Shane Haas & Nate Harimoto’s Blog

In this month’s publication, you will find hot home trends for 2010, new laws that go into effect this year, an updated airport security guide, and much more.

january 2010 real estate reader.pdf

In this week’s publication, we reveal several ways to keep up with and contribute to the ongoing relief efforts in Haiti.

haiti.pdf

What will this year hold for the real estate market? We examine several key trends and give you a forecast for 2010.

january 2010 market summary.pdf

This Sunday, the Colts square off against the Saints in Super Bowl XLIV. Join us as we explore the stats, players, and stories that promise to make this year’s game an instant classic. 

super bowl xliv.pdf

Rising defaults on loans insured by the Federal Housing Administration (FHA) have led the agency to impose future policy changes to its home loan program. The FHA provides mortgage insurance on loans made by FHA-approved lenders.  Borrowers must meet certain requirements established by the FHA to qualify for the insurance, but lenders bear less risk because the FHA will pay the lender if a homeowner defaults on his or her loan.

• The FHA is federally mandated to maintain reserve funds at 2 percent or greater.  As of November, the agency reported that its fund had declined to .53 percent.  The funding is used to cover losses on mortgages insured by the FHA that go into default.
  

• Loans insured by the FHA generally are less expensive to borrowers because of the lower down payment requirements.  However, these loans also have fees, such as up-front mortgage insurance.  To help the agency raise its cash reserves, the FHA is increasing the up-front mortgage insurance premium from its current 1.75 percent to 2.25 percent.  HUD released a Mortgagee Letter today making the premium increase effective in the spring.
  

• The agency also is raising the minimum credit score requirements.  Currently, borrowers with FICO scores as low as 500 have been approved for FHA-insured loans.  Under the policy changes, new borrowers will be required to have a minimum FICO score of 580 to qualify for the FHA’s 3.5 percent down payment program.  New borrowers with less than a 580 FICO score will be required to put down at least 10 percent.  FHA expects this to take effect in early summer once it passes the normal regulatory process. 
  

• The new policy also will reduce the amount of money sellers can provide to home buyers at closing to 3 percent, down from its current 6 percent, of the home’s price.  The change brings the agency in line with industry standards and removes the incentive to inflate appraisals.  The FHA expects this to take effect in early summer after it passes the normal regulatory process.

• As of February 1st, there will be no more “spot approvals” on condo/townhomes not approved by FHA. When a property is zoned as a Condo and/or Townhome and is not approved by FHA then in the past FHA lenders were able to get a “spot approval” on that one particular unit. Tracts not under the HUD approved list will have to go through the approval process of getting the whole tract approved which at times can take 60 to 90 days.

The Dept. of Housing and Urban Development (HUD) announced it will eliminate for one year the Federal Housing Administration (FHA) 90-day anti-flipping rule. 

FHA’s anti-flipping rule generally prohibits insuring a mortgage on a home owned by the seller for less than 90 days.  That rule already has been waived for certain transactions, including REOs (Real Estate Owned/Bank Owned).  Beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors.  This one-year waiver will give FHA buyers access to a broader array of recently foreclosed properties. 

Under the temporary waiver, all transactions must be made at arm’s-length and may require additional documentation of improvements and justification of certain price increases.  Additional documentation may include a second appraisal and a property inspection ordered by the lender.

C.A.R. (California Association of Realtors) recently submitted a letter to FHA Commissioner David Stevens detailing the challenges facing many FHA home buyers, such as the lack of housing inventory available to them, and the need to revise this rule to reflect current market conditions.  The reexamination of the 90-day anti-flipping rule was passed as an action item during C.A.R.’s board of directors meetings in October 2009.

The U.S. Deptartment of Housing and Urban Development (HUD) offers an online guide to preventing foreclosure.  The guide provides consumers with information such as how to contact a housing counselor; when and how to talk to their lender; how to find foreclosure resources; tips on avoiding foreclosure and foreclosure scams, as well as information for consumers who cannot keep their home.  The guide to preventing foreclosure is available at http://www.hud.gov/foreclosure/.

A supply of 1.7 million homes headed for sale because of foreclosure or delinquency looms over the nation’s housing market, which could dampen progress toward recovery should the Obama administration fail in its efforts to aid struggling homeowners, researchers said.

To read the full story, please click here.

For us locally here in Ventura County and parts of LA County we most certainly need the inventory. The lack of homes on the market have suppressed the qualified buyers that are looking to purchase a home and simply can’t find the right home or are in bidding wars with multiple offers.

Revisions include expanded income limits, a cap on home prices, additional documentation requirements and prohibitions against claims by dependents.

To read the full story, please click here. Make sure to consult with your CPA/Tax Attorney!

FHA loans can facilitate home ownership with 3.5% down payments and refinances up to 85% to value with cash out! By Bill Emhoff of Primary Residential Mortgage, Inc.

The Federal Housing Administration (FHA) program first began in 1934 in an effort to encourage home ownership despite the difficult economic times of the era. The program enables consumers who may not qualify for a standard loan to obtain the financing they need to purchase or refinance a home without income limitations.

FHA loans differ from typical loans in that they are insured by the Federal Housing Administration, which is a part of the Department of Housing and Urban Development (HUD). Because this insurance reduces the lender’s risk on the loan, lenders have greater flexibility with regard to approving loans. For example, FHA loans are not credit-score driven, so a client may be able to obtain a loan despite having had credit problems or even a bankruptcy in the past. Alternatively, if a consumer does not have a traditional credit history; it is still possible to obtain financing by documenting payment histories on items such as rent and utilities.

If you want refinance from $417,000 up to $729,750 to take cash-out for a remodel, college tuition or debt consolidation or if you already have an equity line of credit you want to roll into your refinance, conventional guidelines will only allow you to borrow a maximum of 60% of your properties value.  With FHA, we can currently lend up to 85% of the appraised value and still get great rates!

FHA loans also provide added flexibility when it comes to closing costs and the down payment. Many of the closing costs can be incorporated into the loan, and a down payment of less than 3.5% of the purchase price is required. The down payment may be obtained as a gift from a family member or through a down-payment assistance program. FHA loans are processed just like any other loan, and they provide a wonderful opportunity for consumers who are seeking to achieve home ownership!

conejo valley statistical report december 2008-2009.pdf

simi valley - moorpark statistical report december 2008-2009.pdf

west ventura county statistical report december 2008-2009.pdf

Dear Friends,

As we enter the holiday season, we take a look at several creative ways to give back.

harimoto - haas making a difference.pdf

As 2009 draws to a close, we take a look at the top 10 discoveries and inventions of the year. 

conejo valley statistical report november 2008-2009.pdf

simi valley - moorpark statistical report november 2008-2009.pdf

west ventura county statistical report november 2008-2009.pdf