The following have been provided by Sue Florence.  She’s been working incredibly hard for my clients getting into an REO condo on the Peninsula!

My clients are actually going to be paying slightly less for their purchase vs. what they are paying for rent!!  There are some great buys out there.  If you’ve been priced out of the market over the last several years, now may be your window of opportunity provided that you have job stability and the numbers make sense.

It’s hard to say how long this window will be open since no one has a crystal ball.  It does seem like some market segments are heating up as I’ve been dealing with writing on properties that are receiving multiple offers and losing out to cash buyers.

If you need an experienced, professional FHA mortgage broker, I highly recommend Sue Florence!

Guarantee Mortgage

(415) 812‐9508

sue@ashwellflorence.com

http://www.ashwellflorence.com/

Maximum conforming loan limits (effective 3/1/09)

SFR: $729,750
2‐units: $800,775
3‐units: $967,950
4‐units: $1,202,925

Minimum down payment

3.5%

Credit score
620: conforming loan amounts (</= $417K)
680: high‐balance loan amounts (> $417K)

Cash‐To‐Close Sources
Down payment: Can be 100% gift from family
Closing costs: Can be 100% from any combination of family members or seller

Employment‐2 year history
Student counts
Maternity counts
Extenuation family issues considered
Less than 2‐years self employed considered

Occupancy
Non‐occupants allowed but reduced LTV to 75%‐85%

Bankruptcy
Okay if previous 12 months of payment history is
on time

FHA 203K Rehab Loans – Full
Up to 110% of future value (100% + 10% cushion)
Can include: kitchens, baths, roofing, flooring,
landscaping, structural, painting, electrical,
plumbing, free standing appliances – no luxury
items
Must have a FHA consultant
Minimum rehab is $5,000 to county limits (new
stimulus package limits)
Bank owned okay
Condos interior only
FHA 203K Rehab Loans – Streamline
Maximum rehab $35,000 (includes $33,000 in
actual costs + permit fees)
Mainly cosmetic including all of above EXcept
Structural & must include code violations, health &
safety issues
No FHA consultant required

Condominium Approvals
Minimum condos in HOA is 4
If HOA is not FHA approved Spot Approvals are common:
35 units or less: 20% allowed
36 units or more: 10% allowed