from last night
• Surf (please, let there be waves)
• Print Open House fliers for two of my agents and deliver them
• Go to Home Depot (of course, it is Saturday)
• Pick up paperwork from a new client
• Film a video blog
• Take my daughter to a birthday party (pick up present on the way)
• Swing by my agents’ Open Houses (have to support my referral partners!)
• Call my new contacts from this past week
• Install Carbon Monoxide detectors in my home
• Take kid to pumpkin patch to pick out our next Jack-O-Lanterns
• Fire up the BBQ and watch the World Series!

In a perfect world, I would be able to check off the entire list by the end of the day. However, life, just like the lending/real estate industry in San Diego is anything but perfect.

What are you doing today?

We are fast approaching the deadline for the current High Balance Conforming (Fannie Mae) and Super Conforming (Freddie Mac) loan limits. Effective October 1, 2011, these temporary limits are dropping in many areas including San Diego County.  

Better Apply Now

The current loan limit in San Diego County for single family purchases and refinances is $697,500 for Fannie, Freddie, and FHA loans. However, it is dropping to $546,250. In Los Angeles, Marin, and Orange Counties the current limit of $729,750 is dropping to $625,500.

This information is not new. However, different lenders have set different cut-off dates for taking in loans under the current limits. Some have actually already stopped accepting loans that exceed the limits that will go into effect on October 1st.

AmeriFirst Financial is still accepting these loans and will do so until mid-September. However, all loans under the “old” limits must close by September 30, 2011. NO EXCEPTIONS.

So, if you are purchasing or refinacing a home in California and having trouble with your lender because your loan amount will be too high after 9/30, give me call. I can probably help.

Here is an article i wrote last month: Tick Tock, The High Balance Conforming Loan Limits Are Dropping Soon

You have 3.5% down payment, or 5% down payment, or even 10% down payment.

Guess what…if you do not close by September 30, 2011, you will not be able to purchase that home without a full 20% down payment. Why? Because the current High Balance Conforming (Fannie Mae), Super Conforming (Freddie Mac), and FHA Jumbo loan limits are dropping from $697,500 to $546,250 for San Diego County loans that close October 1, 2011 or later.

Nationally, the loan limit drop is expected to have a minimal effect on housing. However, about one fifth of my monthly closings exceed this new lower loan limit.

And, even if you have 20% down payment, but your loan exceeds the new lower limit of $546,250 you will most likely pay a higher rate than you would today for the same loan balance. That is because any loan amount that exceeds this number will be considered a true Jumbo loan, thereby carrying higher rates and usually more strict qualifying guidelines.

Other “High Cost” areas, such as Los Angeles, San Francisco, and Orange County CA, currently have high balance and FHA Jumbo loan limits of $729,750. These limits will be dropping to $625,500.

This is not the end of the world. Just a quick kick in the pants, especially if you are planning on purchasing in the next two months. If you are looking to purchase anywhere in California, I can help with your financing. Please feel free to give me a call at 760-500-1919.

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Bathrooms are redone with new cabinets, flooring and vanities. Full Size Washer/Dryer in this 3 bedroom Friars Village condo convey. 2 Car Attached garage with large storage/bonus room adjacent. 

Start your Pre-Approval today with Kevin Kueneke of Primary Residential Mortgage by calling (760)500-1919 today.

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Nicely manicured private backyard in this Single Story Home In Vista Pacifica near Aviara Oaks Elementary School with a pebble patio, front yard is maintained by the HOA. This 3 Bedroom 2 Full Bath Home In Vista Pacifica has new interior paint and features a 2 car attached garage which has additional built-in storage. Schools include Aviara Oaks Elementary and Carlsbad High School. 

Carlsbad Ocean Close 3 Bedroom Home

This Single Story Carlsbad Home is Approved For Conventional, FHA, And VA Financing. Located at 914 Alyssum Road, Carlsbad CA 92011, this Single Story 3 bedroom Home In Vista Pacifica near Aviara Oaks Elementary School is now move-in ready. Available financing types: Conventional, FHA, and VA!

Contact Christine Kueneke with Windermere Real Estate SoCal to see this single story home for sale in Carlsbad’s Vista Pacifica.

Start your Pre-Approval today with Kevin Kueneke San Diego Mortgage Expert of Primary Residential Mortgage by calling (760)500-1919 today. This Single Story Carlsbad Home is Approved For Conventional, FHA, And VA Financing