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