Archive for the ‘Home Buyers’ Category

  • Online Credit Scores Vs. Lender Credit Scores

    I’ve never pulled someone’s credit for a mortgage application and heard them say the credit scores I got were higher than what they got online at one of those consumer credit sites like FreeCreditReport or Credit Karma. This is even true for those people who access their scores directly through the credit bureaus Equifax, Experian, and TransUnion. The mortgage credit scoring model yields scores on average 40 points lower than online consumer sites.  Other loan and finance applications like car loans and credit cards are also typically lower. This means the scores on the consumer sites are basically worthless and all they do is inspire false confidence. You may ask how does this benefits anyone? It doesn’t but the consumer credit sites don’t claim they are giving out FICO scores which is what financial institutions use. What they give you are scores based upon their calculations. Even on the rare occasion they are using a FICO based scoring model there are over fifty FICO based scoring algorithms so it’s unlikely to be the one you’ll need in the future when applying for a loan. In my opinion the consumer or free credit report sites are the Zillow of the credit world. It’s fun to see what the numbers look like but it’s not to be taken too seriously.  What is one to do? The obvious answer is for anyone looking

  • Mortgage Rates Remain Low – Rents On The Rise

    With as little as 5% down their net mortgage payment would be $183/mo less than what they pay now in rent!

  • Is Right Now Your Best Opportunity To Buy A Home?

    Almost one year ago one headline read “Home Sales Tumble As Mortgage Rates March Upward”. The main culprit last February was affordability which was based on rising interest rates. To begin 2018 30-year fixed mortgage rates climbed to 4.4% and continued to rise throughout the year, even breaking the 5% barrier for the first time since the previous decade. You may have noticed that rates unexpectedly softened a bit to end 2018 and according to Bankrate.com the 30-year fixed mortgage was down to 4.59% by the middle of January 2019. Now in to the fourth week of this new year we see them pretty much holding steady. Could we see rates continue to fall? Anything is possible but it’s unlikely. Tax reform kicks in this year and we’ve seen the stock market stabilize recently. Most economists I’m reading are saying long term rates will rise in 2019 and some even saying we’re due for an economic downturn. If you are on the fence about buying a home here in early 2019 keep this number in mind. If rates increase just half a point your purchase power drops by $40,000. I see three things converging at the moment. First, home prices have leveled off and even dropped in some markets, rates are down, and the buying season hasn’t started yet. Those factors compounded by a motivated seller could mean right now

  • Have Mattress Money? Cash-On-Hand Is Now An Eligible Source Of Funds

    Are you stashing money under the mattress, in a home safe, or even in a security deposit box?  And are you a person who customarily uses cash for expenses? If so, there is great news for you when it comes to buying a home.  Through the Fannie Mae HomeReady program cash-on-hand is an acceptable source of funds for a borrower’s down payment, funds for closing costs, and prepaid items like insurance and property taxes.   This means you can use that rainy day fund to buy a home without the illuminati knocking on your door.  Of course, you won’t have any money left over for the apocalypse but if that happens we’ll be back to trading furs and bullets anyway. This could especially be good for those first-time home buyers with minimal funds available for down payment.  Some other great features of this loan program include: Up to 95% financing with non-occupant co-borrower Up to 105% financing w/o non-occupant co-borrower Not required to be a first-time home buyer Gift funds, grants, and down payment assistance programs are all eligible sources of funds. There are even more enhancements to this program that could benefit you so to find out more click here to contact me and reference “Cash-on-hand” in the subject line.   By David Hughson Mortgage Planner david@greenmeansgrow.com 858-863-

  • Mortgages Paid By Others

    Article originally posted on www.mpamag.com Fannie Mae has recently announced the changes related to Mortgages Paid by Others. When a person is obligated on a mortgage debt – but is not the party who is actually repaying the debt – the full monthly housing expense may be excluded from that person’s recurring monthly obligations when they go to buy their next home if: The party making the payments is obligated on the mortgage debt, There are no delinquencies in the most recent 12 months, and The borrower is not using rental income from the applicable property to qualify. In order to exclude the mortgage debt from the borrower’s debt-to-income ratio, the most recent 12 months’ cancelled checks (or bank statements) from the other party making the payments that document a 12 month payment history with no delinquent payments must be obtained. David Hughson Mortgage Broker 858-863-

  • Down Payment Protection – Protecting Buyers From Market Dips

    Down Payment Protection – Protecting Buyers From Market Dips

    Worried that housing prices are too high?  Worried that if the market drops you’ll lose any $ you put into your down payment?  You may want to take a look at Down Payment Protection. Down Payment Protection: When speaking with new buyers I often hear that they are concerned that they might be buying in a high priced market.  What if the prices fall like they did before?  Well, there is a new product that protects buyers from this.  It’s called Down Payment Protection.  We have a few lenders that are offering this now.  At least one of them offers it for free on certain loan products.  Here’s and example of how it works.  You buy a home and put 60k down down, 5 years later the market is down and you need to sell for less than you bought it for.  What would have been a loss of some of your down payment is now potentially covered and reimbursed to you! It’s important to note that a there are many different types of this insurance and the details of how they work and how much it costs you can vary quite a bit.  So it’s best to discuss your particular scenario to determine what’s right for you.  If you’d like to learn more about these options feel free to contact me for more info.  You can email by clicking

  • Family Opportunity Mortgage

    Feb 2, 18 • Huggy • Home Buyers, Loan Programs, Purchase LoanNo CommentsRead More »

    Do you have a family member in need and want to help them buy a house?  If you have a disabled adult child or an elderly parent who can’t qualify for a mortgage on their own you have options!  With the Family Opportunity Mortgage, your can purchase another home without the conventional investment property requirements!  Here are some program highlights: Purchase a home for your family member as if you were purchasing an owner occupied home. This allows you to take advantage of the much more lenient owner occupied guidelines and avoid the much more strict investment property guidelines. 620 minimum credit score Can be used for a purchase or refinance   To find out if you qualify click here and type FOM in the subject line.   By David Hughson Mortgage Broker 858-863-

  • Don’t Fit In The Conventional Lending Box? We Got You Covered

    LendEDU published a financial report back in October of this year showing the national average credit score is 682. This is a solid score in the mortgage lending world but generally considered a “fair” credit score by the credit bureaus. It also means the average American might have a tough time qualifying for a decent mortgage rate. With 50% of people below a 680 credit score it means there are many who don’t qualify for conventional financing and the government loan options, which are typically only for owner occupied homes, can’t help them.  These people typically fall into three categories.  They are someone who has experienced a derogatory credit event like a bankruptcy or foreclosure, a self employed borrower that has too many write offs thereby killing their qualifying income, or they are a real estate investor and/or foreign national unable to purchase their next property due to conventional ownership limits. If you happen to fall into the middle ground between conventional and hard money lending it can feel like you have very few options.  The good news is that there are many new lenders who recognize this need and specialize in helping just this type of borrower through offering Non-Qualified mortgage loans.   To find out more about how this may help you find just the right type of financing for your next purchase click here and send me a message

  • No money down to buy your home!

    Want to know if you can put no money down to buy your home? While also learning a few fun facts about San Diego? Of course you do! When you think of San Diego, what comes to mind? Beaches and sunny 75 degrees all year round. While that is true, San Diego county also has 6,687 farms, more than any other county in the United States. 68% of those are between 1-9 acres and though the median size farm is just 4 acres, our county’s farmers rank number one in both California and the nation in the production value of nursery, floriculture and avocados. We are also rank as the second highest county with women who are the principal operator of the farm and number 3 in producing honey! Agriculture here covers 303,889 acres and is a key contributor to San Diego’s economy, along with defense, manufacturing, tourism and biotechnology. Our varied topography creates a wide fluctuation of microclimates that allows for nearly 30 different types of vegetation communities. This diversity allows for San Diego to grow over 200 different agricultural commodities from strawberries along the coast, apples in the mountain areas, to palm trees in the desert. *This information was made available by the County of San Diego, Department of Weights and Measures in their 2016 Annual Crop Report. With all that space we have in San Diego there are a

  • Thinking of buying a home on your own?

    Nov 20, 17 • Greg Kuchan • First Time Home Buyers, Home BuyersNo CommentsRead More »

    There are 140 different spaced to fill in information on a Residential Purchase Agreement, and that is not including all the spaces for your names and date. on an average I change 51 boxes. Where there are anywhere from 2 too 10 different acceptable options to fill in those boxes. So that means that an average RPA can have more than 66187782427598330000000000 different ways to properly fill out the form. AND that is just one of the many documents that make up your purchase agreement. To make that really large number easier to wrap our minds around. That is 66 septillion different ways to write the RPA, which is 66 with 24 zeros behind it. It is a really big number. Let me put present it to you in another way, in some states they require you to have a lawyer to help write the contract and to protect your interest. (Georgia, South Carolina & Massachusetts to name a few) So, do you think it is in your best interest to try and sell or buy your home on your own? When looking for an agent to work for, make sure they have systems and templates set up. Ask them how they will represent you, how they will make you stand out over the competition. If you are interested in finding out more of what you should be looking for

The GreenHouse Group, Inc. | Real Estate Consulting & Mortgage Planning. "Moving People With Purpose."

↓ More ↓