11/16/2009




        Financing a Bay Area Condo
  Thanks for joining tonight’s webinar. We will begin
      shortly. To ...
11/16/2009




 Financing a Bay Area Condo




          Chris E. Williamson
          Mortgage Advisor
          Phone: (...
11/16/2009




       Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




Condo Financing – New Challeng...
11/16/2009




      Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




Get Your Mortgage Advisor Invol...
11/16/2009




          Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




Mortgage Pre-Approval
 A Pr...
11/16/2009




     Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




Why You Need a Genuine Pre-Appro...
11/16/2009




     Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




Conventional Financing
• Ideally...
11/16/2009




       Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




Quickest & Easiest Way to Get ...
11/16/2009




        Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




Documentation Needed
•   Cond...
11/16/2009




      Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




Requirements for Approval
FHA O...
11/16/2009




        Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




My Job As a Mortgage Professi...
11/16/2009




           Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




Resources You Can Use at H...
11/16/2009




      Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




       Webinar:Tax Credit Expla...
11/16/2009




   Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915




Free Consultation

               ...
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Financing a San Mateo Condo with New Rules

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Effective December 7, 2009, financing a San Mateo Condo will be a much more laborious and involved process. In this webinar, Chris Williamson of Mortgage California explains these new changes and how they affect San Mateo home buyers considering condos in San Mateo.

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Financing a San Mateo Condo with New Rules

  1. 1. 11/16/2009 Financing a Bay Area Condo Thanks for joining tonight’s webinar. We will begin shortly. To download the slides, please visit http://budurl.com/WebinarSlides Tonight’s Speaker Chris Williamson Mortgage Advisor - Mortgage California Phone: (650) 520-0915 www. SanMateoMortgageBlog.com Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Questions During the Webinar • Financing experts are available to answer questions throughout the presentation • This is an interactive learning environment. You will get the most value from this program by having your specific questions answered. • The only dumb question is the one you don’t ask Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Questions During the Webinar You may type questions in at any time during the presentation – Question box on your screen 1
  2. 2. 11/16/2009 Financing a Bay Area Condo Chris E. Williamson Mortgage Advisor Phone: (650) 520-0915 Email: Chris@ChrisEWilliamson.com Blog: www.SanMateoMortgageBlog.com Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Purpose & Goals of the Webinar Purpose • Empower and Educate Home Buyers Goals • Share with you the things we’ve learned about financing a condominium • Leave you more aware and informed about financing a condominium Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Overview • New Challenges of Condo Financing • Keys to a Successful Closing • Pre-Approval vs. Pre-Qualification • Two Types of Condo Financing • New Rules of Financing a Condo 2
  3. 3. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Condo Financing – New Challenges A New and Different Lending Environment Financing Condominiums is… • More Difficult • More Problematic • More Time Consuming Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Condo Financing – New Rules FNMA & FHA – Stricter Underwriting Rules • Is Complex Approved? • Is HOA “Cert” letter prepared? • Are current HOA Doc’s Available? Get Your Lender Involved Early! Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Financing a Condominium Four Financial Keys for a Successful Closing Get Your Mortgage Professional Involved Early • Direct Lender • Mortgage Broker • Mortgage Banker Get Pre-Approved Know Your Financing Options Plan for New Condo Approval Regulations 3
  4. 4. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Get Your Mortgage Advisor Involved Early Financing Solutions to Match your Buying Needs ▫ Determine What you Can Afford ▫ Down Payment and Closing Costs ▫ Programs that Meet your Short & Long Term Goals Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Get Your Mortgage Advisor Involved Early Work with Your Condo Specialist to ▫ Find the Right Complex ▫ Structure Contract to Reflect Loan Program and its Approval Requirements ▫ Use Contract Contingencies to Protect Yourself Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Pre-Approval vs. Pre-Qualification Get Pre-Approved, Not Pre-Qualified • Pre-Qualification ▫ An informal estimate of what you can afford • Pre-Approval ▫ A loan commitment from a reputable lender 4
  5. 5. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Mortgage Pre-Approval A Pre-Approval Requires Verification of… • Income • Asset • Credit Score • Continuing Liabilities A Pre-Approval Gives You... • Purchasing Power ▫ A Pre-Approved Buyer is a CASH Buyer • The Upper Limit of What You Can Afford Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 What is a Genuine Pre-Approval? A Formal, Firm Commitment to Loan… • Employment, Income, Assets, Debt and Credit History and Score Substantiated • Availability of Down Payment and Closing Costs Verified Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Why You Need a Genuine Pre-Approval A Loan Pre-Approval • Demonstrates your credit worthiness • Determines your purchasing power • Determines your financing options 5
  6. 6. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Why You Need a Genuine Pre-Approval You won’t waste your time looking at homes you cannot afford. Use the the financing contingency period to approve the complex. Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Two Types of Loans Today • FHA ▫ Government Insured • Conventional ▫ Not Government Insured Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Conventional Financing • “In-the-box” • Down Payment ▫ 5% down with loan amounts below $417,000 ▫ 10% down with loan amount $417,001-$729,750 ▫ Higher mortgage insurance than FHA 6
  7. 7. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Conventional Financing • Ideally Put 20% Down ▫ Best interest rates ▫ No Mortgage Insurance • Condo Requirements Set by Fannie Mae ▫ Not by the lender Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 FHA Financing • Storybook Loan ▫ Less stringent on credit scores and credit history ▫ More flexible on work history ▫ No reserves required • Down Payment as Little as 3.5% • Mortgage Insurance Cheaper than Conventional • Condo Requirements Set by HUD Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Complex Approval Condominium Complex Approval is Determined by the Financing You Choose 7
  8. 8. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Quickest & Easiest Way to Get Approval Choose a Complex on the • Fannie Mae Approved Condo List ▫ Conventional Financing • FHA/HUD Approved Condo List ▫ FHA Financing Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Not on the Approved List? • Complex Requires a “Spot Approval” ▫ Takes More Time ▫ Adds Additional Steps • Important to Get Your Lender Involved Early in this Process Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 New Rules for Approvals • Effective December 7, 2009 • Conventional Financing Easier than FHA ▫ Automated System Determines Eligibility • FHA More Laborious Process ▫ Review and Approval by Underwriter Determines Eligibility 8
  9. 9. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Documentation Needed • Condo Questionnaire/HOA Certification • All Condo Legal Documents • All CC&R’s • Financial Statements and Budget Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Requirements for Approval • Complex Must Have 2 Units or More • Max 25% of Total Floor Commercial • Max10% of Units Owned by One Investor • Max15% of Units Delinquent in Fees • FHA: Minimum 50% Sold • Conventional: Minimum 70% Sold • Walls-in Insurance Required Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Requirements for Approval • 50% Owner Occupied for Existing Condos • 70% Owner Occupied for New Construction • No Litigation • Reserve Study ▫ No more than 12 months old ▫ Must show project is 60% funded 9
  10. 10. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Requirements for Approval FHA Only Requirements ▫ Complexes with 3 or less units, no more than 1 unit can be encumbered by FHA financing ▫ Complexes with 4 or more units, no more than 30% of the total units encumbered by FHA financing Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Lengthy Approvals Won’t Last Forever • New Regulations Give Lenders Power to Approve Complexes • First 5 by Each Lender Must go to HUD or FHA for Approval ▫ Can take up to 8 weeks • After First 5, Should Move Much Quicker Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 My Job As a Mortgage Professional • Package the Transaction to Demonstrate ▫ Credit worthiness of the buyer ▫ Value of the unit ▫ Financial health of the association • Financing Solutions to Match Buying Needs ▫ Down Payment and Closing Costs ▫ Programs that Meet your Short & Long Term Goals 10
  11. 11. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 My Job As a Mortgage Professional • Structure an Affordable Monthly Mortgage Payment • Find Most Competitive Interest Rates • Compare Programs and Lenders • Minimize Out of Pocket Costs Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Knowledge is the Key • Don’t Use the Media as Your Only Resource • Don’t Fall into the Trap of Online Lenders • Know All Your Options • Choose a Mortgage Professional you trust, have confidence in, and feel comfortable with The opportunity is out there, you just have to take advantage of it! Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 The Opportunity is Out There • You Have the Perfect Storm ▫ Interest rates are at historic lows ▫ Realistic home prices Find a Loan First, Then Find a Home 11
  12. 12. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Resources You Can Use at Home Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 SanMateoMortgageBlog.com Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Financing Questions? http://sanmateomortgageblog.com/ask-a-question 12
  13. 13. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Webinar:Tax Credit Explained Guide to the Expanded and Extended Federal Home Buyer Tax Credit Monday, November 23rd at 7pm Sign up at http://budurl.com/TaxCreditWebinar Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Enjoy this Webinar? • Please help us spread the word by telling your friends and family. Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Apply Online 13
  14. 14. 11/16/2009 Chris Williamson Chris@ChrisEWilliamson.com Phone: (650) 520-0915 Free Consultation Chris Williamson Phone: (650) 520-0915 Email: Chris@ChrisEWilliamson.com www.SanMateoMortgageBlog.com 14

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