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17
Jul

Mortgage Matters Radio: July 12 (NEW)

Guest: Dale Kaiser, Realtor (based in Cayucos)

Central Coast Lending Soundcloud (full episode downloads)

Note: We will keep the episode on our website for 30 days. After 30 days have passed, free downloads of the show will be available on our SoundCloud page.  LINK TO EPISODE.

 

17
Jul
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” »

16
Jul

Mortgage Rate Update (July 14 – July 18) – Rates Nearly Unchanged

Mortgage rates trended slightly upward for government loan programs like FHA, USDA, and VA, and dipped slightly for conforming loans (30-year fixed) and manufactured home loans. Overall, nothing much has changed. To echo what we wrote in last week’s update:

Over the past month, mortgage rates have dipped and jumped a bit based on the major headlines of the day (poor GDP, positive employment), but as the smoke clears, nothing much as changed. Rates are just slightly lower than they were in June, and very close (or at) 2014′s lowest levels.

Conventional Loan Programs

Last Conventional copy

Specialty Loan Programs

Last Ginnie copy

Manufactured Home Loan Programs

Last Manu copy

Jumbo Loan Program

Last Jumbo copy

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.
14
Jul

Now a Good Time to Buy? Guide to Borrower Debt-to-Income (DTI) Qualifications

Rents continue to rise in the United States…

Through June of 2014, Rents rose 5.5% across the nation’s 25 largest metro areas, according to Trulia.com. Over the past 12 months, Rent growth has outpaced pay growth, and as Rents rise, metro areas are more and more unaffordable.

 

Is now a better time to buy?

CNBC real estate reporter Diana Olick doesn’t think so. She recently wrote a column titled “Housing Still too Expensive Despite Positive Signs.”

Olick poses the question: why have home sales have slowed year-over-year despite favorable mortgage rates, slowing prices gains, and improved employment?

For starters, even as price gains “slow”, 97 of the largest 100 metro areas still saw yearly increases. Overall, Trulia estimated that the median price for home sales was up 8.1% in June over the previous year.

Beyond the price increases, Olick points out (with some alarm) that the 2014 implementation of the Qualified Mortgage (QM) rule by the Consumer Financial Protection Bureau might be hurting the very same buyers / consumers it professed to help.

“New mortgage rules, designed to protect borrowers, set strict limits on the amount of loan debt that can be carried as a percentage of a borrowers’ income – 43 percent. This so-called debt-to-income ratio has kept some renters out of home ownership…”

The QM rule regulates loan products that fall outside of conventional guidelines by capping lender fees, restricting “risky features”, and creating qualified borrower limits (the 43% debt-to-income max).

 

So… is the QM rule hurting homebuyers?

Perhaps a bit, but not by much.

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.

First of all, most home loans do not need to meet the 43% DTI “QM” restriction. Why? Because the QM rule makes an exception for government-backed mortgages like Conventional loans (Fannie- and Freddie- backed), FHA loans, VA loans, and USDA loans.

These loan program make up the vast majority of new originations, and have much more flexible DTI ratios.

Central Coast Lending offers the following DTI qualifications:

  • Conventional (Fannie and Freddie): 50% DTI (LINK)
  • FHA: 57% (47% of which can be for real estate) (LINK)
  • USDA: 43% (29% of which can be for real estate) (LINK)
  • VA: 60% (LINK)
  • Mobile Homes: 45% (34% of which can be for real estate) (LINK)
  • Jumbo: 43% (LINK)

Debt-to-income (DTI) ratio describes the borrower’s total debt, as calculated by adding the minimum payment for everything that shows up on their credit report. Relevant debt includes student loans, installment loans (cars, RVs, boats, etc), and real estate loans. Payments for smaller items like utilities or cell phone bills do not count towards total debt unless they become collections.

The real estate portion of the DTI is calculated by adding the the total monthly payment (Principle Interest Taxes and Insurance – PITI) and comparing it to gross monthly income.

For example, the DTI for a borrower with a $5,000 gross monthly income (pre tax) and a $1,600 monthly mortgage payment would be 32%. Adding in a $300 monthly car payment and a $200 monthly student loan would bring the total monthly debt to $2,100 and the DTI to 42%.

Most borrowers qualify under one of these popular programs. Borrowers (and properties) that do not qualify are able to seek out “non-qualified” mortgage products (non-QM) from lenders who are willing to take on greater risk.

In our non-QM product overview, we wrote:

Lenders take on greater risk by underwriting non-QM loans, so they require very specific qualification standards to asses the borrowers ability (and likelihood) to repay the loan. Specifically, lenders offering non-QM loans must maintain a minimum 5% stake in that loan for the life of the loan rather than selling the loan entirely as is typically the case with QM loans.

Lenders might be more strict in qualifying borrowers for a non-QM loan, but the fact is that these loans do exist to meet demand.

To recap, is it true that the QM rule is slowing the housing market? Perhaps to a small degree, but only for the most borderline borrowers.

Several weeks ago we wrote about “millenials” as a key to the changing housing market. Millenials are going to school longer and delaying household formation. Rampant student debt is also hurting the home loan qualification process (increasing DTI, for one).

“Give it time” is a clear solution here, but luckily for San Luis Obispo County, we are already in a good position to weather the storm. A recent Tribune headline proclaims “SLO County among top 10 areas in U.S. for millennial job growth.”

There is nothing quite like a good job and regional economic development to fortify the housing market.

 

Mortgage Rate Update

Over the past month, mortgage rates have dipped and jumped a bit based on the major headlines of the day (poor GDP, positive employment), but as the smoke clears, nothing much as changed. Rates are just slightly lower than they were in June, and very close (or at) 2014′s lowest levels.

See our latest update of mortgage rates for 10 loan programs here.

This week, housing starts / home construction data will lead housing market headlines.

 


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

11
Jul

The Briar Creek Housing Development (Lompoc, CA)

New Homes for Sale…

The Briar Creek housing development is located in Lompoc, California. The Robbins|Reed built neighborhood of single-family homes includes a protected wetlands, park and playground, baseball fields, soccer fields, and basketball courts.

Current pricing ranges from the high-$200,000 level to the low-$400,000. The 11 current offerings range in price from $284,370 (1,460 square feet) to $419,564 (2,648 square feet).

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.

Briar Creek homes are styled as either “The Gardens” (ranch style) or “The Courtyards” (two story). Buyers choose from three floor plans, each of which has further customization options. In total, there are 8 floor plan options and 26 exterior styles available.

Zillow estimates that the median home value in Lompoc is $238,400. The median current listing price is $283,900 – in line with Briar Creek’s affordable pricing – and the median price of sold homes is $249,00.

Home prices in Lompoc have jumped 17.3% over the past year.

 

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

10
Jul

Mortgage Matters Radio on KVEC 920 (July 12): Dale Kaiser, Realtor

Dale Kaiser, President and Owner of Dale Kaiser Real Estate Inc., will be joining hosts Dan and Jason on Mortgage Matters this Saturday (July 12) on KVEC 920 from 10 a.m. to 12 noon.

Kaiser is a realtor based on the California Central Coast with a specialty in coastal properties. He also has the distinction of owning the domain name “www.cayucos.com“; hopefully somebody asks him how he managed to get in the ground floor on that one!

Here is the bio published on his website:

Dale Kaiser, President/Owner of Dale Kaiser Real Estate Inc. is an astute businessman with an encyclopedia-like knowledge of San Luis Obispo County beach property and the people who own it.

Dale has emerged as the broker of choice most widely associated with the unique coastal properties including Cayucos, Morro Bay, Cambria and San Simeon. Dale has worked closely with the California Coastal Commission and the County of San Luis Obispo Planning and Building Department for over 30 years giving his clients a distinct advantage that comes from wisdom, experience and knowledge.

Dale and his wife Carly live in Cayucos with their precious daughter Avery and classy canines, Chloe and Hank.

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

9
Jul

Mortgage Rate Update (July 7 – July 11) – Rates Dip After Long Weekend

Over the past month, mortgage rates have dipped and jumped a bit based on the major headlines of the day (poor GDP, positive employment), but as the smoke clears, nothing much as changed. Rates are just slightly lower than they were in June, and very close (or at) 2014′s lowest levels.

Conventional Loan Programs

July 9 Conventional

Specialty Loan Programs

July 9 Government

Manufactured Home Loan Programs

July 9 Manufactured

Jumbo Loan Program

July 9 Jumbo

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.
8
Jul

Mortgage Matters Radio: June 28 (NEW)

Guest: Kristen Crabtree, Century 21 Real Estate

Central Coast Lending Soundcloud (full episode downloads)

8
Jul
800px-Streuobstwiese_San_Luis_Obispo_County

Loans for Agricultural Production! Up to $30 Million for Land, Buildings, Facilities, Equipment

Central Coast Lending’s Farm and Ranch Program gives buyers financing capacity of up to $30 million to purchase parcels of land to use for agricultural production. Under the program, financing is also available for buildings, fixtures, equipment, and facilities (dairies, feedlots, storage units or processors) that are attached to the land.

Read more »

8
Jul
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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” »