Michael S. Rosenbaum

Michael and his team of mortgage professionals are here to help your loan application and closing go smoothly.

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Is an FHA Home Loan Right for Me?

Is an FHA Home Loan Right for Me?

federal-housing-administrationWhat is an FHA Home Loan?

FHA loans are insured by the Federal Housing Administration, protecting the lending institution against loss from default. The down payment can be smaller, as low as 3.5% of the property price. Additionally, the down payment can be from a qualified gift. FHA loans allow the borrower to cosign with a non-occupant family member (single-family homes only). FHA loans are available in 15 or 30 year terms in both fixed rate mortgages and adjustable rate mortgages.

Benefits of an FHA Loan

  • Generally easier qualifications
  • Lower down payment
  • Do not have to be first time homebuyers
  • Seller may contribute a maximum of 6% of the lower of the sales price or the appraised value
  • Non-occupant such as parent or relative may be a co-pplicant on the loan

Who should apply for an FHA Loan?

  • Someone who doesn’t have a lot to put down on a property
  • First time homebuyers

Anything else to note?

  • Mortgage Insurance (MI) is required with an FHA loan. Borrowers can finance the total MI premium into their loan.
  • Closing costs and fees can be included in the loan
  • Monthly payment nust not exceed 30% of monthly income
  • 2 years of verified income necessary
  • FHA 203(k) renovation loans assist with repairs up to $35,000 (only certain repairs are eligible)
  • The maximum FHA loan amount in San Diego County is $580,750 as of January 1, 2016

The following condos in Downtown San Diego are FHA Approved as of October 12, 2016. Please visit our FHA Approved Condos in Downtown San Diego page regularly to check for updates.

Name Address FHA Expiration Date
Alta 575 6th Ave. 12/16/2016
Aria 1441 9th Ave. 10/15/2017
Atria 101 Market St. 6/27/2018
Bay Vu Front St. 8/7/2017
Bayside 1325 Pacific Hwy 7/28/2017
Beech Tower 1514 7th Ave. 9/1/2018
Discovery at Cortez Hill 850 Beech St. 6/24/2018
Farenheit 1025 Island Ave. 12/15/2017
Electra 700 West E St. 1/27/2017
Horizons 555 Front St. 11/24/2017
Island Lofts 221 Island Ave. 3/10/2017
The Legend 325 7th Ave 8/27/2017
M2i 1050 Island Ave 9/15/2017
Marina Park 750 State St. 2/18/2018
Palermo 1501 Front St. 1/12/2018
The Park at 10th Avenue 1640 10th Ave. 8/20/2017
Park Place 700 W Harbor Dr. 9/10/2017
Park Row 701 Kettner Blvd. 11/14/2016
Parkloft 877 Island Ave. 9/1/2017
Porto Siena 1601 India St. 6/25/2017
Smart Corner 1080 Park Blvd. 12/2/2017
Trellis Fifth Avenue 530 K Street 5/5/2017

*Updated 10/12/16

Questions? Fill out the form below to contact us directly.

Information on this list deemed accurate but not guaranteed.

Desktop Underwriter 10.0 Helping More Qualify for Home Loans

Desktop Underwriter 10.0 Helping More Qualify for Home Loans

fannie-maeGreat news for those who pay their entire credit card balance each month.

Fannie Mae, the nation’s leading source of financing for mortgage lenders, implemented Desktop Underwriter 10.0, a widely used automated underwriting system in the mortgage industry.

In the past, credit reports showed only how many times a borrower missed a payment in the past 12-24 months. With the implementation of Desktop Underwriter 10.0, the automated system now shows not only the monthly history, but also whether a consumer makes just a minimum payment or pays the full balance each month.

Research has indicated that borrowers who paid off their credit card debt every month are 60 percent less likely to become delinquent than borrowers who make only the monthly minimum payment.

While some in the industry feel that this could disqualify more borrowers, this could also benefit many. Borrowers who may have missed minimum requirements to be approved may now get approved because of their credit card payment history. Essentially, Fannie Mae has determined that these folks are not as much of a risk as previously assumed.

In a press release, Craig Crabtree, general manager of Equifax Mortgage Services stated “Leveraging trended credit data to evaluate how borrowers actually manage and pay off their credit debt could have enormous potential in terms of opening up credit and providing many Americans with access to mortgage loans that they previously may not have qualified for.”

Want to find out if you are qualified? Fill out our short form below and I’ll be in touch to discuss your situation.

HARP Extended, High LTV Refinance Option Coming Soon

HARP Extended, High LTV Refinance Option Coming Soon

sunrise-1368060The Federal Housing Finance Agency (FHFA) announced great news for homeowners looking to refinance. The Home Affordable Refinance Program (HARP), scheduled to expire at the end of this year has been extended until September 30, 2017. According to the FHFA, there are more than 323,000 borrowers eligible for the program (over 12,000 in the State of California). The FHFA will also implement a new refinance offering for borrowers with high loan-to-value (LTV) ratios. These borrowers “have a remaining balance of $50,000 or more on their mortgage, have a remaining term on their loan of greater than 10 years, and their mortgage interest rate is at least 1.5 percent higher than current market rates.”

FHFA Director Melvin L. Watt stated in a press release, “This new offering will give borrowers the opportunity to refinance when rates are low, making their mortgages more affordable and thus reducing credit risk exposure for Fannie Mae and Freddie Mac.”

Borrowers must benefit from the refinance in at least one of the following ways:

  • Reduced monthly principal and interest payment.
  • Lower interest rate
  • Shorter amortization term
  • More stable mortgage product, such as moving from an adjustable-rate mortgage to fixed-rate mortgage

In order to qualify for the new offering, borrowers:

  • Must not have missed any mortgage payments in the previous six months
  • Must not have missed more than one payment in the previous 12 months
  • Must have a source of income
  • Must receive a benefit from the refinance such as a reduction in their monthly mortgage payment.

The complete requirements will be published in the next few months and is scheduled to be available for new loan applications in October 2017. It’s a ways away, but will definitely benefit anyone who is looking to save money on their home loan.

Don’t wait until it’s too late. Fill out the form below or call today for your opportunity to save!