blog – Purchase, refinance, renovation, reverse, Downpayment assistance, VA, FHA

10 Ways to Autumn-ize your Home

October 8, 2019 loansbyjoanna

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The crispness in the air, the small gusts of wind, the faint aroma of pumpkin spice. Even in a county like San Diego, you can feel change in the air when Autumn rolls around. I personally love Autumn, and although I’m sometimes late on getting the decorations up, I enjoy decorating for all major holidays and seasons. Today I want to share with you 10 ways I like to make my home a little more comfy for the fall and winter season. Leave a comment at the end if this helped you, or if you want to share some ways you make your home a little more Holiday.

#1 – Aromatic Candles

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If you know me, you know I’m a sap for an aromatic candle, and it’s fact scented candles are the best in the fall. I tend to burn different candle fragrances depending on the weather. For example, food fragrances and warm and cozy fragrances work best when it’s cold and gray outside. Floral fragrances tend to work best when it’s bright and warm outside.

#2 – Pumpkins

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Add a pumpkin (or three) to your tables and centerpieces. Just a few scattered pumpkins can make your home go from drab to fab in a matter of seconds. Some people swear by real pumpkins, but let me tell you, don’t discount the plastic ones. With faux pumpkins, you can use them again and again. You can even paint them white and use them as decorations for the winter season as well.

#3 – Golden and Pine Centerpieces

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Pine cones, squash, colorful maize, and autumn leaves are another perfect and easy way to Autumnize your home. Just leave a few bowls or cornucopias around the house to give it that crisp, Autumn feel. Browns and beiges are perfect, but adding pops of orange, red, gold, and even rose gold will give your pieces a rustic-glam look.

#4 – Throw Rugs and Wall Art

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Add color, texture, and warmth to your home by way of a smartly placed runner or throw rug. Not many people change their furniture with the seasons, so, changing the rug or your on-the-wall art to something more Fall-like can make it seem like you did. Keep your furniture simple throughout the year, and make your rugs or paintings the focal point. Doing this will make it easy to switch out a few details every season and have it look like you’ve redecorated your entire home.

#5 – Coffee Beans, Cloves and Oranges

There’s a little trick to making your home smell delicious all season: cloves and oranges. Make it a family event and have the kids stick the cloves in the oranges. They can even make their own designs or their names out of the cloves. Then either place them in a bowl or hang them with ribbon around the house. Another great trick is filling glass containers with coffee beans. It will look très chic, but also make the house smell great.

#6 – Succulents (Always)

If you’ve met me, even for just a few minutes, you probably know that I am obsessed with succulents. Not only are they great to have throughout the year, in the fall you can use them as centerpieces, by placing them inside pumpkins, or you can give them as gifts for friends during the holiday. Unlike many plants, succulents are not relatively easy to take care of, so you can be sure that they won’t be destroyed.

#7 – Don’t Forget the Front Porch

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I have to say, I love pulling into a driveway and seeing fall decor! You just know that the rest of the home will be comfy and inviting. Again, pumpkins are great this season, as they are able to go with Halloween, Thanksgiving, and Christmas decor. If you have the time, and are able, paint the front door: Red, Green, something inviting. It’s a small detail that can change the whole look of the home. Don’t forget to take pictures. Fall is the best time for front porch pictures of the Family.

#8 – Cider, Cinnamon and Baked Goods

Like the coffee beans and oranges with cloves, cinnamon is a great way to keep your home smelling like the Holidays during, well, the Holidays. Keeping baked goods like cupcakes and pies around, or hot chocolate and apple cider, will make the whole family stay in the spirit while feeding their souls and their bellies. However, try to find vegan, gluten free, and healthier delicious recipes, so that their bellies aren’t growing as big as your love for them.

#9 – String Lights

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There is something about string lights that make an evening more romantic, and family nights that much more special. They aren’t just for outside the home anymore. You can string them up on the porch, in the house, or even drop them in a glass vase or dish to give a room just a little more oomph. I love string lights not only for the Fall and Winter season, but also in the Spring and Summer for weddings and special events, so having some on hand at all times is always a good idea.

#10 – Family & Friends

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This is a big one. To me, family is everything, but not everyone is lucky enough to have a loving one. So, if you do, count your blessings. If you don’t, create a new family with friends you meet every day. If you have a loving family, and the room to do so, invite a friend or someone who may be lonely for the Holiday season. It’s a small gesture that that make someone’s entire year. The more the merrier! Have a happy Fall and Winter Season, and I hope I gave you some great ideas on how to Autumn-ize your home!

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Dreaming of a Second Home

April 26, 2019April 26, 2019 loansbyjoanna

You work hard during the week! Maybe you need a nice relaxation spot to spend your weekends or holidays. Maybe retirement is just over the horizon and you want to start enjoying the perks of owning a second home. Maybe you’ve already retired and are looking for an oasis to visit often. Whatever the case, a second home may be within your reach!

Many of us dream of a beachfront home. California, with its perfect weather, endless activities, and unbelievable seafood, is a frontrunner. Popular So Cal spots include La Jolla, Encinitas, Redondo Beach, and Dana Point. Second homes, however, don’t have to be near a beach. Imagine vacationing in historic areas such as Riverside, Avalon, and Julian. Whatever the case, many choose to live in So Cal full time because of the quality of life, weather, things to do, and is a dream for so many of us.

I hear all types of questions when it comes to owning a second home. Common questions include:

What is the minimum down payment on a second home?
Can I buy a second home that will eventually be my retirement home?
Is flood insurance required?
What are the second home mortgage options?

Okay, let’s break this down.

1.) What is the Down Payment Requirement on a Second Home Purchase?

Many people believe that buying a second home (or even a primary home) requires 20% down. Although buying a principal residence has more low to no down payment options such as VA, FHA, and USDA, lower down payments for second homes are still available if you know where to look.

For example, as little as 10% of the purchase price could be allowed as a down payment. An additional way of keeping the out of pocket funds low would be to include seller paid costs for the buyer. When buying a second home and financing between 75.01% – 90% of the price, the seller is allowed to pay 6% of the sales towards the buyer’s closing costs and pre-paids. If the loan amount is 75% or less of the price, then the seller may pay 9% toward costs.

Low down payment requirements make owning a second home more obtainable, and luckily, there are plenty of sources. Down payment sources (for funds to close) include bank accounts, retirement account withdrawal, retirement account loan, investment accounts, home equity loan/line on the primary, sale of another home or asset, and gift funds (after the minimum requirements are met).

Discuss these possible sources with your mortgage loan officer to find out if there are any other requirements and to discuss whether one option may have advantages over another for your situation.

2.) Can I Buy a Second Home That Will Eventually Be My Retirement Home?

This is an excellent question, and a very popular request these days. Enjoying a home while you can, before possibly moving into the home permanently may be ideal. Occasionally, the question, “Is it okay to buy a property as a second home and then convert it to a primary residence down the road?” The answer is, yes! That is perfectly fine, as long as the intention was to buy as secondary, it was used as secondary, and eventually converted to primary down the road.

As long as you can afford the two homes, this would be a great way to prepare for the enjoyment of a vacation property, learn about the area, maybe vacation there, and then eventually use it a lot!

3.) Is Flood Insurance Required?

A lot of times, buying a second home means living close to a body of water, whether it be a lake, pond, waterway, or ocean. If this is the case, the structure may be in a flood hazard area, and flood insurance is required. If you are considering a home with flood insurance, ask the seller for a copy of existing flood policy, elevation certificate, and survey. These help the buyer’s lender and insurance company determine whether or not the property requires flood insurance.

If flood insurance is required, these could help get the quote, and prove that the home is not in the flood hazard area. If flood insurance is not required, it may still be a good idea to obtain flood insurance, and because the structure is not in a hazard area, the flood insurance premium would be much cheaper. As always, consult with a knowledgeable agent about your best options.

4.) What Are My Second Home Mortgage Options?

This is an excellent question, and a very popular request these days. Enjoying a home While government loans such as FHA, VA, and USDA may be for primary residences, Fannie Mae and Freddie Mac conventional loans, as well as jumbo loans allow for second home financing. Plus, there are advantages to using conventional loans, such as flexible guidelines with student loan debt, low mortgage insurance rates for high scores, up to 50% debt ratio, condo financing, and second home renovation loans. Conventional loans are limited to the county conforming loan limits, but that’s where a jumbo loan comes in handy. Jumbo loans provide financing for luxury homes exceeding these limits.

If you’re looking to find your dream vacation getaway, retirement oasis, or just a second home, contact me and I can help you with the process!

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A Simple Guide to Home Possible Mortgage Loans

February 26, 2019February 26, 2019 loansbyjoanna

What is a Home Possible Mortgage?

Home Possible is a Freddie Mac mortgage program which allows first-time homebuyers with moderate incomes low down payment mortgage options. These programs only require 3-5% as the minimum down payment and features private mortgage insurance (PMI) that can be canceled once your home equity reaches 20%.

How can Home Possible help me?

The Home Possible and the Home Possible advantage programs are geared toward first-time homebuyers with limited funds available for down payments, but meet the rest of the lending criteria. The purpose of both programs is to finance or refinance the purchases of primary residences, 2-4 unit owner-occupied homes, and eligible manufactured properties. Home Possible programs, with backing from Freddie Mac, are able to offer reduced mortgage insurance rates and premiums, more flexible credit terms, and refinancing options for existing homeowners.

What are its Main Advantages of Each HP Program?

Home Possible

Home Possible Advantage

Income Limits: The borrower’s annual income cannot exceed 100% of the area median income limits (or higher percentage in designated high-cost areas). No income limits apply if the property is in an underserved area.
Eligible Property: A one- to four-unit primary residence or a manufactured home that meets the guidelines.
Eligible Mortgages: First-lien, fully amortizing mortgages; fixed rate and adjustable rate loans are allowed. The maturity must not exceed 30 years.
LTV and DTI Ratios: Max 95% LTV, DTI Determined by Loan Product Advisor or 45% if manually underwritten.

Income Limits: Loan Product Advisor is used to determine whether the borrower’s income exceeds the product advisor limits.
Eligible Property: A 1-unit primary residence. Manufactured Homes not permitted
Eligible Mortgages: First-lien, fully amortizing mortgages; fixed rate loans only. Loan term cannot exceed 30 years.
LTV and DTI Ratios: Max 97% LTV, DTI determined by Loan Product Advisor or 43% if manually underwritten

Table source: http://www.valuepenguin.com

Commonalities:

Borrowers must occupy the property as their primary residence.
Borrowers can not have an ownership interest in other properties.
Mortgage insurance rates and premiums match in both programs.
Mortgage insurance can be canceled after loan balance drops below 80% of the home’s appraised value.
Homeownership education is required for at least one qualifying borrower if all borrowers are first-time homebuyers.

Home Possible Loans Compared to Other loans?

Home Possible vs. FHA Loans

Although each program offers reduced mortgage insurance rates and premiums, which reduces your overall housing expense — with HP loan programs, the mortgage insurance can be canceled once you reach a 78% to 80% loan-to-value ratio. This avoids the expense of refinancing just to eliminate mortgage insurance in the future. In addition, Freddie Mac mortgages aren’t subject to Federal Housing Administation (FHA) county loan limits, which could restrict your purchase options.

Home Possible vs. VA Loans

Unlike loans from the Department of Veterans Affairs (VA), there’s no funding fee on Home Possible loans. Having fewer upfront costs keeps initial loan balances lower, requires lower monthly payments and less interest over the loan term.

Freddie Mac Home Possible vs. Conventional Loans

Home Possible offers more flexible credit terms than most conventional loans and accepts scenarios on a case-by-case basis which increases the chances that your mortgage application will be approved. HP even allows borrowers without credit scores to qualify based on acceptable automated underwriting results and payment references.

**How Do I Qualify for a Freddie Mac Home Possible Mortgage?**

You must meet the debt-to-income ratio requirements for the program. Typically, this means that a maximum of 45% of your gross income goes toward your debts.
Your income must fall within the stated guidelines, based on the location of the home. If you aren’t sure, use the eligibility tool on the Freddie Mac website.
You must also be considered a first-time homebuyer. This doesn’t mean that you’re excluded if you’ve owned a home in the past. There are exceptions for situations like inheriting a stake in a property or acting as a co-signer on a mortgage loan, or if you haven’t been on the title for another property within three years of applying to Home Possible.
You must complete an approved homebuyer education course. Courses are available online and in-person, and provides valuable information.

**How Do I Apply for a Freddie Mac Home Possible Mortgage?**

Select a lender who offers Home Possible mortgage products.
Have the lender calculate your income based on Freddie Mac guidelines by providing the lender with some supporting documentation (like pay stubs, W-2 forms, and bank statements). Going through the preapproval process before home shopping will give you peace of mind.
Once you know how your income will be considered, work with a real estate agent to identify geographic areas you’d be interested in and confirm that you meet the maximum income requirements by using the eligibility tool.
Like conventional mortgages, when you have an offer accepted, your income, assets and credit will be reviewed and confirmed, and the property will be appraised to determine its value.