MORTGAGE RATES REPORT

VA Amendatory Clause To California Residential Purchase Agreement

The VA requires both the sellers and buyers to execute an amendment to the residential purchase agreement which acknowledges that the valuation is ultimately determined by a Notice Of Valuation (NOV).  A LAPP-approved VA underwriter examines the residential appraisal report, prepared by the VA-assigned property appraiser, and issues the NOV.  

This is a document that is commonly overlooked.  I ask agents to execute the VA Amendatory Clause at contract acceptance but even I forget to furnish them with it.  The VA Amendatory Clause form can be downloaded here.

The veteran buyer's escrow deposit can not be held at risk until the the NOV is issued. At issuance, the veteran may remove the appraisal and loan contingencies.  If the veteran is paying more than the NOV, he/she may waive the right to cancel the transaction and acknowledge, in writing. that he/she is paying more than the NOV for the property.  The VA will only insure 100% of the NOV or purchase price (whichever is lower) so the veteran will be required to pay the difference in cash.

This is an often misunderstood clause that scares both buyers and sellers.  The CAR Residential Purchase Agreement (RPA) pretty much says the same thing but puts a time-line on the appraisal contingency.  The VA amendatory clause basically trumps the appraisal contingency clause of the RPA.  The good and bad thing about VA loans is that the VA outlines a specific time line for its appraisers and underwriters:

• VA appraisers must complete and deliver the appraisal report within two weeks of the order.
• VA underwriters must issue the NOV within one week of receipt of the appraisal report

Contractually, the VA policy portends a 21-day appraisal contingency period for VA loans.  Pragmatically, the appraisers and underwriters complete their work prior to time limits making the 17-day appraisal contingency of the RPA feasible.  What that means to real estate agents is that it is conceivable that the appraisal contingency MAY have to be extended to 21 days if things go absolutely wrong but that the 17-day contingency period is reasonable for VA loans.

Multiple Credit Inquiries Might Not Lower Your Credit Score

You've been taught that you shouldn't have your credit report pulled a lot because your FICO score might be reduced.  That's good advice.  Back in the 90s, the credit bureaus couldn't determine which type of institution was pulling your credit.  The program used to analyze your credit "thought" you were broke and desperately seeking loans to rectify your (false) situation when it noticed multiple credit inquiries.

That isn't the case today.  From MyFico.com:

Will my FICO score drop if I apply for new credit?

If it does, it probably won't drop much. If you apply for several credit cards within a short period of time, multiple inquiries will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.

Feel free to shop for a mortgage loan.  Here is how to organize your documentation so that you can shop multiple lenders efficiently.

Triple Crown Condos in Solana Beach- Approved for FHA Financing

Triple Crown Condominiums, in Solana Beach, CA, were approved for FHA loans on April 8, 2010.  The HUD approval # is S008356 and can be found on the FHA Condo Approval website.

Triple Crown condo owners now have the ability to refinance into a fixed rate home loan, without the 20% equity requirement most conventional lenders require.

FHA loans allow for a loan up to 96.5% of the appraised valuation for loan refinances that have not "taken cash out" in the past twelve months.  This means that no prior refinances nor withdraws from lines of credit could be made in the past twelve months.  "Cash out" on the property, beyond the 12 month window, still qualifies the borrower to receive financing up to 96.5% of the appraised valuation.

Any "cash out" refinances in Triple Crown would be limited to 85% of the appraised valuation, per FHA guidelines.

FHA loans are full-documentation loans, which allow for a debt-to-income ratio up to 55%.  The borrower's credit score must be 640 or higher.

Triple Crown condo owners, looking to refinance their home loan, might check Zillow.com for a "Zestimate".  While Zillow doesn't offer a wholly accurate depiction of what the appraised valuation might be, it is a great starting point to get a "ballpark" valuation.

Home buyers interested in Triple Crown condos might look at JustListedSanDiego.com to see current offerings in the complex.

FHA MORTGAGE INFORMATION:

Search current FHA rates fro Triple Crown at RatePeeker.com

Apply for an FHA loan in Triple Crown at LoanApp.info

San Diego Real Estate Industry Soiree- April 14, 2010

The next San Diego Real Estate Industry Soiree is Wednesday, April 14, 2009.

The main idea of our group is to create opportunities to meet people in our industry. In the past two months, I can attribute two transactions that closed due to the contacts I made at the Soiree.

Bing Crosby's, at Fashion Valley, will probably be our permanent home (except for our annual Del Mar Race Track event). Bing's offers us happy hour pricing for appetizers and drinks and reserves the patio for us. Now that the weather has broken, I expect the next six soirees to be glorious!

Last month, we had close to 75 people attend (up from 50 in February).

La Jolla Mortgage Rates and Homes For Sale Search

We are so pleased to offer a La Jolla mortgage rates search on the Coastal Real Estate Stars website.  Coastal Real Estate Stars is home to The Sullivan Group of Willis Allen Real Estate and associate real estate broker J.R. Sullivan.  A little bit about J.R. Sullivan:

J.R. Sullivan has sold real estate since 2003 when he earned his Broker’s License. However, he has been involved in real estate since age 9, when his parents got into the business.

J.R. grew up in La Jolla, attending Scripps Elementary and The Bishop’s School. He returned to his birth city, Los Angeles, to attend UCLA where he graduated in 1991 with a degree in Political Science. That same year, he took off to Poland where he spent 7 years working in marketing brand management and consulting. In 1997 he returned to the U.S. to attend Business School and received an M.B.A. from Emory University in Atlanta. After that, he continued in marketing management, first on the Lysol brand with Reckitt-Benckiser in New Jersey and later at San Diego’s Jack in the Box.

Like his parents, J.R. pursued two areas of Real Estate: home sales and property management. The Sullivan Group has many clients who buy property as a second home or as an investment. After a purchase, clients often ask the Sullivans to manage their investment.

To complement his experience, J.R. pursued further real estate education and earned a number of designations including a GRI (Graduate of the Realtor Institute), CRS (Certified Residential Specialist), and RMS (Risk Management Specialist).  J.R. even worked overtime to contribute to his community. In 2005 he was elected to the La Jolla Town Council and in 2007 he was elected as President of the La Jolla Real Estate Brokers’ Association (RE BA).

I am pleased to offer RatePeeker to his readers and offer mine the opportunity to search La Jolla homes for sale on the Coastal Real Estate Stars site.  We'll be asking JR a bunch of questions about real estate in La Jolla in the near future.