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Brian Brady
San Diego
Google calls me "America's #1 Mortgage Broker"
Recent Activity
FHFA just announced the new (higher) loan limits for 2018. You can see each county's new loan limit here but this is the summary for Southern California: San Diego County $649.750 Ventura County $672.750 Orange and Los Angeles Counties $679.850 Riverside, San Bernardino, and Imperial Counties $453,100 FHFA sets loan limits for Fannie and Freddie backed conventional loans but, over the past few years, FHA and VA has followed their lead. We expect the VA and FHA loan limits to be the same as the FHFA loan limits. What does that mean? It means more buyers can afford more homes and that's good news for you. If FHA and VA follows (we think they will), fundings could be tricky in the next 60 days. If you have clients who are banking on that higher loan limit, you should call us at 858-777-9751 before you enter escrow so we can determine... Continue reading
Posted Nov 28, 2017 at SAN DIEGO MORTGAGE AND REAL ESTATE
Multigenerational homes are coming back in a big way! In the 1950s, about 21%, or 32.2 million Americans shared a roof with their grown children or parents. We know how to provide the best financing options for multigenerational buyers. Our years of experience and background in financial planning helps us match multigenrational households up to the most cost effective finaicng programs; especially when the older generation is trying to preserve and grow assets for retirement. According to an article by Realtor.com, “Nearly 1 in 5 Americans is now living in a multigenerational household – a household with two or more adult generations, or grandparents living with grandchildren – a level that hasn’t been seen in the U.S. since 1950.” Another report that proves this point is the National Association of Realtors’ (NAR) 2017 Profile of Home Buyers and Sellers which states that 13% of home buyers purchased multigenerational homes last... Continue reading
Posted Nov 8, 2017 at SAN DIEGO MORTGAGE AND REAL ESTATE
STEP 1-- Determine how much you can afford. This is best done with a loan pre-approval (which Debra, my wife, will handle). She will send you a list of documents to upload to the DropBox (copies of W2 forms, most recent LES, bank statements, IDs). With that information, she will pull your credit and input your income and assets into the underwriting program. The underwriting program is provided to us by the VA and will give us the amount for which you are approved. READ: Understanding The VA Home Loan Approval Process: Active Military Service Members STEP 2--- Determine how much you want to pay (as long as it doesn't exceed the loan approval amount). You may be approved for $500,000 with a $3000/mo payment but you may not want your payment be more than $2700/month. If that's true, you want to be searching for homes at a lower price... Continue reading
Posted May 22, 2017 at SAN DIEGO MORTGAGE AND REAL ESTATE
I just reviewed two solar contracts today, for clients, and here is my opinion: 1- The HERO Program is high risk, low reward (high cost with an expensive second mortgage on the home). It takes more than the 20-year loan term to "break even". The argument for the HERO second mortgage program is that you have a paid-off power plant at the end of 20 years. Okayfine BUT...you lost a significant portion of money over the 20-year term. The repayment costs are three times the average power bill. A $40,000 solar plant costs about $400/month and generates monthly power savings of as much as $200 (which is high). You are losing $200/month. At the end of the 20-year term, you have cumulative losses of close to $48,000. That will take another 20 years to recoup those costs. I'm sure SDGE rates will rise so maybe...MAYBE the cost recuperation can be... Continue reading
Posted Apr 6, 2017 at SAN DIEGO MORTGAGE AND REAL ESTATE
...and a worse time to be a San Diego buyers' agent. San Diego is in a housing crisis and the simple explanation for it is that we have a tremendous backlog of new housing--the politicians aren't helping us either. NIMBY-ism, water restrictions, and traffic density are core issues which restrict housing and, while they are legitimate issues, the county has a 65,000 unit backlog of new housing. Experts believe that San Diego County needs 170,000 housing units built from 2012-2025 to meet demand and population growth- some 15,000 housing units each year. Over the past five years, San Diego County has averaged 2000 new housing units.. We are already 65,000 units behind and, if we continue at this anemic pace, we will end up 120,000 housing units short in 8 years. That is pushing up prices of existing homes. You might think that rising housing prices, and double digit rent... Continue reading
Posted Mar 16, 2017 at SAN DIEGO MORTGAGE AND REAL ESTATE
Whether you like President Trump or not, his Presidency (like President Obama's) should be positive for San Diego real estate. Two things are driving San Diego real estate prices higher right now: 1- A back log of housing. Population growth in the County created demand for an average of 15,000 new housing units each year, for the past five years. Only an average of 2,000 housing units a year were built in the County during that time. This means that today, we have a housing back log of some 65,000 housing units. The NIMBYs and environmentalists are fighting every new development proposed so that problem will likely become more severe. This means higher rents and home prices are on the horizon. 2- Good paying jobs are being created. A housing back log means nothing id residents can't afford higher prices and/or rents but employment data suggest otherwise. San Diego County... Continue reading
Posted Mar 3, 2017 at SAN DIEGO MORTGAGE AND REAL ESTATE
If you have an FHA loan in process this month. you were "given a gift" only to have it "taken away" nine days later. It was a political stunt by past HUD Chairman Julian Castro and it's a darned shame it happened to you. Let me break it down for you: The FHA charges borrowers money to insure their loan against default. It adds 1.75% to your loan and charges a monthly mortgage insurance premium in addition to that added 1.75%. You can avoid this by having at least a 20% down payment and getting a conventional loan (although FHA rates are lower than conventional rates) The FHA monthly mortgage insurance premium WAS based on an annual charge of .5% of the loan amount prior to the Obama Administration taking office. During the housing crash, the FHA insurance pool (the money collected from the premiums) was depleted because of all... Continue reading
Posted Jan 21, 2017 at SAN DIEGO MORTGAGE AND REAL ESTATE
Mortgage rates are at the lowest levels since the week after the November election, VA/FHA rates are still under 3.99% and conventional rates are above 4.125%. Right after the New Year, I suggested that rates would be lower at the end of January but higher by this summer. This gives buyers a good opportunity to move quickly. There is no guarantee that rates will move lower in February, but at the very least it leaves buyers with more options. Check out our hot homes list. These are new-to-market listings. all over San Diego County, for single-family homes. If you want to narrow this list down to a specific area, call 858-777-9751 and we will tailor the list for you. Continue reading
Posted Jan 18, 2017 at SAN DIEGO MORTGAGE AND REAL ESTATE
Seven years ago, I said this about our ability to get condominiums added to the VA Approved condominium list in California: I've probably funded 40 VA home loans in 2009, many of them for unapproved condominium complexes. In Southern California, it's quite common along the coastal communities for buyers to look at condos, townhomes, or PUDs as lower-cost alternatives to single-family homes. Declining prices, along with higher VA loan limits have afforded many active duty and former service members the opportunity to scoop up a piece of the California coastal lifestyle by purchasing one of those properties. Sellers often cringe when they receive an offer using VA home loan financing. The general thought is that the VA condominum complex approval process is time-consuming, onerous, and difficult... Nothing could be further from the truth. All loan types, including FHA and conventional vet the condominium association's organizational documents, finances, and residency mix.... Continue reading
Posted Jan 10, 2017 at SAN DIEGO MORTGAGE AND REAL ESTATE
WHERE ARE SAN DIEGO MORTGAGE RATES GOING? Non-farm payrolls reported today at 156K vs. the expected 178K; the unemployment rate ticked up to 4.7%. The mortgage bond market is DOWN a quarter point. That doesn't compute. Today's released data also signaled an uptick in wage growth. Uh oh, that means we are seeing inflation, right? Not so fast. As Debra points out, a lot of minimum wage laws were passed; 19 states raised the minimum wage effective Jan 1. Businesses often meet those laws prior to the effective date to be in compliance. The wage growth is probably just a reaction to legislation rather than organic growth. It's a "false positive". I still think we see lower mortgage rates at the end of January and higher mortgage rates at the end of the summer. If you want to know how this would affect you, call me at 858-777-9751. A real... Continue reading
Posted Jan 6, 2017 at SAN DIEGO MORTGAGE AND REAL ESTATE
Two months ago, in our 2017 San Diego County Real Estate Housing Market Outlook, we suggested three things might lead to a slight decline in housing prices: The three reasons we loved San Diego single-family homes, as an investment in 2012, are the same reasons we don't love them today: median price and median income, price-to-rent-ratio, and mortgage rates direction. We still like single-family homes for owner occupants but we just don't love them as investments. The last reason kicked into high gear after the election--mortgage rates are almost a full percentage point above where they were in October 2016. When we published the outlook, mortgage rates were around 3.5%. Today, mortgage rates are approaching 4.5% and the direction or mortgage rates, after the Fed signaled that it intends to raise short-term rates more in 2017, isn't rosy. What does that mean for a San Diego home buyer? The same... Continue reading
Posted Dec 15, 2016 at SAN DIEGO MORTGAGE AND REAL ESTATE
It's been a great run. Back in late 2011, we were pounding the table for investors to buy a single-family home in San Diego County, especially in what we called "Blue Collar Beach Towns". Then, you could purchase a single-family detached property for $250,000. We were nervous so we advised investors to put at least 25% down and only buy a property where the rent could cover the pre-tax housing expenses (mortgage, taxes, insurance, estimated maintenance). If you were one of our investors, you are probably sitting on over $100,000 of profit today. That means you will have almost tripled your investment in a period of about 5 years or earned an internal rate of return in excess of 27%. It's been a great run but it looks like the party is over. We think the first half of 2017 is going to be a good time for investors to... Continue reading
Posted Oct 7, 2016 at SAN DIEGO MORTGAGE AND REAL ESTATE
The next Carmel Valley Monthly Real Estate Pitch Session is…. Monday September 26th from 4:30-6:30PM at Crust Pizzeria in Torrey Hills RESERVE YOUR SEAT NOW Pitch your listings Learn the 92130 inventory Pitch your buyers needs in 92130 Identify the Carmel Valley properties on tour the next day Networking from 4:30-5:15 with Happy Hour Prices. Pizza and salad is complimentary to REALTORs (affiliates pay a fee to attend) RESERVE YOUR SEAT NOW Meeting Starts Promptly at 5:15PM and will last 60 minutes or less When Monday, September 26, 2016 from 4:30 PM to 6:30 PM (PDT) - Add to Calendar Where Crust Pizzeria - 4653 Carmel Mountain Road, San Diego, CA 92130 - View MapRESERVE YOUR SEAT NOW Continue reading
Posted Aug 16, 2016 at SAN DIEGO MORTGAGE AND REAL ESTATE
This beautiful, end town home has upgraded cabinets, granite counters, and tile and hard wood flooring in the well-maintained community of Rancho Rose in Oceanside. Rancho Rose Community has a resort-style pool and hot tub, nestled beloe swaying palm trees, and a guest equestrian facility on the property. This Oceanside town home has granite and tile throughout the kitchen and all three bathrooms. The living room has rich-looking hard wood floors. You can park in your attached 2-car garage and relax or barbecue on your enclosed patio. Ample guest parking. Upstairs, there are three bedrooms: the master suite is attached to the master bathroom and the other two bedrooms share a jack and jill bathroom. You can finance this home, with no down payment with your VA benefit or use a conventional loan with 5% down payment. an FHA complex approval is pending with World Wide Credit Corporation. Near the... Continue reading
Posted Jul 4, 2016 at SAN DIEGO MORTGAGE AND REAL ESTATE
Ted Cruz for President Meetup groups are popping up all over San Diego County. I host one in Carlsbad and encourage people to come and visit their neighbors, to find Ted Cruz supporters. Here is what I discuss: I run through the scenario that Donald Trump is unlikely to win... Continue reading
Posted Apr 13, 2016 at Restore The GOP
Here are my endorsements for the Republican Party of San Diego County Central Committee, for the June 2016 ballot. This is a four-year term and the members make up the governing body of the local party organization. My criteria for endorsement are pretty simple: 1- I eliminate anyone with a... Continue reading
Posted Mar 24, 2016 at Restore The GOP
Questions will be chosen from among these: Civil Liberties: Marijuana: Multiple state statute initiatives have been designed and proposed for the California ballot on November 8, 2016 that seek to decriminalize marijuana for recreational and industrial purposes. Do you support the decriminalization of marijuana or support the states current regulation... Continue reading
Posted Mar 10, 2016 at Restore The GOP
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The Del Mar Seacoast Republican Women Federated will be hosting a debate, between national defense consultant and Marine veteran Jacquie Atkinson and business owner and former Bush Administration official, Denise Gitsham–both ladies are Republican candidates for The US House of Representatives, representing the 52nd Congressional District. The seat is currently... Continue reading
Posted Feb 24, 2016 at Restore The GOP
HR 3700 passed the House of Representatives (437-0) on Monday, February 2, 2016 and was referred to committee. Three key provisions of the bill are: 1- reduce the owner-occupancy requirement, for FHA-insured condominium approvals, to 35% (from the current 50%) 2- streamline the FHA approval process by expanding the number of lenders who can issue a DELRAP-approval 3- lengthen to approved time frame from the current 2 years (no definitive time) It is our opinion that, because it was approved unanimously, it will get out of committee quickly and be sent to the Senate for a vote. The Senate is less "conservative" than the House so a super majority of votes to approve the bill is expected. President Obama has signaled that he will sign this into law. It is our opinion that this bill will become law as soon as April 1, 2016. This means that HUD could be... Continue reading
Posted Feb 5, 2016 at SAN DIEGO MORTGAGE AND REAL ESTATE
Some changes happened at the VA last year and it wasn't for the better. Mired in bad public relations, the regional home loan center revamped their VA condominium approval process and made it more user friendly for lenders who submit good condominium approvals. As such, we have changed our position on attorney opinion letters. For the past eight years, we have submitted an secured VA condominium approval for over 120 California condominium complexes. We encouraged our clients to spend the $1500, to secure an attorney opinion letter (usually costs $2500-$3500) to expedite the VA condominium approval process. The process has two components to it: financial review (performed by VA regional home loan center) and legal review (performed by an outside counsel). We encouraged attorney opinion letters because we felt that the regional VA home loan center rushed the submission package to outside counsel when it was attached. More importantly, we... Continue reading
Posted Jan 29, 2016 at SAN DIEGO MORTGAGE AND REAL ESTATE
Jill was a good client of mine. I funded an FHA loan for her when she bought her condo back in 2010. She was sitting on $100,000 in profit in just five years. Her original real estate agent left the business so she found an agent who advertised on Zillow (Jill is pretty tech savvy). She listed the property with this agent instead of calling me for advice. The condo didn't sell, Jill called me to ask why, and I had to tell her the truth: "Your agent was the reason why your condo didn't sell, Jill" I told Jill of the tale of two real estate agents: Barbara and Mike. Mike listed lots of properties...LOTS of them. He was constantly on listing appointments, advertised those listings heavily online, and had things down to a "system". His signs were all over her heighborhood and each listing was prominently displayed on... Continue reading
Posted Nov 5, 2015 at SAN DIEGO MORTGAGE AND REAL ESTATE
You just listed a new condominium and you're excited; you priced it right and you expect it to sell and close within 45 days. Financing is a big deal for most condo buyers; in San Diego, condos are often bought by first-time home buyers. You might be making these common mistakes which could cause the offers to come in much lower than you want, have deals fall out of escrow, or delay the closing. 1- Not checking to see which financing is available. See if the complex is approved for FHA financing and be careful to see when the expiration date of the approval is. Check to see if the complex is approved for VA financing. If you can't find the complex on these lists, call me at 858-777-9751. 2- Check with the HOA to determine the owner occupancy percentage. If the percentage of homeowners is under 50%, the buyers... Continue reading
Posted Oct 23, 2015 at SAN DIEGO MORTGAGE AND REAL ESTATE
We just closed an FHA loan in a San Diego condominium complex which wasn't on the FHA approved list. Once upon a time, a real estate agent might call what we did a "spot approval". Spot approvals were where the underwriter looked at the legal and financial documents, of the home owners association, along with a questionnaire, and determined whether or not the complex was eligible for an FHA loan. There are no such things as spot approvals anymore BUT... DELRAP approvals operate (practically) the same way as a spot approval does. FHA-eligible condominium complexes are approved, for a two year period, one of two ways: HUD Review and Approval Process (HRAP)-- this is where the package of the HOA's legal and financial documents are sent to the HUD Home Ownership center in Santa Ana for review and approval. This can take up to 30 days and we would need... Continue reading
Posted Oct 19, 2015 at SAN DIEGO MORTGAGE AND REAL ESTATE
Love him or not, Donald Trump knows how to market himself. There is one thing Trump does, I dare say he overdoes, which real estate agents don't do enough of : Donald Trump takes credit He took credit for Apple's new iPhone, suggested that CNN owes charity money because he spikes ratings for them, and he took credit for the downfall of the would be Speaker of the House. Trump has been making bombastic statements like this, all of his adult life BUT... there is a lesson here. Customers need to know how important your job is. Let me give you an example. I was at a graduation party last June, We were talking about how my friend's daughter's won a college scholarship and...his real estate agent chimed in. She said, "This is partly my success too. I convinced him to buy in this school district because I knew he... Continue reading
Posted Oct 9, 2015 at SAN DIEGO MORTGAGE AND REAL ESTATE
I see this happen a lot in San Diego. A real estate agent finds a new buyer who is serving in the military. That new client wants to buy a condominium with his VA-guaranteed loan benefit but the agent doesn’t know what to do. In the end, the he fires the agent—here is how it happens: The agent starts off by showing the veteran all of the VA-approved condo complexes. The buyer finds a great property in a complex which isn’t approved by the VA. The agent reluctantly shows the property and the buyer loves it. The agent asks his lender about a “spot approval” from the VA. There is no such thing so the lender looks into getting the complex VA approved—he thinks it will take 60-90 days. The lender tries to offer the veteran a more costly FHA loan with 3.5% down payment and PMI. The veteran loses... Continue reading
Posted Sep 2, 2015 at SAN DIEGO MORTGAGE AND REAL ESTATE