San Diego Real Estate's Most User Friendly Search Tools "New!" Premier MLS Search Tool "New!" All Other Real Estate Search Engines are Now Obsolete
Search Tip of the Day - No Login Required
Once On Premier MLS Search page, There is no need to log in. Simply (1) Select the Search San Diego Drop Down Menu at top of page, then (2) Dynamic County Search ... you will be amazed at the search power, simplified neighborhood, aerial satellite, & zip code viewing options now available to you)
As a CA Licensed, e-PRO Real Estate Broker, your email will only be used to inform you of property details or areas that you have expressed interest in. Your privacy will be respected at all times and information will never be traded or sold.
An MLS option to Zillow. If perfer Zillow, use button link on left menu bar .
Up Dated 02/07/2010 (See the latest Data Quick Summary for San Diego Home Sales)
Market Matters Update:
First-time buyers in most San Diego areas, especially those with large numbers of foreclosures, are finding that bank-owned properties under $450,000 are receiving multiple offers within the first few days on market sparking bidding wars that drive up sale prices. Recently enacted federal and state foreclosure moratoriums designed to help people remain in their homes has slowed the flow of foreclosures into the market, lowering the inventory and increasing the demand for remaining homes. Many Realtors expect another surge in foreclosures is coming now that the moritoriums have ended.
Nov. 5, 2009 Extension of home buyer tax credit: Good news for consumers, our members, and the housing market recovery. Following the Senate´s favorable vote yesterday, the U.S. House of Representatives just voted 403 to 12 to extend the home buyer tax credit, expanding the parameters to include existing homeowners and not just first-time buyers. As you may know, C.A.R. and our partners at NAR have worked for months urging Congress and the Senate to extend and expand this crucial piece of legislation. We expect President Obama to sign the legislation in short order.
As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years. The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.
Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.
If you are interested in a bit more privacy, larger lots, and exquisite valley or mountain views, then the East County (Map) is an area that certainly should be included in your home search. Land is typically more affordable, recreational opportunities abound, and most areas are only a brief freeway commute to the Cleveland National Forest, to the coast, or into downtown San Diego as well as many of the North and South County communities.
Welcome to San Diego real estate. My Buyer's Exclusive Agent and wholesale refinance web site is an on-line guide designed to assist San Diego home buyers and small investors to function more effectively in the increasingly complex San Diego real estate market. To this end I have customized and made available to you the MLS's most effective community and neighborhood search tool.
Other very effective search tools available on this site include a neighborhood San Diego Map Search, and your own Custom MLS Web Page linked to the MLS Hot Sheet which updates new listings and price changes every 24 hours. Also view my San Diego County area maps.
Buyers Exclusive Consultant, Risk Management Specialist & Your Personal Loan Consultant
I specialize in the exclusive, personal representation of buyers at any market range in the San Diego Area. Following a initial consultation with you as a client, I work with you to select the most suitable loan strategy and homes for preview. Since there are only virtual homes on the internet, I then personally take the time to physically preview the properties that appear to best fit your unique home search criteria. For further details view my Buyers Exclusive Agent page.
Buyers Exclusive Agency Commissions
Since there are increasingly complex considerations and contingencies encountered when making a purchase offer on a property, and the seller rather than the buyer pays my commissions, there is hardly any reason why a buyer might not want the assurance of having exclusive, professional representation throughout the entire purchase offer and loan transaction.
Become an Effective Buyer
There is considerable information that you as a home buyer and investor need to be aware of before offering a purchase contract, after the seller's acceptance, while in escrow, and even after the completed transaction. This web site provides my clients with the knowledge required to become more effective and informed buyers. To further your home buyer and general real estate knowledge base please review my buyer's tips, and current real estate news links.
Loan Programs Require Professional Counseling Relocating to San Diego or Moving Out of State
If you are relocating to San Diego, either leasing or buying, my exclusive buyer's representation and personalized Risk Management service is especially important. In addition, as an ePRO certified professional I can facilitate almost all of your required transactions over the internet. To further ease your relocation, the fundamental tools necessary to research a community's resources, schools, and area services are also provided.
The purchase of a home is likely one of the most important real estate investments that you will ever make. However, once you have become a savvy home buyer, consider that you might also now be ready for taking the next step as a real estate investor. I have provided a unique Income Property Search Page; in addition, for the new investor I have supported this section with modules leading to a better understanding of the Standard Cash Flow Models used by lenders and most successful income property investors, For those currently owning income property, I have included an extensive 1031 Deferred Tax Exchange module and Asset Protection comment.
Loan Calculator and Cash Flow
For home buyers and real estate investors alike there is also an interactive Java loan calculator linked to each detailed property search that projects a full loan amortization schedule supported by a visual graph clearly showing you the interest and principle that would be paid for the duration of the loan given the interest rates and terms that you enter.
Lon Underwood CA Realtor® RMS Broker Direct Service 619-981-0125 e-Fax 619-599-8070 Lon@LonUnderwood.com
Home Finance News
Loan limit extensions signed into law
President Obama late Friday Oct 30 signed a congressional resolution to extend through 2010 the current conforming loan limits of $417,000 ("Conforming Loan") for most areas in the U.S. and $697,500 "High Balance" Conforming Loan limits for San Diego which would be considered a high cost area. The resolution was included as a part of a broader piece of budgetary legislation that was intended to prevent a government shutdown.Last week´s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010.
The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, and the Federal Housing Administration (FHA) can buy or "guarantee." Non-conforming or "jumbo loans" typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.
Home Loan Refinance are at 50 Year Low Interest Rates: Rates remain at historical lows for those with good credit and able to fully document their income. I advise that you have your loan application in a wholesale lender's pipeline (at no cost or obligation to you) so that you can lock a loan when rates and pricing are lowest. My clients are successfully restructuring their finances and closing exceptional refinance home loans using this strategy. One client just locked a 4.5% 30 fixed rate at 1/4 pt. Please don't hesitate to contact me for a refinance scenario and good-faith estimate meeting your unique personal and financial criteria.
How the New Stimulus Bill Relates to Mortgage Lending: Late this evening, the U.S. Senate passed the American Recovery and Reinvestment Act of 2009 by a 60 to 38 vote. Earlier today, the stimulus package passed the U.S. House of Representatives in a 246 to 183 vote. Today´s votes followed several days of negotiations by the House, Senate, and White House, with the final tab for the stimulus bill coming in at $787.2 billion.
On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. The cap varies by county and in San Diego the loan cap is now set $697,500. Numerous counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1, and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009.
The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Homebuyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.
The higher conforming loan limit provisions and other housing elements in the stimulus package are a step in the right direction for our industry and all Californians.
You Need a Plan for Refinancing Your Mortgage Homeowners seeking to refinance their mortgages may be surprised by the amount of paperwork required.During the "easy credit" years, some lenders did not require proof of income or documentation. In the current market, lenders require borrowers to provide pay stubs, banks statements, retirement fund documentation, brokerage statements, and tax returns.Self-employed individuals will be asked for a profit-and-loss statement.Those relying on bonus income should expect that most lenders will assume this year´s bonus will be a lot less than last year´s, which could make securing approval more difficult.
Determining the amount of equity in the home is key to being approved for a new loan.Homeowners whose mortgage obligations are less than 80 percent of the home´s value are more likely to have refinancing options available to them. Those with 60%-70% Loan to value will get the lower rates as their loans present less risk. Lending rates are all about risk. Other homeowners who are current on their mortgages, owe 80 percent to 105 percent of the home´s value, and have a loan owned by Fannie Mae or Freddie Mac may be able to refinance under the government´s "Making Home Affordable" program.
Other factors to take into consideration when refinancing are the property´s appraised value, the homeowners´ credit score(s), whether or not the property has a second mortgage, and the length of the original loan.
Points and Loan Locks New Borrower Guidelines & Strategies in the Current Mortgage Markets:
Current mortgage rates and changes in loan underwriting standards have led some borrowers to make mistakes when applying for a mortgage loan.One old adage that many borrowers fall into is not paying up-front points.In previous real estate cycles, paying one percentage point was equivalent to shaving off approximately a quarter of a percentage point of interest. In today´s market given historically low rates, one percentage point can lower the interest rate by as much as 1 percent, changing a 6 percent interest rate into one that is 5 percent.
Another common mistake some borrowers make is not locking in an already low interest rate, especially when the rates are at historic lows, as they are currently.Many borrowers believe that if a favorable rate is available this week, a lower one will likely be offered next week. If you have a crystal ball, this might be a good strategy; however, most mortgage experts advise clients to lock in a rate once the numbers work for them and not hold out for an even better rate that may not come. Once you lock a rate, never look back.
Types of Home MortgageLoans Now Available:
In the mortgage business there are two kinds of loans. These are "conventional" and "non-conventional" loans. If the loan is conventional, it is a mortgage loan other than those insured or guaranteed by a government agency such as the FHA (Federal Housing Administration), the VA (Veterans Administration), or the Rural Development Services. Within the framework of conventional loans there are two types, (1) conforming and (2) nonconforming. Conforming loans currently have a $546,250 (soon to be increased by Stimulus legislation) limit in San Diego and follow certain guidelines laid out by Fannie Mae and Freddie Mac.The he guidelines for underwriting nonconforming conventional loans (will not be purchased by Fannie Mae) may differ from lender to lender.
Differences in Rate and Points Between FHAs and Conventionals:
In shopping lenders who offer both FHA and conventional loans, I have found that, in many cases, the rate and points quoted on FHAs are higher. Lenders often charge larger markups on FHAs, partly because they may be a bit more costly to originate, but primarily because "they can." There isn't as much competition for FHAs because a large proportion of brokers and smaller lenders don't offer them. In addition, many contractor sellers of new homes or REO sellers will designate a preferred lender who often functions more as a "mandated lender" placing the buyer in a uncompetitive loan scenario. This places a difficult burden on borrowers shopping for the best deal, as if that weren't already difficult enough. Processing and underwriting all full doc loans anymore has become very labor intensive whether they are FHA or Conventional loans. The rate and price should be almost the same for either loan product.
FHA Loans:
$697,500 is New INCREASED FHA LOAN LIMIT for San Diego Home Buyers
The new FHA loan limits for San Diego County are have recently been reset to a maximum of $697.500, reflecting an increase from $546,250. However, very few if any lenders are set up to fund the increased limits as of late May. The $697,500 FHA Loan limit for which credit is approved (and appraisals will support) will remain in effect until Dec. 31, 2009.
The revised FHA loan limits for 2009 are set at the higher of the loan limits established for 2008 under the Economic Stimulus Act of 2008 (ESA) or those established for 2009 under the Housing and Economic Recovery Act of 2008 (HERA).
Buyers can look up the FHA mortgage limits for an area or several areas, and list them by state, county, or Metropolitan Statistical Area at https://entp.hud.gov/idapp/html/hicost1.cfm.
For most buyers, FHA is the most affordable route when purchasing a home within the qualifying $697,500 loan limits. FHA was created by the federal government to provide affordable housing financing for qualified borrowers. The home buyer typically comes in with a 3.5% down payment and FHA then insures the loan, eliminating a lender's risk. The 3.5% money down can be a gift. Closing costs can be funded in the amount of the loan; however, payment of closing cost are negotiable and are often paid for by the seller in the form of a "seller concession" negotiated for when making the original purchase offer.
When buying with FHA finacing there are some addtional cost to buyer for FHA insuring the increased risk to lenders. The borrower pays an initial up front insurance premium, which is approximately 1.75% of the loan amount. This amount can be absorbed directly into the principle loan amount, or can be paid by the buyer up front, or even paid by seller concessions; so construct your purchase offer carefully. The borrower also pays an additional monthly insurance premium of .5% (or 1/2%) of the loan amount divided into 12 monthly payments.
Condominium HOA must be on FHA Approved List:
Prior to Feb 01, 2010, FHA allowed a "Spot Approval" for purchase of a condominium. This was a sometimes an effective work around for buying within an HOA that was not listed on HUD's prior approved list of condo developements. For a Spot Approval, minimal guidelines were taken in to cosideration. If an HOA did not have adquate reserves, was less than 51% owner occupied, or was party to a law suit the property was not likely to qualilgy for an FHA insured loan. This is no longer an option, as of Feb 01, 2010 all condominium ownerships must be listed on HUD's approved HOA list.
FHA Typical Qualifications include:
FHA financing can be used on all purchase or refinance transactions. Credit scores and credit requirement's vary depending on compensating factors. For example, no Bankruptcy's within the last 2 years and no Foreclosure's within the last 4 years. A 12 month rental or mortgage history with no late payments required. Verified income and assets known as "Full Doc" loan programs only. Property must be Owner Occupied. Loan to Value (L.T.V.) and Debt to Income (D.T.I.) ratio restrictions do apply. Please contact me for details.
ConformingHigh-Balance mortgage loans are loans with original principal balances that exceed the general loan limits, but meet the high-cost area loan limits as defined by the Federal Housing Finance Agency. In San Diego the High-Balance maximum is now $697,500 until Dec.31, 2009 per the new stimulus bill. Not much difference between a conforming and a high-balance loan these days as both can be purchased Fannie Mae. Prior to High-Balance mortgage loans conforming loan limits were $417,000. Conventional loans are loans made at the risk of the borrower, without the benefit of any warranty insurance or government backing.except that if Fannie Mae guidelines are adhered to when originating the loan, the loan can then be sold to Fannie Mae providing the lender funds to generate more loans. A conventional mortgage with a LTV (loan to value ratio) of more than 80%,however, does require private mortgage insurance, which can be paid monthly. Conforming conventional loans require more down payment than FHA or VA loans and are a bit harder to qualify for, but tend to carry a lower interest rate.
Minimum Qualifications for conventional loans have typically been a 620 credit score and above with 720 or above required for best possible scenario. No Bankruptcy's or Foreclosure's within the last 5 years. A 12 month rental or mortgage history with no late payments required. Verified income and assets known as "Full Doc" loan programs only. Property must be Owner Occupied. For 2nd Homes or Non-Owner Occupied property's certain rate adjustments will apply. Loan to Value (L.T.V.) and Debt to Income (D.T.I.) ratio restrictions do apply; typically 41% range. Please contact me for details.
Non-ConformingJumbo Mortgage Loans are those loans that were originated between July 1, 2007 and December 31, 2008 in accordance with Fannie Mae´s existing product for higher loan amounts. In the past Jumbo Loans were any loan that exceeded the $417,000 conforming loan limit. Jumbo loans are now being phased out by the new High-Balance loans. Currently, any loan over $697,500 is considered a Super Jumbo or non-conforming loan in San Diego. They are not government insured and rates are higher than the insured loan products.
Mortgage Debt Relief Act: H.R. 3648: Mortgage Forgiveness Debt Relief Act of 2007 passed into federal law Dec 20, 2007.assist "home-owner sellers" in Short Sale transactions. FAQ Reagarding the Debt Relief Act. If you are considering a short sale or negotiating a discharge of debt for any reason you should first consult with your tax advisor or legal counsel. Discharged debts can still be considered income under certian circumstances.In brief, if you owe a debt to someone else and they cancel or forgive that debt, it is possible that the canceled amount of debt may be taxable. See the IRS opinion regarding discharge of debt.
Short Sale Debt Relief Income Exempt from State Income Tax: Starting September 25, 2008, the federal income tax exemption for debt forgiven on a home loan now applies to state income taxes to a limited extent. Federal law provides a tax exemption for debt forgiveness on a loan incurred for acquiring, constructing, or substantially improving a principal residence up to $2 million if the debt is discharged from 2007 through 2012. Under the new California law, the maximum qualifying debt is only $800,000, not $2 million, and the maximum exclusion is $250,000. Moreover, the California law only applies to a debt discharged in 2007 or 2008. Senate Bill 1055.
Foreclosure Relief Bill Becomes a Law:This week, the State Legislature enacted foreclosure reform law to address the adverse effects of high foreclosure rates in California. The new law requires lenders to contact homeowners to explore options for avoiding foreclosure at least 30 days before filing a notice of default. It also requires owners acquiring property through foreclosure to maintain the exterior of vacant residential properties. The new law also extends from 30 to 60 days the time for residential tenants to move out of properties that have been foreclosed upon, unless other laws apply. These requirements will remain in effect until January 1, 2013. The full text of Senate Bill 1137 (Perata) is available at www.leginfo.ca.gov.
Emergency Economic Stabilization Act May Help Homeowners: Enacted on October 3, 2008, this historic federal legislation earmarks $700 billion for the Treasury Secretary to purchase troubled assets from financial institutions. The Secretary and other federal agencies are also charged with the task of mitigating foreclosures for mortgages and mortgage-back securities and encouraging loan modifications. Furthermore, this law strengthens the FHA-insured refinance loans for troubled mortgages under the HOPE for Homeowners program, including authority for the program's board of directors to increase the maximum loan amount above 90% of the appraised value. This bill also extends the tax exemption for debt forgiveness on home loans under the Mortgage Forgiveness Debt Relief Act of 2007 from December 31, 2009 to December 31, 2012. Source:H.R. 1424.
Hope for Homeowners (H4H) Revamped: The new law loosens the H4H program requirements to help homeowners refinance out of their troubled mortgages and into more affordable, fixed-rate FHA-insured loans. Originally launched in October 2008, the H4H program intended to help 400,000 distressed homeowners, but in the program's first seven months, it only helped one family stay in its home. The maximum loan-to-value ratio for an FHA refinance is 96.5% of the appraised value. If refinance proceeds are insufficient to pay off existing liens, the existing lienholders must voluntarily agree to a short payoff, but a new inducement is an opportunity for them to share in the homeowner's equity. Other changes to the H4H program include monetary incentives for both the participating servicers of the existing loans and originators of the FHA refinance. Millionaire borrowers (with net worth over $1 million) are now excluded from the program. HUD will establish the requirements and standards to implement the H4H program as revised.
Borrowers can submit details about their financial situation at www.HopeNow.com, the Web site operated by the coalition of mortgage servicers and nonprofit counselors. The online application form supplements the existing HOPE NOW hotline, (888) 995-4673, and servicers are promising to respond to applications within five to seven business days to confirm the process has begun.
Appraisals: On May 1st a new law came out called the Home Valuation Code of Conduct (HVCC). This law has fustrated just about everyone involved in the lending business. Please be advised, with this new law, all appraisals are paid up front by the borrower, BEFORE the bank will underwrite the loan. Also, these appraisals are not transferable from one bank to another. So your buyer/borrowers will have to pay up front for the appraisal and once the bank receives it, they will only then submit the loan file to underwriting; if you are looking to benefit from a short loan lock window, best to wait till after the appraisal is in to set your lock. If the buyer/borrower does not qualify, they do not get their money back for appraisal cost. Read Roger Sowley's recent article in the SD Union-Tribune "New Rules for Home Appraisals Underw Fire". I know this has caused alot of problems and there are a lot of upset buyer's who did not qualify by today's rigid standards who who in addition encurred appraisal cost. The National Association of Mortgage Brokers (www.namb.org) is trying to change this new law.
Buying Bank Owned "REO" Properties and PASSIVE REMOVAL OF CONTINGENCIES: Be aware, if you are purchasing a Bank REO property that there is a very good chance the selling bank's contract counter includes a "passive removal of contingencies" clause. This offers you none of the contingency protection that a standard Ca Association of Realtors contract provides with an active removal of contingencies clause. A passive removal of contingencies means that after the contingency period has expired, your "good faith" escrow deposit automatically goes to the bank even if you did not sign the contingency removal. If you are purchasing an REO property your agent should also have you review and sign both the "Disclosure and Recomendation for Buyers of REO Properties" and the "Advisory for Buyers of Bank Owned Properties". REO purchase agreements are very different than a tradtional purchase agreement, and you should know the critical differences prior to making an offer.
Mortgage Problems are Impacting Americans´ credit scores Homeowners who find themselves struggling with mortgage payments and unsure how to handle the situation-short sale, foreclosure, or walk away-are advised to consider the impact of each on their credit scores. Loan modifications that roll late payments and penalties into principal debt owed on the house can actually increase borrowers´ scores modestly, while refinancing underwater mortgages may have little or no negative effect on credit scores.
A debt consolidation loan a today's low fixed rates can considerbly raise a borrower credit scores as it improves their debt ratio. Of course the borrower would need to have at least 20% equity in the home. Short sales on the other hand can trigger large declines in credit scores, according to researchers.A homeowner with an excellent credit score might see a 120 to 130 point decline after a short sale.
Homeowners who choose to walk away from the home and stop payments altogether should expect their credit scores to fall 140 to 150 points, plus negative marks on their credit bureau files for up to seven years. People filing for bankruptcy protection covering all their debts will get hit with an average 355- to 365-point drop in their scores.Bankruptcies remain on borrowers´ credit bureau files for 10 years.
