Are you ready to take your next step towards your goal of Financing Vacation Rentals, but don’t know how? If yes, and you’re looking for answers, then this blog is for you.
Short Term Rentals and Airbnb have become widespread and profitable businesses in recent years. One of the best ways to get your vacation rental business going is to surround yourself with the proper team. A vacation rental team gives you structure, direction, and freedom. A big part of your acquisition team will be the lender. Financing your vacation rentals, over just paying cash, allows you to leverage and frequently purchase more properties. But what happens when you have ‘too many mortgages’, and your loan application gets denied?
Have you been turned down by a traditional mortgage lender?
If so, Host Financial Services most of the US, and can help you qualify for a loan based on rental income.
Why should you consider Asset-Based (DSCR) Lending?
An asset-based loan also known as a DSCR loan (Debt Service Coverage Ratio) qualifies as a loan based on the property’s income rather than your own. Essentially, the property’s income should be equal to or greater than the cost of ownership (monthly principal, interest, taxes, and insurance payments).
Host Financial is an asset-based lender. Unlike a traditional lender, Host Financial makes use of the income of the asset. They also do not look at DTI, tax returns, job status, or W2s to underwrite the loan. Rather, they consider the property’s actual or projected short-term rental income, credit score, appraised value, and liquidity.
Here are some important points to know about Host Financial:
Help rental owners make wiser decisions and do AirDNA reports right off the bat.
They work mostly with Limited Liability Companies (LLC), so working with partners and multiple people on a deal is not an issue.
Every asset-based loan through Host Financial requires a personal guarantor.
One of the benefits of working with Host Financial is the ability to use the highest credit score when working with multiple borrowers or team investors.
Turnaround time for pre-approval is the same day or next. That great deal that you find online today can be approved tomorrow.
Underwriting approval has a typical turnaround of only 2 days.
Still expect to do an appraisal on your asset based financing, appraisals cannot be waived.
Contingencies can be removed within 21 days in most cases.
Kahieluana Estate in Puako, Hawaii is One of the best Airbnb and Vacation Rental in the World.
One thing to be aware of when writing your purchase contracts is that asset-based financing doesn’t close in 30 days. Although there is less paperwork, the typical turnaround time for this loan type is 30 to 45 days.
Qualifying for an Asset Based Loan
Our team is committed to help investors connect with the best short-term rental lenders in the business, and help make finding and financing your vacation rentals easy. The goal is to help you systemize property searches, acquisition financing, and your short term rental tasks once you acquire the investment. A strong network of nationwide lenders will make your transaction easy and efficient. Consider aligning with Host Financial and the AskAngie team to serve as your one-stop-shop for your vacation rental needs!
Keep us posted if you’d like to write any offers in the state of California – we can help with a same-day turnaround. Just text Angie at 949-338-7408 and you’ll be on your way to owning your next investment property.
January is always an ideal time to circle back to our roots, to review our long term goals, and realign with our True North. It’s a fresh new year, and anything is possible. Many people are taking a look at what needs to change, and if 2021 is any indication, we are still switching up the way we live and work in light of all that’s happened the last couple years.
As we saw people quit their jobs and aspire for extraordinary things in the year of ‘The Great Resignation‘, we also saw a huge shift in housing needs and requirements. People ‘quit’ apartments & condos, and opted for single family homes with yards. Families upgraded living space, as employment and schools had extended virtual runs. Change is still happening everywhere, and home is at the center of it all.
Homeownership Day education has been opening doors for renters, homeowners, and investors for 10 years.
With so many people wanting a new environment at the same time, the demand for housing across the country reached record heights and the bidding wars began.
This is just one of the many reasons we offer Homeownership Day on a yearly basis; things always seem to be moving fast when it comes to housing, and it’s important to stay on top of the current trends to be most successful with your real estate.
Achieving Through Real Estate
The 2022 theme for Homeownership Day is ‘Achieving Through Real Estate’, and all are invited to this free virtual event on January 29th from 10am-1pm PST. Homeownership Day is designed to be inclusive for all humans – from renters curious if they can purchase property all the way through investors looking to sharpen skills and knowledge. Our program changes up each year so you aren’t hearing the same information, or outdated perspectives.
The program is brought to you in bite-sized 30 minute educational sessions, so you can get a variety of information on today’s important real estate topics. We know you’re busy, and this event is designed to bring about awareness and build relationships with the right community to accomplish your property goals.
Challenges in the recent market have been lack of inventory, bidding wars, discrimination, sharp price increases, loan / appraisal turnaround time, and more. Sessions for this year have been based around these challenges, and offer help to overcome today’s specific real estate market hurdles.
For this year’s specific sessions and offerings, click here:
Expect to be inspired with some innovative ideas and fresh perspectives. This is not your average real estate event.
In case you’re wondering, Homeownership Day will never try to pressure you into buying or selling real estate. The speakers have all agreed not to ‘pitch’; only to educate. This event is a public service that is put on through multiple outlets, so you’re never getting pigeon holed into the opinions of one particular corporation or company. Our speakers are industry experts, all hand selected with care, and our goal is YOUR success.
This year’s main sponsors are NAWRB & Vow2Save – both entities creatively serving the real estate ecosystem.
It’s my personal opinion that when we are all successful with real estate, we can focus on what is most important in life – the people and the places we love. If there’s a topic you would like to see covered at a future Homeownership Day event, please comment below so we can help you on your journey.
Tuned in to an interesting webinar this week hosted by Dan Smith with Eric Bryant from First American Data & Analytics; they were talking about real estate on the blockchain. Personally I can’t wait for this to happen, I spend half my life ‘grown up babysitting’ to maintain timelines and accountability during the escrow process. I know the blockchain will eliminate quite a bit of that.
Fibree is one of the first adopters, and they are now in 70 regions. They are a real estate technology platform that works with blockchain – keep an eye on them. Rather than talking about too many companies…let’s talk concept first.
What is Blockchain, and how does it affect real estate?
Blockchain defined: Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
Now that you understand what blockchain is, here are a few specific ways it can positively affect the real estate industry as a whole:
Decreases time necessary to close property transactions (from 30-45 days down to possibly just minutes or hours)
Offers security, trust, and transparency to the transaction
Creates an unhackable public record
Reduces potential for real estate fraud or data entry errors
Streamlines the escrow process
Upholds accountability
Question? Will real estate transactions on the blockchain eliminate escrow agents? Transaction coordinators?
Notice we say “how does blockchain”, not “how can blockchain” affect the space. Blockchain is already starting integrations with real estate transactions, and it is likely the future of our industry, similar to the way the Internet disrupted the status quo (in a good way) many moons ago.
Fractional Property ownerships and Tokenization using Blockchain
Tokenization is simply digital fractionalization – it allows you to own a piece of something. Ever wanted to own a piece of a property? Or maybe you already own a traditional timeshare. Bet that was fun to buy, LOL. But what about finding your next investment from the comfort of your own home? RealT based in Detroit is currently selling real estate on the blockchain, and there are many others in the space expected to follow.
Investor groups and investment firms are already successfully selling STO (Secure Token Offering) properties and this opens doors for thousands of new buyers to enter into investing. Want to see? Check out SolidBlock – it looks like any normal property search site…BUT… you can pay with wire, check, or crypto. Soon enough, property search platforms like this will be popping up all over the world.
Another place you can buy land, the entire plot of it, is Fabrica, which allows you to buy or sell your land completely digitally with blockchain technology.
Smart Contracts and Real Estate Transactions
Smart contracts are digital transactions being coordinated on the blockchain, and they will help maintain timelines and accountability. Smart contracts are very similar to paper contracts, working on ‘if –> then’ scenarios, but everything is done virtually instead of with paper. Smart contracts have a higher level of security and they always report and record progress honestly…which does NOT happen all the time with our current escrow process.
One thing I found interesting is our local board of Realtors has over 10,000 members, and there were less than 50 of us watching this webinar. As usual, it seems like the real estate industry tends to cling to their ways. As a techie, I embrace new technology and try to help my clients ride the wave.
Crypto loans – Something to keep an eye on
One thing that could completely change the mortgage space is cryptocurrency loans. Wallets like Celsius and others use actual data to digitally approve loans, much better than the ‘preapprovals’ that lenders offer today. I would personally love to see more of this, because it eliminates loan discrimination and assures the seller a buyer is qualified. Plus, a crypto loan will close much quicker than the traditional big banks. Less headaches will equal more people in the space, and more homeowners, which makes my heart smile to think about.
If you’re sitting on a pile of crypto from the bull run and would like to ‘take profits’, we can help with escrow companies who are familiar with cryptocurrency closings. If you’d like to cash out crypto to buy a home, OR just transfer crypto coins for a home purchase without cashing out first, we can help with the proper referrals or team. Feel free to reach out and text Angie at 949-338-7408 or comment here anytime you’d like to talk tech & real estate!
Today we sharpened our short sale and foreclosure sword – YES, it’s a battle! Armed with a new designation from the National Association of Realtors (NAR); called Short Sale & Foreclosure Resource (SFR), now we’ve got the most recent tools to fight a foreclosure and win.
There’s plenty of talk about a potential foreclosure wave once all the COVID forbearance terms have come to an end.. so its important to stay fresh on bank policies, foreclosure timelines, and tools to use to save your property from foreclosure, right?!
Yes, we made it through the recession of 2007-2011 closing plenty of bank owned properties and short sales, but that was 10+ years ago. Platforms and policies have changed.
REO stands for ‘Real Estate Owned‘, and is a common term for a property that has been foreclosed. REO’s are property the bank comes to own because the borrower defaulted or could not financially afford to remain in the property. As a foreclosure resource, we can help you STOP your property from becoming a foreclosure, and we can also assist banks in selling off their REO inventory.
Who’s involved in distressed property situations
Servicer – who you make your mortgage payment to, they may or may not own your loan.
Investor – beneficiary entity who owns the promissory note & mortgage or deed of trust on a property.
Borrower – party in distress; typically struggling to make payments or need to sell when equity is negative.
Buyer – potential purchaser of the home
GSE – Government Sponsored Enterprises (Fannie Mae, Freddie Mac, and others in the secondary money market)
Important Foreclosure Terms to Know
Deed in Lieu – Involves swapping your keys in exchange for relief on the mortgage. Sometimes this will lead you to a 1099 for the money returned. Never do a deed in lieu before you understand the tax ramifications.
Loan Modification – Loan Mods are a permanent change in one or more of the terms of your loan. These must be approved by the investor, servicer, and you. It typically reorganizes the mortgage into something more affordable so you are able to stay in your home.
Notice of Default (NOD) – Official notice of default, and begins your foreclosure timeline. All borrowers have at least 90 days to bring a loan current after a NOD is filed.
Notice of Trustee Sale (NOS) – Official notice of when the foreclosure or auction will take place.
Foreclosure Sale – The actual sale of the property where the title is transferred. Homeowners become tenants upon sale, and lose rights to property ownership.
What are my options to avoid foreclosure?
There are many, but you need to act fast and regularly. One place to check is the Consumer Financial Protection Bureau (CFPB) to help you resolve any shady practices in your loan.
Another option is HHF – Hardest Hit Fund which has been extended through Dec 31st 2020. This program is in 18 states and it helps struggling homeowners with mortgage assistance.
Furthermore, there are local nonprofits in many areas who can connect you with the right resources to save your home. Contact Angie by text at 949.338.7408 ASAP if you would like an Orange County referral.
Reinstatement vs Redemption period
Reinstatement is the 90 days you have to reinstate your loan after you’ve received your official Notice of Default (NOD). Redemption periods do not apply to all states, and they begin after the property is sold in a judicial foreclosure. California is NOT a redemption state with judicial foreclosures…once the property is sold at auction it is gone.
How long does it take to foreclose on a property?
Every state is different, and has different laws. It usually takes anywhere from 90 days to 3 years, depending on the condition of the market.
Short Sale to Avoid Foreclosure
In order to complete a short sale, you must show hardship. Every bank defines this differently; but it can include illness, job loss / unemployment, divorce, 50+ mile job relocation, business failure or natural disasters.
Most banks have a ‘Short sale package‘ available on their website, and this includes a list of the documents you need to submit in order to be considered for a short sale. Some of the common items requested in a packet are:
Listing agreement Short sale disclosure form Listing agreement addendum Authorization to release info form Federal & State disclosures
Before you fill out the paperwork above it’s important to check for recourse in your state, or you could owe a tax bill on the amount you’ve been forgiven. If you’re unsure about this, check with your CPA.
Furthermore, you must get approval. Approval is a gift.. even though it doesn’t feel like it 😦 Not only do you need approval from your mortgage company, you’ll also need approval from any and all junior lienholders including 2nd mortgage, HELOC, & other liens. If you do not have approval from ALL liens then the short sale will not happen, which is why you need to communicate with your debtors early and often!
Sometimes additional costs will be paid by the investor, but you have to know how to work this into your Estimated Closing Statement (HUD1).
Short sales and foreclosures are TOUGH to navigate. Please reach out to us if you need help. Angie keeps everything confidential and will always help you with creative thinking so you have the most options with your home. Contact her at 949-338-7408!
Furthermore, Angie would love to connect with Asset managers, outsourcers, distressed property managers, and others in the banking industry who are looking for a quality agent who effectively works bank systems to get REO properties sold.
Worried about paying your California Mortgage or Rent Payment?
Wanted to share this video with you and let you know about some important financial resource links if you’re struggling to make your mortgage or rent payments due to the recent Coronavirus Pandemic.
Landlords & small business owners, you’re likely eligible for some financial assistance through the SBA’s Paycheck Protection program. Here’s a PDF from the US Chamber of Commerce with more info to see the criteria to qualify:
Additionally, you can click here to apply for the SBA Disaster Relief Fund. This online form takes about 10-20 minutes to complete. Funds can deposit into your bank account in as little as 3 days: https://covid19relief.sba.gov/
Homeowners, you’ve got help as well. Most banks and loan servicing companies are offering a forbearance option. It’s ok if you don’t know what forbearance is – here’s the Wikipedia definition:
Forbearance, in the context of a mortgage process, is a special agreement between the lender and the borrower to delay a foreclosure. The literal meaning of forbearance is “holding back.”
When mortgage borrowers are unable to meet their repayment terms, lenders may opt to foreclose. To avoid foreclosure, the lender and the borrower can make an agreement called “forbearance.” According to this agreement, the lender delays its right to exercise foreclosure if the borrower can catch up to its payment schedule by a certain time. This period and the payment plan depend on the details of the agreement that is accepted by both parties.
Historically, forbearance has been granted for customers in temporary or short-term financial difficulty. If the borrower has more serious problems, e. g. the return to full mortgage payments in the long term does not appear sustainable, then forbearance is usually not a solution. Each lender is likely to have its own suite of forbearance products.
Now a word of warning. Homeowners, PLEASE read the fine print from your bank, and only use this option if you need to. Many times you’ll get more interest in the end, or a really big payment after a forbearance, so you need to understand what you’re getting into.
We’ll also offer the same advice as the renters here..If you’re able to pay your mortgage, please pay it. This will keep funds flowing to the banks, and allow the banks to keep lending to new buyers that need a place to live. Our real estate market has slowed, but it hasn’t stopped. We definitely don’t want to add fuel to this fire and create a bigger issue.
If you’ve been doing research on various financial assistance programs out there, feel free to share. Please comment any links you’ve found for Coronavirus or financial relief below.
Hope all of you are feeling healthy and excited to go out and do great things once you’re back into the world! Consider reading our post on 5 Important Things to focus on during COVID-19 next, and let’s make some long term progress while we’re here at home. If you’re not sure what to do, you can always setup a website to crowdfund your next down payment with Vow2Save, install CreditKarma to check your score, or call your lender about a low interest refinance 😉
Today we’re spending a Saturday in Pomona at FACE LA’s Homebuying Fair – we met them through NAWRB and LOVE what these organizations stand for. FACE has compiled quite a few programs to help you with down payment funds, and have relationships with LOTS of generous banks who can help with lower interest rates, buy downs, silent seconds, and more. Sharing is caring…so read below to find some free down payment funds to get your family into a home!
Tip 1: Find a lender familiar with the Community Reinvestment Act, and align yourself with a housing non-profit like FACE.
There are literally programs EVERYWHERE. And they change on the regular. Don’t spend your precious time researching outdated internet options when you can meet someone face to face who will help you with free homeownership coaching and what’s available right now.
As of Oct 2019, when we’re writing this post, we wanted to include some snippets on current programs that could help you close the gap to your down payment goal.
Tip 2: Explore Down Payment Programs & properly prepare to buy a home with education
In LA for example there are LIPA & MIPA . The LIPA or low income purchase assistance program offers 90K in down payment funds. The MIPA or moderate income purchase assistance program offers 60K, which goes a long way even in Los Angeles.
These purchase programs (and many others) have some caveats. The home must be your primary residence, and you must pass a homebuyer education class (approx 8 hours). Did you know taking homebuyer education classes before you buy make you 30% less likely to go into foreclosure? This is why many city, bank, and state programs will require you take one before receiving funds. Everyone wants you to succeed in your homeownership venture, so there are milestones like this in place to set you up to win.
If you don’t like the CITY of Los Angeles traffic, maybe the County of LA’s 75K down payment program would be a better fit for you. This program offers a second Trust Deed loan provided at 0% interest with all payments deferred until sale, transfer, refinancing, no longer owner-occupied, or full repayment of the first mortgage. HOP (Home Ownership Program) loans are available to first-time homebuyers in the unincorporated areas of Los Angeles County and cities participating in the Community Development Block Grant (CDBG) Urban County Program.
Maybe Los Angeles isn’t your thing at all….no worries!! CALHFA works all across the state of California for low and moderate income first time homebuyers. They finance almost everything when it comes to costs…down payment AND closing costs. You can literally close with $300 out of pocket. Yup. Read again. We’ve seen it. In OC!!!! Their requirements include 660 credit, owner occupied, and a homebuyer education class. The price cap is currently 765K.
The homebuyer fair today was in City of Pomona, and Pomona offers a fabulous down payment program (MAP) up to 100K! This city has some adorable craftsman homes that could use your TLC. Pomona basically does a silent second for 100K, there is no interest or payments owed by you. It does need to be paid back upon the following circumstances: sale of the home, refinance, occupancy change, or 15 years.
The City of Pomona loan will take a little share of your equity; if you borrowed 10% for this loan, then you need to pay back 10% of your equity upon sale to the city. This is totally fair since they gave you the same percentage to help start you out! Details include no ownership in the last 3 years, homebuying education class (by HUD), income cap requirements, and working with a lender who participates in the program.
Tip 3: Use OPM (Other People’s Money) to Help with your Down Payment
Here’s a video with Cain Rivera’s down payment success story testimony. He was the youngest ever to receive a down payment from the city of LA program. Cain went from paying $1500/mo rent to UNDER $1000/mo mortgage owning his own condo in Balboa Park, and he didn’t have to leave LA to do it:
Tip 4: Layer your SoCal Down Payment Program benefits with bank programs too:
It was great to see so many banks offering programs to first time buyers. Here’s just a few of the programs our banking panelists talked about. If you’d like to get more info, sometime’s it’s easiest to just call FACE or check out an upcoming Home Fair – like OC Home Fair every January.
Bank of America currently offers a 10K grant offering in low to moderate income communities, PLUS a 7500 closing cost credit that applies to the entire country, check into it! In many states 7500 would cover the majority of your closing costs! 🙂
Boston Private has a 1% down conventional first time buyer program without mortgage insurance (when layered w other programs) that considers the entire scenario. If you’re self employed.. this is a great bank to call.
Union Bank has a 3K down payment assistance grant for closing costs or down payment assistance, which can be layered with other programs. Sorry couldn’t find the link for this exact program, but here are the low down offerings!
HSBC offers 7K toward closing costs for first time home buyers, and also 1/2 off your interest rate! Their credit requirement is only 620 so they are good if your credit is bad.
US Bank has 95-97% loan to value offerings & non-traditional credit consideration. They have a Mortgage Insurance program where they pick it up on your behalf. If you want just a lot, ask about their land program! You may also qualify for the American Dream program.
Bank of Hope has an in house underwriting Dept with a quick turnaround. They also waive mortgage application fees if you have an account with them.
Loan Depot – prides themselves on being very familiar with DAP – down payment assistance programs. They like to layer, and they can take credit as low as a 520 score.
These are just a few offerings and programs that are available in communities here in Southern California. Programs work if you are 20-70 years old – it’s never too late or early to consider homeownership!
One negative is these programs sometimes take major negotiating to get a seller to accept your offer, because they take 2x as long as a traditional escrow. You NEED a Realtor to represent you and keep the seller calm and informed.
Also, by the time you come across this post some of these programs may be expired, and new ones available. If you’d like us to hold your hand through the journey we’d be honored, just call or text Angie at 949-338-7408. As a 19 year old first time buyer who put only 3K down, I understand EXACTLY where you are at, and have a heart and the resources to help 🙂
Seller financing is an agreement in which the seller handles the mortgage process instead of a financial institution. Seller financing cuts out the middleman and some of the red tape that comes with real estate transactions. The seller is the lender in this type of transaction, this allows the buyer to make payments without the hassle of a loan.
Seller financing is a better option in a buyers’ market however this benefits both the buyer and the seller of the home. Here is some quick facts about seller financing!
Pros for the Buyer!
Faster Closing Process – skip the bank lines. You won’t have to wait on a loan officer, underwriter or legal department to review and approve the loan application
Saves Money – no bank fees or appraisal costs
Seller financing lets people who might not be able to secure a mortgage buy a home
The down payment is based on an agreement between you and the seller
Pros for the Seller!
Sell quicker – you have the potential and ability to negotiate to sell the property “as is” without making costly repairs
Investment! Earning money from the lending process
Retain the title: if the buyer defaults – the seller keeps the down payment and the house – rather than the bank
Take Aways:
Working with a real estate agent in addition to a real estate attorney is necessary. They will write the sales contract and the promissory note
Sellers should (and can) run a credit check
Buyers should offer a 10% down payment
Don’t forget about your credit score – it is still important and considered in the transaction
Learn more about the seller financing process here:
Accessory Dwelling Units are additional legal units on your property, and they can help you earn BIG bucks. If you’d like to run a duplex or generate additional income without buying an entire new property, then adding an ADU to your lot is a GREAT option. ADU’s can cost anywhere from 20K-200K, which is waaaay cheaper than a ‘unit’ in today’s Southern California real estate market. That said, not everyone has an additional 20-200K laying around to seize this opportunity, so let’s learn how you can use other people’s money to make some of your own!
Renovation loans are NOT construction loans, so if you have never heard of one… read on. There are multiple options for reno loans, so it’s about finding your best fit. Today we were at Eric C Miller’s Finance of America’s presentation and got some details & highlights for you. Finance of America highlighted how this process benefits you!
Orange County Renovation loan process in a nutshell:
Pre-qualification –> Offer Accepted –> Disclose –> Underwriting conditional commitment –> Assign Project manager –> Collect credit conditions –> Project Scope & bids –> Appraisal –> Clear to Close –> Sign Docs –> Close –> Begin Renovations
Fannie Mae Homestyle Renovation Loan
Utilizes a construction project inspector sourced by lender
No minimum in repairs
Inspection prior to draw disbursements, up to 5 draws
All repairs and improvements must be attached to property, and supported by appraisal
Borrowers have 6 months to complete improvements
Repairs must begin within 30 days. (it’s ok if permits are the delay…you can pull permits on a property you don’t yet own)
They can be FHA or conventional, and they are a fully amortized single close transaction. 98% of the time they appraise on resales, so don’t worry if you’re buying resale.
FHA 203K – limited
nothing structural,
limit of 35K,
repairs must be completed in 4 months
limit of only two payments to each contractor
FHA 203K – standard
can tear down the entire property but MUST use the entire foundation
utilizes a HUD consultant.
6 months to complete improvements
can loan up to FHA limit for the county, high balance eligible
owner occupants only
Contract lingo: “The borrower has applied for Section 203k financing, and that the contract is contingent upon mortgage approval and the borrowers acceptance of additional required improvements”…this must be in there, but is not necessary in the purchase agreement.
Things to know & next steps:
Choosing the right contractor and renovation team is critical! Always get multiple quotes. If you’re looking for a forward thinking Orange County ADU company, check out RC Smith Design & Build.
30 day escrows won’t fly, renovation loans take 45-60 days.
Reno loans are TOUGH. You’ve got to coordinate bids, contractors, and make deadlines. If you’re looking for an ‘easy button’ into homeownership, this may not be it 😉 BUT then again…you could try buying one of these Amazon ADU’s and avoid MOST of the contractor back and forth 🙂
ADU regulations are different and ever-changing. Here’s an OC ADU resource to get started. Always check with the city to find out your guidelines before beginning work or submitting offers!
Did you know most people spend 15K on their home the first year they buy it, and they statistically put it on credit cards? Ouch. Don’t be that guy, there’s a better way! Call or text Angie to start exploring your best ADU options at 949-338-7408 or email Angie@AskAngie.com
I’ve got to hand it to OCR’s Global Committee, they ALWAYS put on such relevant and informational events. We continually try to support them and keep our CIPS education up to date 🙂 Today was the Global Forum, packed with info on how we can better serve and attract foreign buyers to beautiful Southern California. International buyers are a huge market in SoCal – read on to learn more about taking advantage of this!
So how can we help international buyers make the most of their money, so they can close easy and afford to pay more for our properties?! One way is MoneyCorp – a unique banking tool international buyers are using to get better exchange rates and guarantee funds. Contact Andrew Graziani to learn about their no-fee / no hassle transactions. They have very small minimums to exchange, and no caps. Furthermore, they have a deep understanding of how to work with every country’s currency, which is not easy. For example, consider Brazil, one currency that bounces around up to 30% in one month, and has a ton of regulations. If you want to protect your foreign transaction, make sure to work with experts like this! There are a ton of landmines when completing a foreign transaction, as noted from our previous Global Forum.
National Economic Forecast by Lawrence Yun
Lawrence Yun is one of the most respected in our industry – as National Association of Realtors’ Chief Economist for the last 10 years… when he speaks.. we listen 🙂 Let’s start with the local picture:
Is Orange County in a Real Estate Bubble?
Of course, the first thing everyone wonders is ‘are we in a bubble?’ One recent thing to note is the housing market has not been increasing as the job market increases, which is a bit of a bummer. Regardless, Mr Yun doesn’t see any kind of extreme correction on the horizon. Home prices are 3.5x higher since 1995. Lawrence, like the other experts at the recent WCR Economic Throwdown, doesn’t believe there is a bubble. SO STOP WORRYING :))
Seriously, don’t worry, but do always be on the lookout for risks or warning signs of a market shift
International trade wars
Rising rates and inverted yield curve
Shift to snowballing pessimism (perception is reality!)
We have nothing to fear but fear itself – Franklin Roosevelt
What about Interest Rates?
We are on a permanent track to increase rates, so our advice to International buyers is buyer sooner than later, the rates will only rise.
The Global Real Estate Market
Exchange rate, political environment, and comparative price appreciation are all factors that affect our foreign buyers. At this point in time, the US currency conversion is high, so we saw less foreign buyers in 2018 than in 2017. That said, we still have PLENTY of international buyers, and that is not expected to change soon, only increase. Foreigners still love to buy in the United States, overall it’s considered it very safe and secure here.
Global Committee chair Spencer Hoo introduces 2018 Global Forum speakers
As financing, exchange rates, inventory, and immigration laws all improve, we can expect more and more foreign transactions. Currently, here’s the top 5 countries buying US homes:
China
Canada
Mexico
India
United Kingdom
19% go to Florida, and 14% come here to California!
More expectations for the US market:
Short term uncertainty but long term solid pent-up demand
Next 3 years of home sales…..booooorrrrrrring. No real increases or decreases
Flat & even real estate market
If you’d like a consultation to make sure your home is attractive to the foreign buyer pool as our market softens a bit, just give Angie a call, text 949-338-7408, or WeChat.
Our annual Homeownership Day & OC Home Fair is right around the corner! We are hosting at Chapman University for the 7th year in a row on January 19th, 2019 from 10 AM – 1 PM!
Orange County Young Professionals Network, Chapman University, Orange County Realtors, and local nonprofits are putting this event together for YOU. Homeownership Day is completely FREE and taught by seasoned professionals who are passionate about helping others to change their lives through homeownership and work towards building their future.
Biggity BONUS:::::::Each attendee will be entered to win $1000:::::::courtesy of Orange County Realtors.
Homeownership Day is ‘choose your own adventure style’, where you attend only the sessions you’re interested in. This year offers twelve classes over three sessions – pick from four during each time slot! When you register online at OCHomeFair.com you are able to choose which class you want to be in during each time slot. Some of the highlighted classes this year include:
Buying Your First Home
Taking Advantage of ADU’s and Granny Flats
Preparing for a Market Turn – How to Protect Your Family
Investing to be an Automatic Millionaire
Buying with Cryptocurrency – What you Need to Know
Reverse Mortgages
++++ so many other great learning opportunities that will help you get ahead.
Learn Property Down Payment Hacks from the Best
Participating Nonprofits include NeighborWorksOC and Affordable Clearinghouse – offering a panel on grants, down-payment programs, and more called ‘Finding Funds to Buy Your Home’. If you are currently renting, these nonprofits are here to help YOU! Veterans Association of Real Estate Professionals (VAREP) will also be hosting a class for veterans to take advantage of their housing benefits. Furthermore, Women in the Housing & Real Estate Ecosystem (NAWRB), will be featuring chairwoman Desiree Patno as a speaker.
Buying A Home with Bitcoin?
Featured in Forbes, Entrepreneur, & Inc Magazine, cryptocurrency transaction expert Piper Moretti will teach ‘Buying with Cryptocurrency – What You Need to Know’. As crypto becomes the mainstream, it’s important to know what to expect and how to protect yourself from cyber-fraud.
Travel much? As the world continues to shrink, Spencer Hoo is a Certified International Property Specialist (CIPS) active in Orange County Young Professionals Network (OCYPN) and Asian Real Estate Association of America (AREAA). This year Spencer is teaching our “Safely Buying and Selling International Real Estate” session.
Tired of Renting?
Orange County Realtors 2019 President Matt Clements will educate on Hassle Free Homebuying, and past Orange County Young Professionals Network chair Angie Weeks (yours truly!) will teach on David Bach’s book concepts to become “The Automatic Millionaire Homeowner”. This information is absolutely essential to anyone who wants to grow their real estate empire safely.
OC Home Fair is for Everybody. Homeownership Matters.
Whether you’re trying to buy your first home, or someone who owns multiple homes but is trying to grow your portfolio or buy internationally, our classes have real life applications to help everyone learn how to establish and grow a residual income stream. There is absolutely no pitching, anything to buy, or programs to subscribe to– just solid information presented by experienced industry leaders.
To join the next generation of real estate, and to educate yourself on all there is to know about safely building wealth with property, and for a complete colloquium list, please register online at OCHomeFair.com or simply fill out the form below:
We’ll see you at Chapman University on January 19th!
Travel much? So many of our client’s do, which is why I recently got my CIPS designation. Having international connections with real estate agents around the world is important so our team can make sure you’re real estate needs get served…literally everywhere! I recently had the pleasure of attending the SIMA convention in Madrid and had a chance to network while learning all about the process of buying and selling in Spain.
Fun fact: Spain is in the top 3 countries where foreigners make purchases. Not surprising, because it’s beautiful. We’ll save that for a different post 😉
The process of buying a property in Spain
First things first, financing. It does not make sense to begin your search until you know how much you are comfortable spending. Of course, cash is easiest. But this is a post for normal people, not cash cows…
Options for financing foreign property
So… you have a couple options. HELOC is a great one if you have more than 30% equity in your current home. Every time I mention the acronym HELOC (Home Equity Line of Credit) I feel it necessary to remind you to ONLY do this for appreciating assets. Do not use your HELOC for cars, boats, or babes. Only to buy more property. ONLY.
If HELOC is not an option for you, foreign financing is also currently available in Spain. Here’s a quick video we recorded with Lola from B. S. Bank in Madrid:
Current interest rates may actually be better than your HELOC, so it’s something to consider!
Finding your home in Spain
Like most countries, first steps are determining an area for your new home or vacation rental, and then selecting a buyer’s agent. Make sure to consider all the factors when determining your area. Here’s just a few to think about:
Proximity to airport
Walkable to restaurants
Local tourist attractions & festivals
Amount the property could rent for, both nightly & monthly
Noise levels (planes, trains, bars, church bells)
Crime statistics
Parking accommodations
If you’re vacation renting, does the area embrace that?
Once you’ve got an area in mind, it’s time to get connected with a Realtor who works that region. Just like I mentioned in our post about how to buy property in Costa Rica… a quality agent is crucial in these countries where they don’t offer a Multiple Listing Service or a centralized listing database. We never recommend DIY buying, especially in a foreign land. You need someone who will actually go scout for you and someone who gets along with the other agents in the area so your chances of obtaining your favorite property are higher.
It’s always our pleasure to interview and pair people with quality agents. Please fill out the form below if you would like to find an English-speaking match in your desired area of Spain.
If you’re still nervous about buying overseas, or have any questions about getting started on the process, we would be happy to help. Contact Angie at 949-338-7408!
Have you been thinking about buying in the US, but live in a foreign country? We can help! There’s lots of talk in real estate about EB 5 Immigration , it’s a program United States offers to encourage foreign investors to purchase property here in the US. Because Trump administration has been putting the brakes on immigration recently, a Green Card is tough to get! This has caused major issues and investors (particularly from China) are getting turned away. 😦 But don’t be discouraged. According to Immigration attorney Qiang Bjornbak, depending on your country of origin and job, there may be options for your visa:
If you would like to explore which immigration solution is best for you, we would be happy to put you in touch with Qiang for a consultation. She can help pave your path 🙂 Once you are able to legally own a home in the United States, then the next challenge is to obtain financing.
How Foreigners Can Obtain US Loans
Foreign loans don’t come without challenges. Seasoning, or the amount of time your money has been in the bank, can be a big one. Another issue can be a newer social security number. Furthermore, reported income, foreign bank statements, and low appraisals are all landmines that can explode during the loan application process. Red flags everywhere…what’s an investor to do?!
It was great to hear from a panel of lenders who are open to working with foreign buyers, and have experiences to overcome challenges. If you’re buying for the first time in the US, you NEED an experienced lender to make your loan process smooth. Regardless of which lender you select, always run a DU (Direct Underwriting) to make sure your loan is fully approved. Usually about 30% down is required on foreign investments, and you need 2-12 months of reserves. Certain lenders also offer down payment programs. Sometimes these loans can be closed in 30 days, but usually they take about 40-45 days. It’s best to make sure your funds are already in the US to ensure there are no delays.
According to feedback in the room… Sterling Bank & Trust is very easy to work with and has fabulous programs that are easy to qualify. ChinaTrust Bank has an ‘asset based’ program which is great when income isn’t high. Cathay Bank offers a foreign HELOC, which is very rare! Here are all the panelists, just fill out the form below if you would like an introduction!
Sterling Bank & Trust – Steven Chang
New American Funding – Frank Fuentes
HSBC Bank – Buddie Krugh
Cathay Bank – Howard Tung
ChinaTrust Bank – Kevin Yang
What States Do International Investors Prefer in the US?
Interesting question! Literally, it’s all over! According to 2017 data, here’s the top 5:
Florida
California
Texas
Arizona
New Jersey
If you think sunny Southern California is the best state for you, let’s talk! Just fill out the form below or text call Angie at 949-338-7408. Happy investing – we can’t wait to help you open the door to your US property!
Spring time has begun in Orange County, even though the weather has been chillier than normal! Spring means lots of exciting things like flowers blooming, maybe a little rain to make the grass more green, time spent at the beach, but for us in the real estate business and those of you looking to buy a home it means a busy and sometimes difficult season. We thought we’d share some of our favorite tips with potential buyers before we jump into this time of the year, full force.
Getting everything prepared to buy your home!
We recommend you always have a buyer’s agent to represent you! This makes communication so much easier with the sellers agent. Having a buyer’s agent that you really trust is so important in the home buying process. You need someone who really knows what they’re doing to be your voice when it comes to real estate matters. They will always have your best interest at heart and can properly represent you during the process.
To speed the process up, make sure you have your pre approval, proof of funds, and all of your paperwork in order. This will be most beneficial when there are other buyers interested in the same home as you, you want to make sure you are ready to go and can prove that to the sellers. There could be multiple people writing offers on the property you love and want to be your forever home, so it is important to make sure you have everything ready to be competitive for that home.
Advanced Tips for Homebuying Success
The seller’s agent is more than likely to want you to cross-qualify with the lender they have chosen to trust and use, so make sure you are able to qualify with anyone that runs your information. This will make the process much more smooth and will show the sellers and their agent that you are reliable. Also, make sure your agent has a cover letter for all of your offers. This just makes you look more organized and professional, and goes back to tip number one of having an agent you fully trust to be your voice throughout this nerve-wracking process.
Have an edge and be ready to go all in for the property you want!
Here’s a video of Angie and Loan Specialist Derek Beisner discussing loan contingency to help avoid heartbreak during spring buying season!
Call or text Angie at 949-338-7408 if you’d like to get moving in the right direction on your dream home this season.
As you’re hearing on the news and seeing on social media…the way we are taxed and the things we can write off will be changing a lot within this next year! As a Realtor I can’t legally give tax advice…. so I’ll preface this post by saying it’s best to consult your CPA before the end of every year and be a proactive advocate for the lowest possible taxes! If you need a CPA referral, just ask 😉
That said, we wanted to make sure our CA friends and clients were aware of this before the end of 2017 – which is fast approaching!
GOP Tax Bill
The LA Times wrote about changes the GOP tax bill will have for California residents. The wealthier areas along the coast are going to suffer more than others due to this. Currently, state and local tax deduction is unlimited. However, in the final GOP plan, people will only be able to deduct up to $10,000. At the beginning the house only wanted the deduction to be on property taxes, but the final bill is for any state and local taxes to be deducted. Property, income, or sales taxes will qualify. An article from The Washington Post says, “The move is widely viewed as a hit to blue states such as New York, Connecticut and California, and there are concerns it could cause property values to fall in high-tax cities and leave less money for public schools and road repairs.” Since the average California homeowner pays 10K or more per year in property taxes, this affects YOU.
Pay Early & Still Get Your Deduction
How can you stay safe from the deduction cap? One way is to pay your second installment of your property taxes (which are usually due in April) before the end of the 2017 year so that you can avoid the amount restriction for 2018 deductions. You can pay online, by e-check, or credit card.
What if My Taxes Are Impounded Into My Mortgage?
If you call and check, most lenders won’t be able to guarantee the payment will get sent before the end of the year, but don’t worry…you’re still ok. You can simply pay your property tax online and then just send the proof of payment over to your lender for an escrow account refund. That way you can still write off your full property tax and state income tax before you get stuck only being able to write off $10k combined next year.
Stay Proactive…Stay Informed
We want you to know that we reply to all Real Estate tax alerts on our client’s behalf. We care about you and want you to get maximum benefits from being a homeowner. Here’s a recent reply from Luis Correa to one of our requests:
Ultimately we all need to watch elections big and small to fight taxes together! Please subscribe to our blog or email us to join the list for regular updates on how to protect your real estate investments.
Wondering which home loan will be best for you? Here’s some helpful tips
Lots of buyers have been questioning which loan is best for them and their situation. Honestly, it does depend on just that – your situation. We have put together some information on both of these loan options to make it easier for you to decide what you think is best for yourself! Some of the biggest, but most simple differences between FHA and conventional loans are based on their guidelines and who can apply for them. FHA loans are government backed programs that require a minimum 3.5% down payment. These loans tend to be best for borrowers with lower credit than necessary to apply for a conventional loan.
Conventional loans are open-market and are geared for people with a higher credit score, typically near 700 or higher. Rates tend to be a bit lower, and in most cases no Mortgage Insurance is required.
FHA used to be a much more expensive option, but after FHA MIP reductions in 2015 it is now a real competitor. However, FHA can tend to be more strict in requirements than a conventional loan is.
What does an FHA Loan Require?
FHA loans require homes to have the following in good working order:
stove
heat
functioning roof
locking doors and windows
non-lead based paint
If you are looking to buy a condo… it can only be in a FHA approved community. So if you are choosing FHA, you may have less home options available to you. FHA loans also require you to purchase mortgage insurance which protects the lenders from a loss. In January of 2015, the FHA reduced the annual mortgage insurance premium on a 30 year fixed rate from 1.35 % to 0.85% of the loan balance. This is leading to huge savings for many who want a condo but just don’t have the larger down payment.
Okay, so which home loan should you choose?
There isn’t one specific answer that fits everybody. It all depends on you, your needs and wants, and what you can afford to choose. If you plan on owning your home for 6-10 years and you don’t mind refinancing to cancel your mortgage insurance you might choose FHA. If you can put 5% down, you plan on keeping your home for 10-20 years and you don’t like the idea of paying mortgage insurance for thirty years you may choose conventional!
If you are looking into buying a home and need help finding one along with deciding which loan option is best for you – we can help! We work with a lot of amazing lender contacts locally here in Orange County that we would love to set you up with. We like to match-make our clients with lenders that we think will benefit them the most. Depending on your personality, wants/needs, and what kind of loan you are interested in all helps us decide which lender will be best for you! Fill out the form below or contact Angie at 949-338-7408 for more information 🙂
Interested in buying a home in Southern California but don’t know how? Would you like safe and solid info on Real Estate Investing or Market reports and trends? We’ve got you covered with free sessions at Citrus College on April 23rd.
The event will be held from 11am – 3pm with an hour lunch break. There are 3 different sessions, each with 4 classes to choose from ranging from flipping to first time buying. We feel honored to be asked to teach 2 classes – Investing and Market Report. Come join us and learn how to buy real estate! The first 100 registrations receive a free lunch on Citrus Real Estate Club – just sign up below.
Yes, sign me up for Citrus College’s Home Fair on April 23rd!
We believe everyone, EVERYONE, deserves to own a home!! So what’s your biggest obstacle to get there?
Down payment funds?! Probably!
We don’t live in a society that saves money, so how can you buy a home if you’re savings account isn’t 5 figures or more? There’s a way, and we wanted to let you know you have options!
Orange County Down Payment Assistance Programs
A great resource to reach out to for housing grants and financial help is NeighborWorks Orange County. The NeighborWorks website lists lots of really great programs – here’s a flyer to check out just a few:
For your convenience, income limits for each program are color coded at the bottom of this sheet. NeighborWorks is located in Orange, and they’re always coming up with a new program or a way to help you improve credit, budget, and your overall financial picture. Here’s a link to their homebuyer classes, given in various languages 🙂
In order to learn about everything this great nonprofit has, it’s best to attend a workshop. They also have an online or in house course you can take to get fully equipped to buy a home. It does cost a nominal fee, but you get your money back when you provide your closing statement within 12 months. How cool is that?!??
If you’re the type of person who wants to work with a charity FIRST, or if you just don’t have a down payment and you need help, reach out by texting 949-338-7408 or filling out the form below, and we’ll put you in touch with NeighborWorks so you can get on the affordable path to homeownership!
Ever wonder how people really come up in real estate? It doesn’t require a huge amount of capital, brains, or hard work. The process is surprisingly simple, and we’ll teach you the jist in just half an hour.
The best thing about becoming a millionaire homeowner is that anyone can do it.
Learn How at Homeownership Day Jan 14th, 2017
We’ll teach you the simple process based off David Bach’s “Automatic Millionaire Homeowner” book in an easy, 1/2 hour session at Chapman University from 12:15 – 12:45pm.
This is a class for normal people who would like to do extraordinary things in real estate while maintaining their existing lifestyle, career, and family.
The Automatic Millionaire Homeowner is not a get-rich-quick scheme; everything is done on your individual timeline, and without a membership in some expensive group or school. The only money you spend will be on real estate itself. Simple concepts that once applied, will bring you huge returns regardless of where you own property. And the younger you have this knowledge and you start…the better.
Register below for this free event – space is limited!
More about Homeownership Day / OC Home Fair
This yearly event is a collaborative between Chapman University, Orange County Young Professionals Network, OC Register, and non-profits VAREP and NeighborWorks OC designed to bring you honest real estate information with no pressure or gimmicks.
There will be 4 different sessions, each with 5 classes to choose from. Attendees enjoy a ‘choose your own adventure’ style and pick the classes that interest them most. Instructors are all active experts in the industry volunteering their time to benefit our community. Visit www.OCHomeFair.com for the full class list and session times.
Where: Chapman University’s Beckman Hall 1 University Dr, Orange, CA 92866 When: January 14th, 2017 from 10am – 1pm Cost: free
What is an AITD? An All Inclusive Trust Deed is basically when the buyer takes over the seller’s existing loan. And NO, it doesn’t have to be an ‘assumable loan’ … The current lender is actually not even notified!
Who Are Good Candidates for AITDs?
As a buyer, you could use AITD as an avenue if you cannot qualify for a traditional loan. If you’re a seller, it’s an option if you don’t want to short sale, or if you have a fabulous loan that you would like to transfer to a family member. Another time an AITD could save the day is if you are a seller and your HOA is in litigation, or there is some type of situation causing purchase loans in your community to get denied.
How do AITD Transactions Work?
With an AITD, most aspects are the same as a normal Orange County real estate transaction. Instead of a traditional lender involved, the escrow company draws up the paperwork and usually collects the payments as ‘the manager’, which they then send over to the existing lender on buyer & seller’s behalf.
AITD allows you to make your own qualification rules, which is pretty neat! You don’t necessarily have to worry about credit history, scores, or capital gains taxes (if it’s not your primary residence) should you go this route.
If you’re thinking of doing an AITD, make sure to record the grant deed as well. It’s better for everyone. Especially if you are the buyer, because then you can technically write off the mortgage interest.
A great company to use for this process locally in OC is Mission Country Escrow. Katie the owner spoke to us about it today, and they have been doing AITD’s in Orange County for 30 years. If you’re thinking of doing one, definitely reach out to them.
Questions To Ask When Doing an AITD
Loan amount: is it a ‘mirror image’ of the seller’s current loan, or if not, what interest rate will be charged?
Down payment: is the buyer putting funds down, and if so, how much?
Length: what is the length of the AITD and are there any extension options?
HOA: does the property have a Homeowner’s Association?
Commissions & closing costs: is the typical ‘each to pay own’ presiding, or who is paying?
Loans: how many does the seller currently have, and are they all current?
All Inclusive Trust Deed Risks
Of course, there are plenty of risks too. Technically, the lender could call the loan due & payable because the owner transferred. However, the chances of that happening (unless there’s a late payment) are very slim.
Furthermore, we had Steve Fink, real estate attorney discuss advantages & disadvantages of AITD. Honestly, there are a ton of risks involved, and these AITD transactions should be done only in very special cases and with extreme caution. Always use a professional, and get your facts!
If you’d like a personal introduction or have questions about AITD’s, just call Angie at 949-338-7408, tweet @AngieWeeks, or fill out the form below – we’ll be sure to connect you with trusted professionals to protect your interest!
TRID is the TILA / RESPA Integrated Disclosure Rule which is designed to help consumers understand the mortgage and real estate buying process more thoroughly.
How to most industry people see it? TRID is dirt spelled backwards 🙂 It’s a pretty big change and it’s causing delays. We’re annoyed.
45 is the new 30. That’s what everyone’s saying about an escrow timeline. In order to close in 30 days, everything has to flow perfectly. Now be honest, how often does that happen???
In this perfect world…Escrow needs to get the fee sheet over the day the lender requests it.
Furthermore, disclosures need to go out immediately, and the appraisal needs to be ordered pronto. Before loan docs, well pretty much before anything, a CD (Closing Disclosure) needs to get out to the borrower. The best lenders right now are providing this digitally, and those who aren’t (*ahem* B of A, Chase, Wells) have a closing timeframe of 60+ days, which is completely unacceptable. Every time something big changes, a new Closing Disclosure must go out and there is a 3 day mandatory waiting period. There’s no more room for sloppy documents and slow turnaround for paperwork. Having a good real estate team (title, escrow, lender, and Realtor) who all communicate is crucial more than ever with these TRID guidelines.
Delays can be caused by any one or more of these simple elements within the escrow process:
HOA dues
HOA transfer fees
HOA move in/out fee
Sewer lateral
Roof inspection
Pest inspection
Security deposit transfers
Insurance Certification costs
Prorated rents
Seller rent backs
Mobile signing fees
POA preparation fees
Subordination prep fees
Draw deed fees
Buyer paid Realtor commission
Repair credits
Carbon monoxide detectors missing
Inspections should be done as soon as possible to avoid any of the above issues. Changing lenders in the middle of the deal now undoes the entire timeline and forces everyone to start over. You need to interview your lenders and have your team in place BEFORE escrow starts. Call us if you need referrals for competent lenders here in Orange County.
If you’re already in escrow with another team, make sure your agent orders Home Warrantee, all disclosures and inspections right away, and is in good touch with the lender. These are all standard practice already with the AskAngie team.
As a seller, you can help too. Right when you open escrow, call the management company right away with the credit card info and order your HOA documents. They are famously one of the slowest moving parts of an escrow so it should be addressed on day 1.
If you have any comments or questions about working with the new normal and TRID, don’t hesitate to call 949-338-7408, comment below, or tweet @AngieWeeks !
Today we’re spending a Saturday in Pomona at FACE LA’s Homebuying Fair – we met them through NAWRB and LOVE what these organizations stand for. FACE has compiled quite a few programs to help you with down payment funds, and have relationships with LOTS of generous banks who can help with lower interest rates, buy downs, silent seconds, and more. Sharing is caring…so read below to find some free down payment funds to get your family into a home!
These purchase programs (and many others) have some caveats. The home must be your primary residence, and you must pass a homebuyer education class (approx 8 hours). Did you know taking homebuyer education classes before you buy make you 30% less likely to go into foreclosure? This is why many city, bank, and state programs will require you take one before receiving funds. Everyone wants you to succeed in your homeownership venture, so there are milestones like this in place to set you up to win.
Union Bank has a 3K down payment assistance grant for closing costs or down payment assistance, which can be layered with other programs. Sorry couldn’t find the link for this exact program, but here are the low down offerings!
So how can we help international buyers make the most of their money, so they can close easy and afford to pay more for our properties?! One way is 
Our annual Homeownership Day & OC Home Fair is right around the corner! We are hosting at Chapman University for the 7th year in a row on January 19th, 2019 from 10 AM – 1 PM!
Participating Nonprofits include NeighborWorksOC and Affordable Clearinghouse – offering a panel on grants, down-payment programs, and more called ‘Finding Funds to Buy Your Home’. If you are currently renting, these nonprofits are here to help YOU! Veterans Association of Real Estate Professionals (VAREP) will also be hosting a class for veterans to take advantage of their housing benefits. Furthermore, Women in the Housing & Real Estate Ecosystem (
Whether you’re trying to buy your first home, or someone who owns multiple homes but is trying to grow your portfolio or buy internationally, our classes have real life applications to help everyone learn how to establish and grow a residual income stream. There is absolutely no pitching, anything to buy, or programs to subscribe to– just solid information presented by experienced industry leaders. 
More about Homeownership Day / OC Home Fair
What is an AITD? An All Inclusive Trust Deed is basically when the buyer takes over the seller’s existing loan. And NO, it doesn’t have to be an ‘assumable loan’ … The current lender is actually not even notified!
TRID is the 
Orange County Real Estate Success 