3% Down – 585 FICO
6.5% Interest Rate - Up to $729,000

Hot off the Press from my friend Kamila Harkavy at Pacific Mortgage Consultants

How’s that sound for a California home buyer? The $729K is the new conforming loan rate and will depend on the county. This is a better rate than people with 800 FICO’s were getting 7 months ago on conforming loans under $417K

That's a 30 year fixed loan for FHA!!!  For someone with a 585 FICO and only a 3% down payment, this is an incredible opportunity to take advantage of in this buyers' market.  These rates are in effect only through 2008 so people should not wait too long.

This same FHA loan is available for cash-out refis too.  People don't have to have any cash reserves in the bank and there's NO pre-payment penalty!!!

This same loan would have come with an interest rate much higher than this in the recent past.

Please note - this loan requires the borrower to fully document their income.

Many people with good credit will be taking advantage of this loan for refis and for purchases due to the high loan-value ratio which is very hard to find in today's mortgage market.  Few lenders will loan to that high a ratio and certainly not at a blended rate of a first and second mortgage of 6.5%!!.

Buyers may be able to find highly motivated sellers who will cover some or all of their closing costs at which point, all they need is a 3% down payment and qualifying income to become a homeowner!

San Ramon, Dublin & Pleasanton, CA

Foreclosures on the Rise 

We've been reading more and more about the rise in foreclosures, short sale situations and the trouble more home owners are facing with ARM mortgages coming due. Many Adjustable Rate Motgages that many took out to purchase a home 3 to five yearsago are getting ready to "kick up" the monthly payment of many home owners.

The California Association of Realtors® reoprts:

"The number of foreclosure filings across the nation exceeded 100,000 for the sixth consecutive month in January, with foreclosure activity increasing in all but 17 states, according to RealtyTrac's "January 2007 U.S. Foreclosure Market Report." Texas and California led the country with the most foreclosure filings last month, with 14,728 and 14,430 foreclosures, respectively. In California, foreclosures were up 14.3 percent compared with the previous month and up 54.3 percent from January 2006."

In the last 24 hours, we have held discussions with two of the top mortgage institutions serving the San Ramon and TriValley areas. The loan officers we talked to reported an increase in refi's. They have solutions for home owners facing problems with their re-ARMing.

If you are in such a situation, don't delay - start the refinance process before things reach a critical point. Many people are not aware of all of the options available and wait too long to deal with a difficult situation that then becomes more difficlut.

Contact us for recommendations - no obligation on your part.