Stated Income Loans Available In San Diego

Stated income home loans are now available again in San Diego.  The term stated income refers to a borrower being allowed to “state” their income on a loan application and not have to document their income.  These home loans do not require paystubs or tax returns to document the income that is being stated on the loan application.  Stated income loans got a bad reputation before the housing crash in 2008 because they were abused and offered to low credit borrowers with low down payments.  This time around stated income home loans require higher credit scores, require borrowers to be self-employed and require larger down payments.

The good news is that the return of stated income home loans allows self-employed borrowers with complicated tax returns or uneven income the last few years to be able to buy a home or refinance their homes once again.  Below are some of the features of stated income loans:

  • Income is stated on the loan application but not verified
  • Loan amounts up to $2 million
  • Minimum credit score is 700
  • 30% down payment minimum
  • Cash out refinances available
  • Self-employed borrowers only
  • Primary residence or second homes only
  • One unit single-family or PUD only

So this is a great opportunity to be able to get back into home ownership or refinance your home if you are a self-employed borrower.

Stated Income Loans In San Diego

Stated income home loans have been very hard to come by in the last 7 or 8 years.  But now they are once again available for select borrowers.  Stated income loans got a bad reputation in mid-2000′s as they were being used by borrowers who shouldn’t have been using them, borrowers with low credit scores and low down payments.  But stated income home loans can be an excellent loan for self-employed borrowers with complicated tax returns, but also have high credit scores and large down payments.  The term “stated income” generally means that the lender making the loan is not going to verify a borrower’s income or require any borrower income documentation.

Below are some guidelines for the stated income home loan program we have available:

  • Income is stated by not verified
  • Loan amounts to $2 million
  • 700 minimum credit score
  • Minimum down payment 30%
  • Purchase or refinances available (cash out refinances available too)
  • Max cash out $400,000
  • Self-employed borrowers only (no W-2 salary employees allowed with this program)
  • Available for primary residence or second home

Read through these bullet points and see if you may be able to qualify.  This can also be used for a vacation home.  It is a big advantage to not have to gather all of your tax returns and provide them.  This loan also goes all the way up to $2 million, so you can purchase homes in high cost areas of California.  Don’t hesitate to give us a call or email if you have any questions at all about this stated income home loan program available in San Diego and the rest of California.

News On Southern California April Home Sales

From Dataquick: Faster Pace For Southland; Median Sale Price Edges Higher

May 13, 2014

La Jolla, CA—Southern California’s housing market perked up a bit in April, with sales rising more than usual from March and dipping below a year earlier by the smallest degree in six months. Home prices edged higher again but at a slower pace, the result of more inventory, affordability constraints and less pressure from investors, a real estate information service reported.

A total of 20,008 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 13.4 percent from 17,638 sales in March, and down 6.6 percent from 21,415 sales in April last year, according to San Diego-based DataQuick.

On average, sales have increased 1.4 percent between March and April since 1988, when DataQuick’s statistics begin. Southland sales have fallen on a year-over-year basis for seven consecutive months, but last month’s decline was the smallest since sales fell 4.4 percent last October.

This April’s sales were higher than in April 2012 and 2011. That’s a significant change from February and March this year, which had the lowest home sales for those particular months in six years. Sales during the month of April have ranged from a low of 15,303 in 1995 to a high of 37,905 in 2004. Last month’s sales were 17.1 percent below the average – 24,133 – for all Aprils since 1988. March sales were 27 percent below average.

“The housing market’s pulse quickened a bit in April. If the inventory grows more, which we consider likely, it’s going to make it a lot easier for sales to reach at least an average level, which we haven’t seen in more than seven years. There are certainly factors undermining housing demand, including affordability constraints, credit challenges and less investment activity. But there are considerable forces fueling demand, too: Employment is rising, families are growing, and more people can qualify to buy again after losing a home to foreclosure or a short sale over the past eight years,” said Andrew LePage, a DataQuick analyst.

“There’s still pressure on home prices but it has moderated,” he said. “In April we logged the Southland’s lowest year-over-year gain in the median sale price – around 13 percent – since September 2012. In April last year the median rose 23 percent year-over-year. It’s tough to sustain that sort of price growth amid rising inventory, fewer investors, less-than-stellar income growth, higher mortgage rates and very limited availability of riskier ‘stretch’ financing.”

The median price paid for all new and resale houses and condos sold in the six-county region last month was $404,000, up 1.0 percent from $400,000 in March and up 13.2 percent from $357,000 in April 2013. Last month’s median was the highest since it was $408,000 in February 2008.

The median has risen on a year-over-year basis for 25 consecutive months. Those gains have been double-digit – between 10.8 percent and 28.3 percent – over the past 21 months. The 13.2 percent year-over-year gain in the median last month marked the lowest increase for any month since September 2012, when the $315,000 median rose 12.5 percent from a year earlier. Last month two counties – Orange and San Diego – saw single-digit, year-over-year gains in their medians.

April’s Southland median sale price stood 20.0 percent below the peak $505,000 median in spring/summer 2007.

Sales Volume Median Price
All homes Apr-13 Apr-14 %Chng Apr-13 Apr-14 %Chng
Los Angeles 7,140 6,642 -7.00% $395,000 $441,000 11.60%
Orange 3,327 3,111 -6.50% $535,000 $576,000 7.70%
Riverside 3,760 3,384 -10.00% $248,000 $286,250 15.40%
San Bernardino 2,512 2,434 -3.10% $195,000 $240,000 23.10%
San Diego 3,792 3,664 -3.40% $400,000 $435,000 8.70%
Ventura 884 773 -12.60% $420,000 $466,000 11.00%
SoCal 21,415 20,008 -6.60% $357,000 $404,000 13.20%

Copyright 2014 DataQuick. All rights reserved.

Some interesting data on Southern California home sales out for April.  Sales were up from March which is typical.  The number of sales was below the number of sales from April 2013, but above the number of sales from April 2011 and 2012.  Price increases are moderating in 2014 after a red hot 2013.  A good thing for home buyers is that more inventory seems to be coming on and there are now less cash investors to compete with in making your offers.

U.S. Backs Off Tight Mortgage Rules

From the Wall Street Journal: U.S. Backs Off Tight Mortgage Rules

WASHINGTON—The Obama administration and federal regulators are reversing course on some of the biggest postcrisis efforts to tighten mortgage-lending standards amid concern they could snuff out the fledgling housing rebound and dent the economic recovery.

On Tuesday, Mel Watt, the newly installed overseer of Fannie MaeFNMA +7.78% andFreddie MacFMCC +6.90% said the mortgage giants should direct their focus toward making more credit available to homeowners, a U-turn from previous directives to pull back from the mortgage market.

In coming weeks, six agencies, including Mr. Watt’s, are expected to finalize new rules for mortgages that are packaged into securities by private investors. Those rules largely abandon earlier proposals requiring larger down payments on mortgages in certain types of mortgage-backed securities.

The steps mark a sharp shift from just a few years ago, when Washington, scarred by the 2008 crisis, pushed to restrict the flow of easy money that fueled the housing bubble and its subsequent bust.

This is an important move that could begin to loosen mortgage standards across the U.S.  Many borrowers with less then perfect credit and lower down payments have been either locked out of buying a home or have used the FHA loan program.  If Fannie Mae loosens guidelines and increases credit availability, it could allow more borrowers to use conventional loans (Fannie Mae and Freddie Mac) vs. FHA loans.