Rachel de los Santos FHA and First Time Homebuyer Loans

FHA Government Loan is still available in Fremont CA .. for now

Did you know?

FHA (Federal Housing Administration) Government Loans allow low to moderate income families to purchase/refinance their own home. FHA loans take experience in originating, processing, underwriting and closing---that's why working with an experienced lender is so important.

Here is what I can do for an FHA Government Loan:

- Down payment as low as 3.5% !

- down to 500 FICO Credit Score

- 45% DTI (Debt to Income Ratio) for housing expense. Up to 57% Total DTI with strong compensating factors

-Can do NO DOCUMENTATION with streamline without appraisal program (Email /call me for more details to see if you qualify)

-Can Receive 100% of the down payment and closing costs from an approved gift source (like a family member) or an FHA Government Loan Approved Down Payment Assistance Program

- FHA Government Loans ALLOW a non-occupant co-borrower on 1 unit properties .. one of the BIGGEST advantages of FHA financing. Unlike conventional loans, the income and assets of the occupant borrower is combined with the income and assets of the non-occupant co borrower to create ONE ratio.

-Seller contributions, up to 6% of the purchase price, can be used to cover the buyers closing costs thereby reducing their cash to close. You can also use seller contributions to create a temporary buydown...a reduced rate for up to 3 years that could drive more borrowers to your listings on an FHA Government Loan

-No automatic well certs, septic certs, pest reports, and flat roof inspections.

Today, we've just scratched the surface about the power of an FHA Government Loan ...I would like to schedule some 1-1 time to meet with you to provide further detail on FHA Government Loan products and how they can be leveraged in your market. Also, I conduct FHA Government Loan Workshops, Seminars, and Webinars for borrowers as well as realtor offices.

Being an experienced mortgage consultant, I can offer the latest programs and cutting edge information that will help you to sell more homes. I am one of the FHA Government Loan Specialists in Fremont, CA.

If you or your client is looking for an FHA Government Loan, I am currently still accepting applications but it is unclear how much longer some of these programs will be available. I have been informing my clients that some programs may not be available in the very near future and to best serve them I'm qualifying them on several backup programs such as DAP (Down Payment Assistance) First Time Homebuyer Program. FREE FIRST TIME HOMEBUYER GUIDE

Give me a call today and let's see what our options are!

Rachel de los Santos

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: 510-240-2805

Fax: 877-649-0855

rachel.delossantos@wellsfargo.com

5 Steps to First Time Homebuyer Happiness in Fremont CA

1) Find out what you can afford to pay for a house, condo, or co-op with a First Time Homebuyer Program(This will all depend on the amount of cash you have available for a down payment, your credit, income, assets and overall financial situation)

- Mortgage qualification is easier if all the documents are provided to the lender upfront in a timely manner

2) Without a formal loan application, an issued prequalification letter does not carry the weight of a preapproval letter.

HOUSE HUNTING TIP: You are in a much stronger position negotiating with a seller if you have a preapproval letter stating that you are qualified for the mortgage you will need to close the sale. It could be essential if you are competing with multiple offers.

3) Along with shopping for a mortgage person, you should also be searching for a real estate agent to represent you especially when you are a First Time Homebuyer. Both are good sources of information about where you can afford to buy. Your goal is to buy in the best neighborhood you can afford without overextending yourself financially.

4) Buy a home that has good resale potential. Many homes that aren't selling in today's market have incurable defects, such as a steep or shared driveway, a lot of stairs leading to the front door, or a location on a busy street, next to a freeway or too close to a commercial zone. An incurable defect is one you can't change. A curable defect includes such things as deferred maintenance or an outdated décor. These can be improved.

When home prices are escalating, First Time Homebuyers are more willing to compromise. They'll buy a home with an incurable defect, just to have the opportunity to buy in a market where they can make money quickly. Sellers don't always have control over when they sell.

5) THE CLOSING: It makes sense to buy a house that has broad-based appeal and will sell well in any market.

I work at the nation's #1 Retail Lender. I offer a variety of First Time Homebuyer Programs which are very popular.

If you or your client is looking for a First Time Homebuyer Program, I am currently still accepting applications but it is unclear how much longer some of these programs will be available. I have been informing my clients that some programs may not be available in the very near future and to best serve them we are qualifying them on several backup programs such as DAP (Down Payment Assistance) First Time Homebuyer Program. FREE FIRST TIME HOMEBUYER GUIDE

Give me a call today and let's see what our options are!

Rachel de los Santos

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: 510-240-2805

Fax: 877-649-0855

rachel.delossantos@wellsfargo.com

Low Mortgage Rate Refinance in Fremont CA

The Washington Post, By Dina ElBoghdady

February 2, 2011

A record number of homeowners are kicking in cash when they refinance their mortgages, in most cases to qualify for Low Rate Mortgage Refinances that are now near historic lows, mortgage financier Freddie Mac reported this week.

In the fourth quarter, 46 percent of borrowers who refinanced their primary mortgages brought cash to settlement to lower the balance on their loans to receive a low rate, Freddie Mac said. That's the highest share of "cash-in" refinances since the company started tracking the numbers in 1985.

Borrowers, in essence, are buying peace of mind about their debts by moving to more affordable mortgages and, according to the firm, coming out ahead by using cash that's earning little interest in the bank to realize significant savings on their monthly loan payments.

"It turns out to be an easy calculation for many people," said Frank Nothaft, Freddie Mac's chief economist.

The trend marks a sharp reversal from the days of the housing boom, before the mortgage meltdown. Back then, people pulled cash out of their homes to pay for vacations and other expenses. The deals peaked in 2006, when an estimated 86 percent of prime borrowers with non-government- backed loans cashed out a record $318 billion.

The cash-out deals fizzled out when home values plunged. Last year, borrowers cashed out only $32 billion, the lowest volume since 1997 when adjusted for inflation, Freddie Mac said. By contrast, cash in refinances have climbed every year since 1997.

Low interest rates are one of the main drivers behind the jump. The average rate on a 30-year fixed-rate mortgage hit a low of 4.17 percent in mid-November. It has hovered in the high 4 percent range since then, averaging 4.8 percent last week. With rates expected to rise further this year, it's no wonder borrowers are eager to refinance.

"Over the course of the past 18 months, we've done about 4,000 cash-in refinances and I'd say that borrowers were bringing cash to the deal in more than half of these," said Erika Tucker, a real estate lawyer at Monarch Title in the D.C. area.

Some borrowers did so out of necessity. With values tumbling, many homeowners owed more on their mortgages than their homes were worth. They could not refinance without coughing up cash.

"The cash-in deals are a by-product of the negative equity many borrowers have in their current homes," said Greg McBride, a senior financial analyst at Bankrate.com.

Then there are people such as Mark Lenhart, 43. He and his partner wrote a check for $20,000 to refinance their D.C. condominium in December.

The couple had an adjustable-rate mortgage that was due to reset this month and then every year thereafter. Concerned about the prospect of rising rates, they wanted to do a Low Mortgage Rate Refinance into a 30 year fixed rate loan. But they did not have the 5 percent equity needed to qualify, which is why they paid down their loan balance.

"If interest rates went up quickly over the next couple of years, we would have been in trouble," Lenhart said. "It was a source of panic for me. We are very lucky that the mortgage rates are as low as they are right now so we could do this."

Other borrowers are kicking in cash so they can avoid paying private mortgage insurance. Lenders require private mortgage insurance if the amount borrowed covers more than 80 percent of the value of the home.

But an even larger share of borrowers are bringing cash to the table to meet certain loan limits within the three-tiered mortgage system now in place in areas with pricey homes, including the Washington region, said Eric Gates at Apex Home Loans in Rockville.

The lowest rates apply to 30-year fixed-rate mortgages that do not exceed $417,000 and meet guidelines set by Fannie Mae and Freddie Mac. Investors perceive these loans as safe because they have the government's guarantee.

The highest rates apply to loans larger than $729,750. Investors stopped buying those "jumbo" loans when the mortgage market soured and their rates shot up.

In the same expensive markets, an in-between rate can be found for loans from $417,000 to $729,750. That middle tier was created when the federal government tried to help pull down jumbo rates by allowing Fannie Mae and Freddie Mac to buy larger loans, hence making them more attractive to investors.

"The difference in interest rates can be pretty significant," Gates said. "There are plenty of people who are paying down their balances to meet the various loan limits."

Among them is Amy Rifkind, an attorney who wrote a check for about $70,000 when she refinanced her home in the District. By doing that, Rifkind and her husband brought down their loan balance below the $417,000 mark and secured a 4.25 percent rate.

"We had gains in the stock market that we wanted to pull out and we had cash in savings as well that was sitting there making practically no interest," she said. "We figured we might as well pay the loan down and get an even lower rate."

Being an experienced mortgage consultant, I offer some of the the most diverse and extensive product lines in the industry. I offer a variety of programs that offer a low rate refinance which are very popular.

If you or your client is looking for a low rate refinance, I am currently still accepting applications but it is unclear how much longer the rates will stay at it's current historic lows. I have been informing our clients that some programs may not be available in the very near future and to best serve them we are qualifying them on several backup programs such as an ARM (Adjustable Rate Mortgage). FREE RATE MONITOR!

Give me a call today and let's see what our options are!

Rachel de los Santos

Home Mortgage Consultant

Wells Fargo Home Mortgage

Phone: 510-240-2805

Fax: 877-649-0855

rachel.delossantos@wellsfargo.com