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VA Loan

The Veteran’s Administration (VA) Loan is an excellent loan with unique benefits listed below:

  • 100% Financing (although the more you put down, the lower the VA Funding Fee)

  • No PMI (Private Mortgage Insurance)

  • VA Appraisal makes sure home is safe, sound, and sanitary

The VA Funding Fee is usually a cost that VA benefit holders are unaware of, but it is a fee that should be known about upfront. Most lenders will allow you to put the VA Funding Fee into the loan balance which still allows for a zero down payment. But don’t confuse zero down payment with no closing costs. You will still incur closing costs, but a seller credit or a lender credit may help offset those costs. If you are on active duty or a veteran,  the VA Funding Fee  for first time purchasers are as follows:

  • Less than 5%, Funding Fee is 2.15%

  • 5% to 9.99%, Funding Fee is 1.50%

  • 10% or more, Funding Fee is 1.25%

For Guard and Reservists, the fee is slightly higher.

An exemption to the VA Funding Fee exists for anyone with a 10% or more disability rating.

If you are interested in utilizing your VA Home Loan benefits, please contact us and we will put you in touch with a reputable VA Lender that will help you achieve your homeownership goals.

Chris Chin |Broker & Owner

November 12, 2014

FICO Changes Credit Scoring

The Fair Isaac Corp, or better known as simply FICO, is making changes to their scoring system this year. FICO, after many discussions with lenders and the Consumer Financial Protection Bureau, plans on lowering its weight towards medical collections in hopes of increasing lending without creating higher credit risk. Historically, account collections significantly reduce consumers credit up to 100 points under certain circumstances. Even with a paid balance, it may stay on your credit up to seven years if no proactive steps are taken. With roughly 64 million consumers with medical collections, the new changes may come as good news. The change may help tens of millions of consumers get a loan and increase consumer credit up to 25 points without any changes done by the consumer.

The changes, however, may help consumers obtain credit cards and auto loans first. As for home loans, lenders typically trail and use prior versions before adopting the next version as the risk for lending on such a purchase has significant risks. If you are interested in purchasing a home in the Ventura County area, contact David Jaffe with On Q Financial or Miguel Viesca with Crossline Capital to discuss your specific home loan needs.

Chris Chin |Broker & Owner

September 29, 2014

Affordable Housing Options and Instructions

Though we have seen growth in certain areas, home-ownership can still be a steep hill to climb for many! Some may be surprised to know that there are several Affordable Housing Program areas available.

Nine developments within the City of Ventura fall under the Affordable Housing Program.

  • Country Groves / County Harvest (Telegragh Rd cross Pistachio Ave; Casa St, Date Ave, Sage St, Cinnamon Oak Ave, Apple Ave, Plum St, Peach Ave, Cid St): 69 Moderate Income 3 Bedroom and 77 Moderate Income 4 Bedroom

  • La Paloma (S. Saticoy Ave cross North Bank Dr; Daphne Ave, Verbena St, Marigold Ave, Poppy St, Lobelia Ave, and Sunflower St): 32 Moderate Income 3 Bedroom and 63 Moderate Income 4 Bedroom

  • Los Cabos (N. Ventura Ave cross Los Cabos Ln): 23 Moderate Income 4 Bedroom

  • North Bank Greens

  • Seneca Gardens (N. Ventura Ave cross Seneca St): 8 Low Income 2 Bedroom

  • Seneca Highlands (Scattered on Seneca St, Nocumi St, and Katari Ave): 4 Low Income 3 Bedroom, 1 Low Income 4 Bedroom, 15 Moderate Income 3 Bedroom, and 27 moderate 4 Bedroom

  • Harmony (Telephone Rd cross Saratoga Ave; Dorsey St, Fitzgerald Ave, Northwind Ct): 10 Moderate Income 2 Bedroom

  • Melody (Telephone Rd cross Saratoga Ave; Holiday Ave, Basie St, Getz Ave, Gillespie St): 7 Moderate Income 2 Bedroom

  • Mayfair (E. Santa Clara cross N. Ash St): 1 Moderate Income 2 Bedroom

For SELLERS under this program, you will need to do the following:

  • State your intent to sell

  • Provide the address of the house for sale

  • Date escrow closed when current owner purchased the property

  • Purchase price of the property at the close of escrow, when the current owner purchased the property

  • Number of bedrooms

  • Provide legal names and signatures

  • Attach a copy of the escrow settlement statement, or tax report, as supporting documentation of the home purchase price

For BUYERS under this program, you will need to first meet income requirements which can be found Here.  And if you would like to be placed on a waitlist, you can fill out the Interested Affordable Homebuyer’s Intake Form and send it to the address provided on the form. If you submitted an offer on a listed home under the program and are in escrow, buyer/s will need to fill out an Affordable Housing Program Application.

Here are the buyer requirements:

  1. Your income must not exceed the Maximum Allowable Household Income Limit.

  2. Within five days of opening escrow the HACSB should be contacted by either the buyer or the listing agent by submitting the completed signed original Affordable Housing Program application along with the requested documentation.

  3. Within 10 days of opening escrow, the buyer needs to submit all required income documentation to the City to include most recent paystubs for all wage earners in the household, three years W-2s and federal tax returns, and current statements for all bank accounts.

Hopefully this gives you the necessary starting point to make your sale or purchase a reality. Please email if you are interested in more details!

Chris Chin |Broker & Owner

Seaside Realty

DRE 01882756 | SeasideRealtyVC.com

830 E. Santa Clara St.  Ventura, CA 93001

Cell 805.258.2870

September 8, 2014

 

Loan Pre-Approval

Seaside Realty

One of the keys to a successful real estate transaction is a smooth loan process. Sounds simple enough, and it almost always is when the buyer provides all necessary documents requested by the loan officer. Why are the proper documents so essential? Here are two reasons:

(1) When your loan officer inputs your information into an automated desktop underwriter program, the initial approval for your loan, which still needs to be verified, scrutinized, and approved by human underwriters, is only as good as the data inputed.  For example, if your loan officer inputs data that is incorrect based not on the documents provided but your verbal information, and the information is wrong, then you could possibly be denied the loan down the road.  And to have a loan denied in escrow is of course, upsetting and stressful.

(2) A reason for delayed full approval from underwriters is when the buyers do not satisfy all the conditions of the loan, including complete documentation.  With a standard escrow period of 30 days (possibly longer for non-conventional loans or other circumstances) and the standard 17 day loan contingency, providing all documentation upfront will speed the approval process.  And every buyer certainly wants full approval from the lending institution before the 17 day loan contingency in order to not worry about your earnest money deposit being taken as liquidated damages for non-performance if the loan gets denied after removing the loan contingency.

WHAT DOCUMENTS ARE REQUIRED OF THE BUYER?

As the lending environment seems to be changing daily, this is a basic list (not all-inclusive for every transaction):

  • Last two years of tax returns

  • Last two W-2s from employer

  • Last two months of bank statements (including retirement accounts, investment accounts, etc)

  • If renting, possibly cancelled checks for the past year

  • If you own investment properties or are self employed, expect to provide additional documentation

Here are some DO’s and DON’Ts prior to getting a loan:

  • Do review your credit for errors

  • Do have your deposit and closing funds showing in your last two financial statements (unless you are receiving as gift funds).  Otherwise, you will have to verify the source.

  • Don’t apply for new credit

  • Don’t cancel any credit accounts

  • Don’t make any major purchases

Chris  Chin |Broker & Owner

August 26, 2014