Kirk Mulhearn

Long Beach, Ca. Real Estate agents and home buyers need to understand the implications of the new FHA loan limits as spelled out below. Sometimes this can be a little confusing with FHA loan structure so let’s analyze a couple of examples.

First, understand that the FHA loan limit is based on the sales price minus the required 3.5% down payment and does not include the required Mortgage Insurance Premium (MIP) of 1.75% which is usually financed on top of the base loan amount.

Second, Remember that if your base loan amount is above the old conforming loan limit of $417,000.00 then you will be subject to JUMBO FHA pricing which normally costs between .5% and .75% more then conforming rates.

For example, if your sales price: $432,124.00

Down pay ment would be(3.5%): $15,124.00

Base Loan Amount: $417,000.00 (This is a conforming FHA Loan)

Add the MIP Fee(1.75%) $7298.00

Your Total Loan Amount $424,298.00*

Even the total loan is greater then $417,000.00, it is not considered an FHA Jumbo because the mortgage limits are related to the base loan amount.

New FHA Mortgage Limits

The American Recovery and Reinvestment Act of 2009 (Recovery Act), signed into law on February 17th, 2009, provides for new FHA Mortgage Limits, effective March 6, 2009. These new limits are calculated at the higher of the previous 2008 loan limits or the 2009 loan limits implemented by the Housing and Economic Recovery Act (HERA).

The new loan limits have been implemented and effective in the Mortgage Pricing System’s products since March 6, 2009. Current clients of Mortgage Pricing Systems can be confident in accurate qualification and pricing of FHA products. If you are not a client of Mortgage Pricing Systems, you must check with your Product and Pricing Eligibility provider regarding the status of this required change to FHA loan qualifications.

Loan limits vary by county and can be reveiwed at:

https://entp.hud.gov/idapp/html/hicostlook.cfm.

The new maximum loan limits are as follows:

New 2009 FHA 48 States AK and HI

1-Family $ 729.750 $ 1,094,625

2-Family $ 934,200 $ 1,401,300

3-Family $ 1,129,250 $ 1,693,875

4-Family $ 1,403,400 $ 2,105,100

Kirk Mulhearn, a Long Beach real estate broker manages, “The Bixby Knolls Office,” of Prudential California Realty and co-manages a GEM Mortgage net branch which specializes in originating FHA, VA, and Conventional Financing.You may contact him at: 532-989-4608 ext. 110

Subscribe to this blog at: www.longbeachrealestateandloans.com

Long Beach, Ca. While the economy continues to wind down, American families look for anyway possible to save money. The question is: How can I save money on my next loan transaction? To help you we have listed several ways below on how to lower your costs:

1. Shop for a home mortgage as if you were shopping for any other product. That is, compare the Good Faith Estimate of at least two retail loan companies to get an idea of what is the least expensive way of finding a mortgage.
2. See if the lender is offering any special discounts. There are sometimes programs wherein the lender rebates up to $1000.00 in fees to assist clients get into a property.
3. Ask you real estate agent to make sure that the Seller absorbs your closing costs; that is, the Sellers legally can pay for a portion, if not all of your closing costs but you have to write that and negotiate it into the transaction.

Meanwhile, on the big scene, AIG asked for a fourth round of government assistance, threatening that if they did not receive it that their could be a systemic collapse in the credit markets. Excuse me, didn’t that already happen? The favorite joke going around my clients’ is that everyone’s 401-K has been adjusted to a 201-K considering that many have already lost 50% of last years equity value. Then you have Obama claiming that stocks are a great value and that everyone should be investing? What the #@*!!!!

Rumors have it that AIG may need up to an additional $200 billion dollars on top of the $160 billon that they have already received to squash the insurance needs that its clients have on defaulting Mortgage backed Securities and Collateral Debt Obligations.

You see, what we had was a super sized insurance company insuring high flung financial bets placed by Investment banks on paper products known as: “DERIVATIVES.” These “products” were given AAA ratings by companies like Moodys and Standard and Poors, who were lobbied with millions of dollars by the same Investment Banks hocking the paper. Then one day, surprise, the whole house of cards(derivatives) came down and the American tax payer got left with the bill! Is this really what the founding fathers had in mind?

What does this all mean to a family attempting to purchase a new home? Bottom line is to get your money into hard assets like real estate. Real estate has always been a natural hedge against inflation in that no matter how much the dollar is inflated, the real asset still has utilitarian value (you can live in it, but you can’t live in a stock portfolio).

Kirk Mulhearn, a Long Beach real estate broker manages, “The Bixby Knolls Office,” of Prudential California Realty and co-manages a GEM Mortgage net branch which specializes in originating FHA, VA, and Conventional Financing.

You may contact him at: 532-989-4608 ext. 110

Subscribe to this blog at: www.longbeachrealestateandloans.com

Listen to the great American Founding Father here: http://www.youtube.com/watch?v=mtQTEoV2jUo

Long Beach, Ca. Patrick Henry gives a masterful speech that would light and ignite, fire and explode the minds of men. Take nine minutes of your day and reflect upon his weighty words...his determination and commitment to his cause sounds out even today, over 230 years later....where are our leaders like him today?

Kirk Mulhearn, a Long Beach Real Estate Broker,manages Prudential California Realty. "The Bixby Knolls Office," he also co-manages net branch of GEM Mortgage, a direct lender specializing in the FHA, VA, and conventional financing. You may contact him at 562-989-4608 ext. 110

Subscribe to this blog at: www.longbeachrealestateandloans.com

What is FHA 203(k) Financing?

Long Beach, CA. This US Governments housing program has been in existence since the 1990’s. Its purpose allows a home buyer the opportunity to finance into a 30 year fixed mortgage upgrades and repairs they want up to $35000 above and beyond the sales price. Below outlines how these funds may be utilized.

Finance your kitchen appliances such as refrigerator, stove built in microwave, dishwasher, hot water heater, built in trash compactor as part of your 30 year fixed FHA loan. Energy efficient appliances may be eligible for additional rebates from the local utility company. As just signed by rebates from the local utility company. As just signed by President Obama, buyers may qualify for up to a $1500 tax credit for energy efficient upgrades too!

Repairs financed may include: new carpeting, install or refinish hardwood floors, install energy efficient windows, replace a worn leaky roof, replace damaged or worn out kitchen and bathroom fixtures; termite clearance !!!

Get the electrical and plumbing updated and upgraded.

Mixed use properties eligible

Subject to maximum percentage of commercial use.

1-4 unit owner occupied homes

Single family residences, condos and townhomes allowed.

Licensed general contractor generally needed and required.

Close escrow in 60 days

Today, we will see three homes with 30 year fixed payments of $1288, $1304 and $2214 respectively!

$289,000 List Price for

9209 Laurel Street Bellflower, Ca 90706

$289,000 list price

$10,115 3.5% FHA down payment

$278,885 base loan amount

$20,000 FHA 203(k) added for upgrades

$298,885 base loan amount

$1,004.00 per month 1^st mortgage 5.5% 30 year fixed FHA 203(k)

$50.00 per month estimated home owners insurance

$301.04 per month estimated property taxes

$136.99 per estimated private mortgage insurance

$2,214.76 per month PITI

Estimated closing costs based on a 640 credit score is 4% to 4.5% of the sales price. If the seller pays all closing costs, cash needed is:

$10,115 down payment

$425 FHA 203(k) appraisal

$275 inspection

$10,815 total estimate cash needed

Proposed items to upgrade:

Replace Roof

Energy efficient water heater/dishwasher

Paint interior

$149,000 List Price for

5545 Lime Avenue Long Beach, Ca 90805

$149,000 list price

$5,215 3.5% FHA down payment

$143,785 base loan amount

$30,000 FHA 203(k) added for upgrades

$173,785 base loan amount

$1,004.00 per month 1^st mortgage 5.5% 30 year fixed FHA 203(k)

$50.00 per month estimated home owners insurance

$155.21 per month estimated property taxes

$79.65 per estimated private mortgage insurance

$1,288.86 per month PITI

Estimated closing costs based on a 640 credit score is 4% to 4.5% of the sales price. If the seller pays all closing costs, cash needed is:

$5,215 down payment

$425 FHA 203(k) appraisal

$275 inspection

$5,915 total estimate cash needed

Proposed items to upgrade:

All new energy efficient windows and exterior doors

Flooring

All light fixtures

Energy efficient water heater

Wall furnace heater

Paint interior and exterior

$160,000 List Price for

38 East Platt Street Avenue Long Beach, Ca 90805

$160,000 list price

$5,600 3.5% FHA down payment

$154,400 base loan amount

$20,000 FHA 203(k) added for upgrades

$174,400 base loan amount

$1,007.55 per month 1^st mortgage 5.5% 30 year fixed FHA 203(k)

$50.00 per month estimated home owners insurance

$166.67 per month estimated property taxes

$79.93 per estimated private mortgage insurance

$1,304.15 per month PITI

Estimated closing costs based on a 640 credit score is 4% to 4.5% of the sales price. If the seller pays all closing costs, cash needed is:

$5,600 down payment

$425 FHA 203(k) appraisal

$275 inspection

$6,300 total estimate cash needed

Proposed items to upgrade:

All new energy efficient windows and exterior doors

Flooring

All light fixtures

Energy efficient water heater

Wall furnace heater

Paint interior and exterior

Repair kitchen cabinets/install new sink

Kirk Mulhearn, a Long Beach Real Estate Real Estate Broker manages the Prudential California Realty office in Bixby Knolls, he also co-manages a GEM Mortgage Net Branch, a direct lender specializing in FHA, VA, and conventional financing. He can be reached at 562-989-4608 ext. 110

Subscribe to this blog at:

www.longbeachrealestateandloans.com

Long Beach, Ca. The new 3.5 trillion dollar national budget, the largest on record, named, "A New Era of Responsibility: Renewing America's Promise." Was rolled out today by the wonderful people running this great nation. Let us analyze the name....there is a lot in a name:

A new era of responsibility?

Who is going to be held responsible? It appears that the tax payers of this nation will definitely be held more responsible because Obama's multi-Trillion dollar budget will raise taxes by $989 Billion dollars over 10 years!!!!!

Then there's the quizzical: Renewing America's Promise?

Again, may we ask, who is being promised what? With all of the money being pumped into social services, perhaps the all knowing legislature should take a careful look at California's new poor push social services to the brink to get an idea of what is really going on in the heartland.

After all, maybe it's time to start from scratch: What is the basis for a healthy, industrialized, and modern civilization? All Empires of antiquity at their lean beginings, started off with a some form of economic base. Either it was an agri-based country: Egypt and Rome or a trading power: Venice and Greece. The point being that there was some kind of economic foundation that allowed the economy to flourish without government intervention. In the United States, we reached a high point in the last century when our manufacturing base was the envy of the world. The problem that the United States has today, is that many of these manufacturing jobs have been exported simply because of the cost of labor and pensions in the United States have simply priced it out of the global market place. When Auto workers in Detroit require $70/hr while Chinese industrial workers can be hired and retained for $200/month it is evident the world is out of balance. How can the United States recover with out a manufacturing base?

Meanwhile, the head of our Treasury attempts to manufacture a new securities industry, read: Time to Break up the Big Banks

Mortgage Brokers are squeezed out of the market. The market share for those people in the wholesale mortgage channel continues to shrink. Mortgage brokers accounted for just 16.6% of all new residential loans originated in the fourth quarter, the lowest on record since National Mortgage News began tracking originations 15 years ago. As recently as mid-2007 wholesale -- where broker-sourced loans are table funded -- accounted for 28% of production. The 30 or so table funders reporting to NMN and the Quarterly Data Report originated roughly $50 billion in mortgages through loan brokers. All lenders -- using retail, wholesale and correspondent means -- funded $300 billion in product during 4Q,

The Financial Stability Initiative allows for a refinance by the agencies to 105% LTV. William Longbrake, a member of the board at First Financial Northwest, Renton, Wash., said it's "entirely possible" the ceiling could rise above 105% once the government-sponsored enterprises determine the procedures they will follow regarding refinancing upside down loans.

Another Wholesaler slips away. Wednesday, Chase bailed on their warehouse business. "After consideration and review, the Correspondent Lending Business at Chase has decided to no longer offer warehouse financing. This product does not fit within the long-term strategy of our firm."

Kirk Mulhearn, a Long Beach Real Estate Broker, manages Prudential California Realty, "The Bixby Knolls Office," and co-manages a net branch of Gem Mortgage, a direct lender originating FHA, VA, and Conventional loans. Kirk Mulhearn may be contacted at: 562-989-4608 ext. 110