Low Down-Payment Mortgage Programs!

December 12th, 2014


In an effort to make homeownership more accessible, mortgage giants Fannie Mae and Freddie Mac announced that once again they will back mortgages with down payments as low as 3 percent. The new low-down payment mortgage programs could reduce costs for first-time and lower-income home buyers.

Making sense of the story

  • Under the program, mortgages with low down payments would be available to first-time home buyers, borrowers who haven’t owned a home for at least a few years, and to those who have lower income.
  • FHFA Director Melvin Watt commented, “These underwriting guidelines provide a responsible approach to improving access to credit while ensuring safe and sound lending practice. To mitigate risk, Fannie Mae and Freddie Mac will use their automated underwriting systems, which include compensating factors to evaluate a borrower’s creditworthiness.”
  • Private mortgage insurance (PMI) will still be required as borrowers are putting less than 20 percent down, but unlike with FHA loans, the PMI will typically roll off after five years once 20 percent equity has been reached.
  • To address criticism about loose lending standards, borrowers under the new programs would have to meet criteria that offset the increased risk, such as high reserves or lower debt-to-income ratios.
  • The programs could be available to borrowers with credit scores of as low as 620, which is the current Fannie and Freddie minimum for other loans.
  • Some studies have shown that moving from a 5 percent down payment to a 3 percent down payment doesn’t result in many more defaults. About 0.4 percent of borrowers in 2011 who made down payments of 3 percent to 5 percent on loans backed by Fannie Mae have defaulted—no more than borrowers who made down payments of 5 percent to 10 percent.
  • Fannie’s program will go into effect almost immediately, while Freddie’s won’t be available until March.
  • Source: Wall St. Journal

Loan limits raised in four California counties!

November 28th, 2014

Fanny Mae and Freddie mac have raised the loan limits for four California counties!  Ventura County is now $603,750, up from $598,000. Call your loan officer today or call me and I will refer you to one!

Cilck here for the full LA Times article.

America’s 500 most expensive zip codes…

November 14th, 2014

Read this great article on America’s most expensive zip codes. I’m so glad that Ventura is still a secret on the California coast!

Grant-Park-view-with-flowerscenic_pier_sunset

This month in Real Estate for November!

November 11th, 2014

Watch this video to see what’s happening in Real Estate for the month of November!

Interest rates drop to a new low! Great time to buy or refi in Ventura

November 3rd, 2014

Now is an amazing time to buy or refinance a home in Ventura with rate at their lowest in years! Read this amazing article from CNN and call me today!

California Dream courtyard

October 17th, 2014

Check out this beautiful courtyard! So beautiful and perfectly Ventura California! What a perfect place to sit and relax and enjoy the view.

 

 

 

Beisbol: From the Barrios to the Big Leagues Opens September 12, at 5:30 pm at The Museum Of Ventura County

September 12th, 2014

Ventura baseball club

It’s baseball season at the Museum of Ventura County! Beisbol tells the story of the Mexican American baseball teams and leagues that were formed in the early part of the twentieth century. See this chronology of the rich history of baseball throughout Ventura County. Gourmet Hot Dogs served, of course.
The exhibition is on view from September 13 through November 23, 2014.

 

My East Ventura Condo is in escrow after just 6 days on the market!

September 10th, 2014

I gave my seller the best news… We have 3 offers and they are all over asking! She loves me : )

DSCN2969 DSCN2959