San Diego Housing Bubble News and Analysis

SC,, not a loan that has low rates..Rates can be different depending on the state. There may be a local lender that is comfortable loaning on local property with lower rates.

You want a 5 7 or 10 ARM or 30 YR Fixed ?
What state is it in ?

For a 30 YR Fixed in CA
With 25% down, credit score of 720+ my cost of money for a $900K max loan is 6.65% 30 YR fixed.
10 YR ARM 5.625%
or 5.375% for a 7 YR ARM loan max $850K

With only 20% down, credit score above 700, I don't think that I have a 30 YR fixed. With a loan amount up to $1M, 10 YR ARM is over 9.00%

These are not my specialty that I often quote.
Different states have different rates.
Qualifying is full doc only.
Impound for taxes & insurance may be required.

Oy - good to know. State is Virginia - we're moving out there shortly, intention is to rent for a while, but I also want to know what our options are as we start scoping out the local real estate.

The goal would certainly be a 30yr fixed, but that's a pretty big gap between a 30 and 10yr arm when the numbers are that big. Regardless we'll start targeting 25/30%, given your notes.

Do you generally only work in California, or do you ever do out of state loans?

SC, I only originate CA loans.
You have different options for VA.

I do offer out of state consulting for $500 flat fee for a loan over $500K

Specific for VA, based on 01/23/09 rates:
One Loan:
720+ credit score. 30 YR fixed. SFR.
70% 6.60%
75% 6.65%
80% 6.70%
85% 6.90%
90% 7.05%

Max loan amount $900K to 80%
Max loan amount $800K above 80%
NO mortgage insurance above 80%
***********************************
With a credit score of 700+ A better option for you could be a FNMA JUMBO $625K 30 YR 1st @ 4.875% and a 20 YR 2nd @ 8.65%
which would be a blended rate of 5.69% for $800K total, max 80%...
This could be available with 20% down.

With a $375K 2nd, per your example, the blended rate would be 6.29% ($1M total)

For a cost of 1 point, you could buy the 1st down to 4.50% 30 YR Fixed

Max 1st $ amount depends on county. Arlington area looks OK up to $625K (need to confirm)

Above rates would be my cost if I were able to originate loans in VA. (No lender commission at these rates)

If you couldn't find better rates, as your consultant, I could try and a find a broker that would offer the above rates for a reasonable fee.

A major change in income could make it difficult to qualify unless you are with same employer or similar line of work.

Terms/limits/guidelines subject to change.

Contact me privately for additional info if you wish. ..HLS

Definitely will do - Thanks!

(I remember seeing your contact info in a previous thread, so I'll try to pull it out of there unless you want to repost)

Have a great evening.

I didn't know that 2nd mortgages were still available. Are they traditionally interest only?
Are banks offering them or credit unions

2nds are harder to come by. The same lender that I quoted above will go to 80% in VA, but only to 75% in CA.. choice of 15 YR or 20 YR, fully amortized.
Interest only might be available at a higher rate.

It can get complicated and EVERYTHING is subject to change.

I don't know what credit unions offer. I deal with wholesale lenders.

sheldon [at] HomeLoanSheldon [dot] com

www.HomeLoanSheldon.com