Loan Officer Bruce
Loan OfficerForum Replies Created
-
The standard home value in California is about $960,800 as of mid-2024, depending on the county. In Los Angeles, Orange, and San Francisco counties, the average home prices are significantly higher, where the average price of homes is $1,540,000. This is a significant increase because the state needs more houses than it can supply, especially in major cities such as San Francisco and Los Angeles.
On the other hand, Arizona’s average home price is roughly $451,500. Despite rising prices due to increased demand and population growth (Norada Real Estate Investments) (Houzeo), Arizona’s housing market still offers lower costs compared to California’s.
In general terms, though, both states have experienced price hikes; however, when you consider the difference between what one would pay for housing in each state, it becomes clear that living costs within AZ would be less expensive since they are much lower than CA, which makes them attractive places for people looking for cheaper homes.
The median home price in Arizona as of mid-2024 is approximately $451,500, which indicates a 3.6% increase from the previous year. The national median home price is $363,438.
Arizona’s housing market still looks relatively good for buyers considering the price rise because it has strong economic growth and lower living costs compared with California. In response to increased demand for housing units, there are more houses available for sale; stocks rose by 21.6% year over year as of May 2024.
Though higher than national averages, Arizona’s housing markets continue to be stable economically, so much so that they can support sustained increments that indicate steady growth while at the same time making themselves attractive destinations for people moving from one place to another within the US or internationally — such controlled appreciation reflects this fact about our state’s economic stability and desirability among prospective re-locators alike. Many people in California are priced out of the housing market and believe they can never purchase a home. Remote workers are fleeing California to Arizona and other states with affordable housing, low cost of living, and lower taxes by tens of thousands.
-
Ways to Afford the Cost of Living in California
Paying for living expenses, housing, and savings in California is quite difficult, especially if you are a family of five. It takes tactical financial planning to succeed. Listed below are some methods:
Dual Incomes:
Having both parents work full-time can greatly increase the amount of money brought into the household.
Budgeting and Financial Planning:
Develop a strict budget that will manage expenses better by prioritizing essential costs and putting away cash for savings.
Living in Affordable Areas:
Choose cheaper suburbs or less popular neighborhoods, which will lower housing prices.
Shared Housing:
Sharing houses with roommates or extended families reduces per-person living expenses tremendously.
Government Assistance Programs:
Use state and federal help for housing, healthcare, food, and childcare to ease financial burden.
Remote Work:
Consider working from home to live in cheaper locations while earning competitive wages.
Side Jobs and Gigs:
Take on part-time employment or gig work such as Uber driving to boost income levels further.
Tax Benefits:
Use tax deductions like earned income tax credits(EITC) and child tax credits(CTC).
Supporting a Family of Five in California
Housing:
Think about renting instead of buying. Consider multi-generational living arrangements, where costs are shared amongst relatives who live together under one roof.
Income:
Ensure that all adults within the household have jobs, ideally with good pay; pursue higher education qualifications or vocational skills training to increase earning capacity.
Childcare & Education Savings Plan: Utilize free public schools, thus cutting down on expensive private school fees; use government-subsidized daycare centers when kids are still young enough not to attend kindergarten full-time, thereby saving money spent on childcare services.
Health Insurance: If available, take up employer-sponsored health coverage through either parent’s job; otherwise, look into covered California health insurance programs for this purpose.
Transportation Cost Reductions: Use public transport systems like buses and trains, which are cheaper than fueling private vehicles; share rides or carpool with other parents from nearby neighborhoods when going to work or school.
Food & Necessities:
Buy in bulk quantities since it is cheaper per unit price compared to buying small packs every now and then; plan meals ahead so as not to cook anything anytime, which can lead to spending more unnecessarily; and shop at discount stores, where prices tend to be lower for groceries and household items.
Savings & Emergency Fund: Make savings a priority by setting aside monthly money towards an emergency fund that caters to unexpected expenses such as car repairs, medical bills, etc. Automate this process so that a certain percentage of income gets saved automatically without fail every month.
By concurrently employing multiple strategies. Californian families can gain control over their finances and thus meet high living standards while caring for their loved ones.
-
The median annual pension for a retired Chicago police officer is approximately $64,000. However, this figure can vary significantly depending on the length of service and rank at the time of retirement. For some of the highest earners, the average pension can exceed $110,000 annually
-
In July 2024, Joe Biden dropped out of the race for reelection and endorsed Kamala Harris as the Democratic candidate for the 2024 presidential election.
Determinations about a president’s performance are subjective in nature because they depend on one’s political viewpoint. A historical ranking of presidents can change over time as their effects become more apparent in the long run. However, the economy in the United States is horrific, with high interest rates, high unemployment, historically high inflation, unaffordable housing, and a high cost of living.
The economic situation you’re talking about is complicated; it’s determined by presidential policies alone and numerous other factors under the watch of the United States President. These include equally important institutions such as the Federal Reserve (Fed), global events, and market forces.
Indeed, rates have gone up drastically since 2020, along with inflation. However, it should be noted that in 2020, rates were at their lowest point ever due to the COVID-19 pandemic hitting hard on economies worldwide.
Housing affordability is an issue across America, caused by various factors, such as limited supply coupled with higher demand and increased construction costs.
While I acknowledge these difficulties exist, attributing all of them to any administration oversimplifies matters because we’re dealing with intricate economic dynamics here.
To get accurate information concerning these subjects now or later, please consult different trustworthy news outlets and economic experts’ opinions. If there are any concerns about our current politics or economy, reach out to local representatives who represent us politically so that they can address them appropriately or engage in community dialogues around such concerns.
-
Let us analyze the concept of “No-Ratio DSCR Loan” and break it down into its parts:
DSCR (Debt-Service Coverage Ratio):
Lenders use this measurement to determine whether a property generates enough income to pay off its debt.
You must divide net operating income by total debt service to calculate it.
A DSCR of 1.0 or higher indicates that the property produces sufficient revenue to cover debt payments.
No-Ratio:
In this case, “No-Ratio” means that the lender does not require or use traditional DSCR calculation.
Usually, DSCR is an important factor in commercial lending industry standards, where such a rating shows whether there are enough funds to cover obligations.
What No-Ratio DSCR Loan Means:
When deciding whether to grant credit, the lender does not consider how much money could be generated from this real estate compared with its debts.
Instead, there are other priorities during the underwriting process.
Principal Features:
More attention should be paid to the current cash flow from properties.
Greater stress is placed on property value, location, borrower’s financial strength, etc.
It can be useful when dealing with buildings being repaired or repositioned where present income doesn’t reflect future potential.
Possible Advantages:
It may become easier to qualify for objects that regularly earn little money or have inconsistent cash flow.
Investors engaged in projects aimed at increasing cost can count on flexibility.
A shorter approval time due to less strict requirements concerning income verification might be possible.
Possible Disadvantages:
Interest rates could rise as lenders take more risks
Other demands may be tougher (e.g., credit score, down payment).
It is only suitable for some types of commercial property or investment plans.
Who Might Use It?
People who buy cheap buildings need improvement.
Buyers who negotiate favorable terms because they see great possibilities in empty commercial lots.
Those experienced investors whose history includes successful turnaround of properties and investment projects.
Important:
Although the lender does not need DSCR calculations, borrowers must evaluate the property’s potential income.
Knowledge about generating revenue is key to successful long-term investments in any real estate object.
Such credits are uncommon and may only be available at some lending institutions. This type usually has its own conditions and suits more advanced real estate investors. Like with every financial product, one should always consider terms attentively and consult with appropriate specialists before taking action.
-
Joe Biden or anyone with dementia or who is mentally not stable cannot serve as President. Joe Biden needs to step down as President of the United States. The 25th Amendment needs to be invoked. The 25th Amendment to the Constitution of the United States discusses presidential succession and disability. It was ratified on February 10, 1967, after the assassination of John F. Kennedy exposed a need for more precise language regarding who should take over when a president is unable to serve.
These are the four sections of the 25th Amendment:
Section 1: Presidential Succession
If the President is removed from office, dies, or resigns, this section clarifies that the Vice President becomes President.
Section 2: Vice Presidential Vacancy
Whenever there is no Vice President because of death, resignation, removal from office, or failure to qualify, the position shall be filled via nomination by the President and confirmation by a majority vote in each House of Congress.
Section 3: Presidential Declaration of Inability
Under this provision, a president may declare his inability to discharge powers and duties in writing, which can be made whenever he deems fit. In this case, the vice president shall act as if he were acting President until a written declaration is sent attesting to recovery. After that, if passed by the majority of both houses within five days, it will continue to be effective until another written declaration stating absence or lack thereof is provided.
Section 4: Vice Presidential and Cabinet Declaration of Presidential Inability. This portion allows the VP and most principal officers (cabinet) to provide for transfer duties by transmitting a written declaration that the POTUS cannot perform functions. VPOTUS immediately assumes the role of Acting until receipt second stating the contrary, but twenty days later than initial must vote two-thirds strength each house determines otherwise resume full discharge power.
-
I remember when I was in college nearing college graduation. College students with mediocre grades often went to work for local, county, state, or government jobs. The high end college graduates who graduated in the top of their classes had job offers from General Motors, IBM, General Dynamics, and other large private corporations. Now it is the opposite. Government jobs offers higher pay, strong job security, best benefits, and the best pensions. People who work for the government have no motivation to get better. Government want to tax the shit out of people and just do their time. Why is FedEx, UPS, thriving and the U.S. Post Office on the brink of financial collapse? Why is most local, county, state, and federal government always broke and are spending more than they take in. Why is government always thinking of ways to tax the crap out of people and anything they can think of and are still broke. In my opinion, you need to run government agencies like a business. DON’T SPEND MORE THAN YOU BRING IN. LIVE WITHIN YOUR MEANS. FIRE THE NON-PRODUCERS. TRIM THE FAT. It costs me $20.00 in tolls one way to commute to my office. $40.00 round trip. Plus I have fuel costs of $20.00, wear and tear on my vehicle, and a $850.00 monthly car payment.
-
A One-Time Close New Construction Loan (OTC) for conventional loans is a type of finance that combines both the construction loan and the permanent mortgage into one single loan. This is good news for borrowers looking to build their own house as it streamlines the process. Let me give you an overview of what these loans entail:
Eligibility Requirements:
Credit score: Lenders normally require a minimum credit score of 620-640, but higher scores may yield better terms.
Debt-to-Income (DTI) ratio: Lenders generally allow up to 43-45% DTI, although this can differ from lender to lender.
Down payment: Traditionally, it’s 20% of the total loan amount, but some programs accept it as low as 5% with PMI.
Income stability: Lenders generally prefer borrowers with a steady income over time.
Property requirements: The property must meet the lender’s requirements and those set by Fannie Mae or Freddie Mac.
What You Can Build:
OTC New Construction Loans can usually be used for:
Single-family homes.
Modular homes (not mobile homes).
Planned Unit Developments (PUDs).
Some lenders might allow duplexes or multi-unit properties if owner-occupied.
Mortgage Process:
Pre-approval: Get pre-approved for your desired loan amount.
Land purchase (if not already owned): Some lenders will include this in your loan.
Home design and cost estimation: Work with your builder to finalize plans and costs.
Loan application: Submit a full application with all necessary documents required by your lender of choice during their underwriting process. They use this process to assess risk before approving any requests made at closing time. This includes checking credit history, among other things, like employment verification, etc., so make sure everything is accurate!
Loan underwriting: The lender reviews and approves your application after verifying its accuracy against various documents, such as financial records.
Closing: Sign loan documents before construction begins so that once this phase starts, everything can proceed smoothly without unnecessary delays caused by paperwork issues arising during or after completion stages when it becomes impossible to correct such mistakes due to legal reasons related to loan modifications, among others, which may arise later on if carelessly handled now!
Construction phase: Funds are disbursed in draws as construction progresses, typically 20% at each completion stage (foundation, framing, etc.).
Completion: Once the house is built and ready for occupancy, the loan automatically converts to a permanent mortgage.
Specific Requirements:
Down Payment: Typically 20%, but can be as low as 5% with PMI.
Credit Score: Minimum 620-640, but often need 700+ for best terms.
Debt-to-Income: Usually capped at 43-45%.
Property Types:
- Primary residences
- Occasionally second homes
- Rarely investment properties (depends on the lender)
Additional Considerations:
Interest-only payments might be required during construction, but this varies from lender to another. Ask your preferred lender about their specific requirements during this period and whether they allow interest-only payments while under construction.
The loan usually converts to a permanent mortgage automatically upon completion. Still, there are exceptions depending on certain factors, such as modifications made along the way, among others, that could void automatic conversion, hence necessitating further action, which may include reapplying for another loan altogether just in case things don’t go according to plan even though it’s always good practice ensuring all necessary precautions have been taken beforehand since anything can happen during any stage of the building process so being prepared never hurts anyone especially financially speaking where loans involved!.
Rates are often slightly higher than traditional mortgages due to the added risk.
-
Rent-to-own houses are occasionally referred to as lease-to-own or lease alternative. Here’s the typical way they work.
Agreement Structure: Lease Agreement: Standard rental terms Option to Purchase: Right to buy the property at a set price.
Duration: Typically 1-3 years, but can be longer.
Rent Payments: Monthly rent, often higher than the market rate. A portion of the rent (rent credit) may go towards the future down payment.
Option Fee: An upfront payment (1-5% of the purchase price) for the right to buy later. It is usually non-refundable but may apply to the purchase price.
Purchase Price: Set in advance, often at projected future market value.
Maintenance Responsibilities: Varies; tenants often take on more responsibility than with standard rentals
End-of-Term Options: Buy the property at the agreed price, walk away (losing the option fee and any rent credits), or potentially negotiate an extension.
Financing: Tenant/buyer usually must qualify for a mortgage at the end of the term.
Home Appreciation: Tenant/buyer may benefit if home value increases beyond the set purchase price.
Contract Specifics: Terms can vary significantly between agreements.
Due Diligence: Home inspection and title search are often recommended.
Legal Considerations: Contracts should be reviewed by a real estate attorney.
Possible benefits for buyers:
It’s time to improve credit or save for a down payment. Lock in the purchase price in rising markets, and take advantage of this “Try before you buy” opportunity.
Potential benefits for sellers:
Attract more potential buyers Steady income during lease period Potential for higher sale price. It is important to note that these can be complicated deals with risks for both parties. Anyone considering becoming a tenant-buyer under one of these arrangements should carefully review all terms and consider legal counsel before signing anything.