Home Loans

Banks and sellers nowadays require buyers to submit purchase offers with a pre-approval letter. Hence, buyers can save considerable time if they go through a pre-qualification process and obtain a pre-approval letter from a direct lender or a mortgage loan broker/officer before starting to look for homes. At Weichert Realtors Elite, we have qualified loan officers who are up to speed with the latest development and can help with your home loans.

The rules and requirements for borrowing have been changing in the past several months. New risk-based fees are being added by the mortgage banking industry. For example, effective April 1, condominium buyers who cannot put 25% of purchase price as down payment will be required to pay an additional 0.75% add-on fee to their mortgage loan, no matter how high their credit score is. Buyers of duplexes where one unit is owner-occupied and the other unit is to be rented, will be charged an added 1% fee even if they have a FICO score of 800 and make a 50% down payment. - San Diego Union Tribune, Feb 15, 2009

CalHFA offering 30-year, fixed rate first-time home buyer loans

The California Housing Finance Agency (CalHFA) recently announced it is offering Cal30, a fixed rate, 30-year loan with up to 95 percent
financing. This new loan program is available for eligible first-time home buyers.

In addition to the Cal30 program, CalHFA also offers the California Homebuyer’s Downpayment Assistance Program, which can provide loans of up to 3 percent of a home’s value to assist with down payments and closing costs; the School Facility Fee Down Payment Assistance Program, which provides conditional grants to buyers of newly constructed homes for down payments, closing costs, upgrades, or other costs associated with the first mortgage loan; and the Affordable Housing Partnership Program, a joint effort between CalHFA and more than 300 cities, counties, redevelopment agencies, housing authorities and nonprofit housing organizations to assist with down payments and closing costs.

FANNIE MAE Expands Investor Multiple Mortgage Policy

Fannie Mae recently announced an expanded policy regarding multiple mortgages to the same borrower. To help support the recovery of the housing market, Fannie Mae is increasing its limit from four loans per borrower when the mortgage being delivered to Fannie Mae is secured by an investment property or second home, to a maximum of 10, for high-credit quality investors.

Eligibility and underwriting requirements include a minimum FICO score of 720 and 70 to75 percent maximum loan-to-value (LTV)/combined loan-to-value (CLTV)/home equity combined loan-to-value (HCLTV), depending on the transaction and type of property. The requirements apply to any investment property or second home loans being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower's other mortgages. C.A.R. Newsline, Feb. 11, 2009. - C.A.R. Newsline, Feb. 11, 2009