ADU’s – May Be the Solution for You

ADU’s – May Be the Solution for You

 

I’m always looking for ways to improve the lives of my friends & clients.  So, with that in mind, I want to share with you my recent

experience at a seminar presented by Gayler Design Build for ADU’s. What is an ADU?   An ADU or accessory dwelling unit is

a really simple and old Idea.  You may have heard them called in-law units or pool houses.  People are building ADU’s for many

reasons. With California’s growing housing prices and limited inventory, Bay Area homeowners are building ADU’s in their

backyard to rent out for extra income or to family members, such as their adult children or their aging parents. For

young couples who cannot afford buy in the bay area and don’t want to move out of state, this is a great option!  Another popular

trend we are seeing is empty nesters renting out their large houses and moving into ADU’s. This may be an old concept, but

these units by Gayler are contemporary, spacious, and gorgeous! Each ADU is designed and built to compliment the main house

and backyard. If you are outgrowing your current home and need more space, or if you have more space than you currently need,

an ADU may be a great option for you! Visit Gayler Design Build at gaylerdesignbuild.com so you can see yourself

If you are interested in learning more or you have questions regarding financing for these little gems please give a call.

 

A Fresh Start for Credit Challenged Borrowers

As of late I have been getting requests from borrowers that have experienced either a bankruptcy, foreclosure or short sale.   There really haven’t been great options…… Until now!
This new program is called Fresh Start.   The Fresh Start product is just that – it’s designed to help borrowers buy or refinance a home after a bankruptcy or foreclosure, but have since rebuilt their credit.

Here a few bullet points this product offers:

  • Loan amounts up to $1M
  • Minimum credit score 580
  • 100% gift for down
  • Higher Debt to Income Ratios
  • No seasoning requirement for BK, foreclosure, short sale
  • Purchase or rate & term
  • cash-out refinance with a max cash back of $350,000
  • No pre-payment penalties

Please call me or fill out your information under my Resources tab, and we can discuss your loan scenarios to learn more about this program and others designed to fit your needs.

Big News from Europe-Outlook Good for Rates & Pricing

Early action in Europe from the European Central Bank was good for bonds, which makes it good for pricing. The big news comes from Europe, as the ECB (European Central Bank) opted to keep its stimulus settings unchanged for now, and even left the door open for increasing bond purchases. There was concern heading into this meeting that the ECB might formally signal its intent to taper back the economic stimulus, which would have been bad for pricing. Instead, the ECB statement made it clear that it was ready to increase the program in size or duration if the outlook becomes less favorable.  Fed Deputy Chairman Stanley Fischer has come out and said he will step down in October, adding to uncertainty about leadership at the central bank as the end of Fed Chair Janet Yellen’s term approaches.  Not sure yet how this will affect the outlook of a Fed rate increase this year, but it will have no effect on the September’s Fed meeting.  So, the mid-to-longer term outlook remains good for rates and pricing, as it has for quite a while now.

The Importance of Homeowners Insurance

I would like to discuss homeowners insurance and how it can impact future buyers. Usually insurance is last on the list to be finalized.  Well….It’s not quite as easy to obtain as it used to be.  With California having its annual fire season, accompanied with copious amounts of rains from last winter I am seeing premiums skyrocket.  In some cases, some insurance carriers won’t even write the polices.  If you are a borrower with a high debt to income ratio, adding a higher premium could be detrimental.
Also, worth mentioning is FEMA is in the process of updating their flood maps. This is important because with the record rains, individuals that weren’t previously in a flood zone could find themselves paying more. The lesson is clear. Please take a careful look at your homeowners insurance before buying or selling a house. Make sure you have adequate coverage from a reputable broker.  Call or email me for recommendations.

Remote E-Closing

The future is here with Remote E-Closing.  The days of being bombarded with reams of paper at the closing table are over. Previous e-closings required either some in-person contact or a notary to e-sign closing documents via a shared tablet.

Borrowers will FaceTime with a notary in order to complete the closing live. The process allows for all documents to be signed, including the promissory note and mortgage.  Buyers will never have to leave their home or wet sign a single document for purchase or refinance loans.

This gives borrowers the ability to close a loan whenever they want, whether it’s at 11 a.m. or 9 p.m., this will have an incredible impact on the entire experience,”

The e-closing technology is currently available to brokers in four states: Illinois, Montana, Virginia and Washington.  The expansion will continue into more states throughout this year.  Fannie Mae, Freddie Mac and the CFPB are all supporting these changes.  So this is big news.

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