New Home Loan Program Summaries

CalPLUS with ZIP

CalPLUS is an FHA-insured, first mortgage loan featuring a fully amortized fixed

interest rate with a maximum 30-year term and is combined with the CalHFA

Zero Interest Program (ZIP). ZIP is a deferred, zero-interest second loan up to

3.5% of the CalPLUS first mortgage loan amount and can only be used in

combination with CalPLUS for down payment assistance. CHDAP or ECTP can

also be combined with CalPLUS.

 

Extra Credit Teacher Home Purchase Program (ECTP)

ECTP is a deferred payment, forgivable interest subordinate loan for eligible

teachers, administrators, classified employees and staff members working in high

priority schools (API ranks 1-5), county schools or continuation schools

throughout California. ECTP can only be used for down payment assistance with

an eligible CalHFA first mortgage loan. See attached summary sheet for more

information.

 

Program Highlights for All Programs

・ Maximum Combined Loan-to-Value (CLTV) up to 103%

・ Borrower Minimum Required Investment based on credit score

・ Credit Score 640-679 $1,500

・ Credit Score > 680 $1,000

・ Required two-year home warranty protection policy

・ Required homebuyer education from CalHFA-designated provider

・ Ability to layer multiple programs

 

Let me know if you have any questions.

 

 

OC & LA Real Estate Monthly Indicator PWR report May 2013

photo by : Amir Zee

According to Pacific West Association of Realtors " PWR" Monthly Indicator report which all data comes from CRMLS, so it’s real, current and relevant information which buyer or seller  want to know " The Median Sales Price was up 23.4 percent to $506,000 for detached homes and 33.9 percent to $329,400 for attached properties. Months Supply of Inventory decreased 62.8 percent for single-family units and 64.1 percent for townhouse-condo units.

Please look at this  Monthly Indicator PWR report which cover Orange county and Los Angeles county at Southern California.

Low property inventory and risk of higher mortgage interest rate pushing the asking price for properties higher.  The Federal Reserve Bank is considering decreasing its $85 billion a month bond asset purchases, which have been holding interest rates at or near historic lows. This is mostly the result of an improving jobs market, which is a good thing for real estate.

Long Beach Local Market Update for March 2013

Spanish style homes at Belmont Heights Long Beach 

Real estate market improving through the country.  Long Beach, California face low inventory and strong buyer demand. As the result, prices are inching higher.
See Long Beach Local Market Update for March 2013 which is done by Pacific West Association of Realtor. This report reveal very interesting numbers as compare March 2012 with March 2013 sale of Single Family homes and Condominiums.

Home values are on the rise & Property Flippers are Coming Back

Villa Rivera Long Beach CA by Amir Zee

Facts are as follows:

1. Home values are on the rise, with a year-over-year price increase of 11.6 percent, according to the National Association of Realtors. Inventory has cratered to levels not seen since 2005.

2. Today's flippers have learned some hard lessons. This time, homebuyers are being more selective - putting more money down and making calculated bets on smart renovations.

3.   The one-year average price increase their stands at 13.4 percent, according to the S&P/Case-Shiller Home Price Indices, 2 percent above the national average. 

4. The best places to flip in 2012 included Orlando, Florida; Richmond, Virginia; Tucson, Arizona; and Charlotte, North Carolina, according to RealtyTrac.


5. Cash is king, Bank have tight restrictions, and that means real estate investors coming in with all-cash deals have the upper hand. 


6.  Renovations matter, but stick to a budget. In today's market, you will likely only get a bargain if the house is in truly rough condition. 


7. Be prepared to hold Back, in 2003 the Federal Housing Administration (FHA) instituted anti-flipping regulations, prohibiting insuring a mortgage on a property owned by the seller for less than 90 days.


8. Do not expect to flip the property within days and realize lightning-quick profits. You may want to rent it out for a while as the housing market continues to recover, says Heller, in order to cover some costs and eventually secure an even higher resale price.

90803 Local Market Update for March 2013

Inventory of residential homes running low in Long Beach, CA  90803. Price of residential homes ticking upward. Interest is low. Over all Real Estate market at Belmont Height is improving. Please look at 90803 Local Market Update for March 2013 done by Pacific West Realtors Association.

Put Money to Work & buy your Home Now

Galaxy Tower Long Beach
photo: Amir Zee, 2013  

Look around you. Your parent, family members and friends all made money by buying real estate.

Simply, real estate is a good investment. Especially when is your primary resident. Here are some of the benefits:

• Interest deduction: Did you know you can deduct the interest you paid on your mortgage from your income. Therefore you pay less taxes. 

• Force Saving:In another word you are investing and saving the same time.

• Leverage: With just 10% down ($40,000) to purchase a home value at $400,000. And annual ROR (Rate of Return) of let’s say 5% is equal $20,000. Leverage is doing more with less. Please note as old saying says; timing is everything.The real estate market has been corrected and 2013 is beginning of appreciation cycle.

• Capital gain relief: if your primary home appreciate “single $250,000 and couple $500,000 “you will not pay any capital gain. Anything over this amount you will pay capital gain. How much? Depend on your tax bracket and other factors. Anywhere from 15% to 30% approximately.

 The ROR (rate of return) of real estate from 1978 till 2010 is 9.1% according to Clarion Partner September 2011 Report. When looking at a more recent period, 2001-2010 which includes both boom and bust periods.  The real estate delivered strong annualized returns of 7.4%, which is higher than stock returns (1.4% for the S&P 500 Index) and bond returns (5.8% for the Barclays Capital Bond Index).

If you decide to buy a home, Please work with professional real estate agent as the process and paper works is tremendously challenging. 

Six years after the sub-prime mortgage meltdown, What Now?

Tamarindo, Costa Rica by Amir Zee

Six years after the sub-prime mortgage meltdown, banks remain tight even with solid borrowers.

First-time buyers and self-employed borrowers must jump through especially complex hoops. Lenders say their cautions stems in part from uncertainty over a tougher new regulatory environment, along with unrelenting demands from government-sponsored mortgage buyers that the banks repurchase soured loans. Salaried professionals with credit scores in the high 700s have the best shot at being approved for a mortgage loan in this environment, along with borrowers who have never missed a payment and want to refinance.  

However, even these borrowers may face stiff documentation demands, including having to explain any bank deposit other than a regular paycheck.