Buyers Beware: Ensure That Your Agents Are Using The Newly Revised Residential Purchase Agreement

Buyers, this may come as a surprise to some agents: The CALIFORNIA ASSOCIATION OF REALTORS® Residential Purchase Agreement (RPA) has been revised as of November 2014. The 2014 RPA is 10 pages long and contains 32 paragraphs and approx. 150 lettered paragraphs, some of which have been relocated within the RPA. The revisions encompass newly written/introduced or modified language in the Agreement. Please check with your agents to ensure that they are using the correct version of the Residential Purchase Agreement and attendant forms when submitting your offer. For more information on this subject, please feel free to call me at 858-603-7879 or email me at robert@sandiego-ca-homes.com

www.sandiego-ca-homes.com.

                                              BR/RM

San Diego Sees Conforming Loan Limit Increase to $562,350 in 2015

Fannie Mae and Freddie Mac were created by Congress. They perform an important role in the nation’s housing finance system – to provide liquidity, stability and affordability to the mortgage market. They provide liquidity (ready access to funds on reasonable terms) to the thousands of banks, savings and loans, and mortgage companies that make loans to finance housing.

Fannie Mae and Freddie Mac buy mortgages from lenders and either hold these mortgages in their portfolios or package the loans into mortgage-backed securities (MBS) that may be sold. Lenders use the cash raised by selling mortgages to the Enterprises to engage in further lending. The Enterprises’ purchases help ensure that individuals and families that buy homes and investors that purchase apartment buildings and other multifamily dwellings have a continuous, stable supply of mortgage money.

Fannie Mae and Freddie Mac are restricted by law to purchasing single-family mortgages with origination balances below a specific amount, known as the “conforming loan limit.” Loans above this limit are known as jumbo loans. The national conforming loan limit for mortgages that finance single-family one-unit properties increased from $33,000 in the early 1970s to $417,000 for 2006-2008, with limits 50 percent higher for four statutorily-designated high cost areas: Alaska,  Hawaii, Guam, and the U.S. Virgin Islands.

Since 2008, various legislative acts increased the loan limits in certain high-cost areas in the United States.  While some of the legislative initiatives established temporary limits for loans originated in select time periods, a permanent formula was established under the Housing and Economic Recovery Act of 2008 (HERA).  The 2015 loan limits have been set under the HERA formula.

In line with Federal Housing Finance Agency (FHFA)  November 24, 2014 announcement on the 2015 loan limits, the base conforming loan limits at the existing 2014 levels through December 31, 2015 are being maintained, and increasing the high-cost areas loan limits in certain counties.

Loan Limit Increase for 46 High-cost Areas And What This Means for San Diego

FHFA has identified 46 counties in designated high-cost areas where the high-cost area loan limits will increase. All other high-cost area loan limits will remain unchanged from the 2014 levels. San Diego is one of four California counties identified as high-cost areas.

This is fantastic news for borrowers of conforming loans. The current threshold is $546,250 in San Diego County, which is set to increase to $562,350 in 2015, that's an increase of $16,100. Qualifying buyers will have an additional $16,100 at their disposal for a home purchase in 2015. With interest rates still at historical lows, this will serve buyers well, especially those first-time home buyers looking to enter the home equity market.

For more information on becoming pre-approved for a mortgage loan that matches your requirements, feel free to give me a call at 858-603-7879 or email me at robert@sandiego-ca-homes.com www.sandiego-ca-homes.com


BR/
RM

La Jolla - "The Gem of San Diego"

Just 12 miles north of Downtown San Diego, La Jolla, Spanish for "the gem or jewel," is an affluent seaside community with 7 miles of dramatically varying coastline...

                           

La Jolla

Coinciding with the admission of California to the United States and the chartering of San Diego as a city, La Jolla was incorporated as part of San Diego in 1850. Just 12 miles north of Downtown San Diego, La Jolla, Spanish for "the gem or jewel," is an affluent seaside community with 7 miles of dramatically varying coastline. Ocean bluffs to the north drop abruptly to the sandy beaches below which, in turn, hug the bases of the rugged cliffs. La Jolla Shores offers prime sandy beaches for tanning and relaxing and further south, a combination of sandy coves and rocky shoreline are host to several sea lion harems, as well as snorkelers and myriads of tourists who come from all over the world to admire the charm of La Jolla's unique coastline.

  La Jolla is also a mini Mecca for education, research, culture and recreation: It is home to the University of California, San Diego, the San Diego Supercomputer Center, Scripps Institute of Oceanography, the Museum of Contemporary Art and the Birch Aquarium and Museum. Want some outdoor fun in the sun? La Jolla boasts an array of outdoor activities such as paragliding at the Torrey Pines Gliderport, or strolling the miles of sandy beach coastline. The world-famous Torrey Pines Golf Course is a golfer's paradise. Snorkel at La Jolla Cove, surf at Black's Beach or hike endless coastal trails. Tie in a bit of recreational shopping and saunter down Prospect Street, La Jolla's main drag through the quaint town center, where you will find magnificent retail shops and fine dining. La Jolla is not only known for its fine dining and upscale shopping but also for its luxury homes.

 La Jolla is also a mini Mecca for education, research, culture and recreation: It is home to the University of California, San Diego, the San Diego Supercomputer Center, Scripps Institute of Oceanography, the Museum of Contemporary Art and the Birch Aquarium and Museum. Want some outdoor fun in the sun? La Jolla boasts an array of outdoor activities such as paragliding at the Torrey Pines Gliderport, or strolling the miles of sandy beach coastline. The world-famous Torrey Pines Golf Course is a golfer's paradise. Snorkel at La Jolla Cove, surf at Black's Beach or hike endless coastal trails. Tie in a bit of recreational shopping and saunter down Prospect Street, La Jolla's main drag through the quaint town center, where you will find magnificent retail shops and fine dining. La Jolla is not only known for its fine dining and upscale shopping but also for its luxury homes.

In 2008 and 2009, La Jolla's home prices were the highest in the nation, according to a survey conducted by Coldwell Banker. The survey was based on the average price of a standardized four-bedroom home in La Jolla compared with average prices of similar homes across the nation. The real estate market in Sand Diego County, even La Jolla, has taken a beating since the boom years as they have in many parts of the country. With home prices almost half of what they once were in many areas of the county and with financing rates at truly historical lows, the current market has become extremely attractive to many buyers from all parts of the globe. Together with its mild climate (average daily temperature 70.5 degrees), its beautiful ocean and mountain scenic views, La Jolla and many parts of San Diego County are popular destinations for tourists and home buyers alike. Learn more about La Jolla and other parts of Greater San Diego. And if you are considering buying or selling real estate in San Diego County, call or email me. Today's real estate market in San Diego is a home buyer's paradise. And the uptick in prices for detached single family homes, condos and townhomes is incentive for many homeowners to get those "For Sale" signs up.

In 2014, as in  most of San Diego County, the La Jolla market is rebounding.

If ever in San Diego, make La Jolla one of your key destinations - you won't be disappointed. And be sure to schedule breakfast at Richard Walker's Pancake House, lunch at Georges at the Cove, and dinner at the Crab Catcher, all located right on Prospect Street. Museum visits, some window (or real) shopping to fill in the gaps.

Looking for more info on "The Gem of San Diego"? Feel free to contact me at 858-603-7879 or email me at robert@sandiego-ca-homes.com. www.sandiego-ca-homes.com

The Year You Were Born Predicts When You Will Buy A House

Two new generations are taking over the new home economy for 2015.

Buying their first homes in 2014 and 2015 will be Generation X, born from the early 1960s to 1976 and Generation Y, the first part of the Millennial generation, born from 1977 to 1994.

Like almost every generation, their life spans have included economic slow times, but the good news is consumer confidence today is growing.

While the American economy is slow-poking its way toward full recovery, it is nonetheless growing more and recovering more with each passing year.

 

Generation X and the early Millennials will be seeing friends and former classmates invest in homes this year.  It's important that this new generation prepares itself for home ownership, one of the main avenues for wealth and security.

 

To prepare for home buying, the new generation will have to pay close attention to credit scores, one of the most important factors in buying a home. There is room for optimism there.  Lenders are increasingly loosening standards for credit scores.  In addition, FHA insured loans can give a first-time borrower lower down payments, lower closing costs and easier credit qualifying.

You must have two lines of credit to qualify for an FHA loan.  If you are planning on buying a home soon, make sure you have credit and you pay on time.

 

Credit scores are important. FHA requires a credit score of at least 580 for maximum financing. Lower scores, down to 500, can mean a borrower would have to put 10 percent down on the home.

In fact, plan on a down payment of at least 10 percent.  Some lenders will require more, even up to 20 percent.

 

Lenders will look at total debt, also and that includes student loans.  Many lenders will require that your total debt, including mortgage, be no more than 45 percent (or even 35 percent) of your total pretax income.

 

Some first-time buyers may wonder if it is all worth it.  After all, real estate has had a bad rap since 2008 and many are wary of getting into it. But, home values are rising every year. That means the homes bought now will be worth more next year and beyond.

The payment on a 30-year mortgage will never rise. The same cannot be said for apartment and home rentals, which are predicted to go up by 3 percent each year. And none of that goes back to your net worth as home equity.

To find out about San Diego Homes for Sale or Rentals, feel free to call or email me: 858-603-7879 or robert@sandiego-ca-homes.com  www.sandiego-ca-homes.com

BR/

RM