Long Beach Homebuyers Can Secure FHA Financing

100% financing has pretty much disappeared for Long Beach properties.  Banks and mortgage lenders are running scared because of the declining market; they're unwilling to lend the full purchase price on Long Beach homes, today.  I have opinions about that policy but what I think doesn't matter.  I live in a realistic world and today, the reality is that I can't get you a zero down payment home loan.

Our old friend, the Federal Housing Administration (FHA) might provide some relief for the current capital drought.  FHA loans allow for:

1- A 3.5% Downpayment.  That downpayment can come as a gift from a family member, employer, or charitable organization.

2- Less than Perfect Credit:  Credit scoring isn't used as a determining factor for your loan approval.  Generally speaking, if you've paid your bills in a timely fashion, for the last twelve months, have no large collection accounts or judgments outstanding, and have foreclosures or bankruptcies that are at least two years old.

3- Generous debt-to-income ratios.  FHA loans allow for monthly debts for  up to 43% of your monthly income.  Compared to the traditional 36% ratio for convetional loans, this can help you get more home.

FHA loans are even more forgiving of credit situations when a larger downpayment is made.  If you are a Long Beach home buyer, with 10% downpayment, and were relying on a sub-prime mortgage (which isn't there anymore), a FHA loan may be a worthy consideration.

Updated:  10/10/2008

FHA loans are available to a maximum loan of $729,750 with a minimum 3.5% down payment (up from 3% as of 10/1/08) until January 1, 2009 when they are currently scheduled to drop the maximum loan amount to $625,000, this could change. 

FHA Lending Limits for LOS ANGELES COUNTY (LOS ANGELES-LONG BEACH-GLENDALE, CA METROPOLITAN AREAS): 

• Single Family Home or Condo: $729,750
• Duplex:  $934,200
• Tri-plex:  $1,129,250
• Four-Plex:  $1,403,400

Jumbo Loans are currently requiring approximately 30% down payment and start at $729,000, also currently scheduled to drop concurrently on 1/1/09 to $625,000 unless something changes between now and then.

Here is a link to the FHA Website for more information about FHA loans (FHA website)

Posted on February 24, 2008 06:12:12 by Brian.Brady

Long Beach Mortgage Rates Report: February 14, 2008

I fell in love with ARMs again, after a five month hiatus.  Hey!  It's Valentine's Day so I can tell you a love story.  This love affair has been going on since I was in my 20s.  The sexy allure of adjustable-rate mortgages were replaced by the stability of that old battle-axe, the fixed rate loan.  The culprit was the flat yield curve.  I dig curves so my eyes popped out of my head when I opened my e-mail this morning.

 

Adjustable-rate mortgages walked into my life like a wild-eyed, long-haired, bombshell on a Harley, toting a bottle of tequila. Normally, I balance her beauty with the risk she presents but I promise you, she's a changed woman.  This time, she promises to stay put for a ten-year period.  Frankly, ten years is plenty of time for me to outlast a few bumps in the economic road; it's a relationship worth having.

 

I'm talking about the spread between a 30 year, fixed rate loan and an ARM with a ten-year fixed period.  The 30 year mortgage is around 6.0% while the ten-year fixed rate ARM is offered at 5.25%. Ten years is a LONG time, regardless of the economy, so I'm recommending that over the fixed rate loan.  Let me illustrate how long ten years is for you.  In 1998:

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Laurie Manny Long Beach Realtor (562) 212-5420
Main Street Realtors Belmont Heights 244 Redondo Avenue Long Beach California 90803
Long Beach Real Estate Blog Long Beach Real Estate Website

 

http://www.lauriemanny.com/001EFE

Posted on February 14, 2008 07:28:22 by Brian.Brady

Chasing the Market Down - Are You Guilty?

Are you "Chasing the Market Down"?

 

Before your Long Beach home was listed you reviewed your neighborhood comparables, current market conditions and the location and condition of your home with your Long Beach REALTOR®; then determined your listing price of $750,000.   You were aware that prices in most markets nationwide have been declining and that declining prices would necessitate price reductions, if your home didnt sell in a timely manner. Your REALTOR® explained that not reducing your price could cause you to chase the market down.
 

Your home is placed on the MLS, is advertised in the local paper, is placed on many important Internet real estate listing sites, lovely fliers have been placed in your home and the sign is up in your front yard.  Several showings occur the first week, a few the second, one buyer comes through with their agent the third week.  Whats up with this?  Why are so few buyers coming to see my beautiful home?  Calling the REALTOR® to have a little chat with them and find out what is wrong.

Shortly after your home went onto the MLS the Long Beach real estate market took a steep decline.  A consultation with your REALTOR® revealed two new comparable listings in your community priced well below your current list price at $725,000 and $705,000.  At about the same time a couple of other comparable homes for sale, in your neighborhood, had reduced their listing prices to $720,000 & $710,000.  You were now priced high on the market at $750,000, on the market for 21 days and your REALTOR® says, in need of a large price reduction.

While you knew that you would likely have to reduce your price you didnt think that a $50,000 price reduction would be in order just 21 days after placing your home on the market; you resist and only agree to a $25,000 price reduction, after all that is a lot of money out of your pocket - right?  You are now sitting on the market in your area at $725,000. Your competition is priced at:

1. $705,000
2. $710,000
3. $720,000
4. $725,000

You are now one of the two highest prices in your neighborhood, congratulations!  Are you surprised when two weeks go by and only two buyers are interested in viewing your home? 


Your REALTOR® calls you and tells you just what you have been waiting to hear, an offer has been received, when can they come by to discuss it?  Excited you inquire "How Much did they Offer?"  Your blood begins to boil when you are informed that the buyer has offered $675,000 and has requested 3% in closing costs, your 2 large plasma TVs and the dining room furniture which cost you a small fortune.  Bellowing into the phone you instruct your REALTOR® not to bother coming over - just decline the offer.  You do not want to hear about a counter offer, this buyer is trying to rob you and is clearly out of their mind if they think they can buy a home in your neighborhood for that price!  The gall of that buyer!

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Posted on February 01, 2008 17:58:19 by Laurie.Manny

Did Countrywide Freeze Long Beach Home Equity?

Yesterday, I heard that Countrywide was freezing Long Beach home equity lines of credit; I thought it was a remote rumor.  I sniffed around the internet and found a lively conversation over on Yahoo Answers:

Countrywide just froze my HELOC

     29-Jan-08 05:31 pm    

Not to fret, I have a solution if this happened to you.  Call me.

Brian Brady

858-777-9751

Posted on January 30, 2008 07:07:49 by Brian.Brady

Long Beach Mortgage Rates Report: January 24, 2007: Party's Almost Over

Mortgage rates are reversing course and headed higher in the next 7-10 days.  Lock mortgage rates for all loans, purchases and refinances at application. Don't hold out to see if the Fed will cut rates farther; the mortgage lenders have already anticipated a January 30 Fed cut and priced it into the market.  If the Fed doesn't cut rates, mortgage rates are going to skyrocket.

If you were planning on refinancing your mortgage rate, the train is starting to leave the station and will quickly pick up steam.  The opportunity to get a 30 year fixed rate mortgage rate under 5.5% may quickly disappear as lenders try to slow down demand.  The last three days have been hectic with past clients calling me looking to lock-in a low rate.  You have a window of maybe 48 hours to get that great mortgage rate.

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Laurie Manny Long Beach Realtor (562) 212-5420
Main Street Realtors Belmont Heights 244 Redondo Avenue Long Beach California 90803
Long Beach Real Estate Blog Long Beach Real Estate Website

 

http://www.lauriemanny.com/0019FD

Posted on January 24, 2008 05:20:06 by Brian.Brady