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Refi quick you have a very small window to pull this off. Call or text me at 909-920-3500 or visit
Recorded March 27th 2020 (Corona Virus and Real Estate)
If your loan is above 4.25% you should consider refinancing (if you can) or cashing out to be liquid through this crisis. If you are an agent this video discusses maneuvering in a very very volatile environment and how to have success. Consumer – if you are in an active transaction or considering one pay close attention. Most loans will be gone for a bit, some for a very very long time. All loans expect tightening and time delays to close. Loss of Liquidity will cause massive losses and have a broad impact on the ability to continue to operate.Loans
Non-QM – Gone (bank statement and other non-conforming loan product)
FHA / VA – on way out – lenders coming out with new guidelines rapidly with regard to Fico, Debt Ratio (dti) and downpayment or (LTV). Loss of Liquidity may cause total fha-va freeze – standby for more info (est 4/15/20 loss of Govt loans)
Jumbo Pricing is way off (nobody wants these loans right now)
New Guidelines are a lot to digest, to be pro-active make sure you have photos of the interior in case the appraiser is unable to go inside. There will be different methods depending on the loan type, lots of variables to consider based on LTV, loan type, Fannie/Freddie, etc. So if it were me I would have photos on the ready.
NOT TO SHABBY on Vanilla Conventional Product (3-27)
Locked some good ones today CASH Outs at 3.625 (apr 3.71)
FHA Purchase 3.25% (APR 3.895)
VA JUMBO 3.625% (APR 3.990)
5% CONV PURCHASE 4% (apr 4.126)
Borrowers need to validate they will have a job in 6 months and their position will not be impacted by Covid (Period). This is a TDR Mortgage requirement as we have severe penalties for 1st payment default and not making the 1st 6 payments. Many lenders already have this in place at closing, all others will soon follow suit.
Look for lending to be extremely volatile moving forward, a perfectly good loan can fall out at any time, be prepared, be flexible and remember it’s not the Loan Officers fault, try to find solutions and operate with Grace and Kindness. 1 Loan can save a borrower a great amount of money and 1 loan helps your local businesses survive a bit longer before revenue shrinks ie; local title, local escrow, local loan companies, local appraisers, local Mortgage Companies, local support staff, local Real Estate Professionals.
WHAT YOU CAN DO
Let your Sellers know they have to be flexible and accommodate the buyer, it is officially a buyers market. Encourage Sellers not to wait to sell. Values will drop and won’t be any better at the end of the year or “in the Summer”. Unemployment is to great for a rapid rebound.
Buyers / People Refinancing
Delays are inevitable, if you have a locked loan under 3.75 I STRONGLY URGE YOU TO STAY IN PLACE AND BE PATIENT. IF YOU SWITCH LENDERS there’s a large chance your loan will not close and good luck finding a better rate. Stay in Place and listen to your loan Professional.
Seller Carries can be a solution for some sellers with equity.
I would be taking only conventional offers on my listing moving forward. (unless the FHA / VA situation changes.
Agents get 3 lending channels. Broker (TDR Mortgage) Direct Lender and Bank (tread lightly as they will be the hardest to maneuver channel) but have one anyway.
Thank you for tuning in today – please like or share this post. Go forward with Grace and Kindness. If you are employed please be sensitive to those who have lost their job. Many of these jobs will not be coming back. Stay Local, Support Local. Namaste.
Southern California Home Loan Expert, Teresa Tims, Vlogs to educate and help Consumers make an Educated decision when it comes to Home Loan Lending in California.
Call us today at 909-920-3500 or visit
Company NMLS #390767 Individual NMLS MLO # 267236
Company BRE # 01889552 Broker License BRE # 01269949