VA Loan Entitlement – purchasing with $0 Down even after a foreclosure

When it comes to VA loans for Veterans, it's all about the Veterans Eligibility and their qualification. Surprising as it may be to some, losing a home to Foreclosure or Short Sale does not prevent a Veteran from getting a VA loan again.

VA Loan Entitlement – purchasing with $0 Down even after a foreclosure

Significance of the Spread between 30 Year Fixed Rates and 10 Year Treasury Bill 11.17.23

When historical trends deviate from normal patterns for a period of time, we have to ask why and surmise what it will take for them to return to "normalcy." In this case I am talking about the larger than normal spread between the 30 year fixed rates and the 10 Year Treasury Bill. It appears the excessively wide spread is about due to contract to more normal levels, indicating that 30 year fixed rates are headed down soon.

New Loan Level Price Adjustments (LLPAs) as of 5.1.23

The new Loan Level Price Adjustments (LLPAs) have generally increased the costs for loans for borrowers with higher credit scores over 680 and down payments ranging from 10% - 25% whereas it has generally decreased the cost for borrowers with credit scores below 680. The cost increases are basically "folded into" the interest rate meaning borrowers are not necessarily paying more upfront cost but perhaps experiencing a .125% - .25% higher interest rate. In come cases, the costs are minor and imperceptible. It is not "great news" for those negatively impacted but typically not a "deal breaker" either and for those positively impacted, we hope it gives them an opportunity they might not have otherwise had to own a home.

December 13, 2022 Market Update – Lower Inflation Indicators

The November Consumer Price Index (CPI) report showed that overall inflation increased by 0.1%, which was 0.2% BELOW expectations. Year over year inflation declined from 7.7% to 7.1% which was much lower than the 7.3% expected. Make no mistake, these numbers are still high BUT the are moving in the right direction which is DOWN!!! Lower interest rates are coming so be encouraged and prepare yourself and your clients if you are a realtor.

Surpassing Past Peak Inflation Brings Lower Interest Rates And More Buyers To Market

Prospective home buyers should understand that as of Q4 2022, they have much more bargaining power and much less competition than anytime in the last 5 years. It does not mean that home prices are going down on a year over year basis, it just means that the rate of appreciation and pace of home sales has slowed. Nevertheless home prices are still expected to be up anywhere from 3%-6% on a year over year basis. Because of aggressive SHORT TERM Federal Reserve rate hikes to curb inflation, the LONG TERM mortgage rates have started to come down and the trend is expected to continue through the end of 2022 and into 2023. As interest rates come down, more Buyers will re-enter the market causing increased competition and pricing pressure. Buyers who can find a home that's suitable at this time would be wise to purchase knowing they can refinance when interest rates come down in the future as they always do.

Peak Inflation Has Come and Gone, Lower Interest Rates Ahead

Today, November 10th, 2022 the October Consumer Price Index report came in at 6.3% year over year which was below the 6.6% anticipated. This is great news and foreshadows lower interest rates in the future.

Preparing for the Rebound with Reverse Mortgages

Yes, Reverse Mortgages can provide liquidity for cash strapped seniors but they can do so much more! When employed with a Coordinated Withdraw Strategy, reverse mortgages not only preserve the portfolio value, they help it grow and increase the overall net worth of the retirees and increase the financial legacy for their heirs. Think of it in terms of how a properly inflated ball bounces back after it falls to the ground vs. an under inflated ball that doesn't have the same capacity to rebound. There are a lot of misconceptions about what a Reverse Mortgage is which is why I've prepared the accompanying short infographic video to give an overview of the possibilities. I would be happy to provide a customized illustration for you so please reach out to me to discuss your scenario. I look forward to discussing the solutions with you. Adam Heaney "It's not how old you are. It's how you are old." - Jules Renard

What Is A Reverse Mortgage?

What is a reverse mortgage? Aside from being the least understood mortgage product on the market, reverse mortgages not only provide financial relief for seniors, typically at least 62 years old, they can also be a complimentary product to a well rounded retirement plan, provide additional liquidity for long term care needs or even purchase a home. Here is a quick video overview but please know you can reach out to me with more specific questions. Thanks! Adam

Preparing for the Rebound with Reverse Mortgages

Yes, Reverse Mortgages can provide liquidity for cash strapped seniors but they can do so much more! When employed with a Coordinated Withdraw Strategy, reverse mortgages not only preserve the portfolio value, they help it grow and increase the overall net worth of the retirees and increase the financial legacy for their heirs.

Moving Retirement Plans Forward with Reverse Mortgages

What is a reverse mortgage? Aside from being the least understood mortgage product on the market, reverse mortgages not only provide financial relief for seniors, typically at least 62 years old, they can also be a complimentary product to a well rounded retirement plan. While a reverse mortgage may be a "loan of last resort" for some, it can also be deployed in a retirement plan to buffer market downturns and minimize depletion of the portfolio. To help solve your clients retirement needs and help you better understand how to leverage a reverse mortgage in retirement planning, we have partnered with Finance of America to provide webinars on the following topics: 1) Preparing For The Rebound - Discover how to increase rebound gains while reducing risk for clients age 55 and up. 2) What Advisors Should Know When Retirees Want to Relocate or Right size Their Home 3) Funding Long-Term Care with Home Equity Each topic has 3 choices of dates in October, November and December which provide Continuing Education credit for Certified Financial Planners. Please let me know which dates interest you so I can get you signed up and feel free to ask me if you have any questions in the meantime. Thank you, Adam

Proposition 19 Implications for CA Residents

Since the recording of this video, Proposition 19 has passed with some great benefits to people who are 55 years and older to maintain their original tax basis on their former residence, or at least a portion thereof. There are also benefits for transfers from Grandparent to Grandchild and Parent to Child but the key factor is having the grandchild or child occupy the inherited residence as their primary residence. I have also included some samples of the CA Proposition 19 Forms that need to be filed since the property tax benefits to not get applied automatically.

Why Are VA Loans Often At An Unfair Disadvantage When It Comes To Submitting Offers To Purchase A Home?

Whether you are a Veteran or a Realtor, you need to understand why VA offers have been dismissed or overlooked in the past as "weak offers." As a Veteran, you need to know so that you can "counter punch" or at the very least block inaccurate presumptions about your strength as a Buyer. As a Realtor, you need to need to understand this critical type of financing that is an entitlement Veterans have EARNED through their service to our country and advocating on their behalf is truly the best way to say, "Thank you for your service!"

The First Step to Buying a Home

Buying a home is one of the most gratifying things you will ever do, not only in terms of pride of ownership but also as an investment into your overall net worth and financial well being. Like any journey, it begins with a first step and that is loan approval. Loan approval will help determine your budget so you know the price range of homes you should be searching, as well as types of homes; condos, single family, manufactured, etc. However, not all loan approvals are created equally and it's important to understand the difference between prequalification, preapproval and approval. The more thorough your approval, the more likely your offer is to be accepted but just because you have a loan approval, there are still important things we do to differentiate your offer from 95% of the other offers submitted. Our use of technology and communication is what gives Sellers and Listing Agents the comfort and confidence to choose you and it all starts when you click the "Apply" button.

If You Are Renting, You Need To Watch This Video On Corporate Landlords – 60 Minutes Report

Hello, I wanted to get this video out to bring to highlight the corporate landlords in this 60 Mins episode, which are driving up the rental market up and crushing your dream of homeownership. What? I want you to understand why the rental markets are rising. ( Real Estate is their bet against inflation, what are Corp Landlords and All Cash Offers ) Why? Understanding who and the why behind this movement could cause you to rethink and restrategize your plan for homeownership. When? Now How to protect yourself? You need to understand a Rent vs. Own report, basic knowledge of Renovation Loans, the actual Cost of Waiting, and how I use technology to help my clients have an increased chance of getting their offers accepted.

Happy 4th of July

Hello! I want to wish you a Happy and Safe 4th of July. I hope you find plenty of time over the 3 day weekend to celebrate this Amazing country of ours that treasures individual freedom, Life, Liberty and the Pursuit of Happiness. In the mortgage and real estate markets, both interest rates and home prices have increased. The MAIN thing that’s been driving home prices is a demand from new household formations that STILL outpaces the supply of homes. Consequently, it’ created an affordability challenge for some buyers but not to worry because I’ve got some GREAT solutions for Buyers. In fact, the solution is a Win/Win for both Buyers AND Sellers. So, if you or someone you know someone who is looking to buy, OR if you’re thinking of selling, contact me because this strategy will help you get the most money from the sale of your home. Have a great weekend and Happy 246th Birthday America! Adam

Irvine Residents Connect Seller Buy Down

Hi Irvine Residents, here is a helpful strategy whether you are Buyer trying to purchase a home or a Seller trying to net the most possible from the sale of your home. This is a win/win for Irvine residents called Seller Buy Down. Reach out to me with questions.

Are Home Prices Coming Down This Year or Next?

To understand what is driving current home prices, we need to look no further than the first rule of economics: Supply and Demand. The shorter the supply and greater the demand, the higher the price. As potential home buyers entering the marketplace it's important to make decisions not simply based on what we would like to see, but rather what is actually happening. Incontrovertible demographic trends show household formations are outpacing supply and THAT is what is supporting home prices. Although we expect to see unrealistic listing prices of unsold homes come down to Earth, that does not mean we are going to see year over year price declines so don't let your home buying strategy be guided by "wishful thinking." Instead let me teach you what drives home prices so you will understand why buying a home is such a great investment. With higher home prices AND higher interest rates in recent months, affordability has been an issue for many buyers but the silver lining is that interest rates go up and down all the time so if you end up buying a home while rates are in an upcycle, you can (and will) refinance into a lower rate in the future.

Price Drop vs. Rate Drop

Hello, These higher interest rates will impact buyers' qualifications if you have not noticed. The higher rates are also beginning the "price drops " trend, which sellers use to help attract affordable housing for buyers. But, most sellers don't know or can show the actual numbers on how that impacts buyers. This inability to show the numbers and knowledge of how dropping the rates has a more significant impact on a buyer's payment than lowering a sales price could ever have. Price vs. Rate - Did you know, and I can show you through this side-by-side comparison, how a PRICE DROP of 30k has the same benefits as a 10k Seller Buy Down to a buyer's payment? So, if that is the case, then we can leave 20k on the seller's net sheet vs. taking 30k off of it to address affordability issues with buyers. Seller Buy Down - I wanted to show you how an SBD works and how both the Buyer & Seller can benefit when the SBD + is structured within a purchase transaction. ( videos below ) Marketing Your Property - Now that you understand how powerful a tool it is to reduce rate vs. price with the Seller Buy Down, then let's market your property with a custom SBD Video from me so that we can spread and help affordability to all buyers. Demo SBD Listing - Here is a listing that I can create with visuals and financing to help buyers obtain affordable housing payments.