THURSDAY, March 7th, 6:30-8:30 PM
REGISTER NOW! (free but seating limited to 18)
Please use the form at the bottom of this post or email email@example.com or call 714-801-5810 with name, number attending, phone number and best contact e-mail address.
Your Home is the Safest & Fastest Path to Financial Security – Wealth Building – Retirement Solutions
The most important workshop you will ever attend. It is critical to your financial future whether you are single, married, rent or own a home, are 20 or 80. Financial literacy is a must to navigate successfully the years in front of you, whether starting out or preparing for retirement. No invitations for fancy dinners and pitches to buy annuities or investments, just simple education for my private clients and friends, presented in a fast paced, light atmosphere setting.
Why do the rich get richer, and poor get poorer? It is literacy, handed down OR, LEARNED that makes the difference. Anyone with a desire to learn and some discipline with a plan/coaching, can be successful in building financial resources, even live or retire in style!
You will learn:
- Why your 401K will not let you retire
- Why renting is a disaster and how to buy with $500.00.
- Why your home is the primary path to financial security and successful retirement
- Should you pay your house off sooner than later?
- Is real estate forming another bubble?
- What an average person’s expenses today will look like in 5,10, 20, 30 years
- What an average person’s investments may look like in 5, 10, 20, 30 years
- Should you sell and relocate to another state?
- How medical issues could upset the whole apple cart
- If you inherit a property or receive a lump sum of cash what you should do?
- Should you buy a rental property or rent out your residence and buy another home to move into….
- Can you do all this without saving money? Often yes! (Caution)
Each of these areas are a workshop in itself, but we will cover enough of each to give you a basic understanding and hopefully some amazing solutions. This is a positive workshop with the best tools for success. Yes we will share the pain, but once understood, there is awesome gain!
Thanks for being a great client!
Your host and servant for 30+ years,
From J. Scott Souders, attorney:
We’re officially in the midst of tax season (if you haven’t done yours already, consider this your reminder!), which magnifies the amount of borrowers we encounter who owe back taxes to the IRS.
Owed taxes that aren’t paid can result in tax liens, which take superior position to mortgage liens – an item of great concern for lenders.
While Tax Liens will always need to be repaid before a borrower is eligible for a Conventional loan, per a recent change to the Fannie Mae Selling Guide borrowers who have entered into e repayment plan are eligible under the following conditions:
When a borrower has entered into an installment agreement with the IRS to repay delinquent federal income taxes, the lender may include the monthly payment amount as part of the borrower’s monthly debt obligations (in lieu of requiring payment in full) if:
- There is no indication that a Notice of Federal Tax Lien has been filed against the borrower in the county in which the subject property is located.
- The lender obtains the following documentation:
- an approved IRS installment agreement with the terms of repayment, including the monthly payment amount and total amount due; and
- evidence the borrower is current on the payments associated with the tax installment plan. Acceptable evidence includes the most recent payment reminder from the IRS, reflecting the last payment amount and date and the next payment amount owed and due date. At least one payment must have been made prior to closing.
Note: The payments on a federal income tax installment agreement can be excluded from the borrower’s DTI ratio if the agreement meets the Fannie Mae terms for Debts Paid by Others, or Installment Debt.
A very strange move after many years, related to 1st time buyer programs with the state of CA. Formerly, until a few days ago, the down payment and closing cost assistance programs with CalHFA were pretty restrictive regarding the maximum amount of income a family could make and still use the programs.
On average, in OC that seemed to be in the $75,000 to $85,000 range roughly, unless you had a very large family.
But now you can make up to $174,2000 per year in OC, and $128,300 in LA county. San Diego county is $157,050, Riverside and San Bern. $128,700 and San Fran. county $228,300.
Now that’s some income relief for 1st time buyers. And, for ALL the state, the maximum sales price is $660,000. So now, if a prospective 1st time buyer (anyone who has not had a home in the last 3 years) has the income to qualify for a property, they can do it much easier and with ridiculously little cash needed.
I and our company are fully approved to do these loans. Recommendation is 40 day escrows. Conventional, FHA & VA products are available on these assistance programs. Gifts are also allowed.
This would work really well, using the “Cost of Renting” illustration I may have sent you personally earlier in the week, and then down payment and closing cost assistance. 🙂 Start those engines!!!!!
PS If you did not receive the “Cost of Renting” illustration, e-mail me for a copy.
(this has been around for awhile)
Purchase transactions can be made difficult when the borrower retains or plans to sell their departing residence, but will not be rented or sold prior to closing.
For this reason, Fannie Mae provides an opportunity to omit the liability from the vacated property, as outlined below:
If the borrower’s current principal residence is pending sale, but the transaction will not close with title transfer to the new owner prior to the subject transaction, and the borrower is purchasing a new principal residence, the current PITIA and the proposed PITIA must be used in qualifying the borrower for the new mortgage loan…
However, Fannie Mae will not require the current principal residence’s PITIA to be used in qualifying the borrower as long as the following documentation is provided:
- the executed sales contract for the current residence, and
- confirmation that any financing contingencies have been cleared.
Hopefully, when you really need a purchase to close and can’t due to the PITIA debt on their current residence in escrow, and they don’t have to have that cash to close, or can creatively get it (legally, and per guidelines 🙂 somewhere else, then this option foots the bill!
Have a great weekend!
Wednesday, November 29th, the Federal Housing Finance Agency (FHFA) announced updated county loan limits for 2018.
Fannie Mae and Freddie Mac employ the FHFA established loan limits, and recognized the newly increased limits (applicable to both Conforming and High Balance loan amounts) as shown below:
Conforming Loan Limit:
- 1-Unit: $453,100
- 2-Unit: $580,150
- 3-Unit: $701,250
- 4-Unit: $871,450
High-Cost Loan Limit:
- 1-Unit: $679,650
- 2-Unit: $870,225
- 3-Unit: $1,051,875
- 4-Unit: $1,307,175
Note: Maximum high-cost loan limits are not available in all counties.
If you’re interested in obtaining the new limits on a per county basis, Fannie Mae has provided an updated spreadsheet for 2018 which can be found https://www.fanniemae.com/singlefamily/loan-limits
This news presents a great opportunity for clients to refinance who recently used High Balance or Jumbo products and could benefit from an improved Conforming or High Balance rate! J
A blurb in a flyer or newsletter to your clients or farm could generate some interest and/or contact! 🙂
Have a great weekend!
YES, Why Buy Real Estate?
When you talk with a client and attempt to encourage them to buy real estate, whether it is their first home or a second home or an investment property what can you say that is convincing? When talking to a clerk, your auto mechanic, hairstylist, acquaintance or friend, what can you say or do that will captivate their attention or create a “NEED” to inquire further to get information that will absolutely “convince” them that they need to buy, “regardless of the market”?
There are only two aspects of this that really matter:
Shelter, or Financial.
Happy Friday! (this one may require a happy hour!)
The California Senate passed Senate Bill No. 2 (“Building Houses and Jobs Act”) which the Governor signed into law.
Commencing January 1, 2018, the bill will impose a fee, except as provided below, of $75.00 to be paid at the time of recording of every real estate instrument, paper, notice required or permitted by law to be recorded, per each single parcel of real property, not to exceed $225.00 per transaction.
The bill defined “real estate instrument, paper or notice” broadly to include: deeds, grant deed, trustees deed, deed of trust, reconveyance, quit claim deed, assignment of deed of trust, request for notice of default, subordination agreement, notice of default, release or discharge, etc.
The rule exempts: (1) transactions where a documentary transfer tax is imposed as defined in IRC 11911, and (2) any real estate instrument, paper, or notice recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier.
The rule contains several ambiguities which means that county recorders may interpret application of the rule differently. Some examples are:
** The rule doesn’t define “parcel.” Since the tax imposed is on a per parcel basis, does a piece of land with two APN numbers count as two parcels doubling the tax?
** The rule doesn’t define “transaction.” Since the tax is capped at $225.00 per transaction, if a lender needs to file a satisfaction of a loan that is paid off, is that a new transaction meaning a new tax?
** The rule doesn’t provide clarity on a transfer of real property as referenced in the exemption. Would a quit claim deed to remove a property out of a trust or add/remove a spouse count as a transfer permitting use of the exemption?
Considering the ambiguity in light of the 10% tolerances imposed by TRID, we as an industry foresee a significant cost as it relates to tolerances for recording fee in will provide further guidance as we move closer to January; however, I wanted everyone to be aware of the coming change.
This was from our compliance department this week and I will keep you posted from our end, but you may get additional clarification from CAR, title companies or your broker.
(My opinion, pure and simple: another subterfuge to find more money for out of control Sacramento government spending and “give aways” of hard earned tax-payer money)
All the best,