FHA Loan Limits Increase - HUD Releases Median Home Prices for Riverside County, California
The Department of Housing and Urban Development released median home prices for Riverside County, California.
The median price of a single family residence in Riverside County, California (including Hemet, San Jacinto, Murietta, Temecula, Idyllwild, Banning and the surrounding areas) is now $400,000.
That would make the new FHA, Fannie Mae and Freddie Mac loan limit $500,000 (125% of the median home price). This is part of the economic stimulus package signed by President Bush earlier in the month. The bill increases the home loan limits through December of 2008.
Now that the bill is passed and HUD published the median home prices, there are a few remaining questions:
Before the act, Conventional home loans were limited to $417,000. FHA loan limits were 95% of the median price for homes.
To check the mortgage loan limits in your area, visit this page on the HUD website.
Related Articles:
Joey Aszterbaum is the Hemet Home Loan Guy and a member of the Active Rain social network of real estate professionals. To buy or refinance your home in Hemet, Riverside County, or California visit www.HemetHomeLoans.com or call 951.571.5751
**UPDATE: THE ORIGINAL POST HAD INCORRECT MEDIAN PRICE. HUD UPDATED THEIR SITE 3/6/08 AND THE INFORMATION IS ACCURATE NOW**
Hemet Mortgage Lenders and City Council Members met at the Hemet Library on Wednesday to discuss the state of mortgage lending in the San Jacinto Valley on Wednesday. The major portion of the informal discussion was the effect that foreclosures are having on the value of real estate.
Alarmed by the rising amount of foreclosed homes that have been neglected, in the form of broken gates, overgrown yards and boarded windows, the Hemet City Council is considering an ordinance that would hold the owner of record for an abandoned home accountable for its maintenance.
One idea is to give a $100 ticket for each infraction. In other words, if the pool is green, the gate is busted open, there is a broken window and the lawn needs to be mowed, that would be a $400 fine.
The lawmakers and local mortgage lenders realized brought up potential problems with the proposed ordinance:
Local lenders included a variety of voices. From mortgage brokers like Larry Iest (Hemet Mortgage) to local, direct lenders like Joey Aszterbaum (Patrion Mortgage), to the large banks still in the mortgage game (Chase, etc.)
Lori Van Arsdale (standing), who spent many years as a REALTOR in Hemet and is now on the City Council, was also in attendance and shared her perspective on the issues.
Darrell Gianone (Guild Mortgage) brought up his concerns that new local ordinances would likely be confusing, costly, and inhibit the market correction. In essence, he proposed that the faster the homes depreciate, the faster they will be affordable. Then the abandoned REO properties would be cared for by new home buyers, saving local government the hassle.
Joey Aszterbaum (Patrion Mortgage) agreed, citing the movie Charlie Wilson's War as a metaphor for the current mortgage market.
In the film, which is based on actual events that took place in the 1980s, the government of the United States arms the people of Afghanistan against their Cold War enemy, the USSR. The irony of the movie is that the arms and training given to the rebels were turned against the U.S. by the Taliban.
Aszterbaum was concerned that efforts by local and federal government to respond to the problem with l
egislation might have unintended future consequences, but that lower home values would eventually stabilize for economic reasons.
Lenders also brought up that REALTORs who work with REO, foreclosures and asset management companies, such as Graham Holmes and John Occhi (Mission Grove Realty), could provide valuable insight into the process of bank-owned properties and their maintenance.
Tiki White (Riverside County Economic Development Agency) was also in attendance to discuss the Mortgage Credit Certificate. The MCC is a tax credit available in Hemet and most cities in Riverside County that lowers monthly payments on mortgages for low to moderate income families.
The EDA is also responsible for the First Time Home Buyers Program, which recently ran out of funds. The City of Hemet does not participate in the FTHB program, and mortgage lenders pressed City Council members to consider changing that. There were disagreements over the benefits of such a move and, since it wasn't on the agenda, the discussion had to move on.
The City Council plans to have a follow-up meeting to discuss the issues in depth after considering the information that was presented and doing some follow-up research.
Related Articles:
Joey Aszterbaum is the Hemet Home Loan Guy and a member of the Active Rain social network of real estate professionals. To buy or refinance your home in Hemet, Riverside County, or California visit www.HemetHomeLoans.com or call 951.571.5751
The sky is falling! The sky is falling!
The price of real estate is falling in California!
If you own a bomb shelter, please grab the kids, a shotgun, and a seven year supply of granola bars (Chocolate Chip n' Peanut Butter, if you can) and head underground.
If you don't own a shelter, just go under your desk and put your textbook over your head. (It worked during the Cold War.)
The reason that everyone is saying that it's a terrible, horrible, no good, very bad real estate market in California is that home prices are dropping.
......................................................................................................
If the price of gasoline dropped by a dollar, would you consider that bad news?
That depends...do you own the car, or the oil wells?
How scared would you be if the price of milk dropped in half?
Are you a single mom or a dairy farmer?
How awful would it be if luxury cars were suddenly affordable to someone with a blue collar job?
Do you work for the car company, or the phone company?
...................................................................................
Do you see what I'm saying?
If you're going through a divorce or have been laid off and need to sell your home right now, I feel bad about that.
If you lied about your income on a mortgage loan application and can't actually afford your monthly home loan payments, I feel slightly less bad.
But most of you have been using your home as a place to live and not as the magical ATM that spits out boats, vacations and plastic surgery.
For you, this is the best real estate market that California has seen for years.
Because you're not selling real estate. You're buying real estate.
>>>>>>>Prices are low. Mortgage rates are low. The sky is NOT falling.<<<<<<<
Related Articles:
Joey Aszterbaum is the Hemet Home Loan Guy and a member of the Active Rain social network of real estate professionals. To buy or refinance your home in Hemet, Riverside County, or California visit www.HemetHomeLoans.com or call 951.571.5751
River Springs Charter School is a parent-choice school that my children are enrolled in. It's like having one foot in the public school system and two feet in homeschool. That's right...It's like having three feet!
I posted an original article about the school called Homeschooling in Hemet? River Springs Charter School Offers Alternative, but they've updated their website and so I thought I'd provide that.
If you're considering home schooling and live in Hemet, San Jacinto, or the surrounding areas, learn about this unique alternative by clicking on the school crest to the right.
Related Articles:
Joey Aszterbaum is the Hemet Home Loan Guy and a member of the Active Rain social network of real estate professionals. To buy or refinance your home in Hemet, Riverside County, or California visit www.HemetHomeLoans.com or call 951.571.5751
In the immortal words of Shaggy...
"ZOINKS!"
Freddie Mac (or, to use their Westminster Dog Show name, The Federal Home Loan Mortgage Corporation) are raising their mortgage loan delivery fees effective June 1st, 2008.
Delivery Fees are the fees that mortgage loan originators, like the Hemet Home Loan Guy (that's me) and their companies pay to Investors. Most often, these costs are "risk-based pricing"...charging more in loan fees, points or a higher interest rate in order to offset the risks of lower credit, lower down-payment, declining market values or bad breath.
Okay, maybe not bad breath.
Freddie Mac and his older sister Fannie Mae are the largest investors in residential mortgages. When one changes the rules, the other changes the rules. When one raises prices, the other raises prices. Just like your kids...except nobody yells "SHE'S COPYING ME!"
Even the non-GSE mortgage companies follow Freddie and Fannie underwriting and pricing guidelines for their mortgages. That way they have the option to sell your home loan.
(Mortgage companies LOVE to do that. It's a little joke we like to play to get you back for over-estimating the value of your home when you refinance.)
So how are the mortgage loan delivery fees going to adjust? How will it affect real estate buyers in Hemet, Riverside County, and the rest of California.
You can get the full scoop, or just save money on Ambien and other sleep aids, by reading this bulletin. There are lots of changes, but I'm only going to highlight the biggie.
Risk-based pricing means that there will be additional fees based on your credit score and the LTV (or loan-to-value ratio, the percentage of the homes' value that you are borrowing). Here is a table to illustrate:
INDICATOR SCORE / LOAN-TO-VALUE | |||||||||
| Credit Score | LTV Ratios | |||||||
< 60% | > 60% & < 70% | > 70% & ≤ 75% | > 75% & ≤ 80% | > 80% & ≤ 85% | > 85% & ≤ 90% | > 90% & ≤ 95% | > 95% & ≤ 97% | ||
> 720 | -0.25% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
> 700 & < 720 | -0.25% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | |
≥ 680 & < 700 | 0.00% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | |
≥ 660 & < 680 | 0.00% | 0.50% | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | |
≥ 640 & < 660 | 0.00% | 0.50% | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% | |
≥ 620 & < 640 | 0.00% | 0.75% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | |
< 620 | 0.00% | 0.75% | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | |
By using the chart, we can see that someone with a 660 credit score who buys a $250,000 home and puts 20% down (80% loan-to-value) is going to either have an extra 1.25 points (that's $2,500 in fees). That's at least two full tanks of gas!
In this real estate market, if you want to buy a home or refinance real estate, keep your credit score high, put money down, and be sure to work with a trusted, local mortgage advisor that can give you an accurate pre-approval and an accurate estimate of the costs.
Related Articles:
Joey Aszterbaum is the Hemet Home Loan Guy and a member of the Active Rain social network of real estate professionals. To buy or refinance your home in Hemet, Riverside County, or California visit http://www.hemethomeloans.com/ or call 951.571.5751
Contact Hilary Wilkinson at 951.571.5756 for your home loan needs :) I have stepped away from mortgage loans to work for my wife's photography business. Thanks!
To buy or refinance Hemet Real Estate, contact Hilary Wilkinson today at 951.571.5756.
**The Hemet Home Loan Guy has stepped away from the mortgage business to work for his wife's photography business, but your business is very important to us. Call Hilary today.
...........
My name is Joey Aszterbaum, the Hemet Home Loan Guy.
I'm known as the Hemet Home Loan Guy because working in real estate isn't just about making a living...it's about being a good neighbor and serving the community. I've spent nearly my whole life in the Hemet-San Jacinto Valley, and I've worked for the local credit union Altura, and its home loan division Patrion Mortgage, since 2001.
It's my pleasure to raise money for a number of local non-profit organizations, such as the Mt. San Jacinto College Child Development Center, Community Pantry, Arrid Club, Birth Choice and others. I also take every opportunity to support local businesses in the Hemet-San Jacinto Valley.
In the real estate community, I'm known as 'the loan officer that helps Realtors grow their business' because of my unique Real Agent Help program, which supports real estate agents through seminars, networking events, education and one-on-one consulting.
My wife, photographer Jolynne Aszterbaum, and our four kids recently move to a small farm in San Jacinto with a growing family of animals, including one dog, five cats, two guinea pigs, a goat, a sheep, a pot-bellied pig and a Welsh pony named Honey.
If you want to buy or refinance homes in Hemet, San Jacinto or the surrounding areas of Riverside County, California, I would be honored to be the mortgage loan officer that you turn to. Call me at 951.571.5751 or apply online.
I look forward to helping you!
P.S. I also have a great network of Realtors that I work with, so if you'd like to buy or sell a home in Hemet, San Jacinto, Idyllwild, Riverside or anywhere in California, please contact me and I'll refer you to a real estate professional that you can trust.
With every client and Realtor I work with, it is my intention to create such a high level of service and trust that they become Raving Fans. Here are some samples of what my Clients and Realtors have to say.
Raves from Clients:
Joey, I want to thank you for all you have done. That was the smoothest loan I have ever experienced. You took such good care of me. Thank you! - Kim Stuart, San Jacinto, California
Gustavo and I just want to say thank you for all you have done. You have made this such a pleasant and learning experience for us. Thank you for always being attentive and accomodating to our needs and wishes. We look forward to working with you on all of our properties. Muchas Gracias! - Carmen Berumen, Banning, CA
I really appreciate your work in getting me a loan. I wanted to let you know that when I went to sign my papers and get them notarized, the person that helped me said that you did an excellent and very fair loan. Thank you, Joey! Also, thanks for being so quick and professional. You made me feel comfortable by being so clear and honest every step of the process. If I come across anyone else who needs this kind of service, I will be sure to send them your way! - Penny Hudson, Hemet, California
Joey, thanks so much for helping us with our refinance. It was the fastest and easiest loan we've ever done! - Dale and Cynthia Bartz, San Jacinto, California
Hi Joey. We wanted to thank you for all your help on our recent refinancing of our house. We couldn't believe you got us a rate 1 1/2% less than we had. As you may or may not know, we have had many loans in the past . We have also been taken many times if not every time on our loans. I praise you in your efforts to get us a good loan but also at making it so easy for us. And closing in about 23 days. Well, that is just not heard of. Again, we thank you for your overwhelming knowledge and the effort that you put in helping us to get this great loan. I will recommend you to anyone I know needing a loan. - Michael & Sybil Worland, Hemet, California
Thank you so very much for your professionalism, concern and compassion throughout the process of our new home purchase! You were there for every question we had, even assisting with the escrow of our old home, which was not your job, but greatly appreciated. You went above and beyond your role as a loan officer! You're the greatest. - John and Kimber Devitt, Hemet, California
This is the second time I've refinance with Joey Aszterbaum. Both times were handled quickly and hassle free. From the appraisal of my home to the final paperwork, everything ran smoothly. Communication is important in any business - and Joey is that. If I buy or refinance another home, I will always go to Joey Aszterbaum at Patrion Mortgage. - Manuel Ybarra, San Jacinto, California
I am pleased to share what a great experience it was to obtain my home mortgage from Joey Aszterbaum at Patrion Mortgage. We are more than happy with both the service we received throughout the process and the product that Joey was able to get us into. We cut out mortgage term in half, paid off some other high-interest debts, and only raised our monthly payment by a couple hundred dollars! I would highly recommend Joey Aszterbaum to anyone in need of mortgage services. - Ben & Telah McClary, Mooresville, Indiana
Raves from Realtors:
I cannot say enough positive things about Joey. His ability to communicate is first class. I have absolutley no concerns when I refer a client to Joey, I know that they will be given the best care and the right product will be offered to them. Joey is a person of honesty and integrity and a very valuable member of my team. - Graham Holmes, Owner/Realtor, Mission Grove Realty, Hemet, California
I am very impressed by the service I have been provided on the above referenced loan. Being an Agent and a previous Mortgage Loan Officer I could not have asked for a smoother loan process than provided by you and Hilary. The follow up was amazing as I knew exactly what was going on every step of the way without even asking. The time frames were great as well. You accomplished having a deal ready to close in 11 working days, just amazing! I would be happy to refer my clients as well as other Agents to use your services. Please send some business cards to the above address. This was really the smoothest transaction I've dealt with in a very long time. Thank you so much. - Casie Walthers, Realtor, RE/Max Coastal Redwoods, Crescent City, California
Thank you so much for helping the Castillo family get a home loan. You are an awesome lender! My client was well taken care of through the entire process, and you went above and beyond by making yourself available on the weekend to approve them. As a Realtor, what I appreciated most were the status updates that you constantly faxed to me...before I even wanted information you had it in my hands! Again, it was awesome working with you. Thanks! - Robert Sundback, Realtor, Coldwell Banker Kivett-Teeters, Hemet, California
Great Service, Joey! Nothing fell through the cracks even though you went on vacation. Thanks for everything. - Lori Wiley, Realtor, Realty America GMAC, Hemet, California
Thanks for all your help with the loan for Kim. I was very impressed with the way you kept on top of everything. Please send me some of your cards. - Ruth Pabst, Realtor, Main Street Realty, San Jacinto, California
I sincerely thank you for closing the laon at 24891 Cologne Drive in Hemet within a timely manner and without any problems. Your continuous "updates" were unexpected but GREATLY appreciated. It is unusual for a lender to keep a real estate agent updated throughout the escrow. It was a nice change. Thank you again for a hassle free, smooth transaction. I look forward to doing business with you again. - Jennifer Murphy, Realtor, Century 21 Mc Daniel and Associates, Hemet, California
Are you a Realtor? The Real Agent Help program helps Realtors grow their business through seminars, networking events and business consulting. Here is what Realtors like you have had to say about the program:
You have fresh ideas and unique perspectives on ways to help Realtors increase their business. This one tool has already netted my business tens of thousands of dollars in commissions. Thank you for sharing your ideas and supporting the real estate community. - Michelle M. Bassett, Broker, Bassett & Associates, Realtors, Hemet, California
I have really been enjoying the breakfasts and the conference calls. I learn something new every time. I love the fact that participating Realtors are so eager to share knowledge with one another. - Pauline Lynn, Realtor, Century 21 McDaniel, Hemet, California
Visit www.RealAgentHelp.com to check it out and for a free audio download.
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