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Getting Creative: Specialty Home Loan Solutions From CCL

The home purchase process is rarely simple. Every borrower is unique, and every loan is different. To meet the needs for every borrower that comes through our doors, we make sure to continually expand our loan program portfolio.

Continue reading “Getting Creative: Specialty Home Loan Solutions From CCL” »

Home for Sale

Buyers: save thousands off federal income tax with Mortgage Credit Certificate

Homebuyers who have not owned a home in the past three years are eligible to claim the Mortgage Credit Certificate and receive a dollar-for-dollar reduction against their federal tax liability for 20% of their yearly mortgage interest payments.

Continue reading “Buyers: save thousands off federal income tax with Mortgage Credit Certificate” »

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Loans for Hobby Farms! Up to $1.5 Million for Hobby Farm Mortgage

Under Central Coast Lending’s unique Hobby Farm Home Loan Program, homebuyers are eligible for up to $1.5 million to finance a purchase of a “Hobby Farm”, which is defined as a primary residence capable of some sustained agricultural production.

Continue reading “Loans for Hobby Farms! Up to $1.5 Million for Hobby Farm Mortgage” »

Recent Articles

29
Jul
800px-Rainbow_over_santa_maria_ca

Getting Creative: Specialty Home Loan Solutions From CCL

The home purchase process is rarely simple. Every borrower is unique, and every loan is different. To meet the needs for every borrower that comes through our doors, we make sure to continually expand our loan program portfolio.

Continue reading “Getting Creative: Specialty Home Loan Solutions From CCL” »

28
Jul

Monday Market Update: Housing’s Mixed News (+Mortgage Rates Drop!)

The first matter of business to discuss is our weekly 10 program Mortgage Rate Update. It has come to our attention that a formatting issue has made the rates hard to see for some folks. We have fixed the problem.

And in the spirit of the fix, we have posted a completely updated set of rates for Monday, July 28. (Sneak preview: rates have dropped across the board from our last calculation… especially notable were USDA, VA, FHA improvements).

 

About Last Week…

Any questions about home loans in California? We are The Mortgage Experts: ask us anything! We have a loan program to fit every need. Call 805.543.LOAN or email us today.

For housing news, existing home sales and new home sales dominated the discussion, and painted two different pictures about the real estate market.

Existing home sales rose by 2.6% in June to a 5.04 million yearly pace. The nation’s median sales price rose to $223,300. It was the 28th straight month of price gains.

Perhaps even more important, the inventory of for-sale homes expanded to 5.5 months. Inventory is now 6.5% higher than last year, and is at its “highest level in over a year,” according to the National Association of Realtor’s chief economist Lawrence Yun.

Low supply has been one reason that sales have dropped back a bit in 2014 (higher prices being another).

Other statistics from the report:

  • 11% of sales were from “distressed” property (15% last year)
  • 28% of buyers were first-time
  • 32% of sales were cash

New home sales, meanwhile, dropped by 8.1% over the previous month and 11.5% over the previous year. The dip was unexpected, especially after weeks of solid housing news.

Builders listed lack of available land and a dearth of qualified labor as reasons for the dip. Also to blame: slowing household creation and millenials abstaining from home purchases.

Last week major stock indexes (Dow Jones Industrial Average and S&P 500) were largely unchanged. The 10-year Treasury Yield fell slightly. Mortgage rates dipped.

 

Mortgage Rates…

More positive news on the Mortgage Rate front.

At the beginning of the year, most people expected mortgage rates to rise. The 30-year fixed conforming rate was expected to sit in the mid-5.000% level by now.

Instead, over hallway through 2014, the 30-year fixed is down between the high-3.0% and low-4.0% level.

July 28 Conventional Rates

See the rest of our July 28 update here.

With rates still a bargain, now is an excellent time for buyers, and for any current mortgage holders who missed the refinance window in 2012 and 2013.

 

First-Time Buyers…

The combination of higher home prices and low supply is making life difficult for first-time buyers. Central Coast Lending offers many options for the first-time buyer that can make qualifying easier and more affordable. Give us a call at 805.543.LOAN to set up a free prequalification session.

On the topic of first-timer buyers, the FHA Hawk program will be arriving in the fall of 2014 and will drop Mortgage Insurance payments for new borrowers. The savings? Up to $20,000 over the life of the loan. Click here more information. The Mortgage Credit Certificate also offers new buyers thousands in savings. Click here for more information.

 

This Week…

… has plenty of important pieces of data that could swing the market. Depending on the news, July Employment, U.S. GDP, and the Federal Open Market Committee meeting could all shift rates. We will cover any major movements on our website – www.CentralCoastLending.com.

 


Central Coast Lending is a California mortgage broker and direct lender based on the Central Coast of California in San Luis Obispo County. Call us today at 805.543.LOAN or email [email protected] to set up a free pre qualification. We are The Mortgage Experts: ask us anything!

About   ||   Mortgage FAQ   ||   Market Update Blog   ||   Radio Show   ||   Contact

28
Jul

Mortgage Rate Update (July 28) – Rates Drop

Since our last update on July 16, mortgage rates have dropped across the board. The largest improvements came under the “Specialty Loan Programs” header, with FHA, USDA, and VA all dropping over 1/4 of a point in price (over 0.04% in APR).

Conventional Loan Programs

July 28 Conventional Rates

Specialty Loan Programs

July 28 Government Rates

Manufactured Home Loan Programs

July 28 Manufactured Rates

Jumbo Loan Program

July 28 Jumbo Rates

Rates Directly to Your Inbox!

If you would like to receive a more detailed Mortgage Rate report, you can subscribe to our “CCL Rate Tracker.” The CCL Rate Tracker follows 10 loan programs and publishes three rate options closest to 1 point, par, and 1 rebate for each program every two weeks and delivers the results in an email. To sign up, please email [email protected] with the text “Rate Tracker.”

Apply Online Today!

When you register for a Loan Center account, you can submit a loan application online and the sensitive information that you provide will be transmitted securely. Your account also enables you to easily modify your loan application and view the status of your loan. Any questions? Call us at 805.543.LOAN or email [email protected]

NOTE:

  • Mortgage rates assume purchase of a singe-family, detached, owner-occupied, residential property.
  • Mortgage rates assume borrower credit score of 760 and a Debt-to-Income ratio of 35%
  • Loan amount is $417,000 for all programs (appraised value of $522,000), except for the high balance ($561,200 loan and $722,000 value), and Jumbo ($700,000 loan and $1,000,000 value)
  • Mortgage rates and APR subject to change.
25
Jul

Mortgage Matters Radio on KVEC 920 (July 26): Lindsey Harn, Realtor

Lindsey Harn, realtor with Re/Max Del Oro and Team Sweasey Real Estate, will be joining hosts Dan and Jason on Mortgage Matters this Saturday (July 26) on KVEC 920 from 10 a.m. to 12 noon. More about Lindsey:

Lindsey Harn has been A San Luis Obispo County resident for over 10 years. After graduated Cal Poly with a BS in Psychology, Lindsey began her career in non-profit work, working for Big Brotehrs Big Sisters of SLO County.

For the past 6 years Lindsey has worked at Re/Max Del Oro with her business partner Hal Sweasey. In the past four years, Lindsey has helped over 200 families become homeowners here on the Central Coast. Lindsey loves all aspects of the real estate business and is fortunate to have learned the business from the best. When Lindsey is not selling real estate she enjoys playing soccer, hiking, and taking advantage of all of the wonderful opportunities the Central Coast has to offer.

Contact Lindsey by calling (805)-781-3750, emailing [email protected], or visiting Team Sweasey’s website www.teamsweasey.com.

Miss an episode? Check out our Soundcloud Page for free episode downloads

 

25
Jul

The Kingfisher Canyon Housing Development (Avila Beach, CA)

New Homes for Sale…

The Kingfisher Canyon housing development is located in the hills above Avila Beach, California. The BDC Development Corporation-built neighborhood is minutes away from the ocean, and includes ocean views.

The Kingfisher Canyon Development advertises plans for 130 total single-family homes, of which 60 properties are still available.

Any questions about home loans in California? We are The Mortgage Experts: ask us anything! We have a loan program to fit every need. Call 805.543.LOAN or email us today.

Buyers choose from five floor plans and elevations, each of which has further customization options. Currently (July 25, 2014), there are 8 available properties for sale, but that number will change. See here for updates on inventory.

The development hillside location is absolutely stunning, and the homes appear spacious and gorgeous.

Zillow estimates that the median sales price for listings in Avila Beach is currently $824,000. Home prices in Avila Beach have dropped 18.6% over the past year, though the drop is largely due to a small sales sample size rather than structural issues with the market.

 

Resources…

 

More Central Coast Developments:

 


Central Coast Lending is a California mortgage broker and direct lender based on the Central Coast of California in San Luis Obispo County. Call us today at 805.543.LOAN or email [email protected] to set up a free pre qualification. We are The Mortgage Experts: ask us anything!

About   ||   Mortgage FAQ   ||   Market Update Blog   ||   Radio Show   ||   Contact

23
Jul

Mortgage Rate Update (July 21 – 25): Delayed

The Mortgage Rate Update for July 21 – 25 will be pushed back until next week (July 28 – August 1). Make sure to check in with our blog on Monday, July 28 for a Market Update.

For a customized financing scenario, rate update, or loan pre qualification, please feel free to call 805.543.LOAN. Our expert loan officers are happy to help!

22
Jul

Proposed FHA HAWK Program Would Help First-Time Buyers Save Thousands

The proposed FHA “HAWK” program would give first-time home buyers the opportunity to take housing counseling classes in exchange for lower mortgage insurance fees on an FHA home loan. Over the life of a 30-year FHA loan for $400,000, the lower fees could result in up to $20,000 savings for borrowers.

The Federal Housing Administration (FHA) has proposed the HAWK program to support the housing market in two key ways: 1) make housing more affordable for first-time buyers, and 2) improve the likelihood that borrowers will repay their loans.

 

FHA Loan: History

The FHA loan provides a mortgage option for prospective home buyers that would marginally qualify under industry standard loans. First-time buyers especially have benefitted from the program, which offers a low down payment option (as low as 3.5%) and flexible credit requirements.

More FHA perks:

  • Co-signers are acceptable for qualification
  • 100% of the down payment and closing costs can be a gift from a relative, non-profit, or government agency

[READ MORE about the FHA Loan]

 

FHA Loan Structure: Mortgage Insurance

Any questions about home loans in California? We are The Mortgage Experts: ask us anything! We have a loan program to fit every need. Call 805.543.LOAN or email us today.

By expanding eligibility to offer the FHA loan, lenders have also agreed to take on more risk. To insure against the greater probability of default, the FHA loan also requires two “mortgage insurance” payments – the Upfront Mortgage Insurance Premium (UFMIP) and the annual Mortgage Insurance Premium (MIP). The UFMIP is charged upon closing of the loan, and the annual MIP is charged as part of the ongoing monthly payment.

The upfront charge is 1.75% of the loan amount (for a base loan of $100,000, the upfront payment would be $1,750), and the monthly charge varies based on loan term, loan amount, and down payment. For the 30-year fixed loan, the monthly MIP charge varies between 1.20% and 1.50% of the loan amount.

[For a full explanation and rundown of MIP scenarios, see our article HERE]

In 2013, the Department of Housing and Urban Development (HUD) – insurer of the FHA loan – announced an increase in MIP requirements.

To insure that “underserved” borrowers maintain access to mortgage finance (even in the face of rising costs), the FHA released its “Blueprint for Access” earlier in 2014. The Blueprint includes a proposal for Homeowners Armed with Knowledge (HAWK).

 

What is HAWK?

The Homeowners Armed with Knowledge program would give FHA borrowers a discount on MIP in exchange for participation in a housing counseling program.

The FHA estimates that delinquency rates for borrowers who have received counseling are 29% lower for first-time buyers (LINK).

By offering counseling in exchange for lower premiums, the FHA hopes to make homeownership more affordable and sustainable (by reducing the risk of loan default).

 

What Would ‘Housing Counseling’ Look Like?

In total, the housing counseling program would last up to eight hours – AT MOST. Counseling would be completed in three stages:

Stage 1 (Pre-Contract: 6 Hours)

Potential borrowers must complete this phase at least 10 days before signing their purchase contract. Counseling must be last at least 6 hours and completed with an approved agency.

Stage 2 (Pre-Closing: 1 Hour)

Must be completed between the date of the loan application and three days prior to closing.

Stage 3 (Post-Closing: 1 Hour)

Must be completed after the loan closes by between 30 days and 1 years time.

The housing counseling process is designed to help buyers better understand their home loan and the home buying process.

In exchange for participating in housing counseling, borrowers would receive a 0.50% reduction on their upfront MIP and a 0.10% reduction in their annual MIP. Responsible borrowers who avoid 90-day delinquency in the first 18 months of loan receive an additional 0.15% off their annual MIP.

For a $400,000, 30-year fixed loan with a 3.5% down payment, we estimate that eight hours would save the borrower $19,600 off UFMIP and MIP payments over the life of the loan.

 

I want to save $20,000! Where do I sign up?

Implementation of the HAWK program is not expected until the fall of 2014. In the meantime, Central Coast Lending offers many affordable loan programs. Call (805.543.LOAN) or email ([email protected]) for more information.

If you cannot wait on your FHA loan for the HAWK program, consider: mortgage rates and prices are extremely low right now, but there are no guarantees that rates will stay this low through 2014. Grabbing a low rate now could save you tens of thousands over the long-term of your loan.

We will give you an honest pre-qualification assessment for any purchase loan proposal. Get in touch and learn about your options!

 


Central Coast Lending is a California mortgage broker and direct lender based on the Central Coast of California in San Luis Obispo County. Call us today at 805.543.LOAN or email [email protected] to set up a free pre qualification. We are The Mortgage Experts: ask us anything!

About   ||   Mortgage FAQ   ||   Market Update Blog   ||   Radio Show   ||   Contact

21
Jul

Monday Market Update: Housing Strong (Despite a few Troubling Numbers)

In our weekly Mortgage Rate Update last Wednesday (July 16), rates were mostly unchanged from the previous week. Conventional loan rates rose and dipped slightly. Government-backed programs (FHA, USDA, VA) all increased slightly. You can see the full update here.

Unfortunately, I am out of the office this week, and not able to post the usual full market update. Below, I have included a few notes from the week that was (July 14 – 18):

July 14 – July 18:

  • Housing starts (construction) fell 9.3% in June to an annual rate of 893,000, according to the Commerce Department. But for the good(ish) news, much of the slowdown came in a single region – the South. Construction activity in other regions appeared much more robust.
  • Mortgage applications dropped by 3.6% during the week of July 11.
  • Construction down? Purchase applications down? Are we panicking yet? A Fiscal Times article by Marine Cole goes the other way, and explains “Why There’s Hope for a Stronger Housing Recovery.” In short: foreclosures are down, mortgage rates are very low, the labor market is improving, and builders believe that better times are on the horizon. Read the full article here.
  • Another positive for buyers: the government supports you! The Mortgage Credit Certificate (MCC) offers new/returning buyers a dollar-for-dollar credit to reduce their federal income tax bill based on their mortgage interest payments. The MCC will save you thousands! To qualify, buyers must be “first-time” (haven’t owned a home for three years), and meet income and price specifications. Learn more here!
  • The SLO County real estate market is a challenging one in 2014. Demand is sky-high, but inventory just isn’t as available as it was during the “boom” years of 2012 and 2013. As a lender, we have challenged ourselves to find products for a diverse and exotic array of properties. For example: Hobby Farms and Farm and Ranch programs. We are also pretty excited about this one-year income qualification offer, which is great for the self-employed whose fluctuating income might complicate the loan qualification process.

Please feel free to call us (Central Coast Lending) at 805.543.LOAN or email ([email protected]) with ANY and ALL questions about mortgage rates, mortgage pricing, mortgage pre qualification, mortgage programs… really ANYTHING real estate related, we have you covered!

18
Jul

Mid-Year Market Update: Jobs, Stocks, Bonds, Real Estate, Inflation, and More

After last year’s huge run up in many asset classes, the markets seem to be taking a well-deserved breather. I think it’s a healthy thing that we’re not seeing another huge 20% increase in the markets. That kind of increase would not be in line with the gains in the broader economy. If we did see another huge year in the markets, we could very well be setting ourselves up for a market adjustment. That huge year doesn’t seem to be happening. That’s a good thing in my book.

Read more »

18
Jul

The Dove Creek Development (Atascadero): SOLD OUT

Last week on the Central Coast Construction Report, we profiled Robbins|Reed’s Briar Creek Development in Lompoc as an affordable location to purchase a new home on the Central Coast.

Dove Creek in Atascadero – also developed by Robbins|Reed – took a similar affordable approach in Atascadero. And guess what? The people listened! We are happy (sad?) to report that Dove Creek has sold out.

Robbins|Reed is a relatively new company, but they have done some great stuff around the Central Coast. Like us, they were founded just as the housing bubble began to burst (2007), and it took some real vision and creativity to work through the pieces. Make sure to keep an eye out for their next project!