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Conforming Loan Limits Increase – now $679,650 in high cost areas

Written by Clay on . Posted in Fannie Mae, Freddie Mac, Homebuyers, Real Estate, Realtors, Renovation Loans, reverse mortgage, Uncategorized

Major Increase in Monterey; Sonoma;  Ventura and Yolo Counties in CA; Summit County in UT as well as King; Pierce and Snohomish Counties in Washington

Single family conforming loan limits increased to $453,100 across the nation and to $679,650 in certain high-cost areas. Several counties that previously were in between the base and high-cost limits saw significant increases based on rising property values in Signet Mortgage service areas. Monterey; San Diego; Sonoma; and Ventura Counties in California; Summit County in Utah and King; Pierce and Snohomish Counties in Washington will now have access to conforming loan limits reflecting the current market values. The new conforming limits will be effective for loans closed after January 1, 2018.

The new limits are helpful as conforming rates can be lower than jumbo rates and underwriting more consistent and flexible so a few more transactions will get done!

A purchase in the Bay Area up to $849,500 at 80% loan to value can be done with a conforming loan … Particularly relevant with this announcement is the average U.S. home prices have improved as this is the second increase in as many years after being unchanged since 2008.

Here is a link to the loan limits by county for Signet Mortgage service area (CA, WA, OR, ID, UT) and for the entire country.  Included on the right of the chart are the changes from 2017.

The press release from FHFA is here. Certain high-cost areas have the higher limits at 150% of the base at $636,150 (150 % of $424,100).  But many counties, such as Monterey, San Diego, Sonoma and Venture (CA) as well as Summit (UT), King (WA), Pierce (WA) and Snohomish (WA) saw significant bumps to its loan limits. Here are highlights of loan amounts and details for single family and up to 4 units and changes for those counties.



The changes do not impact FHA forward or reverse mortgages or VA loans for the moment. Those announcements should be forthcoming in the next couple of weeks.

As a mortgage professional in business for over thirty years, I am here to consult with you and answer any questions you have about the strategic use of your mortgage. Let’s talk about your goals and perhaps ways that you can take advantage of these changes.  Call or email me – I am happy to help!

 
Conforming Loan Limits

Conforming Loan Limits Increase for First Time Since 2007

Written by Clay on . Posted in Fannie Mae, Freddie Mac, Homebuyers, Real Estate, Realtors, Renovation Loans, reverse mortgage, Uncategorized

Major Increase in Monterey; San Diego; Sonoma; San Luis Obispo; Ventura and Yolo Counties as well as King; Pierce and Snohomish Counties in Washington Single family conforming loan limits increased to $424,100 across the nation and to $636,150 in certain high-cost areas. People who need a loan can find forbrukslån uten sikkerhet here. Several counties that previously were in between the base and high-cost limits saw significant increases based on rising property values in Signet Mortgage service areas. Monterey; San Diego; Sonoma; San Luis Obispo; Ventura and Yolo Counties in California as well as King; Pierce and Snohomish Counties in Washington will now have access to conforming loan limits reflecting the current market values. Speaking of loans, I know that you are familiar with “student aid bill of rights” which was signed by President Barack Obama in 2015 aiming to help students with their student loans. It is still active now, apply! According to knowledgefirstfinancialresp.ca/, the Federal Housing Finance Agency (FHFA) announced these changes in a press release  today.  The new conforming limits will be effective for loans closed after January 1, 2017. The new limits are helpful as conforming rates generally are lower than jumbo rates and underwriting more consistent and flexible so a few more transactions will get done!   A purchase in the Bay Area up to $795,000 at 80% loan to value can be done with a conforming loan … Particularly relevant with this news announcement is the average U.S. home prices have edged slightly above pre-decline levels from 2007.  Data published in the third quarter Housing Price Index (HPI), reveal that housing prices are approximately 1.7 percent above the value for third quarter 2007. Here is a link to the loan limits by county for Signet Mortgage service area (CA, WA, OR, ID, UT) and for the entire country.  Included on the right of the chart are the changes from 2016.   The source document from FHFA is here. Certain high-cost areas have the higher limits at 150% of the base at $636,150 (150 % of $424,100).  But many counties, such as Monterey, Orange, Sacramento, San Diego, San Luis Obispo, Summit (UT), Jefferson (WA), Pierce (WA) and Snohomish (WA) saw significant bumps to its loan limits. Here are highlights of loan amounts and details for single family and up to 4 units and changes for those counties. 2016-11-23_1206           The changes do not impact FHA forward or reverse mortgages or VA loans for the moment. Those announcements should be forthcoming in the next couple of weeks.   With the 2008 economic stimulus plan FHA increased loan limits to $625,500 for reverse mortgages for one year and has extended this limit one year at a time since.  The $625k is due to expire this Dec 31. We should hear soon if it has been extended again or changed up or down. As Jonckers professional in business for over thirty years, I am here to consult with you and answer any questions you have about the strategic use of your mortgage. Let’s talk about your goals and perhaps ways that you can take advantage of these changes.  Call or email me – I am happy to help!     Clay-Selland Signet R3 280x120
Post Election Interest Rates Increase

Trump Thump: Mortgage Rates Jump 0.500% Post Election

Written by Clay on . Posted in FHA, Freddie Mac, Homebuyers, Presidential Election, Rate Updates, reverse mortgage

“Trump Thump” – Mortgage Rates Jump 0.500% or More Post Election

The election is now over and the dust has settled. As painful as it might be to accept, a trend described by others as the “Trump Thump” means we may now have to get used to 30-year fixed conforming loan rates at or above 4.0%.    

 

Prior to the election, pundits had clearly agreed on the idea that the markets “built in” the prospect of a Clinton victory, and – in the unlikely event that Trump won – this surprise victory would mean an improvement in the bond market because of the uncertainty Trump would bring to the table. Well, so much for that idea. 

 

Economic experts maintain that Trump’s economic policies will boost spending and business, as well as bring inflation (all of which leads to lower bond prices and higher mortgage rates). Interesting to me how quickly everything turned in the direction. Was there not enough time spent analyzing the impact of a Trump victory? Did this catch the markets unprepared?  

 
Trump Election, Mortgage Interest Rates

Post Election Results on Mortgage Rates

According to a recent article by Money writer, Taylor Tepper, markets indicate there’s a 75% chance that the Fed raises short-term rates modestly when policy makers meet in mid-December. Here’s a more in-depth analysis on what President-elect Trump means for interest rates in Tepper’s article:  President Trump Interest Rates Federal Reserve. CNBC’s Diana Olick weighs in on the mortgage rate crisis: watch video. 10-year treasury yields have also spiked in the days since Trump’s election, and something to keep in mind with that is: Don’t panic. This sudden rise isn’t likely to continue, at least, not because of the Trump presidency. “Rates tend to move very sharply in short periods of time and very little in prolonged periods of time,” said Greg McBride, chief financial analyst for Bankrate. “It’s not something that I think continues.” So, my advice to those who are anxious about mortgage rates, know that this is a cycle… and as far as rates are concerned, nothing is on the horizon that would suggest waiting for an improvement in rates. Either way, expect volatility and a continuing upward trend in rates.  
Contruction Defect Claim Settlement

Pacific Terrace Condominium Litigation UPDATE

Written by Clay S. on . Posted in Case Studies, Condo, Homebuyers, Refinance

UPDATE!  Pacific Terrace Condominium Owners’ Association has resolved its litigation claim against KB Home South Bay, Inc.  Important to note:  The settlement agreement was signed by both parties, and the construction defect claims have been withdrawn. No lawsuit was or will be filed. If you choose to refinance or sell your home, a copy of the Notice to the Members of Settlement from Fenton Grant Mayfield Kaneda & Litt, LLP trustworthy personal injury attorney at Law should be provided to the lender or prospective purchaser as demonstrative proof there are no construction defect claims pending. We also are hiring court reporters from Naegeli which is known as the best in the nation when it comes to providing court reporters to the legal community so you know that you are in safe hands. Signet Mortgage has helped several homeowners when it was difficult … and now look forward to helping when more options will be available.  Give us a call or email for your mortgage questions and we will reply with options.   Pacific Terrace Condo Litigation             Litigation issues regarding the Pacific Terrace Condominium Owners’ Association and the KB Home South Bay have been ongoing since 2014 and have prevented many owners from refinancing your home with conventional financing and limited financing options for buyers as well. 5x7_postcard You are not applying for a loan, yet. Before you make a formal application and we start the loan process I need some basic information so that I can give you an idea of what will be possible in a refinance for your situation.  Review the mattress reviews and details on this page and then complete the information request.  Lets get started! Frequently asked questions .. How can Signet Mortgage offer options for a refinance and the other lenders I have contacted including banks cannot? Simply said, I work harder. As a mortgage company I have access to 15 lenders and to be honest I worked with all of them before I found one that understood the situation correctly. It is much easier for a bank or lender to say NO once they hear there is litigation involved with the HOA at all. The facts are the litigation involves common areas and not the specific units so meets Fannie Mae guidelines just fine.  Documenting the litigation properly means competitive conventional financing are available.   The lender I work with is a direct seller to Fannie Mae and therefore does not have self imposed overlays like most banks and lenders that get in the way. Are the loan options competitive? Absolutely. In fact, the lender is one of my top lenders in both in price and service. There is no added cost to the loan simply because it’s a bit harder to do. What is the process? You will provide me some basic information that will allow me to respond with loan options reflecting current market conditions. Once we agree that it makes sense to move forward I will ask for more detailed information in a formal application. We utilize dropbox for documents and electronic application to make the  process as efficient for you as possible. Who is are you and who is Signet Mortgage? Signet Mortgage is headquartered in Danville California license in five states. I am the president of the company.  I have been in the mortgage business for almost 15 years after a career as a CPA and as a senior financial officer for a couple of publicly traded retailers like best pos in the Bay Area. Please check out more details at www.SignetMortgage.com How can you do a “no-cost loan”? The easiest way to think of a no-cost loan is to think about points. You may be familiar with paying points to buy down to a lower interest rate. Using negative points means the lender contribute a point or two to the closing in exchange for a slightly higher rate – the negative points then can be used to cover the cost of your transaction. Doing a no-cost transaction makes good sense in almost every situation.  If there are no costs it removes a barrier to doing a loan and if there is a significant enough savings – it’s an easy decision. You will be provided options for the lowest rate as well a no cost option so you can make your own informed decision. Would cash out option be available? Absolutely. The rate will be slightly higher because Fannie Mae charges an additional fee for a transaction with cash out as it is viewed as more risky than a rate and term refinance.  Again, it would be worth looking at options so you can decide. Will this lender do a purchase transaction? Absolutely. There would not be any restrictions refinancing in this complex either purchase or refinance. Is this only available for a limited time or number of loans? No. Rates are close to historical all-time lows with interest rates. So, if it makes sense to refinance it would probably be a good idea to do this soon simply to take advantage of current favorable rates.   If the nature of the litigation were to change and involve individual units or if a formal lawsuit was filed with the court that could change. Also lenders generally do not like to do may not like to do too many loans in a specific complex just due to normal risk management. They have not given me any indication or hesitation to do as many loans as we can put together. Why work with Clay Selland at Signet Mortgage? Quite simply I work harder. Bank loan officers get paid based on applications working for the “Bib Bank” are subject to significant underwriting overlays so options they can offer can be more conservative than what is available directly from Fannie Mae. In addition – I do not get paid anything if I don’t close your loan. That’s why I am careful upfront to be confident you will qualify for a loan before I even take an application. The Signet Team and I will be in consistent communication throughout the entire process to make sure your loan goes as smooth as possible. The lending environment these days is very conservative and somewhat cumbersome but we know how to work through that and get you a loan that will benefit your family.  

Home Prices Going Up? Interest Rates Up Too? Want to Buy a Home?

Written by Clay on . Posted in Homebuyers

housing-market Everyone has a payment budget. You MUST think strategically! How long you plan to stay in your home can play an important role in your home buying strategy. For example, if you plan to be in you home 5-7-10 years, an adjustable rate mortgage could provide $59,000 more loan with same payment when compared to a 30 year fixed loan. Buying soon while rates are lower could be advantageous too! If rates were to increase 0.50%, you could lose about $37,000 in loan amount assuming the same payment. Want a professional to assist with a strategy for your home loan? Give me a call. clay signature black Clay Selland, President Signet Mortgage Corporation 925-807-1500 x303 Clay@SignetMortgage.com NMLS#183492

When a Pre Approval is Not Worth the Paper it’s Written on…and No Better If From a Direct Lender

Written by Clay on . Posted in Homebuyers

It’s a very competitive real estate market and legitimately sellers are choosing which offer to accept based on the strength of the buyer.  Often electing to take a substantial discount in price for a cash offer and a quick closing sellers may unnecessarily leave money on the table. Well-qualified borrowers can miss out on their dream home by not being prepared. The key is getting a solid pre approval. For many years at Signet Mortgage, we have only issued pre approval letters when we have verified a clients income, asset and credit affirmation, as well as obtain automated underwriting from either Fannie Mae or Freddie Mac. In this market that may not be good enough. Because your credit score is one of the most important aspects of your financial profile. However, if you have issues with it, seek help from creditrepairservices.co. Not all lenders will allow the processing of a loan without identifying a specific property, this is understandable because not all transactions go through and it is an investment on their part to fully underwrite the loan that may not go through. Signet, operating as a mortgage broker, has access to 10 lenders that will allow a full underwrite of a “to-be-determined” property. We have a full range of investor options as well as competitive lender choices. This approach is an upfront investment by the buyer that can read significant rewards. With a full underwrite, the pre approval letter now would only have contingency on the identification of a property and no loan contingency with respect to the client putting their offer on par with a cash offer. preapproval The idea that a pre approval from a direct lender is any stronger is hogwash. The quality of the pre approval letter is based on the work done on the loan file to support the pre approval and the experience and integrity of the loan officer – period. Again, as a mortgage broker, Signet has access to just under 20 lenders which assures clients that I can find a successful solution to a buyers unique circumstances. Make sure to leave the time to get a full pre approval before making an offer on your new home! That small investment will help your offer to be successful.  Did you know three out of four real estate agents aren’t true professionals? Many agents have backgrounds in other professions and have just recently transitioned into real estate. The problem with this is that a real estate agent relies on his or her experience to properly evaluate, strategically price, market and advertise your home or a home you are interested in. The negotiating skills necessary to correctly represent you throughout the buying or selling process can only be learnt by bringing parties together and closing deals in the Brantford real estate market. As a CPA and Real real estate agent, I approach real estate financing with the care and professionalism that you deserve for one of the largest transactions you will do in a lifetime. If this sounds like someone you would like to work with to get solidly pre approved for your next home please give me a call. My team and I will do the work to make sure that your offer is the one that the seller loves! 

Loan Fee Increase to be Delayed – A Bit of Holiday Cheer!

Written by Clay on . Posted in events, Fannie Mae, Freddie Mac, Homebuyers, Uncategorized

  Fannimgresie Mae and Freddie Mac guaranteed fee increase will not go into effect in April as previously announced.  Rep. Mel Watt, the incoming director of FHFA, said late last week that he would delay an increase in mortgage fees announced in early December.  In a prepared statement, Mr. Watt indicated the delay of the loan fee increases “until such time I have had the opportunity to evaluate fully the rationale for the plan.” The planned increases included a sharp rise in fees from Fannie Mae and Freddie Mac for borrowers who do not have at least 20% down payments and credit scores between 680 and 760. This is good news coming at a time when rates have already seen an increase after the Fed announcement to taper off the purchase of mortgage-backed securities. We will keep a sharp eye on these developments after Mr. Watt is sworn in early January.

Beware of Solicitations After Closing

Written by Clay S. on . Posted in Current Events, Homebuyers, Real Estate, Refinance

These solicitations to get a copy of your recent deed after closing ARE BOGUS!

Bogus Title Records Solicitations If you have ever closed a real estate transaction or refinance – then you have likely received solicitations from “title recording services” or “local property transfer services” looking very official because they contain details of your recent transaction. These solicitations are bogus and simply a money grab for companies set up to sell you a copy of your grant deed that the county is going to send you anyhow, or ask you to complete a declaration of Homestead which you can do with the county for free. This is the old-fashioned form of phishing – these companies are selling you “services” that you do not need. While these companies may be technically compliant because the fine print disclaimer indicates they are “not a governmental agency and do indicate you can get a copy of your deed or record from the county recorder’s office” – it still stinks and is very deceptive. The documents are cleverly designed to create urgency and be something that you need to take care of right away simply because they arrived shortly after your transaction and always contain a deadline for response.  They even go so far as to put a warning on the envelope indicating “$2000 fine and five years imprisonment or both for a person interfering with the delivery of this letter” … Well that is standard Postal Service regulation!

Treat these as junk mail and toss them in the trash (or better recycle the paper!)  Keep that $48.95 – $89.00 in your pocket – where it belongs!

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