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Super Jumbo Mortgages Return to California in 2012

If you are self-employed there are new programs available which make it easier to qualify.


HARP 2.0 to the rescue for home owners who owe more on their home that the value....

Monday March 19th was the start of H.A.R.P 2.0 for home owners who owe more on their home than the fair market value. It is time to call an expert or your lender to determine if you qualify. 

This newly revamped program has been dubbed HARP 2.0 is ready to help you find your way out of your ballooning monthly payments.

While some differences are minute, there are a few that stand out as major changes from the original HARP program. These changes include:

Removing the current 125% loan-to-value (LTV) ceiling on refinanced mortgages;
Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others;
Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the government sponsored enterprises (GSE);
Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines.
Extending availability of the program through the end of 2013.
If your home's LTV rate is 85% or more, you may qualify for this refinancing option that is meant to lock in a lower rate and help you begin pulling your home out of "underwater" status. A home is considered "underwater" when the owner is paying on a loan amount that is more than the home is actually worth. This can happen in a variety of ways, most notably through decreasing property values. If a home was purchased for $150,000 with help from a $130,000 loan, the initial LTV rate is 87%. However, if, over the course of time, that home's value falls to $130,000, the LTV rate is now 100% and is in danger of breaking 100%, which would mean that the loan is now worth more than the home. Going "underwater" can also happen over the course of multiple refinancings.

Regardless of how a home's financing has gone "underwater," HARP 2.0 could offer relief.

Certain restrictions apply and this loan will not be available to every homeowner.
To be eligible for HARP 2.0 your loan must have originated and have been owned by Fanny Mae or Freddie Mac before June of 2009. Your LTV rate must be higher than 85%. You must be current on your mortgage payments. For the past six months, you are not allowed to have posted any late mortgage payments. You are only allowed one late payment of 30 days or less in the past 12 months.

HARP 2.0 is being implemented to help eliminate the roadblocks that "underwater" homeowners often encounter when attempting to refinance their home and increase the speed of the loan origination process. The ultimate goal of this program is to allow homeowners to regain some traction and possibly save their home from foreclosure.

Additionally, HARP 2.0 is not necessarily a guaranteed lower monthly payment, although that will be the result for the majority of eligible homeowners. Homeowners who are paying interest only, who have a low introductory rate that will increase in the future or who face a balloon payment may not see their current payment go down if they refinance to a fixed rate and payment. These homeowners, however, could save a great deal of money by reducing the amount of interest they pay over the life of the loan. Also, homeowners are encouraged to keep in mind that while applications for this loan will be accepted until December 31, 2013, there is no guarantee that low mortgage rates will be around that long.

Finally, as with any financing program of this scale, there are certain signs and signals that should raise a red flag as possible signs of fraud. Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams:

Special Financing For Self-Employed Borrowers

Look for a bank which has Non-Agency mortgage programs that target the special needs and requirements for Self-Employed customers. Proprietary program offers flexibility and fewer restrictions.

The advantages of our Self-Employed Loan Program:
• Use only one-year of self-employed income to qualify
• Expanded debt-to-income ratios
• Income sources include retail, W2 and self-employed
• Liquid assets can be used towards qualifying income
• No deduction of unreimbursed business expenses when calculating debt-to-income ratios
• Up to $2 million loan amounts
• Competitive rates for self-employed borrowers

Foreign National Program

Many banks offer financing that makes buying a U.S. home easier for non-U.S. citizens
Are you a citizen of another country who wants to purchase a home in the United States? 

Non-Agency mortgage programs that target the special needs and requirements for Foreign National buyers. Proprietary program offers flexibility and fewer restrictions.

The advantages of Foreign National Loan Program:
• Borrow up to $650,000 per property
• Fixed rate terms (10, 15, 20, 25 & 30)
• Adjustable rates (5/1, 7/1, 10/1)
• New home loans and refinance
• No pre-payment penalties
• Up to 65% loan-to-value financing
• Eligible properties include single-family homes, condos and townhouses
• Second homes okay
• Loans are manually underwritten
• Self-employed okay
• Competitive interest rates

Catch my live radio program weekday mornings at 7:45 am PST on AM 1450 and 1510 http://www.financialnewsandtalk.com/

"California Mortgage Banker" as heard on AM 600 KOGO and AM 1170 KCBQ