Fannie Mae Homepath Mortgage is a very special mortgage you can only get on foreclosed homes that are now owned by Fannie Mae.  I wrote more about them in this article http://www.socalfhahomeloans.com/fannie-homepath-mortgage-great-option-to-buy-in-california/.  These properties are listed on your local MLS and your real estate agent should be able to do a search for you just to find Fannie Mae owned properties only.

However in this article I’m going to discuss getting Homepath financing on an investment property or second home.  To buy an investment property today, a borrower has to put at least 20% down.   But if you buy a Fannie Mae Homepath owned home with Homepath financing you only have to put 10% down.    This is a big difference in cash outlay for an investor who is buying rental properties.  Putting only 10% vs. 20% down allows you to buy more properties and keep more money in your bank account vs. locked up in the property. 

Additionally, you get a homepath mortgage on a second home with 10% down.  A second home is a home that is used for vacation purposes.  So if you see a house in California the mountains, the beach, the desert, on a lake, etc… that is owned by Fannie Mae, you can call me and apply for a 10% down homepath loan. 

One thing to be aware of with qualifying for a homepath mortgage on an investment property, is you cannot count the projected rent from the rental house you are buying as income towards qualifying.  So you have to qualify to buy the property counting all of the PITI (principle, interest, taxes and insurance) as debt.  Whereas when you buy a standard conventional investment property with 20% down, you can count the projected rent as income if you have two years of landlord experience.   All Fannie Mae Homepath foreclosed homes will be vacant when you buy them. 

There are some tremendous advantages of Fannie Mae Homepath Mortgages listed below:

• Remember, it has to be a Fannie Mae owned home to get this special financing.  Your Realtor should be familiar with Fannie Mae listings and it will almost always say the property is Fannie Homepath in the MLS listing
• Homepath minimum down payment is only 3%
• Homepath mortgage financing is available on a wide range of properties in all locations in California; from higher priced coastal areas such as San Diego, Orange County, Los Angeles, San Jose, San Francisco….to lower priced inland areas such as Sacramento, Fresno, Inland Empire, and everywhere!
• The is NO mortgage insurance with Homepath Loans!  HUGE advantage!  No up front OR monthly mortgage insurance.  This compares favorably to FHA loans which have a 2.25% up front mortgage insurance cost and a .5 to .55 monthly mortgage insurance cost.  Standard conventional loans carry monthly mortgage as well.
• There is NO worries of condo eligibility with Homepath loans.  With FHA loans and conventional loans, condo projects have to pass a whole bunch of tests such as % owner occupancy, % hoa due defaults, hoa maintenance reserves.  Homepath Mortgage Financing requires NONE of these checks!
• There is NO appraisal required with a Homepath Loan.  This saves you the cost of an appraisal and the potential obstacles to financing an appraisal can create

So I hope you enjoyed the article and please give me a call if you have any questions about Homepath Financing in California.  Call me at 858-922-7899 or homeloan8@gmail.com.

Warmest Regards,

Rob Chomentowski

homeloan8@gmail.com

Sr. Loan Officer (and Homepath, FHA, VA specialist)

858-922-7899

We are a direct lender offering Homepath Financing.

10% Down Only Needed To Buy Invesment Property With Homepath Mortgage In California is a post from: VA,FHA and Conventional Loans 858-922-7899

Getting New Loans Up to 10 Total Mortgage Loans In California is a post from: FHA,VA and Conventional Home Loans in all 50 States

The guidelines for Fannie Mae allow each individual to have up to 10 financed mortgage loans.  Not every lender will lend past 4 financed properties, but we will!  Here are the guidelines for getting a mortgage to buy or refinance a property if you have more than 4 mortgages already:

• 25% down payment or 25% equity in the property
• 6 months of PITI payments in cash reserves for each property you own (PITI stands for principle, interest, taxes and insurance)
• 720 middle credit score

So it’s that simple, this is all we require for mortgages 5-10.  Send me an email at homeloan8@gmail.com or call 858-922-7899 if you have any questions.

Some advantages of conventional loans today:

• 5% down payment conventional loans if owner occupy
• 3% down payment Homepath mortgage on Fannie Mae owned properties owner occupy
• 10% down payment Homepath mortgage on Fannie Mae owned properties 2nd home or investment
• Homepath mortgage on Fannie Mae owned condos require no condo qualifications
• Conventional interest rates are possibly the lowest they have ever been in history
• Loan amounts up to $729,750 in many areas of California such as Los Angeles, San Diego, San Jose, San Francisco, Alameda County, Contra Costa County, Santa Barbara County, Orange County and more

For more FHA, conventional, VA, or Homepath loan information in California feel free to send me an email at homeloan8@gmail.com or call at 858-922-7899.

Warmly,

Rob Chomentowski

homeloan8@gmail.com

Sr. Loan Officer (FHA, VA and conventional mortgage loan specialist)

858-922-7899

Prices are down on houses pretty much in every state and every city in the U.S.   So this makes it an excellent time to be a buyer and take advantage of the low home prices to move up to a better house in a better location.  One issue that holds many back is that they own their current home that they live in and could not qualify for a new mortgage loan with having to count both housing payments to qualify.  And FHA and conventional loans require you to have 25% equity in your current house to count as income to qualify the projected rent you will get from the house you are moving out of.  The good news for VA eligible borrowers is that VA homeloans allow you to count the projected rent you will get on your house you are moving out of as income to qualify for a VA loan on a new primary residence.  Very few VA lenders will allow this, but we will.

Generally to count the rent of the house you are moving out of as income to qualify VA loan, you will just have to supply a signed lease that will take effect when you move into the new house that you purchase. 

Because many homeowners in California are upside down or have little equity in their houses, they are NOT able to take advantage of the incredible home prices and interest rates right now because FHA and conventional financing requires them to have 25% or more equity in their current house to be able to use the projected rent it will get to qualify for a mortgage loan on a new primary residence.   This is preventing thousands and thousands of potential home buyers from moving up to a nicer house in a better neighborhood.  However if you are eligible for a VA mortgage, you may be able to take advantage of the low prices and move up to a better house because we allow you to count the projected rental income on the house you are moving out of.

So if you have any questions regarding this guideline or any other question about VA, FHA or conventional home loans feel free to give me an email at homeloan8@gmail.com or a call at 858-922-7899.

And some other general current and up-to-date advantages of VA lending:

• VA loan credit scores do not have to be perfect, a 620 score can get you a top VA loan interest rate
• VA loan limits in California go up above $900,000 for 100% financing in certain counties.  And many cities and counties such as Los Angeles, Orange County, San Diego, San Jose and San Francisco have very high VA loan limits
• VA homeloans have NO monthly mortgage insurance, a big advantage over FHA and conventional loans
• VA lending requires NO down payment, the loans are 100% financing
• Interest rates VA loan are still at close to 50 yea historical lows
• VA loan streamline refinance allows you to drop into a low interest rate easily if you already have a VA loan
• You can get a second VA loan if you have paid off your first VA loan, even a 3rd, 4th etc… But you can only have one VA loan at a time

Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions or want to apply for a VA, FHA or conventional loan.

Warmest Regards,

Rob Chomentowski

Sr. Loan Officer (and VA specialist)

858-922-7899

homeloan8@gmail.com

Rent Out Current House And Get a VA Loan To Buy A New House In California is a post from: VA,FHA and Conventional Loans 858-922-7899

Using Loan Against Retirement For FHA Loan Down Payment In California is a post from: FHA,VA and Conventional Home Loans in all 50 States

To qualify FHA loan it is required that you have a minimum of a 3.5% FHA loan down payment.  This 3.5% can also come as a gift from a relative.  Another way to come up with the FHA loan down payment is the get a temporary loan from borrowing from your IRA or 401k.  There are some excellent benefits to using this method to get the down payment to qualify FHA loan:

• When you borrower from your 401k or IRA, the underwriter will not count the monthly payment you make to pay back this loan for FHA loan approval
• Many times when to take out a loan against your 401k or IRA there is no interest and you only pay yourself back
• When you take a loan out against your 401k or IRA vs. cashing it out, there is no penalty and you keep your money invested gaining interest

So if you are struggling for a way to come up with the required 3.5% FHA loan down payment, consider taking a temporary loan out against your IRA or 401k to raise the down payment. 

And here are some very up-to-date latest benefits of both FHA loans in California and conventional loans in California:

FHA

• FHA loan interest rates are REDICULOUSLY low right now!   The lowest I have EVER seen in the business!  Ask me about a refinance!
• FHA loan down payment is only 3.5% and that can be a gift from a relative, this is lowest down payment available of any loan today (outside of specialized loans such as VA loans for military and USDA loans for rural properties)
• Qualify FHA loan with very lenient guidelines…only 620 FHA loan credit needed and 56.9% debt-to-income ratio (conventional needs a 680 credit score and 45% debt ratio)
• Maximum FHA loan up to $729,750 in many California areas such as Los Angeles, San Diego, San Jose, San Francisco, Santa Barbara and other areas.  This would allow you to buy a house with FHA loan California up to $756,217 with only 3.5% down

Conventional

• 5% down available if you have a 720 credit score with 41% debt-to-income ratio
• Conventional loan limits in California up to $729,750
• Homepath mortgage available on Homepath properties with 3% down and 10% down for 2nd home buyers and investors
• Homepath financing available on Fannie Mae owner condos without any condo checks

For more FHA, conventional or Homepath loan information in California feel free to send me an email at homeloan8@gmail.com or call at 858-922-7899.

Warmly,

Rob Chomentowski

homeloan8@gmail.com

Sr. Loan Officer (FHA, VA and conventional loan specialist)

858-922-7899

Keys to Qualify FHA Loan on 2-4 Units Owner Occupied in California is a post from: FHA,VA and Conventional Home Loans in all 50 States

FHA has wonderfully flexible and lenient guidelines that allow home buyers in California to get FHA loan to buy a 2-4 unit property as an owner occupant.  If you buy a duplex, triplex or fourplex and live in one unit and rent the others, you can buy the property with the low FHA loan down payment of 3.5% and also get today’s record low FHA loan interest rates.  Whereas an investor who buys a 2-4 unit property as an investment property they will not live in has to put 25% down and have much tougher loan qualifications and not quite as good interest rates.  So there are some huge advantages to buying a duplex, triplex or fourplex with FHA financing.

Now here are some of the keys to keep in mind when get FHA loan to buy a 2-4 unit.  First of all, if you a buying a 2 unit duplex property, there is no difference to the FHA loan approval qualifications of a condo or single family home.  You just need the minimum FHA loan down payment of 3.5% down (and that can be a gift from a relative), a 620 credit score and all of the other standard qualifications.  But with a 3-4 unit building there is an extra twist to qualifying for FHA financing.  With a 3-4 unit building, the total market rents of all the units (including the one you will live in) must be equal to or greater than the principle and interest of the loan + monthly property taxes + month home insurance (otherwise known as PITI).   If the total rents do not equal the PITI, then you must increase your down payment until they do equal the PITI.

Also keep in mind a real big advantage to buying a 2-4 unit property with an FHA loan is that you can use the rents from the units you don’t occupy as income to help you qualify for the loan. 

It can be a very financially smart thing for a home buyer to buy a 2-4 unit property:

1. They can one day move out of the property and retain the property as a investment property for cash flow, appreciation and tax benefits
2. If they plan to stay in the property, as time goes on the other units you do not occupy rents will rise eventually paying for 100% of the expense of owning the property allow you to essentially live for free
3. In expensive areas of California such as San Francisco, San Jose, Los Angeles, Orange County, San Diego and Santa Barbara where single-family homes have would be too high of a housing payment, owning a 2-4 unit can allow you to make ownership more affordable because you can collect the rents of the units you do not occupy 

So please give me a call or send me an email if you are buying a 2-4 unit property with an FHA loan and/or would like to be approved for an FHA loan to buy one.

Here are some reminders about some of the benefits of buying you home with FHA loan in California or a conventional loan:

• FHA loan credit score does not have to be perfect, a 620 score can get you excellent FHA loan interest rates in California
• Maximum FHA loan in California is $729,750.  Many counties and cities in California such as San Diego, Los Angeles, Orange, San Jose, and San Francisco allow you to go all the way up to $729,750 with just 3.5% FHA down payment
• FHA loan vs conventional loan…FHA requires only 3.5% down payment, allows lower credit scores and higher debt-to-income ratios.  Conventional can be had with 5% down, no up front mortgage insurance but had much higher credit score and debt-to-income ratio standards
• FHA loan down payment minimum is only 3.5% and can be a gift from a relative
• FHA loan interest rates are STILL close to record historical lows!
• Conventional loan offer the Fannie Mae Homepath loan with as little as 3% down and no appraisal needed, see my earlier article about Homepath  (http://www.socalfhahomeloans.com/fannie-mae-homepath-loans-an-excellent-alternative-to-getting-fha-loan-california/)

Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all about getting approved for a FHA, VA or conventional Loan.

Warmest Regards,

Rob Chomentowski

Sr. Loan Officer

858-922-7899

homeloan8@gmail.com

Each county in California has a VA loan limit for the maximum dollar amount you can get 100% financing on a VA loan.  Below are some examples of the maximum VA loan for 100% financing in the more populated counties in California:

• Alameda County $962,500
• Contra Costa County $962,500
• Los Angeles County $593,750
• Orange County $593,750
• Sacramento County $418,750
• San Diego County $437,500
• San Francisco County $962,500
• Santa Clara County $633,750
• Fresno County $417,000

So you can generally get a VA loan for 100% financing zero down payment as long as your purchase price does not go over the amounts for the counties above.  But you can go over these VA loan limits, but you would have to put down a small amount.  Here is the formula for how much you have to put down if you go over the maximum VA loan for your county:

• (purchase price-county loan limit)*25%

So here are some examples.  If you wanted to buy a $700,000 house in LA County with a VA loan, you would have to put down $26,562.  This was calculated by: ($700,000-$593,750)*25%.   If you wanted to buy a $500,000 house in San Diego you would have to put down $15,625.  ($500,000-$437,500)*25%. 

Give me a call if you have any questions about using this formula to figure out the VA loan limit f0r your VA purchase.

Here are some of the most up-to-date benefits of VA lending:

• VA homeloans are 100% financing, no down payment
• VA lending allows the seller to pay all your closing costs, so combine this with 100% financing of VA loans and you can buy a house with practically zero out-of-pocket costs
• VA loan interest rates are at 50 year+ lows, if not all time historic lows
• VA loan streamline refinances allow you to lower your rate to market rate without an appraisal, income documentation or credit checks
• You may be able to get a VA loan even if you think you have bad credit, ask me and I can help you improve your credit

Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions or want to apply for a VA loan.

Warmest Regards,

Rob Chomentowski

Sr. Loan Officer (and VA specialist)

858-922-7899

homeloan8@gmail.com

VA Loan Limits in California and What Happens If You Go Over The Limits is a post from: VA,FHA and Conventional Loans 858-922-7899

Conventional Interest-Only and Adjustable Loans Now Harder to Qualify for In California is a post from: FHA,VA and Conventional Home Loans in all 50 States

Adjustable mortgages and interest-only loans were extremely popular from 2002-2007 when values in California went through the roof.  Fannie Mae and Freddie Mac have now made it difficult to qualify for these loans.    And remember, FHA loans and VA loans are ALL fully amortizing loans.  Interest-only is not available with FHA or VA.

Here are some of the changes:

Changes to interest-only loans:

• Interest only loans not available AT ALL on cash-out refinances, investment properties and 2-4 unit properties
• Only available on primary residences and 2nd homes if you loan balance is 70% or less of your property value
• 720 min credit score required

Changes to 3 and 5 year fixed ARM’s:

• You must qualify using the start rate + 2% – this makes it much more difficult to qualify, especially since conventional loans now have a max debt ratio of 50%

So those are some changes raising the bar significantly for interest-only loans and 3 and 5 year ARM loan qualification.  Please contact me if you have any questions, 858-922-7899.

Here are some very current benefits of conventional and FHA loans:

FHA loans:

• FHA loan interest rates have recently dropped again and are even lower than former historic lows!
• Maximum FHA loan if California can get all the way up to $729,750 in many counties of California.  FHA loans in Los Angeles, San Diego, Orange County, San Jose and San Francisco can have very high loan limits.
• FHA loan down payment is only 3.5% and that can be a gift from a relative
• FHA home loan requirements allow a very lenient debt-to-income ratio of 56.9% where conventional loans are 41%-45% with less than 20% down.
• FHA loans do come with up front mortgage insurance that is rolled into the loan balance and monthly mortgage insurance for the first five years.

Conventional

• 5% down available if you have a 720 credit score with 41% debt-to-income ratio
• Conventional loan limits in California up to $729,750
• Homepath mortgage available on Homepath properties with 3% down and 10% down for 2nd home buyers and investors
• Homepath financing available on Fannie Mae owner condos without any condo checks

For more FHA, conventional or VA loan information in California feel free to send me an email at homeloan8@gmail.com or call at 858-922-7899.

Convention Loan vs FHA – Conventional Now Requires 7 Year Wait After Foreclosure in California is a post from: FHA,VA and Conventional Home Loans in all 50 States

When it comes to getting a new conventional loan vs a FHA loan, if you recently had a foreclosure you may have to wait seven years to get a new conventional loan, but still only three years to get FHA loan.  

Recently Fannie Mae (who controls most of the lending guidelines for conventional loans) came out with a new guideline where borrowers will have to wait seven years after the date of a foreclosure sale in order to get a new conventional loan.   This time period can be cut to five years if you can document an extenuating circumstance that was the reason for the foreclosure.  This change has been made by Fannie Mae due to the number of “strategic defaults” where borrowers who can pay choose to walk away.   This also encourages the pursuit of short sales for borrowers who are underwater and can’t sell.  Fannie Mae only requires a two year wait after a short sale to obtain a new conventional mortgage. 

FHA still remains only a three year wait after the date of a foreclosure sale to obtain a new FHA loan.   VA loans are the most lenient with only two years after foreclosure needed to get a VA loan. 

This new rule is especially impactful on investors wanting to get non-occupied investor loans.  FHA and VA loans are only for owner occupants.  So the ONLY option for investors to get a mortgage is conventional financing.  And investors are now out of the market for seven years following a foreclosure on their record.

Here are some of the most up-t0 date benefits of conventional and FHA loans:

FHA

• FHA loan interest rates are REDICULOUSLY low right now!   The lowest I have EVER seen in the business!  Ask me about a refinance!
• FHA loan down payment is only 3.5% and that can be a gift from a relative, this is lowest down payment available of any loan today (outside of specialized loans such as VA loans for military and USDA loans for rural properties)
• Qualify FHA loan with very lenient guidelines…only 620 FHA loan credit needed and 56.9% debt-to-income ratio (conventional needs a 680 credit score and 45% debt ratio)
• Maximum FHA loan up to $729,750 in many California areas such as Los Angeles, San Diego, San Jose, San Francisco, Santa Barbara and other areas.  This would allow you to buy a house with FHA loan California up to $756,217 with only 3.5% down

Conventional

• 5% down available if you have a 720 credit score with 41% debt-to-income ratio
• Conventional loan limits in California up to $729,750
• Homepath mortgage available on Homepath properties with 3% down and 10% down for 2nd home buyers and investors
• Homepath financing available on Fannie Mae owner condos without any condo checks

For more FHA, conventional or Homepath loan information in California feel free to send me an email at homeloan8@gmail.com or call at 858-922-7899.

Warmly,

Rob Chomentowski

homeloan8@gmail.com

Sr. Loan Officer (FHA, VA and conventional loan specialist)

858-922-7899

It is an understatement to say the bottom has fallen out of VA loan interest rates!  30 year fixed VA loan interest rates are at record lows, beyond imagination.  And the great thing about having a VA loan in place, is VA has a great program called a VA loan streamline refinance that allows you to drop your rate down to where the market rates are with a fairly painless streamline refinance. 

Here are some benefits of a VA loan streamline refinance in California:

• Many cases you don’t need a full appraisal
• Closing costs can be financed into your loan, so there is a limited cost out of pocket 
• No income or asset documentation required
• You don’t have to currently occupy the property.  If you have a rental property you once lived in with a VA loan on it, you can still take advantage of the lower rates with a VA loan streamline refinance

So those are some of the benefits of the VA loan streamline refinance in California.  Take advantage of this sudden and unprecedented dip in VA loan interest rates and lock in low 30 year fixed interest rate. 

And don’t forget, if you are in the market to purchase a home in California and you are eligible for to get a VA loan, there are many tremendous benefits:

• VA lending is 100% financing, requires zero down payment
• Interest rates VA loan are at record lows
• VA loan limits can go above $900,000 in many counties in California, and maximum VA loan sizes to 100% financing are very high in places such as San Diego, Los Angeles, Orange County, San Francisco, San Jose and Santa Barbara.  Jumbo VA loan programs make this possible.
• VA loan credit does not have to be perfect, a 620 score can get you very low VA interest rates
• You can get a second VA loan, third, fourth as long as you have refinanced out of or sold your previous properties with VA loans on them

Don’t hesitate to call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all or would like to apply for a VA, FHA or conventional loan.

Warmest Regards,

Rob Chomentowski

Sr. Loan Officer

858-922-7899

homeloan8@gmail.com

VA Loan Streamline Refinance in California is a post from: VA,FHA and Conventional Loans 858-922-7899