If you're looking for information on interest rates check out the article I wrote.

Mortgage Interest Rate Pricing Factors

New Site - www.CAHomeLoanPro.com

I have set up a new site and blog.  You can find the new site at  www.cahomeloanpro.com

In the new site I focus on all loan programs including FHA Home Loans, Conventional Mortgages, and even the HARP Refinance.  I'm doing my best to update the blog weekly and provide Stockton, Lodi, Tracy, Elk Grove, and Sacramento with updated mortgage and real estate related info.  Please feel free to stop by and take a look.

FHA Mortgage Insurance Rates Increasing

On April 15th FHA mortgage rates are increasing once again to 1.15% annually and will continue to be 1% upfront.  If you are currently in contract you have just a day or two to order an FHA case number on a property to lock in the lower .90% MI.

Just to put it in perspective the current MI is 72.37 per $100,000 sales price with 3.5% down; After the change it will increase to $92.48.  So plan on paying an additional $20 per $100,000.

Quick Tip:
FHA rates are sitting around 5% and if you want a fast way to get a total monthly payment simply multiply 7.65% per thousand you want to borrow.  Example: 200(200K) x 7.65 = $1,530 per month

Conventionally at 20% down the math is the same but the multiplier is different since MI is not needed.  Use 5.85% as the multiplier.  200(200K) x 5.85 = $1,170 per month

How Long Before Banks Will Lend After A Foreclosure, Short Sale, Bankruptcy, or Deed In Lieu

San Joaquin and Sacramento counties have been hit hard by the housing market collapse.  With so many homes lost many are wondering when and if they can borrow money again  My goal today is to give you clearer answer to that question.

Here's a simple break down for minimum waiting periods:
Foreclosure: 3 Years (FHA) / 7 Years (Conventional)
Short Sale: 3 Years (FHA) / 4 Years (Conventional)
Deed In Lieu: 3 Years (FHA) / 4 Years (Conventional)
Bankruptcy: 2 Years (FHA) / 4 Years (Conventional)

Although you see the years clearly posted above it's not that simple.  You might receive a different answer depending on the circumstances surrounding your last home.  FHA has a minimum of 3 years, but that doesn't mean you will be approved at 3 years.  Investors are looking for circumstantial evidence to when reviewing the default on your past loan.  Hardships like loss of job and medical problems are usually considered acceptable reasons for default and can lead to minimum waiting times before borrowing.  Loss of value is not a good reason for default.


The goal before purchasing the next home is to have all supporting documentation to justify the reason for the loss of home and to fix the negative impact it left on your credit report.

CalHFA

Well it's official we have a blog and I wanted to start things off right by talking about CalHFA. This program is available to all low and moderate income families throughout CA. If you or your client make under the minimum salary requirements and have debt to income ratios of 36%/41% you should qualify for the program.

Now that I have you interested let's talk about the benefits of what CalHFA can do for you. First off a low interest rate that is nearly 0.500% below what the banks are handing out. Secondly they will offer a 30 year silent second simple interest loan of 3% of the sales price to use for the down payment and or closing costs. Buyers are only required to come in with 1% of their own funds at close.

The CAlHFA program is an FHA loan that is only for first time home buyers. The program can also be coupled with local city and county DPA programs that will even offer additional funds to assist those that qualify.

It's important for all potential buyers to speak to someone about the different programs available and what they might qualify for. For further requirements click here