CHF Platinum Results in Only .5% Downpayment

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CHF Platinum 3% Down Payment Assistance Grant for CA Home Buyers is now offering the Platinum 3% down payment / closing cost assistance grant to all California home buyers. This means home buyers in Sacramento, El Dorado, and Placer counties can use a government insured FHA, VA, or USDA first mortgage loan and need only .5% down payment to purchase a home! FREE MONEY available now!

The CHF Platinum 3% Home Buyer Assistance Grant is currently AVAILABLE and accepting applications.

The Platinum grant program requires California home buyers need only need .5% down payment to purchase a home! CHF 3% Platinum Assistance Guidelines:

  • NOT limited to first time buyers (2nd time & move-up buyers OK)
  • 3% grant money NEVER needs to be REPAID
  • 3% grant is not a second loan or lien
  • Works with FHA, VA & USDA loan programs
  • Flips less than 90 days not allowed
  • 620 minimum FICO score
  • Owner occupied primary residence only
  • Seller concessions are allowed up to 6%, resulting in a possible total of only .5% down
  • No borrower reserves or assets required
  • SFR, condo, and new and existing properties eligible

Free 3% grant money? What’s the catch?

No catch. Grant funds, however, are limited and free money doesn’t last forever. The bigger question is DO YOU QUALIFY?

Qualifying Income Limits for Sacramento, Placer, and El Dorado Counties:

$91,230

PLATINUM INCOME LIMITS for other areas

If you want to take advantage of the best home buying opportunity that has come along in years, call John Easterbrook at (916) 224-7653.  You can also log on to MY WEBSITE to get prequalified online.

This is not a commitment to lend.  Programs mentioned herein have guidelines that are subject to change without notice.  VITEK Mortgage Group is licensed by the Department of Corporations under the California Residential Mortgage Lending Act.

 

Prop’s 13, 60, & 90 Save Over 55′s Lots of Money

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Knowing the tax laws can allow homebuyers and the Realtors® that assist them to make a move confidently and to save lots of money.  California Propositions 13, 60, and 90 can positively affect people over 55 years of age.

Proposition 13:

      Under Proposition 13, the value of a home, for property tax purposes, is reassessed to the new market level (the new purchase price) whenever a change in ownership occurs. This usually results in higher property taxes.

Prop 60:

        Proposition 60 allows a transfer of base-year value of the principal residence sold of a senior citizen (55 and older) to a replacement dwelling of equal or lesser value within the same county.

Prop 90:

        Proposition 90, enacted in the November of 1988 in California, and otherwise known as the “local option law”, provides an avenue for property tax relief to owners 55 and older who sell their principal residence and purchase a replacement home of equal or lesser value in another county.

 

The County Assessors will require a copy of the tax bill from the other county and a copy of the applicant’s birth certificate to be included with the application. Also, include a copy of the grant deed for the new purchase and a copy of the closing statements of both sale and purchase.

SUMMARY OF ELIGIBILITY REQUIREMENTS:

          The seller of the original residence, or a spouse residing with the seller, 55 years of age or older, as of the date that the original property is transferred.
          The replacement property must be of equal or lesser “current market value” than the original.
          The tax base year of the original property cannot be transferred to the replacement dwelling until the original property is sold, BUT (and this is the cool part) the replacement property must be purchased or newly constructed within two years (BEFORE OR AFTER) of the sale of the original property.  This allows the property owner to take advantage of a low market, like the one we’re in, and sell when things are selling more briskly or vice versa. This just means that the homeowner will be taxed on the new property at the assessed rate until the sale is made on the original property and the proper paperwork is filed with the county. The owner must file an application within three years following the purchase date or new construction completion date of the replacement property.
          This is a one-time-only filing. Proposition 60/90 relief cannot be granted if the claimant, or spouse, was granted relief in the past.
          Proposition 60/90 relief includes (but is not limited to): single family residences, condominiums, units in planned unit developments, cooperative housing, corporation units or lots, community apartment units, mobile homes subject to local real property tax, and owner’s living premises which are a portion of a larger structure.
          The taxpayer is not eligible for the tax relief until they actually own AND occupy the replacement dwelling as their principle residence.
          If the buyer is moving to another county, it is essential that you call the co-operating County in question, to verify that they are currently accepting the value transfer under Proposition 90, and what their requirements are. If you have any questions, the property tax office in Sacramento for all counties in California may be reached at (916) 445-4982.

Contact me for more information.

* Restrictions apply.  Not all borrowers will qualify.  This is not a commitment to lend.  Program guidelines may change without notice.  VITEK Mortgage Group always encourages you consult the advice of a tax professional  for tax related programs. VITEK Mortgage Group is licensed by the Department of Corporations under the California Residential Mortgage Lending Act.

Homeownership after Bankruptcy, Foreclosure, Shortsale, and Modification

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Losing a house through a short sale or foreclosure doesn’t have to mean the end of the road to purchasing a home again.  You may be able to bounce back and buy a home once again quicker than you think!*  In fact, if you haven’t owned a home in the last 3 years, you might even be eligible to purchase a home as a ‘first-time homebuyer’ and only need 3.5% down*!

Depending on your particular situation the following time frames must pass in order to be eligible for a new home loan:

After Short Sale or Modification

  • 3 Years to apply for an FHA loan
  • 1 Year to apply for a VA loan
  • 2 Years to apply for for a Conventional loan

After a Foreclosure

  • 3 Years to apply for an FHA loan
  • 2 Years to apply for a VA loan
  • 7 Years to apply for a Conventional loan (exceptions apply)

In all cases, satisfactory re-established credit must be shown.  There are sometimes exceptions on the above restrictions when there has been a life event that has occurred, allowing for shorter time frames to qualify.  A life event would be considered a death, but would not include a job loss or divorce.

In addition, you may also qualify for a Federal Income Tax Credit* based on a percentage of the mortgage interest paid each year.

Contact me today for a personal qualifying and planning evaluation!

* Restrictions apply.  Not all borrowers will qualify.  This is not a commitment to lend.  Program guidelines may change without notice.  VITEK Mortgage Group always encourages you consult the advice of a tax professional  for tax related programs. VITEK Mortgage Group is licensed by the Department of Corporations under the California Residential Mortgage Lending Act.

Steer Clear of 5 Things on the Road to Homeownership

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There are five major things to avoid doing before applying for a loan and during the loan process itself. Any one of these five things can greatly impact your ability to qualify for a home loan, so it is critical to avoid doing any of the following until after your loan has closed escrow.

1. Do Not Change Jobs – Changing jobs before or during the loan process can create a real problem in qualifying you for a home loan, particularly if that job is in a different line of work or at a lower rate of pay. Due to verification requirements during the loan process, it can also create major time delays.

2. Do Not Switch Banks or Move Your Money Around – It is best to leave your money right where it is until your loan closes. Moving your money to a new bank, or even into a new account, can wreak havoc with the verification process. Keep copies of all checks deposited into your account if they are larger than your normal paycheck. Examples would include, but not be limited to, bonuses from your employer, gifts from relatives, or monies received from the sale of assets.

3. Do Not Pay Off Bills – As your mortgage loan originator, I will advise you if it is necessary to pay off a bill to help you qualify for a home loan. I will also show you the best way to pay off debts, to make sure we have the correct evidence of payment.

4. Do Not Make Any Major Purchases – Many borrowers make the mistake of buying a new car, some furniture, or other major purchases without realizing the impact it can have on their ability to buy a home. A large monthly payment added during the loan process can affect the amount of home you can qualify or and can actually make it extremely difficult to get your loan approved.

5. Do Not Leave Town – Leaving town during the loan process can greatly delay you from obtaining your home loan. I will periodically need to obtain signatures and/or documentation from you during the transaction, and each delay in receiving the needed items can cost you valuable time and money in closing your home loan.

If you feel you must do any of the things listed above (even if you’ve already been pre-qualified or approved for a loan) make sure you talk with me first. As a mortgage professional, I will help coach you by advising you of your options. Otherwise, if you avoid these five things, you should look forward to a seamless and successful loan closing. If you have any questions, please feel free to contact me.

 

 

 

SEO and Optimal Exposure for Realtors

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Where Are Your Buyers Going?  Although Search Engine Optimization is an important factor in market capture, being seen on the right site will get you the optimal amount of capture.

A recent study compiled by Experian Hitwise showed that Realtor.com slipped to #2 in most favored buyer sites for real estate.  Yahoo Real Estate captured the top spot with ease of use and simple graphics.

Hitwise showed the two sites with virtually identical market share — Yahoo Real Estate captured 6.51 percent of traffic in the category, compared with 6.46 percent for Realtor.com — and with comfortable cushions over third-place Zillow (5.69 percent) and fourth-place Trulia.com (4.77 percent).

As you are spending your marketing dollars, it pays to see what sites are capturing the buyer’s attention.  For more information, read the article.

When choosing a lender, it pays to work with someone that knows your business and puts you and your buyers first. A good source of local news and industry updates is www.FairOaksLender.com

How to Write a VA Offer

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VA loans are a wonderful lending product because they have low rates, no MI, and flexible guidelines.   For more on VA guides and tips, CLICK HERE.

There are certain costs that the borrower cannot pay called Non-Allowable Closing Costs: such as loan origination and title charges.  For a list of Non-Allowable Closing Costs, CLICK HERE.

Most buyers are conditioned to write VA no down payment, no closing cost offers or VA No-No, however many sellers are reluctant to pay all the closing costs that are required to make that happen.  I will outline 4 different scenarios that will help you tailor your VA offer to get it accepted, help ensure a good buyer experience, and close it successfully.  But first, there are some things unique to VA that you need to know:

  • VA can finance up to 100% loan to value with no MI.  There is, however a VA funding fee that is added to the loan.  Veterans that have a service-related disability may be eligible to have the funding fee waived.
  • Termite inspection and Section 1 clearance required.  If there are any  Section 2 items that involve moisture they must also be cleared.  The buyer must not pay for the termite report, but may (in some cases) pay for required repairs.  Repair recommendations may be required by appraiser as well.  That is why it is advised to look for homes that have little or no deferred maintenance.
  • The seller can credit the buyer up to 4% for closing costs.

SCENARIO 1: Standard VA No No

This scenario requires a cooperative seller.  The seller will have to contribute a percentage of the purchase price for closing costs (have your lender calculate this).  *It is usually 4% for purchases up to $120K, 3.5% up to 220K, and 3% above that.  In addition, the seller will need to pay up to $2,000 for non-allowables—these are not buyer closing costs and are  not part of the other seller contribution mentioned prior.  VITEK and title fees (except escrow) usually add up to $1,850 if you have seller paying for 100% of the CLTA and escrow.  The buyer cannot pay the escrow fee;   title however title insurance is fair game.

Verbiage: Seller to pay up to $2,000 toward buyer’s VA non-allowable fees and up to 4%* for buyer’s closing costs (make sure you have the seller pay escrow).

SCENARIO 2: VA No Down w/ Buyer Paid Closing, except Non-Allowables

This offer type makes the offer more competitive and greatly increases your chances of getting an accepted offer.  It will, however require more cash for closing costs and the buyer must have the ability and desire to do this.

Verbiage:  Seller to pay up to $2,000 toward buyer’s VA non-allowable fees.

SCENARIO 3: VA  No  Down w/ Buyer Paid Closing and Lender Paid Non-Allowable

This scenario is for the seller that will not pay for closing or non-allowables.  This scenario will, however, require the seller to pay for 100% of the escrow fee and provide a clear pest.  Although we don’t typically charge a loan origination fee, VA allows the lender to charge the borrower up to 1% for loan origination.  If you have a sale price that exceeds 143,500, your lender will probably be able to cover admin portion of the non-allowable closing costs with the loan origination fee.  The borrower will have to pay for all their additional costs.  This is still a great value to the veteran as there is no down payment.

Verbiage: Lender to pay VA non-allowable lender administration fee.  Seller to pay for all escrow fees including, but not limited to wire fee, courier fee, and tie-in fee.

SCENARIO 4: VA for the REO

Most asset managers want a clean and easy sale—not one that will require the extra variables involved with termite inspections and repairs, and repair requirements from a VA appraiser.  The veteran must not pay for the termite report.  It can be paid by the seller, Realtor, anybody but the buyer.  There might alright be a  report on file, so ask up front before writing the offer.   If not, then designate in your offer who is to pay on the WDPA.  To help ensure that this sale will go through, have an idea up front, before writing the offer, what kind of condition the home is in.  Without this knowledge, you may be setting your buyer up for failure.  Use the verbiage for Scenario 3.  Prepare your buyers that they may have to pay for some repairs .  If repairs cannot be made prior to close of escrow, we can, in some cases, employ escrow hold-backs to make repairs and clear the termite or appraisal condition after close of escrow.

It is imperative that  you partner with a lender that is very   knowledgeable about VA because the guidelines are constantly changing.  It is also very important to manage your buyer’s expectations and prepare them for the process.   For tips on getting your VA offer accepted and frequently asked VA questions.  CLICK HERE FOR THIS VALUABLE GUIDE.

Do you have a cover letter format for your offers to help inform the seller about all your buyer’s qualities and help “personalize” them to the seller?CLICK HERE FOR A FREE WORD OFFER COVER LETTER

Credit Card Advice

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There is a balance to paying off your balances. One of the most common ways of choosing which card to pay first is to simply rank them based on their interest rates and pay off the highest rates first. Retail cards tend to be at least 40% higher than general revolving credit cards from banks.

This method of paying balances is perfectly fine because you’re exhausting the most expensive debt first. However, it’s also a smart strategy to knock out lower balance cards with small balances. Eliminating accounts with balances from your credit reports yields higher credit scores and it’s nice to not get statements the following month.

Paying off balances that are the closest to the credit limit also benefits your credit scores and can keep other credit card issuers from increasing your rates or closing your accounts. As a rule of thumb, pay off in increments of 25% of the limit (75%,50%, etc.).

A word of caution about exceeding limits—when a limit is exceeded by even $1, the credit score can be dramatically reduced.

It may seem like common sense, but don’t sacrifice paying the minimum balance on an account by putting more on another account. Nothing will bring your score down faster than a late payment. Many of us get so focused on one account that others suffer.