Stockton and Lodi is a market filled with self-employed borrowers that have been left out of the housing market due to unfair regulations. Prospective home buyers who fall outside that box – even ones with good credit and a sterling history of repayment – might have found it difficult to qualify for a loan. We at the Mortgage House Inc. have been looking for ways to service those that didn’t quite fit into the conforming loan box. I’m happy to announce we now offer several niche programs to fill that gap including bank statements for income and interest only options for loan amounts up to $3,000,000.
These new programs are some of the most innovative ways to put a self-employed borrower in a home. However the new products aren’t for everyone. These programs will tailor to those with strong credit (700 min) with a history of financial responsibility while using the monthly deposits to help determine income for the loan. These programs are critical of past credit events and restricts lending to those with negative credit events in the past five years (No charge offs, collections, or tax liens) and the bank statements shouldn’t reflect NSF charges or occurrences.
These programs are geared toward the purchase or refinance of an owner-occupied home. It’s Maximum allowable LTV (loan-to-value) for the program is 70% for purchase loans and 65% for refinances.
On the surface these programs may raise eyebrows, but they’ve been carefully tailored to focus on credit behavior, healthy equity positions and realistic income calculations. You may ask “why offer these loans”? Because as the ability to repay is proven by the credit history, sizable equity positions and income is based on a non-biased asset statement that’s not watered down through a self–employed borrower’s accountant.
With 65-70% Loan to Value the borrower has a vested interest in keeping the loan current and provides enough skin in the game to make these loan programs viable for the lender.
Feel free to contact me directly if you’re interested.
JUMBO Financing with No PMI – You better believe it!
The market is definitely shifting and prices are increasing which is why new programs are coming around to fill in the gaps. Jumbo mortgage guidelines had been overly invasive and difficult in the past but recently new investors have come into town to offer a better option.
At the moment we can provide financing on JUMBO mortgages without PMI (Private mortgage Insurance) with as little as 10% down with a 680 credit score. A few weeks ago I would have told you that were impossible, but things are changing rapidly. These new programs are reducing the reserves, credit score, loan to value, cash-out loan to value etc. If you were told no before you may want to give us a call to see if your situation now fits.
Loan limits rise in San Joaquin County and Sacramento county for the third year in row. Over the past 8 years our housing prices have shifted drastically and many of our home prices saw 40-60% drops from their 2007 highs. The economy has been improving and our housing market has rebounded faster than most thought was possible; which is why were seeing loan limit increases. This is welcomed news as many homes in San Joaquin and Sacramento counties have been priced above FHA loan limits for years.
When Loan limits rise potential buyers can purchase a home that may have been out of reach by offering a wider variety of favorable guidelines that FHA and conventional loans provide. Buyers purchasing above set loan limits can still use Jumbo financing, but that also comes with many the negatives borrowers are looking to avoid like larger down payments, higher interest rates, and strict UW guidelines. Using traditional conforming financing is typically the cheapest and easiest financing to obtain which is why it’s so great when they widen the limits.
2017 FHA Loan Limits San Joaquin
| 2017 FHA Loan Limits - San Joaquin County (Stockton, Lodi, Manteca)
2017 Fannie Mae Loan Limits San Joaquin
|2017 Fannie Mae Loan Limits for San Joaquin County (Stockton, Lodi, Manteca)
2017 FHA Loan Limits Sacramento
|2017 FHA Loan Limits Sacramento (Elk Grove, Natomas, Galt, Folsom, Sacramento)
2017 Fannie Mae Loan Limits Sacramento
|2017 Fannie Mae Loan Limits Sacramento (Elk Grove, Natomas, Sacramento, Folsom,Galt)
Strengthen Your Offer
How to Sweeten Your Real Estate Offer
The real estate market is finally moving in the right direction, and buyer demand is on the rise. During the recession most areas suffered from decreased housing production; which has left a dismal supply of existing homes.
Frustration sums up the feeling many buyers are facing when losing out to other offers on home purchases. Investors and cash buyers are dominating areas and leaving the first time homebuyer out in the cold.
The key is to find a way your offer can stand out above the competition. First evaluate the seller’s position and adjust your offer to suit.
Ask yourself two questions:
- What type of seller are they?
- What are they motivated by?
In today’s marketplace sellers consist of banks, short sellers, investors, and current home owners.
Banks are selling properties that have previously foreclosed. Most banks have written off losses and are motivated by the path of least resistance. Cash and “as-is” buyers typically beat out higher financing offers. Banks prefer short closing times and limited repair work, so cash is usually king. Offering to guarantee the offer price regardless of the appraisal can sometimes trump a competing cash offer.
During a short sale the seller doesn’t typically scrutinize what offers come in, because the bank will be the deciding factor. The seller may only want to see that you are capable of increasing the sales price if the bank’s counter offer comes in higher than your offered price. The bank will be more likely to accept the offer without seller paid closing costs.
The house flippers of today buy low and sell high. They sell turnkey properties to those who have the most to spend. To secure a flipped property write the best possible offer that will net them the highest return. Asking for closing costs and title/escrow fees may be a mistake.
Current Home Owners
When offering to buy an owner occupied home it’s important to know the situation of the seller. Each situation may warrant a different offer. The highest priced offer may receive the acceptance, but the terms may lose it. Work with a lender to secure a pre-approval to shorten the close time and avoid asking for too much (i.e.: repairs, closing costs, time).
Things you can do to strengthen your offer:
- Pay all title and escrow fees
- Don’t ask for seller paid closing costs
- Purchase the property “AS-IS”
- Reduce the number of days to close
- Guarantee the purchase price of the home