Irvine Real Estate

I’ve received numerous publications from varying sources and ALL of them point to it being the time to buy now and they back up their opinions with facts I cannot dispute.  Let me post a few you might enjoy reading.  I’d love to have your feedback.

Check into the following:

Fortune Magazine:  http://public.remax.net/public-News/Pages/FortuneCoverStory.aspx

I’ve previously posted information from other lenders; and here’s some interesting information from yet another, John Farrell points out:

“FHA Announces April 18, 2011 Increases in Annual MIP

Supporting its publicly declared goal of accelerating the restoration of the required reserve levels of the Mutual Insurance Fund, the FHA announced yet another increase in the annual mortgage insurance premium.

In its Valentine’s Day mortgage letter (ML 11-10) FHA announced a 25 basis point (0.25%) increase in the annual mortgage insurance premium. The result for loans with case numbers assigned on or after April 14, 2011 and depending on the maturity and loan to value increases the annual premium to:

30 Year

•<= 95% LTV from 85bp to 110bp
•> 95% LTV from 90bp to 115bp

15 Year

•<= 90% LTV from ZERO to 25bp
•> 90% LTV 25bp to 50bp

To illustrate the change in payment in Mortgage insurance for your client:

Let’s take a purchase price of $700,000.00.
Your client finances 96.5% with 3.5% as down payment.
Loan amount would be $675,500.00.

Based upon the OLD MI of .90% the current MI payment per month would be $506.63.”

Now with the upcoming new MI factor of 1.10%, the new MI payment per month would be $619.21.  Which is a total increase per month of $116.00.

Here’s another Lender, Bruce Pham’s announcements on numerous new loan programs available:

“Below is a short summary of what we offer;

Conventional Full Docs, DU Refi Plus, HomePath by Fannie Mae, Jumbo, FHA, VA, VOE Only/Almost Stated, and Private Money.
 
Pre-Approve Your Clients with us, a direct lender.
 
VOE:    No Pay Check Stub, No W2, No Tax Returns, and N4506. Max LTV 80%. Minimum FICO 620. Okay for OO, NOO, 2nd Home, Purchase, Cash Out Refi, and  Flip.
 
FHA:    3.5% down payment with minimum FICO 640. Okay for BK discharged over 3 years, Repair Escrow Holdback, Self Employment, Non-Permanent Resident        Alien, Non-Occupant Co-Signer, Seller can Contribute Up To 6%, Subordination of Federal Tax Liens, and Streamline with our without Appraisal.
 
DU Refi Plus with or without Appraisal.
 
HomePath:   Low Down Payment 97% LTV on Full Doc, Flexible Mortgage Term, No Appraisal Required, No Mortgage Insurance. OK VOE Doc Type LTV up to 90%. Minimum FICO 660.”

I receive numerous of these types of emails daily and all offer something new.  The more loan options = more buyers making bids on the same homes you want = higher prices…

My opinion, it’s just around the corner, in fact, multiple offers are already rampant.  I know you don’t want to hear this, but it’s happening.  I have a client that made an offer on an REO in Huntington Beach, Orange County, CA that was not in good condition; another REO in the same tract had just entered escrow though it’s not yet closed, in excellent condition; and the listing agent of that home gave me an idea of where that one might close and that price seemed to be at the listing price of the REO my client was considering needing anywhere from $30-50,000 of repairs/improvements to bring it to the level of the one in escrow. Compared to that sell, my Buyer and I agreed on where he might make his offer.  The listing agent had just received another offer that he said was ‘a low offer,’ so I’m figuring probably somewhere around where we’re thinking to offer. By the time I reached the listing agent, they had countered back and forth a few times and they were close to a decision.  The listing agent gave me an idea where he wanted to be and it was only $5,000 under the list price and remember, that list price was just about at the sales price of the REO in escrow that was in excellent condition.  My Buyer was going to utilize the new 203 FHA home improvement loan, also opening the doors for many home buyers.

The listing agent gasped when I told him what the Buyer’s offer was and he said:  “Not in this market.”  Indicating a good market at this price point in Huntington Beach, Orange County, CA.  You, as the reader, might think this unusual; but it’s happening numerous times a day in many locations.  Last week, Irvine California homes SOLD jumped from a typical 28 to 50!  In one week!  All of this tells me it’s true, Buyer’s need to get their ducks in a row, and the sooner the better!!

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