January 25th, 2014

All-cash offers are crushing first-time homebuyers

Posted by at 12:34 am

The San Francisco housing market has become difficult for first-time home buyers. Due to the increase in demand, buyers are coming in with full-cash offers that are significantly higher than asking. This is leaving first time home buyers out of the race, and struggling to find good homes available. While the Bay Area saw weak housing sales in December, according to DataQuick, prices continue to rise. That is largely due to tight supply and investor cash. The median home price in the Bay Area was up 24 percent from December of 2012. Many homebuyers can’t compete with that. First-timers historically account for about 40 percent of the market, but accounted for just 27 percent of homebuyers nationally in December. Their reasons for dropping out are manifold: High student loan debt, poor employment and poor wage growth, and less-than-pristine credit. First-time...
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December 6th, 2013

15 or 30-year mortgage? Five questions to help you choose

Posted by at 12:29 am

The housing market is finally in recovery, and home purchases are on the rise. Since the housing bust, regulators have focused on preventing borrowers from entering into potentially toxic loans. To help accomplish this, the U.S. government established the Consumer Financial Protection Bureau (CFPB) in 2010. As part of this effort, the CFPB has proposed new disclosure forms to help borrowers understand the real risks and costs associated with their mortgage. But many potential borrowers are still unsure about the type of mortgage that is right for them. Many borrowers may be attracted to 15-year mortgages, which have a shorter term and lower interest rates than 30-year mortgages. But such a mortgage may not be right for their needs. Borrowers must understand how payments, which consist of principal repayment and interest, will be structured under the different types of mortgages...
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December 2nd, 2013

Record year for VA Loans

Posted by at 10:29 pm

2013 has been a record year for putting active military members and veterans in a new home with VA loans. Bay Equity is proud to announce that more VA loans have been given out this year than ever before, assisting veterans in refinances and home purchasing. VA guaranteed 629,300 single-family loans in FY 2013, beating the old record of 600,000 loans made during the huge refinancing boom of FY 1994. Refinances averaged 49% of VA loan endorsements during FY 2013, which ended September 30. When refinances dipped in late summer, purchase mortgage transactions jumped 23% from third quarter to 98,600 in the fourth quarter.   To read the full article, visit http://www.nationalmortgagenews.com/dailybriefing/record-year-for-va-mortgage-originations-1040054-1.html...
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October 17th, 2013

Economists See Continuing Real Estate Growth

Posted by at 4:05 pm

Expectations for housing and commercial real estate are high among real estate experts. The latest forecast from economists and analysts from nearly 40 of the country’s leading real estate organizations projects continued improvement, not just in residential real estate, but also shows improved confidence about commercial mortgage backed securities and the industrial sectors. Among the key findings in the three-year forecast: Forecasters projecting a strong ending to 2013 and continued growth through 2015. Single family housing starts, which were 535,000 unites, are expected to reach 675,000 units in 2013, and grow to 800,000 units in 2014 and 900,000 units in 2015. Unemployment should be effected in this growth. It is expected that 2.2 million jobs will be created in 2013, followed by 2.4 million in 2014 and 2.6 million in 2015, reducing the unemployment rate by .9%. Vacancy rates are...
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October 1st, 2013

Government Will Continue Lending, But Problems Are Present

Posted by at 9:29 pm

Government Will Lend During Shutdown, But Snags May Still Derail Closings The shutdown of the federal government will not halt government lending, as many believed would happen. The Federal Housing Administration and the U.S. Department of Veterans Affairs have announced that they will still process loans, though with a much smaller staff. Here are some of the details regarding federal housing loans during this time: Approximately 15 percent of US mortgages are backed by the FDA. Multifamily project will still be able to close. New construction loans cannot be issued at this time. Single-family home loans, including those made through FHA-staffed Home-ownership Centers, will be endorsed. FHA Loans will be serviced. Ginnie May will continue to perform its secondary market functions. Only 68 of the 2,972 HUD’s Office of Housing employees, which includes the FHA, will be on staff during the...
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September 24th, 2013

Bay Equity Expands in Southern California

Posted by at 10:22 am

Bay Equity Expands in Southern California with Addition of CalPacific and The Touchstone Group Bay Equity President and CEO Brett McGovern said, “We are honored to align with Craig Bramlett, Rick Jones and the men and women of CalPacific, CalPacific – The Rafii Group and The Touchstone Group. They are highly experienced loan professionals who have provided the people of San Diego County with exceptional service for more than 20 years.” Bay Equity Chief Operating Officer Casey McGovern added, “They are a perfect fit for our family owned and operated company and share our commitment to customer service. We’re excited about the future and pleased they chose to become a part of us.” CalPacific co-founder Craig Bramlett noted, “We have found the right company in Bay Equity. It shares our ethics and values. Plus, it’s a California company with regional...
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September 20th, 2013

Are You Ready? 10 Steps to Home Ownership

Posted by at 8:11 am

You’ve done the research, you’ve browsed homes, and now you finally made the decision to purchase a home. The home-buying experience can be challenging for home-buyers because of the detailed process and the involvement of so many outside parties.  Do you know if you’re truly ready to purchase a home?  Realtor.com shares 10 Steps to Home Ownership. Decide what you want, and if you are ready. Whether you are a first-time home buyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Get a Realtor. Buying and selling real estate is a complex matter. In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area. Get Pre-approved for a Loan. Contact...
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September 18th, 2013

How Much House Can You Afford?

Posted by at 12:14 pm

How much house you can afford is contingent upon numerous factors, but your DTI, debt-to-income ratio, is a significant indicator to lenders. It’s easy to calculate and monitor your DTI, but lenders use different ratios to determine if a buyer is qualified.  DTI is significant when financing a home because lenders have to see that there is minimal risk in approving any type of loan – a buyer qualifies when their DTI is low because they can afford to make timely payments, therefore reducing any risk of foreclosure, or worse, bankruptcy. RealEstateabc.com explains this and more in this article: http://www.realestateabc.com/loanguide/afford.htm...
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August 23rd, 2013

3 Keys to Mastering New Home Loan Hurdles

Posted by at 10:07 am

Home loans are harder to get than they’ve been in years. Stricter new rules starting next year could add to the stress. Mortgage rates are rising, and while there have been some signs of a lending pickup in the strengthening housing market, banks are still making one-third as many loans as they did before the housing crash. So how do you get a mortgage to buy or refinance your home? And should you rush to get a loan approved now before it gets harder? Depending on your circumstances, you might want to get that home deal done before the rules take effect in January 2014. There will be a new limit on how much you can borrow, and you will need to document things more thoroughly – no more “no doc” loans or “teaser” adjustable rates to help you qualify...
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August 13th, 2013

Will Retirees Finally Get a Mortgage Break?

Posted by at 8:12 am

Until recently, retirees living on a fixed income probably had a better chance at being chosen for The Price Is Right than qualifying for a mortgage. Even when borrowers hold substantial assets, an income from Social Security, pensions and investments has often been considered too low to meet today’s stricter mortgage eligibility requirements. But that scenario is changing. New options are in place for retirees who want to downsize but still need a mortgage, and for people who’d hoped to age in place with a smaller refinanced loan. Fannie Mae and Freddie Mac, the government-sponsored mortgage investment giants, announced recent policy changes that allow lenders to take retirees’ assets into account. So when loan officers calculate borrowers’ income eligibility, they can factor in IRA, 401(k) and other retirement assets as a supplement to their fixed income. “This could open up...
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