MORTGAGE UPDATE
Are you interesting in buying a property but don't have much money for a down payment? There are programs available for qualified buyers. Here is some information that may help you get into your own home.

Conventional Financing
Wells Fargo offers financing up to 90% of the purchase price for a conventional conforming loan of $417,000. This means that you can purchase a property for $463,333. There are some ifs, ands, or buts with this, though. Most lenders, including Wells Fargo, are reducing loan to value ratios of the offered programs by 5% if the property is in a declining market, which in some cases means that you may need to come in with a 15% down payment. Mortgage insurance is required as well.

CalHFA
CalHFA has their own underwriting guidelines, so please call me to see if this program will work for you.

The California Housing Finance Agency (CalHFA) has recently retracted many of their loan programs. The 30 Fixed Rate Mortgage is still available, and at a rate competitive with current traditional mortgage rates.

CalHFA Program Snapshot

• First Time Homebuyers Only (cannot be on title for the prior 3 years)
• Primary Residence Only
• Loan Program: 30 year fixed rate mortgage
• Purchase Price Limits (existing resale properties: $729,750)
• Income Limits ($127,320 for households with up to 2 people, $148,540 for 3+ people)
• Down Payment Assistance (income limits apply from $88K up to $167k depending on number of people in the household).
• Some city down payment assistance programs available (city's may offer their own programs with their own guidelines).
• Mortgage insurance required on loans greater than 80% loan to value.
• Maximum loan to value: 95% and (up to 102% when combined with down payment assistance from CHDAP and other city down payment assistance programs).

FHA
FHA has a complex set of underwriting guidelines. It is difficult to determine whether or not a client will qualify until all aspects of the transaction are known. Please call for more information.

FHA Program Snapshot

• First Time Homebuyer status not required.
• Loan Programs: Wells Fargo offers the 15 year fixed rate, 30 year fixed rate, 3 year ARM, 5 year ARM (other lenders may offer the 1/1, 7/1 and 10/1 ARMs, Wells Fargo does not offer these at this time)
• Purchase - Primary residence only, up to 97.15% loan to value up to $729,750*.
• Minimum investment = 3% (downpayment and closing costs)
• Refinance - Rate and Term
• Refinance - Cash Out: up to 85% loan to value for loans up to $729,750*, and up to 95% loan to value for loans up to $417,000.
• FHA allows renegotiated 2nd liens to be subordinated behind a new 1st FHA loan. Loan to value limits apply.
• Mortgage Insurance required on all loans.

* The higher loan limit of $729,750 expires on 12/31/08. The new loan limit is expected to be $625,500.

Please do not hesitate to call or email me with any questions you may have.

Sally Audet
Wells Fargo Home Mortgage
CELL: 408-981-1089
EMAIL: sally.audet@wellsfargo.com
WEBSITE: www.wfhm.com/sally-audet


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Mark Thomason
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408.850.3085