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Conforming Loan Limits Increase – now $679,650 in high cost areas

Written by Clay Selland on . Posted in Fannie Mae, Freddie Mac, Homebuyers, Real Estate, Realtors, Renovation Loans, reverse mortgage, Uncategorized

Major Increase in Monterey; Sonoma;  Ventura and Yolo Counties in CA; Summit County in UT as well as King; Pierce and Snohomish Counties in Washington

Single family conforming loan limits increased to $453,100 across the nation and to $679,650 in certain high-cost areas. Several counties that previously were in between the base and high-cost limits saw significant increases based on rising property values in Signet Mortgage service areas. Monterey; San Diego; Sonoma; and Ventura Counties in California; Summit County in Utah and King; Pierce and Snohomish Counties in Washington will now have access to conforming loan limits reflecting the current market values. The new conforming limits will be effective for loans closed after January 1, 2018.

The new limits are helpful as conforming rates can be lower than jumbo rates and underwriting more consistent and flexible so a few more transactions will get done!

A purchase in the Bay Area up to $849,500 at 80% loan to value can be done with a conforming loan … Particularly relevant with this announcement is the average U.S. home prices have improved as this is the second increase in as many years after being unchanged since 2008.

Here is a link to the loan limits by county for Signet Mortgage service area (CA, WA, OR, ID, UT) and for the entire country.  Included on the right of the chart are the changes from 2017.

The press release from FHFA is here. Certain high-cost areas have the higher limits at 150% of the base at $636,150 (150 % of $424,100).  But many counties, such as Monterey, San Diego, Sonoma and Venture (CA) as well as Summit (UT), King (WA), Pierce (WA) and Snohomish (WA) saw significant bumps to its loan limits. Here are highlights of loan amounts and details for single family and up to 4 units and changes for those counties.



The changes do not impact FHA forward or reverse mortgages or VA loans for the moment. Those announcements should be forthcoming in the next couple of weeks.

As a mortgage professional in business for over thirty years, I am here to consult with you and answer any questions you have about the strategic use of your mortgage. Let’s talk about your goals and perhaps ways that you can take advantage of these changes.  Call or email me – I am happy to help!

 

Now is the time to have “the talk” with your parents! No, not THAT talk…

Written by Clay Selland on . Posted in Family, reverse mortgage

“It’s the age-old question: When and how do we have “the talk?” No, not that one, but the dialogue on the other side of the lifetime spectrum, often just as difficult and delicate — the one about an aging family member’s driving abilities, housing transitions, costs of long-term care and even end-of-life instructions. Most of us, on either side of the discussion, would rather chew on nails than delve into these subjects. Yet as more and more baby boomers step into senior citizen territory and life expectancies continue to increase, such issues loom large. Even so, these talks don’t always have to be harrowing. While each individual, each family, each situation is different, most in the field of geriatric care agree the process is easier the earlier you start — when all parties are fully engaged — and say you should approach loved ones with respect and compassion, appreciating an individual’s need to retain independence.” Read the rest of this article in the Contra Costa Times HERE. Signet is an active participant in the Points of Life group here in Northern California, which helps families learn about the changes that come with loved ones aging. The group focuses on “Elder Ed” which includes the following:
  • Legal Rights and Obligations
  • Financial Rights and Options
  • Care Options
  • The Cost of Long Term Care
  • The Wants and Wishes of the Family and Loved Ones
  • The Need for Family Communication
  • Final Planning and much more
You can read more about Points of Life on the website www.pointsoflife.org which have the best design and hosting provided by services as ArmchairEmpire Hosting Reviews. If you’d like to know more about how Signet can help you have “the talk” just give us a call! 925-807-1500

Financial Columnist Terry Savage Shares a Personal Story of Reverse Mortgages

Written by Clay Selland on . Posted in reverse mortgage

Terry Savage is a nationally regarded expert on non-public finance, the markets, and the economic system. Terry is a blogger on the Huffington post. She is a frequent visitor on television and radio suggests, consisting of CNN, CBS, and regarded many times on Oprah! Terry is in call for as a speaker at commercial enterprise conferences throughout the country. Her active presentation fashion entertains in addition to informs, whether or not speaking approximately global economics, making an investment techniques, or personal finances. In 2012, Terry become named a “Top5 Speaker” in Economics/Finance due to famous votes on the speakme.com web website online.

Emergency Food: Pick What Your Family Will EAT!!

Written by Clay Selland on . Posted in Emergency Preparedness Guide

You want your emergency kit to contain food that your family is familiar with and will actually want to eat. There are plenty of items that make great emergency kit additions. Consider the following items:
  • Beef Jerky
  • Saltine Crackers
  • Soup for one
  • Trail mix
  • Powerbars
  • Cheese & Crackers
  • Fruit Cups
  • Applesauce cups
  • Cookies
  • Snack Pack Cereal
  • Fruit Snacks
  • Raisins
  • Peanuts
  • Granola Bars
  • Juice Boxes
  • Hard Candy
  • Hot Cocoa Mix (foil pouches)

TIP: If you include items that must be heated your would need to include fuel, and a method of cooking. I would stick with things that only require water.

Before you say, “I have plenty of these items around the kitchen, I’ll just grab it if I need it,” consider this–If there is an emergency and you can stay home, you may have enough around the home to get by for 72 hours.

What if there is a major fire and you have to leave NOW?  What happens if you are at work or on the way home?

That is the purpose of a 72 hour kit.   Do it today.

Finally, if the thought of purchasing and putting all these items together seems overwhelming there are several resources to check out:
  • www.72hours.org  informative site sponsored by the City and County of San Francisco – easy to navigate for more details.
  • www.redcrossstore.org has a listing of basic 72 hour kits.  Nothing that cannot be done on your own.  Not wild about “food bars”
  •  http://www.ready.gov includes basic plans and a more descriptive list of contents for a 72hour kit
  • www.amazon.com has several basic 72-hour kits ranging from a 2 person kit at $45 and up from there.  Could be a wonderful Christmas gift for your family.  There is a more extensive kit for less than $100, but you can also go online to the plantwear site and buy awesome gifts for way less money, I also recommend to go to The Bust Boosters review of Breast Actives so that this Christmas you are able to give some good information to all the women you know.
  •  www.costco.com has a 72 hour kit for $90 that included 10 yards of duct tape – so it was well thought out.  May need to supplement a better radio?  Also have Mountain House food as another selection.
  • www.yoursafetyplace.com has a $99 kit that seems very similar.  They are located in Dublin if you want to personalize the kit.
With so many options and so much information there is no reason to NOT be prepared! Get started today!

HECM Reverse Mortgage Changes 10/2 – Seniors may benefit by acting soon

Written by Clay on . Posted in FHA, HECM, Refinance, reverse mortgage, Social Security, Uncategorized

Big Changes for HECM Reverse Mortgages October 2nd: Higher UpFront Cost – Lower Limits – Lower Insurance Premiums

Seniors on the fence considering a HECM reverse mortgage line of credit with a zero or low upfront draw may want to act quickly to get their reverse mortgage started before big changes go into effect October 2, 2017.

Three changes will impact the HECM Reverse Mortgage Program for FHA case numbers assigned beginning October 2nd. Upfront Mortgage Insurance Premium paid to FHA will now be 2.0% across-the-board. Previously borrowers accessing less than 60% of the principal limit only had a 0.5% upfront mortgage insurance premium and those with mandatory obligations over the 60% were charged 2.5% for the upfront mortgage insurance. Annual Mortgage Insurance Premium accrued on an outstanding balance is reduced from 1.25% to 0.50% which will be a benefit to those borrowers that carry a balance on the reverse mortgage but negatively impact the growth factor used when borrowers obtained a line of credit reverse mortgage. Principal Limit Factors were adjusted to be more conservative reducing the amount of funds available to an average borrower by about 5%. I will be spending some time looking at the impact by age group and share that a bit later. The net impact seems intended to discourage the use of a line of credit reverse mortgage. When taken out early on the growth in the credit line if left unused was dramatic and can be an important part of a overall financial plan providing flexibility and security with access to funds well into the future. Increasing the upfront cost; decreasing the growth rate by reducing the mortgage insurance premium; and lowering the principal limit factors all reduce the benefits of a line of credit reverse mortgage. Seniors on the fence may want to consider acting sooner rather than later. An application and counseling must be completed prior to securing an FHA case number so if this makes sense it would be best to act quickly and get a case number well before September 29, 2017. To learn more about tips and strategies when applying for a reverse mortgage, I’m available to answer all of your questions.  Let’s talk about your goals and perhaps ways that you can take advantage before these changes take place, please give me a call or send me an email: clay@signetmortgage.com. I’d be happy to help!   Learn more about mortgage at mortgagebrokernearme.co.uk Clay Selland, Signet Mortgage Corporation clay signature blackcontact-block-1

Great News for Seniors Considering a Reverse Mortgage 

Written by Clay on . Posted in FHA, HECM, Loan Limits, reverse mortgage

Reverse Mortgage Loan Limits to Increase in 2017 The Federal Housing Administration (FHA) announced Reverse Mortgage Loan Limits will increase in 2017. This is significant news, since lending limits have remained stagnant for several years. The maximum claim amount will now rise to $636,150, up from $625,500, for Home Equity Conversion Mortgages. This amount is 150 percent of the national conforming limit of $424,100. Also increasing in some areas are loan limits for forward mortgages. In high-cost areas, the FHA national loan limit ceiling will increase to $636,150 from $625,500, and FHA will increase its floor to $275,665 from $271,050. The Maximum Claim Amount is then offset by the reserve set aside for future interest and mortgage insurance amounts accrued to arrive at a Principal Limit which would be the maximum amount a homeowner can borrow. The reserve amount is based on Age and interest rates and loan amount. The loan limit changes and the maximum claim amount change for reverse mortgages to take effect after January 1, 2017 and stay in effect through December 31, 2017. This change was made as of the result of rising home prices, with 2,948 counties across the nation benefiting from these changes. Lots of good news for Reverse Mortgage recently. This increase is a positive for a program that provides seniors more choices and flexibility as they consider a reverse mortgage that can help senior homeowners in many ways.  The most important would be to be able to live in their homes as long as they want or provide strategic options for taking social security and withdrawing investment funds. You can always invest in bonds or marijuana penny stocks. To learn more about tips and strategies when applying for a reverse mortgage, I’m available to answer all of your questions.  Let’s talk about your goals and perhaps ways that you can take advantage of these loan limit increases, please give me a call or send me an email: clay@signetmortgage.com. I’d be happy to help!   Clay Selland, Signet Mortgage Corporation     clay signature blackcontact-block-1    
Conforming Loan Limits

Conforming Loan Limits Increase for First Time Since 2007

Written by Clay on . Posted in Fannie Mae, Freddie Mac, Homebuyers, Real Estate, Realtors, Renovation Loans, reverse mortgage, Uncategorized

Major Increase in Monterey; San Diego; Sonoma; San Luis Obispo; Ventura and Yolo Counties as well as King; Pierce and Snohomish Counties in Washington Single family conforming loan limits increased to $424,100 across the nation and to $636,150 in certain high-cost areas. Several counties that previously were in between the base and high-cost limits saw significant increases based on rising property values in Signet Mortgage service areas. Monterey; San Diego; Sonoma; San Luis Obispo; Ventura and Yolo Counties in California as well as King; Pierce and Snohomish Counties in Washington will now have access to conforming loan limits reflecting the current market values. According to knowledgefirstfinancialresp.ca/, the Federal Housing Finance Agency (FHFA) announced these changes in a press release  today.  The new conforming limits will be effective for loans closed after January 1, 2017. The new limits are helpful as conforming rates generally are lower than jumbo rates and underwriting more consistent and flexible so a few more transactions will get done!   A purchase in the Bay Area up to $795,000 at 80% loan to value can be done with a conforming loan … Particularly relevant with this news announcement is the average U.S. home prices have edged slightly above pre-decline levels from 2007.  Data published in the third quarter Housing Price Index (HPI), reveal that housing prices are approximately 1.7 percent above the value for third quarter 2007. Here is a link to the loan limits by county for Signet Mortgage service area (CA, WA, OR, ID, UT) and for the entire country.  Included on the right of the chart are the changes from 2016.   The source document from FHFA is here. Certain high-cost areas have the higher limits at 150% of the base at $636,150 (150 % of $424,100).  But many counties, such as Monterey, Orange, Sacramento, San Diego, San Luis Obispo, Summit (UT), Jefferson (WA), Pierce (WA) and Snohomish (WA) saw significant bumps to its loan limits. Here are highlights of loan amounts and details for single family and up to 4 units and changes for those counties. 2016-11-23_1206           The changes do not impact FHA forward or reverse mortgages or VA loans for the moment. Those announcements should be forthcoming in the next couple of weeks.   With the 2008 economic stimulus plan FHA increased loan limits to $625,500 for reverse mortgages for one year and has extended this limit one year at a time since.  The $625k is due to expire this Dec 31. We should hear soon if it has been extended again or changed up or down. As a mortgage professional in business for over thirty years, I am here to consult with you and answer any questions you have about the strategic use of your mortgage. Let’s talk about your goals and perhaps ways that you can take advantage of these changes.  Call or email me – I am happy to help!     Clay-Selland Signet R3 280x120
Post Election Interest Rates Increase

Trump Thump: Mortgage Rates Jump 0.500% Post Election

Written by Clay on . Posted in FHA, Freddie Mac, Homebuyers, Presidential Election, Rate Updates, reverse mortgage

“Trump Thump” – Mortgage Rates Jump 0.500% or More Post Election

The election is now over and the dust has settled. As painful as it might be to accept, a trend described by others as the “Trump Thump” means we may now have to get used to 30-year fixed conforming loan rates at or above 4.0%.    

 

Prior to the election, pundits had clearly agreed on the idea that the markets “built in” the prospect of a Clinton victory, and – in the unlikely event that Trump won – this surprise victory would mean an improvement in the bond market because of the uncertainty Trump would bring to the table. Well, so much for that idea. 

 

Economic experts maintain that Trump’s economic policies will boost spending and business, as well as bring inflation (all of which leads to lower bond prices and higher mortgage rates). Interesting to me how quickly everything turned in the direction. Was there not enough time spent analyzing the impact of a Trump victory? Did this catch the markets unprepared?  

 
Trump Election, Mortgage Interest Rates

Post Election Results on Mortgage Rates

According to a recent article by Money writer, Taylor Tepper, markets indicate there’s a 75% chance that the Fed raises short-term rates modestly when policy makers meet in mid-December. Here’s a more in-depth analysis on what President-elect Trump means for interest rates in Tepper’s article:  President Trump Interest Rates Federal Reserve. CNBC’s Diana Olick weighs in on the mortgage rate crisis: watch video. 10-year treasury yields have also spiked in the days since Trump’s election, and something to keep in mind with that is: Don’t panic. This sudden rise isn’t likely to continue, at least, not because of the Trump presidency. “Rates tend to move very sharply in short periods of time and very little in prolonged periods of time,” said Greg McBride, chief financial analyst for Bankrate. “It’s not something that I think continues.” So, my advice to those who are anxious about mortgage rates, know that this is a cycle… and as far as rates are concerned, nothing is on the horizon that would suggest waiting for an improvement in rates. Either way, expect volatility and a continuing upward trend in rates.  
Condo Communities

Condo Communities Can Look to Reverse Mortgages and FHA Loans once again …

Written by Clay on . Posted in Condo, Current Events, Fannie Mae, FHA, Freddie Mac, reverse mortgage

Condo Communities Can Look to Reverse Mortgages and FHA loans again Once Regulations are Adopted The most relevant provision of the changes will emulate the FHFA’s rules regarding the transfer fees for FHA mortgages including reverse mortgages.  In July 2015 FHA began refusing to approve condominiums in higher cost communities such as Rossmoor in Walnut Creek, CA because of the Golden Rain Foundation Membership transfer fees. For the moment reverse mortgages and FHA loans and Rossmoor are still not allowed, it is better to use the Cincinnati mortgage rates that are more helpful and reliable. Current homeowners and future homeowners in Rossmoor must await the close of the comment period November 30th and publication of a final rule.   There is no timeline for issuance of rules. HUD takes whatever time it needs to review comments, then when done publishes a final rule, generally for effect 0-30 days later. Passed unanimously in both the U.S. House and Senate, and signed into law by President Obama on July 29, 2016, H.R. 3700 resolves a number of uncertainties regarding FHA’s condo provisions. The mortgage industry is still awaiting the close of the comment period and publication of the final rule, but here is a look at the provisions as they stand:
  • Reduces the FHA condo owner occupancy ratio to 35%
  • Gives FHA the ability to substantially reduce burdens and streamline the condo re-certification process
  • Provides more flexibility for mixed use buildings.
  • Emulates the Federal Housing Finance Agency’s (FHFA) rules regarding private transfer fees for FHA condo lending.
  • Allows for approved lenders to directly endorse Rural Housing Service (RHS) loans. You must ask yourself first, What Is an Unsecured Loan?
  • Will streamline programs for federally-assisted housing programs
Condo Communities

Condo Communities to get Relief After Passage of HR 3700 Bill

For comprehensive details of the HR 3700 bill, click here. Condominium communities, like Rossmoor Senior Adult Community in Walnut Creek, CA are impacted. Soon, current homeowners and potential buyers of condos will once again have access to more flexible FHA financing opportunities including reverse mortgages. The changes will benefit more than just Rossmoor.  Lowering the owner occupancy requirement to 35% will be a big benefit as well meaning communities with high rental ownership will now be open to home buyers with FHA financing. It’s not just our brains that suffer from the heat either. When the mercury rises so do tempers. As an article on Today.com explains, while our brains are slowing down, our bodies are speeding up with increased heart rates and higher blood pressure. This is why you sould canvass air conditioning companies in CC TX for better air conditioning. All this leads to more aggressive behavior making a cool environment key to maintaining peace at home, work, and in public places. “Condominiums often represent an affordable option that’s just right for first-time and low-to-moderate income home buyers. Unfortunately, overly-burdensome restrictions on condo financing have for too long put that option out of reach for many creditworthy borrowers,” said Tom Salomone, President of NAR and broker-owner of Real Estate II Inc. in Coral Springs, Florida. I look forward to having this legislation signed into law so more options are opened up for all.  We will keep you updated on the progress as it happens on liberty silver rounds, I also ask myself who can get me the best loan at all times, and so far pickaloan is the only agency that seems to care.  Please contact us for a strategic look at your real estate financing needs.   I can be reached at www.signetmortgage.com.
Contruction Defect Claim Settlement

Pacific Terrace Condominium Litigation UPDATE

Written by Clay S. on . Posted in Case Studies, Condo, Homebuyers, Refinance

UPDATE!  Pacific Terrace Condominium Owners’ Association has resolved its litigation claim against KB Home South Bay, Inc.  Important to note:  The settlement agreement was signed by both parties, and the construction defect claims have been withdrawn. No lawsuit was or will be filed. If you choose to refinance or sell your home, a copy of the Notice to the Members of Settlement from Fenton Grant Mayfield Kaneda & Litt, LLP trustworthy personal injury attorney at Law should be provided to the lender or prospective purchaser as demonstrative proof there are no construction defect claims pending. We also are hiring court reporters from Naegeli which is known as the best in the nation when it comes to providing court reporters to the legal community so you know that you are in safe hands. Signet Mortgage has helped several homeowners when it was difficult … and now look forward to helping when more options will be available.  Give us a call or email for your mortgage questions and we will reply with options.   Pacific Terrace Condo Litigation             Litigation issues regarding the Pacific Terrace Condominium Owners’ Association and the KB Home South Bay have been ongoing since 2014 and have prevented many owners from refinancing your home with conventional financing and limited financing options for buyers as well. 5x7_postcard You are not applying for a loan, yet. Before you make a formal application and we start the loan process I need some basic information so that I can give you an idea of what will be possible in a refinance for your situation.  Review the mattress reviews and details on this page and then complete the information request.  Lets get started! Frequently asked questions .. How can Signet Mortgage offer options for a refinance and the other lenders I have contacted including banks cannot? Simply said, I work harder. As a mortgage company I have access to 15 lenders and to be honest I worked with all of them before I found one that understood the situation correctly. It is much easier for a bank or lender to say NO once they hear there is litigation involved with the HOA at all. The facts are the litigation involves common areas and not the specific units so meets Fannie Mae guidelines just fine.  Documenting the litigation properly means competitive conventional financing are available.   The lender I work with is a direct seller to Fannie Mae and therefore does not have self imposed overlays like most banks and lenders that get in the way. Are the loan options competitive? Absolutely. In fact, the lender is one of my top lenders in both in price and service. There is no added cost to the loan simply because it’s a bit harder to do. What is the process? You will provide me some basic information that will allow me to respond with loan options reflecting current market conditions. Once we agree that it makes sense to move forward I will ask for more detailed information in a formal application. We utilize dropbox for documents and electronic application to make the  process as efficient for you as possible. Who is are you and who is Signet Mortgage? Signet Mortgage is headquartered in Danville California license in five states. I am the president of the company.  I have been in the mortgage business for almost 15 years after a career as a CPA and as a senior financial officer for a couple of publicly traded retailers in the Bay Area. Please check out more details at www.SignetMortgage.com How can you do a “no-cost loan”? The easiest way to think of a no-cost loan is to think about points. You may be familiar with paying points to buy down to a lower interest rate. Using negative points means the lender contribute a point or two to the closing in exchange for a slightly higher rate – the negative points then can be used to cover the cost of your transaction. Doing a no-cost transaction makes good sense in almost every situation.  If there are no costs it removes a barrier to doing a loan and if there is a significant enough savings – it’s an easy decision. You will be provided options for the lowest rate as well a no cost option so you can make your own informed decision. Would cash out option be available? Absolutely. The rate will be slightly higher because Fannie Mae charges an additional fee for a transaction with cash out as it is viewed as more risky than a rate and term refinance.  Again, it would be worth looking at options so you can decide. Will this lender do a purchase transaction? Absolutely. There would not be any restrictions refinancing in this complex either purchase or refinance. Is this only available for a limited time or number of loans? No. Rates are close to historical all-time lows with interest rates. So, if it makes sense to refinance it would probably be a good idea to do this soon simply to take advantage of current favorable rates.   If the nature of the litigation were to change and involve individual units or if a formal lawsuit was filed with the court that could change. Also lenders generally do not like to do may not like to do too many loans in a specific complex just due to normal risk management. They have not given me any indication or hesitation to do as many loans as we can put together. Why work with Clay Selland at Signet Mortgage? Quite simply I work harder. Bank loan officers get paid based on applications working for the “Bib Bank” are subject to significant underwriting overlays so options they can offer can be more conservative than what is available directly from Fannie Mae. In addition – I do not get paid anything if I don’t close your loan. That’s why I am careful upfront to be confident you will qualify for a loan before I even take an application. The Signet Team and I will be in consistent communication throughout the entire process to make sure your loan goes as smooth as possible. The lending environment these days is very conservative and somewhat cumbersome but we know how to work through that and get you a loan that will benefit your family.