San Francisco Ca, As you have heard, basically…EVERYWHERE IN THE MEDIA, lenders require A LOT of documentation to close a loan when purchasing or refinancing a home in this day and age. Loans are definitely fully documented and without question YOUR BEST DEFENSE IS A GREAT OFFENSE!

That being said here is what you must have prepared with your lender and agent when prepared to write offers:

• A Cover Letter – Tell your story and make sure your lender know your story. Don’t forget to include any skeletons dangling in your closet, collections, alimony, child support or unpaid IRS liens. Paint a pretty picture but explain any skeletons.
• A completed loan application – review for accuracy.
• If you own property already tie all mortgages from your credit report to your properties.
• If you own property already submit mortgage statements and proof of insurance and property taxes.
• Tri Merge Credit report – your lender will pull this. Get a copy, don’t pull your own. Especially if you are writing on bank owned properties. Most bank owned properties want you pre approved with their institution. That means if you go out and look at offers on 5 houses owned by 5 different banks you may have 6 credit checks! Keep them to a minimum.
• Photo ID.
• Income documentation – 1 month paystubs, 2 years w2’s, 2 years complete tax returns, and business returns if the borrower owns more than 25% of a company.
• Earnest money deposit receipt, copy of check and proof cleared borrower’s account.
• Most recent months bank statements or (Per AUS findings).
• Provide letter of explanation for all large deposits (Anything Greater than 10% of gross monthly earnings must also be documented) including paper trail- cancelled checks, corresponding bank statements, etc.
• Gift Letter and Paper trail: Gift Letter, Donors ability to gift and transfer from donor to borrower with final balance in account.
• Contract fully executed.
• Short Sale approval.
• Copy of any inspections and clearances (Per contract or appraisal).
• Preliminary Title Report (Usually received 2 days after escrow is opened).
• HOA certification form and copy of Master Liability Policy and Insurance Policy for a condominium.

While this may sound a little overboard this is exactly what is needed upfront to close FAST in today’s market. For more information on getting pre approved for your California home loan text or call 510.282.5456, or email us at info@garrick.biz

I wanted to share this article with you…Let me know if you have any questions!

From Mortgage News Daily…

“While housing is more affordable than ever for most U.S. families, the lack of financing available to them continues to constrain prospective homebuyers according to the most recent National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI) released on Thursday. The Index indicates that 75.9 percent of all new and existing homes sold in the fourth quarter were within the financial reach of families earning the national median income of $64,200. This is the highest number for the affordability index in its 20 year history.

HOI measures the percentage of homes sold in a given area that could be purchased by households earning that area’s median income at current mortgage interest rates and assuming a 20 percent down payment.

“While today’s report indicates that homeownership is within reach of more households than it has been for more than two decades, overly restrictive lending conditions confronting home buyers and builders remain significant obstacles to many potential homes sales, even with interest rates at historically low levels,” said Barry Rutenberg, chairman of NAHB.

The metropolitan area encompassing Youngstown Ohio and Boardman, Pennsylvania was the most affordable major housing market in the country with 95.1 percent of all homes sold during the quarter affordable under the NAHB definition. The area’s median income is $54,900. Other major MSAs ranking at the top in affordability are Lakeland-Winter Haven, Florida; Modesto, California; Harrisburg-Carlisle, Pennsylvania; and Toledo, Ohio.

The most affordable small housing market was Kokomo, Indiana where 99.2 percent of homes were affordable to families earning the median income of $59,100. Other smaller housing markets at the top of the index included Fairbanks, Alaska; Cumberland, Maryland; Lima, Ohio; and Rockford, Illinois.

Only 29.0 percent of homes in the New York-White Plain area were affordable to those with the area’s median income of $67,400. This was the 15th consecutive quarter that this MSA ranked last in affordability. Other major metro area at the bottom of the affordability index included Honolulu and three California MSAs, San Francisco-San Mateo-Redwood City; Santa Ana-Anaheim-Irvine; and Los Angeles-Long Beach-Glendale.

The least affordable small market was Ocean City, New Jersey where, with a median income of $70,100 only 47.5 percent of homes were deemed affordable. It was followed by Laredo, Texas, San Luis Obispo-Paso Robles, and Santa Cruz-Watsonville, California; and Brownsville-Harlingen, Texas.”

Original Article
http://www.mortgagenewsdaily.com/02162012_home_prices.asp

Direct Link
http://www.youtube.com/watch?v=gTY1UVPRk8g

A lot of people ask this question and it’s a great question.

And the answer is- That depends. You see, guidelines are always changing and will continue to change over the next few years.

In fact they JUST changed!

So here is how it stands today…

CONVENTIONAL

Bankruptcy – You may apply for a Conventional, Fannie Mae loan after your bankruptcy has been discharged for FOUR (4) years.

Foreclosure – Home was given back to the bank – no owner participation.

- 7 years from the date the foreclosure was completed and transferred back to the bank if the borrower had NO extenuating circumstances. Minimum FICO of 680 required.

- 3 years from the date the foreclosure was completed and transferred back to bank with acceptable extenuating circumstances, AND 10% down payment. Primary home purchase and rate/term refinance only. Non‐owner and second homes not allowed

Short Sale / Deed in Lieu of Foreclosure -

Short Sale- Home sold, but sales price didn’t cover amount owed.

Deed‐in‐Lieu- Home returned to lender in exchange for canceling the loan.

- 7 years from date sale closed and transferred to new owner or transferred back to the bank for less than 10% down payment and minimum FICO 680.

- 4 years from date sale closed and transferred to new owner or transferred back to the bank with 10% down payment and minimum FICO 680.

- 2 years from date sale closed and transferred to new owner or transferred back to the bank may be possible with acceptable extenuating circumstances and 10% down payment.

Bankruptcy Chapter 7- Debts are discharged through BK, client does not pay any debts owing.

- 4 years from date of discharge

- 2 years from discharge date may be possible with acceptable extenuating circumstances

Bankruptcy Chapter 13- Debts are paid back on a monthly scheduled payment plan by client.

- 2 years from date of discharge or

- 4 years from dismissal date

FHA (DETERMINED BY DATE OF CREDIT APPROVAL)

Foreclosure, Deed‐in‐Lieu of Foreclosure

Foreclosure: Home was given back to the bank – no owner participation.

Deed in Lieu: Home returned to lender in exchange for canceling loan.

- 3 years from date foreclosure was completed and transferred back to bank.

- Less than 3 years, but not less than 12 months from date foreclosure was completed and transferred back to bank may be acceptable depending on the results of acceptable extenuating circumstances.

Short Sale- Home sold, but sales price didn’t cover amount owed.

- 3 years from date sale closed and transferred to new owner.

- No waiting period if borrower had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale, AND borrower is not taking advantage of declining market conditions. Subject property may not be in the same geographic region.

Bankruptcy Chapter 7- Debts are discharged through BK, client does not pay any debts owing.

- 2 years from date of discharge with re‐established credit paid as agreed or no new credit obligations incurred.

- Less than 2 years, but not less than 12 months from date of discharge may be acceptable if the bankruptcy was caused by acceptable extenuating circumstances, and the borrower has since exhibited a documented ability to manage financial affairs in a responsible manner.

Bankruptcy Chapter 13- Debts are paid back on a monthly scheduled payment plan by client.

- 1 year payout period under bankruptcy has elapsed and the borrower’s payment performance has been satisfactory; and all required payments made on time.

VA (DETERMINED BY DATE OF CREDIT APPROVAL)

Foreclosure, Deed‐in‐Lieu of Foreclosure

Foreclosure: Home was given back to the bank – no owner participation.

Deed in Lieu: Home returned to lender in exchange for canceling loan.

- 2 years from date foreclosure was completed and transferred back to the bank.

- 12‐23 months from date foreclosure was completed and transferred back to bank; if credit re-established and paid as agreed, and was caused by acceptable extenuating circumstances.

Short Sale: Home sold but sales price didn’t cover amount owed.

- 2 years from date sale closed and transferred to new owner.

- No waiting period if borrower has no late payments on any mortgages and consumer debts within the last 12 month period preceding the short sale, AND the borrower is not taking advantage of a declining market.

Bankruptcy Chapter 7- Debts are discharged through BK, client does not pay any debts owing.

- 2 years from date of discharge.

- 12‐ 23 months from date of discharge if credit is re‐established and paid as agreed; and was caused by acceptable extenuating circumstances.

Bankruptcy Chapter 13- Debts are paid back on a monthly scheduled payment plan by client.

- 1 year payout period under bankruptcy has elapsed and the borrower’s payment performance has been satisfactory and all required payments made on time.

When you are ready to get back into the housing market or for more information please contact me at 510-282-5456 or info@garrick.biz.

Related Articles:

Feds Announce Bay Area Real Estate Mortgage Interest Rates to Stay Low Until 2014

Home Affordable Refinance Program Update HARP 2

Restoring FHA Loan Limits

Alameda, Ca., We have seen a lot of military residents in Alameda and a lot of VA financing. How long?  Well here is a brief history of  “NAS Alameda”…

Congress approved $10 Million to develop a Naval Air Station here in 1938. The station commissioned on November 1, 1940, with a minimum of facilities.  It was April 25^th 1997 the base saw the closing of NAS Alameda and on September 30^th 1996 the Naval Aviation Depot closed.  Naval Air Station (NAS) Alameda had 60 Military tenant commands for a combined military/civilian work force of 18,000 personnel. In 1997 the base closed, and the Navy began turning the property over to the City of Alameda. Alameda Point was born. The Bayport residential project is to date the largest new addition of housing for Bay Area residents in Alameda. Twenty-five percent of the homes are for affordable housing.

Now the military has a different housing opportunity. Ownership over barracks! Military can actually purchase homes up to $729,750 with little or no down payment.  Taking out a VA mortgage loan on a new home purchase in Alameda, CA is a fantastic way to finance a property with a low interest rate, with little to no required downpayment.

Purchasing a home with a VA loan is pretty straightforward. Listed below is an overview of the basic process:

1. Choose your lender, present your Certificate of Eligibility, and get pre qualified.
2. Find the property you would like to buy and arrange the purchase with the seller.  You’ll then sign a purchase contract conditional upon approval of a VA guaranteed loan.
3. The property gets appraised. If the determined value is acceptable and the VA Underwriter determines that your loan application meets the VA loan requirements, your mortgage can be approved.
4. You (and co-borrower, if applicable) will then attend the loan closing and sign the related papers. The closing escrow agent or attorney will explain loan terms and requirements and monthly payment details.

After these steps are completed, you will own your own home with a low-interest VA purchase mortgage, with no private monthly mortgage insurance required!

Please note that when the VA receives report of the loan, the Certificate of Eligibility is adjusted to reflect use of entitlement and is then returned to the veteran.

No further actions are required to get your COE back, which just makes the overall process easier for veterans.

A common question we get is, “How long does the VA loan approval process actually take?” The overall period of time it takes for a VA mortgage approval varies depending on the amount of volume the lender has at that moment. It also depends on how quickly the VA borrower is able to respond to documentation requests.

As of late, getting full approval and closing your VA purchase mortgage has been taking between 3 weeks to 45 days. This time-frame is more or less the same as that for conventional loans. A 30 day escrow should be no problem if the property is in good condition.

There are some things you can do to ensure your loan process is as quick as possible, such as sending requested documents as soon as possible, working with a knowledgeable VA loan specialist, and making your hours of availability as flexible as you can.

For calculations of down payments and rates for your home purchase give us a call for accurate pricing.  We have helped VA buyers in Alameda, Oakland, San Francisco and the entire Bay Area.

If you or someone you know is looking to explore their options with VA financing feel free to contact us, we are here to help you and we love serving those who serve.

Other VA articles you may be interested in:

VA Mortgage Loans in Alameda, CA- A Piece of Island History

VA Loan Requirements and Eligibility in Alameda, CA

Approved Property Types and Loan Limits for VA Loans

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Alameda Ca.  How to Purchase a Home One Day Afer a Shortsale in Alameda and California.

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