Hassan's 7 Picks for First-time Homebuyers

Hassan's 7 Picks for First-time Home-buyers

1. WalkScore - A very interesting site that lets you type in an address and measure the 'walkability' of that area. The score takes into account amenities, parks, business listings, etc. but does not take into account proximity to public transportation, crime, and other factors. All in all, it's still an interesting site and another tool to help in your house hunting. I input our organization's address to see how we faired. Look at the image below.
2. LAPD Crime Maps - As far as crime goes, LAPDCrimeMaps.org picks up where WalkSource doesn't. Input a location and the website will generate a detailed map outlining the various types of crimes committed in that radius over a given amount of time. Of course I was curious to see who our neighbors are (CFRC is located in South LA aka South Central) and saw, at least for this 3-day window, we've had a couple of auto thefts in the area. Nevertheless, I recommend house-hunters (especially New Los Angelenos) to monitor their target neighborhoods at least three months in advance. After all, this is LA...
3. Real Estate Terms Dictionary on Investopedia.com - Memorize this list of real estate terms and definitions and surprise your real estate agent when you've been following the Case-Shiller Index and feel although your qualifying ratios could qualify you for an Interest Only nonconforming loan, you'd rather wait still prices fall and save for a two discount points purchase.
4. APR Calculator from BankRate.com - A handy tool to determine the annual percentage rate on a mortgage complete with amortization schedule. Play around with this guesstimate how much that Victorian house in Angelino Heights could cost you monthly at current interest rates.
5. GreatSchools.net - Want to know how the middle school in your future neighborhood measures up? Get the inside scoop from parents and students themselves from this site. And if you're really savvy, check out the API (Academic Progress Index) Rank of any school here.
6. Google Maps - They have this great feature that allows you type in an address or area and it will show a street view of that location - essentially providing a virtual tour of the neighborhood. Yes, I know ZipRealty and Trulia do this also, but it seems smoother on Google. Plus, you can enlarge the screen size. I like to use this feature to get a feel for what the neighborhood "feels" like. Also, sometimes pictures can be deceiving, so this is a good way to follow up on interested properties. The only caveat I see is, despite looking very current (I of course tested out my own address), I'm not sure how often it is updated.
7. Google Transit - Another great creation by Google...with this tool you can find out how (convenient it is) to take public transportation from, say, your future home to work. Not gonna ditch the car you say? Well, as gas costs will inevitably rise and traffic in LA worsens you might value having public transportation a walk away in the future.
   

Honorable mention goes to i-Neighbors.org an on-line community that lets connects residents of specific neighborhoods. Find your (future) neighborhood here and get to know your future neighbors.

News Wire: CalHFAs Community Home Loan Program

News Wire: CalHFA's Community Home Loan Program
by Hassan Nicholás

The State has just launched a new program to help those first-time home buyers interested in purchasing Real Estate Owned (REO) properties located in selected counties and zip codes in California. Under the Community Home Loan Program participating financial institutions will provide a special sales price on their eligible REOs located in specified areas, at below market interest rates and 100% financing. Remember that other CalHFA 1st loan program can only do up to 95% financing. All of this could add up to a great deal for those in the market for bank owned properties. As of now there is nothing on their website about this new program so we expect that they should be making updates soon.

Check out the eligible areas below.

News Wire: CitiMortgage ACCESS Program

News Wire: Citi's ACCESS program will give first-time home buyers more access
by Hassan Nicholás

Citibank sheds a little hope for anxious first-time home buyers.

If you are an anxious buyer waiting for the City of LA to replenish funds into it's first-time home buyer program you are surely not alone. In fact, these days it seems as though there is a collective frustration with down payment assistance programs in general. Subject to local government budget allocations, strict income guidelines, property location restrictions, and other caveats down payment assistance programs can bottleneck the home buying process. Though for many, it is a "necessary" frustration - the difference between buying and not owning a home.


Fortunately, banks are beginning to realize this. Through CitiMortgage's ACCESS Loan Program a borrower can obtain a 1st mortgage with the option of an 8% second in down payment assistance for over 100% financing. That's more than CalHFA's 3% in down payment assistance. And the differences don't stop there. Below we highlighted the main points.

• 30 to 40 year fixed rates

• Longer interest-only periods than other programs (10 years)

• NO sales price limits

• NO recapture tax if home sold later

• Duplexes, 2-unit properties are eligible

• Income limits much higher (mid $80k for one person household)

• Household income not used, only qualifying

• Funds are consistently available, backed by private funding

• NO first time home buyer requirement

So, could this be a competitor to CalHFA? Possibly. Especially considering that the state's rate is still in the 7s, ACCESS could prove to be a fierce competitor for government-sponsored down payment assistance programs.

Ready to give it a try? Contact our partner mortgage broker Ira Smith @ 310-217-2500 ext. 201

Note: LATMAP through CFRC will be able to broker these loans through our Savvy, Sound and Safe Home Loan Program (SSSHLP) too!

New Homebuyer FYI #5

New Homebuyer FYI #5

• Pocket Listings - Think the MLS is the home buyer's panacea for all house hunting needs? The MLS may not be as comprehensive as you thought simply because many properties for sale never make it on to the MLS. These properties, called "pocket listings" are bought "in-house" or "off-market" to a preferred buyer - usually someone who has a special relationship with a seller or real estate agent. In some large real estate brokerages it is common practice to give their agents and their agents' clients an opportunity to purchase properties before they go live on the market. Sometimes pocket listings will appear on MLS for a short period, just long enough for a potential buyer to find out the home is already in escrow.

• With REOs, Ca$h is not always King - The market for REOs can be competitive, which is why buyers must make more competitive offers. In some instances deals are won on terms rather then offering at or above asking price.

• Co-Signer vs. Co-Borrower - So what's the difference? Not much really. The bank itself does not see a difference between co-borrower or a co-signer. If you're a co-borrower you appear on title. The bank would have a co-signer's information, but only the buyer would appear on title. If a co-borrower wants to be removed from the title (liability of the mortgage) the buyer would have have refinance. A quit-claim deed can be executed for a co-signer to sign off on title.

• Home Inspections - You can ask specifically for a copy of all disclosures the seller has received from past buyers under contract. When buyers communicate some issues raised from a home inspection the sellers usually would want to see a copy of the supporting documentation to attempt to negotiate those issues. The documentation they receive is called a summary report, which is a quick overview of the inspection. Sellers are required to disclose or repair whatever has been uncovered during that inspection and represented in the summary report.