How financing shows up in a North County purchase: pre-qualification, offer strength, and rate context. For live programs and calculators, use our financing tools; the posts here explain the habits that keep a loan on track.

Carlsbad and General Market Summary:

Tyson Lund - Broker Associate , The Lund Team, Inc



Active real estate brokers are noticing a shift in the San Diego real estate market.  Many areas of the county are experiencing fewer homes for sale than in previous months. Professionals call this “inventory restriction” and it is having a noticeable affect on our local Carlsbad market.  An increase in the number of home buyer showings per available home.  Average time to sell in the current market for non-short sale property has dropped by 33% to 60 days average market time.  Brokers are finding multiple offers more common on their desirable listings with the seller achieving near 99% of their asking price.  Now although it is much to early to call…

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Carlsbad condominium and town home sold values remain unchanged through 2011 and early 2012.  Thanks in part to low mortgage rates and greater affordability, attached property has found a pricing equilibrium.  The average attached sale in Carlsbad between November 2011 and January 2012 remain relatively unchanged from a year prior at $326,000.  Home buyers found with record low mortgage rates (currently below 4% for 30 year fixed rate) the cost of owning a condo / townhome was often equal or better to paying current rents.  Average time on market is around 55 days for traditional sale property.  Short-sale’s are a large part of the attached market in Carlsbad making up 40% of the active inventory.  Short-sales, ever the oxymoron, are averaging…

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A new product from a Lund Team, inc preferred lender allows a qualified buyer to purchase with as little as ½ of 1%.  That is buying a $400,000 home with $2,000.

If you can say “Yes” to all of the following you qualify for this mortgage:

• Must be an FHA 30 Year Fixed Rate Loan
• 2nd Mortgage not to exceed 3% of the Sales Price
• 2nd Mortgage proceeds can be used for Down Payment or Closing Costs
• Property MUST be Owner-Occupied
• Borrower can not own other properties
• Borrower must meet Income Limitations (call for details) SAN DIEGO $89,880 and Orange County $101,040
• Borrower DOES NOT have to be First Time Buyer
• Minimum FICO Score 620
• Second mortgage is a 15 year fixed rate loan

 

ONE-HALF OF ONE PERCENT DOWN PROGRAM

Contact…

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The Los Angeles Times

Mortgage rates hold steady, Freddie Mac survey says
The interest rate on a 30-year fixed mortgage held steady this week at a 60-year low while the 15-year fixed loan edged down to a new record low, mortgage finance company Freddie Mac said in its weekly rate snapshot.


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HousingWire

Five more years of housing problems, with some stability in local markets
The housing market remains shaky and is unlikely to deliver significant growth in prices over the next five years, according to a new survey of economists, real estate professionals and analysts.

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The Los Angeles Times

Sales of previously owned homes jump in August
The number of homes sold increased 7.7 percent in August compared with July and…

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WHAT YOU NEED TO KNOW ABOUT UPCOMING CHANGES TO FHA LOANS

As you may know, unless Congress extends the expiration deadline, Federal Housing Administration (FHA) loan limits set in 2008 will drop significantly beginning October 1. Congress raised the loan limit amount in response to the housing crisis to help spur the homebuying market. FHA loans offer borrowers very competitive rates and terms, and they only require a 3.5% down payment. Allowable debt ratios are higher than the typical debt-ratio limits imposed for conventional loans, and there are no income limit qualifications, so more people can qualify for them.

If the loan limit drops on October 1, many California homebuyers will face higher down payments, higher mortgage rates and…

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Average 30 year fixed mortgage rates have fallen to historic lows; 4.41%.  Many Lund Team clients have reported securing fixed rate loans even lower lower (4.1%-4.25%) depending on their individual situation. 

There is much discussion about the future of low mortggae rates.  Many economists argue that we should expect an extended period of low mortgage rates as the economy contracts during a recession.  

Our local mortgage contacts report heavy volumn in #'s of property refinances. 

The 15-year fixed-rate rose 5 basis points to 3.63 percent. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, was 4.94 percent, up 5 basis points from last week.

The 5/1 ARM fell 3 basis points to 3.12 percent. With a…

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We were recently informed from one of our lending partners that there is a new government program that can provide up to a 3% grant that can be used for downpayment and/or closing costs.  The grant does not have to be repaid!

The Grant made possible through the Program can be used towards the homebuyer’s down payment and/or closing costs on a 30-year fixed-rate fully amortized FHA, VA or USDA Mortgage Loan.

The Program is available for purchases of both new and existing homes and is NOT limited to first-time homebuyers.

If you have questions, The Lund Team is here to help! 

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Special Fannie Mae HomePath Buyer Incentive Offer

There's great news from Fannie Mae: Buyers may be eligible to receive up to 3.5% in closing cost assistance through October 31, 2011 as part of the HomePath buyer incentive.

To be eligible for this incentive, the following qualifications must be met:

  1. Buyers and/or selling agents must request the incentive upon submission of the initial offer in order to be eligible.
  2. The initial offer must be submitted on or after June 14, 2011 and close by October 31, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
  3. The sale must close on or before October 31, 2011. No exceptions will be made to this deadline.
  4. Only buyers purchasing a HomePath…

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Loan Balance Update:

As a reminder to our buyers and sellers, the higher conforming loan balance amounts are set to shift down from $697,500 in San Diego to a possible $550,000.  The amounts are not set yet by the Federal Housing Administration.  The governmental stimulus package is set to expire in September, and without intervention from Congress, lenders will start putting deadlines on applications taken with these high loan amounts. Several lenders have already set a July 15th deadline on new applications for high balance loans to ensure closing by the deadline.


Barring government policy change, those wanting to borrow over the new government limit will have to pay a higher rate on the remaining balance. This is due to the increased risk…

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There is still in its infancy, but having government support would most likely support an era of low mortgage rates.  See and read below:

Bill proposes merger of Fannie and Freddie


Rep. Gary G. Miller (CA-42) and Rep. Carolyn McCarthy (NY-04) are expected to introduce a bill tomorrow to merge Fannie Mae and Freddie Mac, and restructure the company into a government-held corporation.

The legislation will propose that the merged company purchase mortgages and sell them to investors as securities that are government-backed. The new company wouldn't operate for profit-making purposes and wouldn't have shareholders.

Under the proposal, a five-member board would govern the corporation, and it would be regulated by the Federal Housing Finance…

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