Friday, December 18, 2015

Foreign National Loans for Investors

We now have access to a great Foreign National loan for Investors in the US!  Let me know if you want details for you or your clients who are looking to purchase or refinance a single family, duplex, triplex or fourplex in the States. We can also offer similar financing for Foreign Nationals on a second home.

Tuesday, December 15, 2015

Investment Property Loans

There are many restrictions to financing a rental property - including the following:

Having more than 4 mortgages or more than 10 mortgages
Cash out over 4 mortgages
Cash out over 10 mortgages has a different level of restrictions
Purchasing an investment home over 4 mortgages affects amount of down payment
Loans over the conforming rate limit $417,000 or $625,500 in certain areas of California
Residential / commercial mixed use properties
Properties with 5+ residential units
Rental condos in buildings with a high renter ratio
Down payments fluctuate depending on all of the above scenarios.
FICO levels affect all of the above in cost and rate.

For help understanding the best financing available for your currnet home or investement proprty, please give me a call.

Mario Pinedo
Banc of California
Cell 415-269-6249
Office 949-381-2901
NMLS 1029116

Sunday, December 7, 2014

Home Loans after Short Sale or Foreclosure

CS Financial has access to lenders with loans for borrowers with a short sale or foreclosure in the recent past. Conventional financing for pre-foreclosure events (Notice of Default and Notice of Trustee Sales) requires a 4 year waiting period (unless there are extenuating circumstances that can be proved) before being able to get a conventional loan. For Foreclosure events (short sale and foreclosure) the conventional wait time may be as long as 7 years.
There are now some lenders in the marketplace offering non-conventional financing which does not require a time wait after a short sale, foreclosure or bankruptcy event.  Buyers can actually get a loan one day after such event. There are definitely qualifications that need to be met and they are more stringent than conventional financing. Down payment, Debt to Income Ratios and Terms are different than traditional conventional financing. The cost of the loan is higher, although, for may borrowers, this additional cost is worth it to buy a new home. For more details on what loan programs are currently available for buying a home or refinancing a home after a short sale, foreclosure or BK, call me to review 415-269-6249.

Friday, September 12, 2014

Should I get a 30 year fixed rate loan or an ARM???

"Always get a 30 year fixed rate loan!" or "Don't pay the higher interest rate on a loan that you will refinance later" or "You will sell that home when you need more space so why get a 30 year loan" - Have any of these advices been offered to you when considering which loan term to choose?

Those three suggestions are wise and unwise depending on your situation now and what you plan to do in the future. Can you predict the future? The answer is no and yet,  you can give probabilities to the future to help your decision.

First some facts:  The average home in the US is owned for approx 7-10 years. The average condo is owned for less than that. So - that may rule out the 30 year fixed rate loan immediately, A 30 year fixed rate loan today may have a 4.5% interest. A 7 year fixed rate loan today would be around 4%. So, if you are keeping the home for a shorter period of time, why pay approximately $500 extra per year for each $100,000 that you borrow? (I am sure somebody reading this is thinking what is $500 over 1 year - that is worth the comfort of a fully fixed rate loan)

Most shorter term fixed rate loans today are fixed for 3, 5, 7 or 10 years, amortized over 30 years and typically become annual adjustable rate loans after the fixed rate period.  There are different structures with other ARMs (adjustable rate mortgages) but this structure is very common.  The comfort of knowing exactly what your payment will be is either 3, 5, 7, 10 or 30 years depending on which fixed term you choose. The amount of interest rate that you pay rises typically from the shortest term to the longest term. It would be safe to say that you can get a mid 2% rate in the 3 year range and a 4.5% rate in the 30 year range. That difference may be significant depending on  your current and future plans for the property.

Let's say you are buying a small starter home with plans to want a larger home in 3 years. If you plan to sell the home in 3 years, then a 3 or 5 year fixed rate loan may be perfect. But... what if you decide to buy a larger home in a few years as planned and keep this first home as a rental property? Now, you have a loan which will start adjusting every year (or monthly) which fluctuates your cash flow.Future hindsight may tell you that a 7 or 10 year fixed rate would be better. It's sad that we cannot rely on future hindsight now!

Now take my mom as an example (sorry Mom!). She is retiring in the next few years. A 30 year fixed rate loan may be the best choice for her. Refinancing or dealing with an adjustable rate payment when going into retirement (fixed income) is not ideal. Solid, secure financing makes sense then.

Where are you in this spectrum of home ownership? Let's talk and flush out the best plan for you.

See my website at www.HomeLoans.LA or call my cell Mario Pinedo 415-269-6249

Tuesday, March 11, 2014

Why Choose an Interest-Only Loan?

A good argument for choosing an interest only loan: #realestate #loans #Realtor Most people will make a decision to trade up their current house based on equity appreciation through sales prices going up. It is rare that the equity appreciation is based on their amortization of their 30 year fixed rate loan. That takes far longer. Therefore, if you are considering trading up, why not save the monthly outlay of the principle payments? On a $500,000 loan, the difference is over $600 per month!