All Forum Posts by: N.A N.A

Sorry Steve!

I originally wrote this post for Sacramento residents. I should have edited it before I posted it here. Yes you are right... this is nationwide.

Thanks for your comment!

In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan last Friday announced a temporary policy that will expand access to FHA mortgage insurance and allow a quicker resale of foreclosed properties.

FHA currently requires the seller to own (must be on the title) a Sacramento property for a minimum of 90 days before they can sell it to a buyer using FHA financing. Sacramento bank owned property is exempt from this rule....until now!

HUD will lift this restriction for one year beginning on February 1, 2010!

This lift of the 90 day seasoning rule will permit buyers to use FHA-insured financing to purchase homes they previously could not qualify for. You see... there are a ton of Sacramento investors picking up homes and renovating them, so they can quickly resell the home for a profit. In the past, if an investor wanted to sell their home to a FHA borrower, the investor would have to hold the house for 90 days before they could write a contract with the borrower. This made investors seek out conventional and VA buyers, leaving the FHA buyer out of luck.

To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions. The details can be found on our website...

This is great news for flippers!

Hi Trudy!

I am sorry to hear that you are losing money.

Although there are folks making money in our area right now... flipping homes can be tricky here in Sacramento.

Don't feel bad though... I have seen professionals lose their shorts in this market trying to flip homes. These are investors who have been doing this for years as their full time employment.

The safer investment in our area right now (in my opinion) is long term rentals. With the home values continuing to decline cash.... flow is possible!

I would recommend attending some of the area real estate investment clubs so that you can network with other folks in our area who are investing in real estate.

Pop me an email and I will send you a list of local investment clubs!

Good luck!

I personally am not having trouble getting borrowers to qualify.

Since it seems to be an issue for you I would recommend requiring your borrowers be pre-qualified with a mortgage professional you can trust. That way they can review the credit and the tax returns and spot any red flags ahead of time.

If you are not comfortable with that you could require a copy of the pre-approval from the actual bank. There are a ton of mortgage "professionals" that will write a pre-approval letter when they have not even pulled the client's credit.

Just a though!

Fannie Mae has a new loan program that will allow investors to put 10% down on homes owned by Fannie Mae!

WITH NO MORTGAGE INSURANCE! YEAH!

Here are the details...

90% (10% down) for non owner occupied properties with NO MORTGAGE INSURANCE!

If you are looking for an investment home in Sacramento (or in your area), you know that you will get a better return on your investment if you have less money in the deal. Right now with typical financing (actually offered by Fannie Mae for non-Fannie Mae owned homes), you should expect to put down at least 25%.

Wow! So for example if you purchased a home for $150,000 (not owned by Fannie Mae), you would need to put down $37,500 plus closing costs. If you buy a home owned by Fannie Mae, you only have to put $15,000 plus closing costs. If that does not help you"sharpen your pencil" I am not sure what will! This is a really big deal!

Call me if you have any questions!

Here is a link to find homes in your area:
http://reosearch.fanniemae.com/reosearch/

Here are some other homes available in the Sacramento Area:

Elk Grove... 46 homes available!
Citrus Heights... 21 homes available
Rancho Cordova... 16 homes available!
Fair Oaks... 4 homes available
Carnichael... 14 homes available!
and so on...

It is a sweet deal! You are not going to find investor financing like this!

Happy Hunting

You only need 6 months reserves for properties #5 - #10!

In the past, in regards to the rental income on a new purchase... Lenders would want a copy of the rental agreement and proof of rent deposits for any property not on tax return in order to use the income. Other lenders would hit you for the entire PITI payment and not let you include the rent. We will just have to see how each lender interprets these rules.

I am pretty sure Fannie and Freddie reversed their 45% DTI guideline but I don't have a link to share. It initially came out when they said no more stated income but I read later they reversed their cap at 45% DTI>

Keep in mind that there are no more stated income loans through Fanie or Freddie as of this month.

All folks would need to fully documents all income and reserves.

I do get your point Rob ...but I think that will be the minority.

I certainly will not do loans like this.

Here it is! https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0902.pdf

IT IS TRUE!