Mortgage Loans

1/09/2013

USDA Mortgage Loans Zero Down Payment

Blue sky

Blue Skys with a USDA Home Loan

No money down, finance the costs, apply direct

Caroline Gerardo (949) 784-9699 NMLS 324982 Equal Opportunity Lender

USDA Guaranteed Rural Housing Loans No Money Down, call and ask how you can buy a home with $450.00
USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loan in California and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

USDA Direct Rural Housing Loans
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain home ownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI.

What factors determine if I am eligible for a USDA Loan in California?

To be eligible for A USDA Rural Loan in California, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?About

Maximum USDA Direct Loan income limits for your area can be found at their website. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. Some of these income numbers are suitable for wage earners at the lower end of the spectrum.

The maximum amount for an USDA home loan is determined the area (the address you are purchasing).

Maximum Dollar Amount Per Loan

There is no written maximum loan amount allowed for USDA Rural Home Loans. Instead, a borrower’s debt-to-income ratios dictate how much home they are allowed to purchase (29/41 ratios). Additionally, total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits do limit the total dollar amount per area that the subject property resides.

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

How much money will I need for the down payment and closing costs?

USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting) A borrower may have to pay for only up front credit and appraisal fees of $450.

What property types are allowed for USDA Rural Loan Mortgages?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences

California USDA Loan Adjusted Maximum Income Limits by County
Updated 05/01/2012

County Name	1-4 Person Households (Guaranteed Loans)	5-8 Person Households (Guaranteed Loans)
ALAMEDA	1,094,625	1,094,625
OAKLAND-FREMONT-HAYWARD, CA METROPOLITAN DIVISION
ALPINE	503,750	1,094,625
NON-METRO
AMADOR	417,000	1,094,625
NON-METRO
BUTTE	417,000	1,094,625
CHICO, CA (MSA)
CALAVERAS	417,000	1,094,625
NON-METRO
COLUSA	417,000	1,094,625
NON-METRO
CONTRA COSTA	1,094,625	1,094,625
OAKLAND-FREMONT-HAYWARD, CA METROPOLITAN DIVISION
DEL NORTE	417,000	1,094,625
CRESCENT CITY, CA (MICRO)
EL DORADO	516,000	1,094,625
SACRAMENTO–ARDEN-ARCADE–ROSEVILLE, CA (MSA)
FRESNO	417,000	1,094,625
FRESNO, CA (MSA)
GLENN	417,000	1,094,625
NON-METRO
HUMBOLDT	417,000	1,094,625
EUREKA-ARCATA-FORTUNA, CA (MICRO)
IMPERIAL	417,000	1,094,625
EL CENTRO, CA (MSA)
INYO	417,000	1,094,625
BISHOP, CA (MICRO)
KERN	417,000	1,094,625
BAKERSFIELD, CA (MSA)
KINGS	417,000	1,094,625
HANFORD-CORCORAN, CA (MSA)
LAKE	417,000	1,094,625
CLEARLAKE, CA (MICRO)
LASSEN	417,000	1,094,625
SUSANVILLE, CA (MICRO)
LOS ANGELES	737,500	1,094,625
LOS ANGELES-LONG BEACH-GLENDALE, CA METROPOLITAN
MADERA	417,000	1,094,625
MADERA, CA (MSA)
MARIN	1,094,625	1,094,625
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLITAN
MARIPOSA	417,000	1,094,625
NON-METRO
MENDOCINO	417,000	1,094,625
UKIAH, CA (MICRO)
MERCED	417,000	1,094,625
MERCED, CA (MSA)
MODOC	417,000	1,094,625
NON-METRO
MONO	575,000	1,094,625
NON-METRO
MONTEREY	525,000	1,094,625
SALINAS, CA (MSA)
NAPA	643,750	1,094,625
NAPA, CA (MSA)
NEVADA	518,750	1,094,625
TRUCKEE-GRASS VALLEY, CA (MICRO)
ORANGE	737,500	1,094,625
SANTA ANA-ANAHEIM-IRVINE, CA METROPOLITAN DIVISION
PLACER	516,250	1,094,625
SACRAMENTO–ARDEN-ARCADE–ROSEVILLE, CA (MSA)
PLUMAS	417,000	1,094,625
NON-METRO
RIVERSIDE	417,000	1,094,625
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
SACRAMENTO	516,250	1,094,625
SACRAMENTO–ARDEN-ARCADE–ROSEVILLE, CA (MSA)
SAN BENITO	937,500	1,094,625
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (MSA)
SAN BERNARDINO	417,000	1,094,625
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
SAN DIEGO	593,750	1,094,625
SAN DIEGO-CARLSBAD-SAN MARCOS, CA (MSA)
SAN FRANCISCO	1,094,625	1,094,625
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLITAN
SAN JOAQUIN	417,000	1,094,625
STOCKTON, CA (MSA)
SAN LUIS OBISPO	610,000	1,094,625
SAN LUIS OBISPO-PASO ROBLES, CA (MSA)
SAN MATEO	1,094,625	1,094,625
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLITAN
SANTA BARBARA	656,250	1,094,625
SANTA BARBARA-SANTA MARIA, CA (MSA)
SANTA CLARA	937,500	1,094,625
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (MSA)
SANTA CRUZ	805,000	1,094,625
SANTA CRUZ-WATSONVILLE, CA (MSA)
SHASTA	417,000	1,094,625
REDDING, CA (MSA)
SIERRA	417,000	1,094,625
NON-METRO
SISKIYOU	417,000	1,094,625
NON-METRO
SOLANO	435,000	1,094,625
VALLEJO-FAIRFIELD, CA (MSA)
SONOMA	566,250	1,094,625
SANTA ROSA-PETALUMA, CA (MSA)
STANISLAUS	417,000	1,094,625
MODESTO, CA (MSA)
SUTTER	417,000	1,094,625
YUBA CITY, CA (MSA)
TEHAMA	417,000	1,094,625
RED BLUFF, CA (MICRO)
TRINITY	417,000	1,094,625
NON-METRO
TULARE	417,000	1,094,625
VISALIA-PORTERVILLE, CA (MSA)
TUOLUMNE	417,000	1,094,625
PHOENIX LAKE-CEDAR RIDGE, CA (MICRO)
VENTURA	650,000	1,094,625
OXNARD-THOUSAND OAKS-VENTURA, CA (MSA)
YOLO	516,250	1,094,625
SACRAMENTO–ARDEN-ARCADE–ROSEVILLE, CA (MSA)
YUBA	417,000	1,094,625

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?About/

The Housing and Community Facilities Programs is an agency

of the U.S. Department of

Agriculture (USDA).

Located within the Department's Rural Development mission area,

HCFP operates many programs:

Homeownership options to individuals;

Housing rehabilitation and preservation funding;

Help to developers of multi-family housing projects, such as:

assisted housing for the elderly, disabled, or apartment complexes

HCFP administers direct loans, loan guarantees and grants. Direct loans are made and serviced by USDA staff; loan guarantees are made by W J Bradley and serviced by W. J. Bradley Mortgage Capital LLC. directly.

Q Why does the USDA exist?

This goes back to American history of fairly populating the “plains” and rural farmer subsidies.

Q. What is the HCFP service area?

A. HCFP programs are available to eligible applicants in rural areas, typically defined as open country or rural towns with no more 20,000 in population.

· Copies of USDA regulations, instructions, and handbooks can also be viewed in any Rural Development office, or can be downloaded and viewed online.

If you can’t locate the regulation you want online, you can order a copy at any Rural Development office, or contact Rural Development, FC-313, 1520 Market Street, St. Louis, MO 63103.

Or Call Caroline Gerardo Barbeau directly and she will assist you

(949) 784-9699

NMLS # 324982

http://cgbarbeau.blogspot.com/

NEW YEARS Financial Resolutions

New Years Financial Planning or how to plan your paradise

Bird Of Paradise - Living in Financial Bliss?

FINANCIAL NEW YEARS RESOLUTIONS:

1. Improve your FICO score. The interest rate on residential, credit card or commercial loans are directly related to your FICO score. Call me and let’s strategize the 20 steps to improve your scores.

2. Keep better financial records. Start the year off using your smart phone and backing it up, or use a Franklin planner if that works for you, but keep records of your mileage and receipts for work related expenses.

3. Whether if it is business or personal taxes, get on filing them early

4. Cut your cost of capital. Stop using high rate credit cards, as your card company to reduce the rate, waive the annual fees and don’t let them run more inquiries

5. Plan your retirement, savings, stock and bond accounts and get involved by actively understanding and managing them.

6. Don’t buy it if you must put it on credit.

7. Access long term repairs to your home and automobiles and budget for them.

8. Save more.

C. G. Barbeau

Caroline Gerardo Barbeau

W J Bradley Mortgage Capital LLC

20341 SW Birch Street, #330

Newport Beach California 92660

NMLS # 324982

http://mywb.com/caroline-gerardo/

1/08/2013

Foreclosure Deals in Orange County

A friend asked me to recommend a methodology to find foreclosures in Orange County California today to flip in 2013 for profit. This is my synopsis of Orange County opportunities for residential real estate returns 2013. This is a loosely described chain of ideas as to how one might go about finding distressed properties in Orange County

According to Data Quick Notice of default filings fell last quarter across all home price categories.

“Mortgage defaults remained far more concentrated in the most affordable neighborhoods. Zip codes with third-quarter 2012 median sale prices below $200,000 collectively saw about 8 NoDs filed for every 1,000 homes in those zip codes, while the ratio was about 5 NoDs filed per 1,000 homes for zip codes with $200,000 to $800,000 medians. For the group of zip codes with median sale prices above $800,000, there were just under 2 NoDs filed per 1,000 homes.” (Data Quick)

Most of the loans now going into default are from the 2005-2007 period: the median origination quarter for defaulted loans is still third-quarter 2006. Third quarter 2006 was perhaps the high of the California Real estate boom and by first quarter of 2007 WAMU and Countrywide started to restrict low document loans to wage earners then my end of 2007 stopped all together. It is those loans originated or homes purchased in 2006 with the same owner today that are at the highest risk for default because many are seriously upside down and death, divorce disaster, or job relocation will have them forced to move. Some may still be in the home not making payments.

The big three "beneficiaries" in the foreclosure process last quarter were Bank of America (8,061) mostly all are Countrywide loans that they “got” not acquired and have no skin in the game, JP Morgan Chase(6,713) also big number are WAMU loans they got without paying for them and Wells Fargo (5,780) Wachovia, and others.

The trustees handling most of the defaults last quarter were Recon Trust Co (mostly for Bank of America and Bank of New York), Quality Loan Service Corp (Bank of America) and NDEx West (Wells Fargo). These trustees don’t sell off bulk properties – that’s a myth in Orange County.

In Orange County there is great variety in the location. I would suggest that your best return on investment is in the best locations. So how can you know what is the best? Best locations being defined as the most desirable in terms of highest value in past, those that can be financed easily ( you mentioned that you want to stay under FHA limits), and have a view.

The Cities I suggest you target are: Laguna Beach, Laguna Niguel, and Dana Point. Although I believe Laguna Beach will see the quickest rebound in values (and perhaps Corona Del Mar) these communities are a bit out of your price range.

Laguna Beach does have some properties in that price range with NOD current as follows by street name:

Laguna Canyon Road, Alifieri, Katella, Santa Ana, Cypress, Meadowlark, Jewel, Anns Lane

And so on but the pickle is in Laguna you have to know the house. Laguna can have funky building construction and often illegal additions that as a flipper you will be harnessed to City Planning office forever trying to get some bootleg unit to conform. A buyer must also know the difference between being in the village and south … and so on.

. Notices of Default Numbers Declining Trustees Deeds further down)
houses and condos

Los Angeles County NOD prior quarter 14367 last Q 10,064 down 30%

Orange County NOD prior quarter 4817 last Q 3255 down 32%

I suggest several approaches towards locating properties:

Make back up offers on certain short sales that are past 45 days in the process as the value submitted 45 days or more ago may be lower than the cost today. Swoop in and buy them from Bank of America, Chase, or Wells before they last ditch foreclose.

Door to door knock on residents who purchased in 2006 and uncover short sales or sellers in trouble to negotiate a deal

Buy properties at courthouse and communicate with Realtor about status and structural defects of any subject

Chase down “expired” listings that are in need of quick sales or had agent who isn’t cooperative or they have now grown tired of having open houses and come to Jesus on price

At the Santa Ana Court House there are on average 100 viable bidders with cashier’s checks registered to purchase properties. They work with their ipad or laptop to access property information as the list of auctioned properties changes and fluxes daily. You know one key to investing is to have a trusted Realtor who has already walked through the property and accessed the flaws and rehab work necessary as well as the location and view. In Orange County views are a large part of the actual value and very difficult to know from a Google map or photographs the real value of a subject property’s view. I assume you experienced this in LA County to the same extent.

You should vary the value of the single family home (door units) you plan to buy. I suggest you find:

Homes in the $500 - $600 range in Laguna Niguel that are on a stable hillside with lower Homeowner Association dues ( these vary from $ 160- $600 making it just a little harder to qualify) perhaps most of these will be single level which is also desirable and easier to rehab. All should have special attention to front landscape, repaint and perhaps all the same appliances (those are often missing or trashed) Average year built is about 1995.

Homes in Laguna Beach in the $ 800 range that may not have a view but are in a “hotly” desirable community.

So now you will ask me why not Placentia, Anaheim or Yorba Linda? Yes you can find cheaper houses there but the communities are not going to recover as quickly in my mind. Feel free to call me, I’ve bought and sold a couple flips, even have the contractor’s license to know how to hire great people. (949) 784-9699

Right now there are only 37 possible properties in Notice of Default, the pickings are slim. The market in Orange County is on recovery mode