Updated CalHFA Loan Amount and Credit Score Requirements – SoCal Mortgage News


– Hey there agent partners. Teresa Tims, President of TDR Mortgage. And you can find me on the web, thesocalloanpro.com. The opportunity for first time buyers is pretty fantastic right now. You can purchase up to a
448, no, what does this say, $446,891 sales price,
so let’s say $446,000 in the inland and Empire
areas of San Bernardino and Riverside county, and you can get in with only $3000. If I were you I would be
calling every single person in my database, let them
know about this great opportunity, do they have
any kids, any friends, or any family? Get in front of your clients in the next two weeks and see if you can’t drum up one or two more purchase
money transactions this year. How’s that sound? And I’d like to help you achieve that. You know, you don’t
even need perfect credit to do these buyer programs. In a lot of cases we start out with people in the low sixes and
are able to get them up in a very short period
of time, with little credit tricks that we have up our sleeves over here at TDR Mortgage. So, let us partner with
you to make more money this year and close it out
with a big, giant, huge bang. Okay, so, couple of things. Calhfa just had a change
in credit score requirement for the conventional product. It’s going to be 680 for
the FHA product, it is 660. Take a look at what we have here. Okay, so like I said,
$446,000 max sales price, San Bernardino, Riverside County. You can go up to a $501,000,
$501,000 sales price, that would be a really great commission, for those purchasing in
L.A. and Orange County. All right, okay, so you know, the Calhfa buyer programs, you are
going to have a first, a second and a third,
that’s how they work. If you look right here,
you’re going to have a silent second and a silent third. It’s going to total about $28,000, that, after they get in with their three grand, they are going to have
payments, not payments, they’re going to owe this $28,000. The second accrues at 3% simple interest. The third is what’s called a
zip, zero interest program, no interest, so it’s a really cool deal for people that, you know, do not have $28,000, yeah, $28,000
to get into a house. Now this total funds to close, it’s a little deceptive if you just look at the $3100, you have to look at these asterisks and go down here… oh, it should have a little
note here, but this includes the seller paying $5000, so to get in with the $3000 we need $5000. I also forgot to update the APR, so this marketing piece is
for realtor partners only. It is not to be shared with your customers because we have got to update this. Now if you’d like to, I
can send you your very own customized marketing piece
that you could send out to your database to get
in front of your database and let them know about this program, I’d be happy to do that for you. Rate is four and a half. I’m not kidding you, a week and a half, two weeks ago, this program was at 3.625, so Calhfa has traditionally been higher than regular FHA and
then all of the sudden they lowered the rates, crazy, crazy low. But I’ve noticed last
week they’ve really been raising them back up. So let’s compare and contrast, shall we? Okay, so, regular FHA, right, 3.5% down, no lender credit. You need 28 grand, the rate
is three point three… (mouthing oh my God) …three point three, wow. That is really sexy. (laughing) Okay, payment, PITI,
principal, interest, taxes and insurance, the taxes
are calculated at one and a quarter and I
think that, what is the, fire insurance is at
point two five, so, $2800 versus Calhfa, payments,
the payment is going to be $200 higher a month. But $28000 versus $3000, so you can obviously see the benefit there. This is one that we do a lot of. If people have access
to a little bit of cash, in this instance, if the
buyer can come in with about $17, $18000, we can do a lender credit to cover most of the closing
costs and get them in. Now in order to do that
we have to raise the rate to this 4.5% mark, which
that kind of sucks. Sometimes, like there’s a sweet spot. This is giving two and
an eighth, or almost two and an eighth of closing cost credit. I bet you if we were
giving, like 1.8 in closing cost credit this might be
like 4.25, so a lot of times we’re, you know, giving
these options to the buyer, hey, if we give you this
much, this is how much money you need, and
oftentimes, if they’re able to come up with a little
bit of extra money they do to have that lower rate. Clients that are doing
this, these two right here, qualify for streamline loans. So when the rates dip into the twos, and, I don’t have a
crystal ball, but the rates keep going down, and so there’s that. I’ve been saying this, probably sound like a broken record. Bruce Norris he commented,
he’s been saying that the rates are going to go into unforeseen territory in the future, so all of the loans that
I’m doing, I’m trying to put people into position to take advantage of the rates going lower in the future. And so if I were recommending to somebody and they had $15000,
I would really, really be trying to put them down here in this FHA product and then we
would streamline them. Streamlines are going at
like three point three to three and a half, so even in six months if rates didn’t go down,
but remained the same, we would be able to streamline
this buyer right here into a streamline loan. So I hope you, hope you
learned something today and are able to share this information with your clients. You know when you’re able
to talk intelligently about finance to your
clients, you’re able to convert more buyers into
closed transactions. I’d love to help partner
with you and be part of that. Give me a call at
909-920-3500 or just email me back and we can get you your own flyer with your own information. Anyway, y’all have a great day. Look forward to hearing from you soon. Stop this.

Paul Whisler

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