Home Buying & Real Estate Thread

[ekrev98]

Our demo guys work quick! Going to start ordering materials and designing the interior.

 

[monstar]

So interest rates have gone up by 50% today by the fed

I am intersted to see what effects this will have in the Bay Area with all of the ARM loan purchases over these last 5 years.

Does anyone think this in itself could create a bubble in the housing market?

 

[crcballer55]

So interest rates have gone up by 50% today by the fed

I am intersted to see what effects this will have in the Bay Area with all of the ARM loan purchases over these last 5 years.

Does anyone think this in itself could create a bubble in the housing market?

ARMs by their nature are a bet that rates will be low or go lower during the duration of your loan. IMO, anyone who took out an ARM over the past 8 years was making a bet with the devil since rates were already at or near historic lows during that time. We'll see what rates do, but that could lead to an increase in delinquent loans. But will more than likely lead to a decrease in equity for most markets since affordability has already been a big deterrent for many buyers who were already on the fence

 

[stork]

I am intersted to see what effects this will have in the Bay Area with all of the ARM loan purchases over these last 5 years.

What makes you think there are a lot of ARM loans in the bay area post 2010?

I don't think ARM loans are a popular product, or are they?

Our demo guys work quick! Going to start ordering materials and designing the interior.

looking good! btw how did you find this deal? MLS or off market tip?

 

[ekrev98]

looking good! btw how did you find this deal? MLS or off market tip?

It was on the MLS.

 

[monstar]

What makes you think there are a lot of ARM loans in the bay area post 2010?

I don't think ARM loans are a popular product, or are they?
looking good! btw how did you find this deal? MLS or off market tip?

Arm loans had the lowest rates available of any loan type and was a popular product especially here in the bay area with the high cost of homes making it possible for you to afford in this area.


Fixed sounds nice but people didn't always qualify for that and the only way they could get into the home they wanted was based on an arm interest rate

 

[crcballer55]

 

What makes you think there are a lot of ARM loans in the bay area post 2010?

I don't think ARM loans are a popular product, or are they?
looking good! btw how did you find this deal? MLS or off market tip?

Arm loans had the lowest rates available of any loan type and was a popular product especially here in the bay area with the high cost of homes making it possible for you to afford in this area.


Fixed sounds nice but people didn't always qualify for that and the only way they could get into the home they wanted was based on an arm interest rate

If that's the only way they were getting in, there's no way they're going to stay in if rates keep going up. IMO, it's a terrible product since you can always refi a fixed rate to a lower rate later on if they drop.

 

[dathbgboy]

Got another NACA appointment today. After gettin my money up to what they want and getting student loans situated, I could be looking to buy as early as Feb which is great considering I went to the seminar back in April and didn't have my first meeting til August.

I forgot who had a boy flipping out here but if he's still looking, start looking into the outer areas like Penn Hills and such. A lot of house and land out there for a decent price, not too much in the city.

 

[HankHill]

What do they do at the workshop? I signed up to attend one to see what the program is about.

 

[stork]

Arm loans had the lowest rates available of any loan type and was a popular product especially here in the bay area with the high cost of homes making it possible for you to afford in this area.

I'm skeptical that banks would do ARM loans to less than qualified borrowers. Would the banks really lend to someone who is unable to pay if rates increase ~1-1.5%?

I haven't seen any articles/data that suggest there's a lot of ARM loans, but if you have data/info that backs that up I would like to read it.

 

[dathbgboy]

Arm loans had the lowest rates available of any loan type and was a popular product especially here in the bay area with the high cost of homes making it possible for you to afford in this area.

I'm skeptical that banks would do ARM loans to less than qualified borrowers. Would the banks really lend to someone who is unable to pay if rates increase ~1-1.5%?

I haven't seen any articles/data that suggest there's a lot of ARM loans, but if you have data/info that backs that up I would like to read it.

Maybe not after '08 but that's what got us to where we are now. Frank-Dodd Act is what stopped most of that, though they just rename half the crap. U every watch The Big Short?

 

[pdino]

Saw some posts about NACA, wanted to share this one I saw on bigger pockets: "I just completed going through the NACA process to buy a 4-unit. No downpayment, bank paid closing costs and even seller's title/survey costs, and I closed at 3% interest. The program also doesn't require PMI, which further reduces my borrowing costs. The NACA program also doesn't have income or credit limits. That said, the actual process of going through the program was time consuming and frustrating at times (poor staff management), but my closing costs were over $30k and my down payment would have been almost $8k. For that kind of money, it was worth the extra time (3 additional months due to also getting the rehab costs included in the financing) and worth the occasional frustration which I minimized by personally staying on top of my file. The loan does stipulate that it has to remain owner occupied or be refinanced.

For me, this was the best financial decision. I have 4 units that rent for $700 each, I occupy one of them, and my PITI payment is $1289. The surplus goes to a repair escrow for now (eventual replumb/rewire) but I'm hoping to go solar within the next 5 years and increase the rents to include solar electric."

 

[dathbgboy]

What do they do at the workshop? I signed up to attend one to see what the program is about.

Just goes over the program and you connect w/ a counselor that will guide you through the process. If all your money is right and credit is straight (don't trip about credit score but u want to make sure loans on your account are paid and in good standing) then the process shouldn't take too long, but it also depends on your counselor too. It's definitely not for the faint of heart and those w/ lack of patience but if you stick w/ it, it's well worth it.

Saw some posts about NACA, wanted to share this one I saw on bigger pockets: "I just completed going through the NACA process to buy a 4-unit. No downpayment, bank paid closing costs and even seller's title/survey costs, and I closed at 3% interest. The program also doesn't require PMI, which further reduces my borrowing costs. The NACA program also doesn't have income or credit limits. That said, the actual process of going through the program was time consuming and frustrating at times (poor staff management), but my closing costs were over $30k and my down payment would have been almost $8k. For that kind of money, it was worth the extra time (3 additional months due to also getting the rehab costs included in the financing) and worth the occasional frustration which I minimized by personally staying on top of my file. The loan does stipulate that it has to remain owner occupied or be refinanced.
For me, this was the best financial decision. I have 4 units that rent for $700 each, I occupy one of them, and my PITI payment is $1289. The surplus goes to a repair escrow for now (eventual replumb/rewire) but I'm hoping to go solar within the next 5 years and increase the rents to include solar electric."

That's wassup b. Only thing holding me and the mrs back is saving up the minimum required funds and taking care of some loose ends on the credit report side, but we're looking at late Jan to Feb to get approved. We didn't have too much work to do and most of what needed to be done was on the credit side but we were in the midst of cleaning up our credit anyway so we would be good for the future.

You didn't look into buying down the interest rate? We're considering it but need to know how much more we'll have to save.

 

[HankHill]

Cool. Yeah my credit is straight (fluctuates highI 790s to low 800s) have about 20k I was going to use towards a down payment + closing costs. Was gonna give my self to the end of next summer before purchasing to save up another 20k for a car and knock out both. I heard once you start the NACA program you can't incure any new debt loans (like car financing) before purchasing the home. Also in lieu of PMI you still have to pay a fee every month, but appraisers and inspectors are free since they're in house.

 

[dathbgboy]

Yea, a lot of stipulations and what not but it's a small price to pay to limit out of pocket costs

 

[anaturalwonder]

I'm proud to say that I am finally a Licensed Realtor. It took some time and courage to do it, but I'm here. 

If any of you Southern California peeps are looking to buy/sell, or just need general RE information, please feel free to shoot me a PM and ask away!

 

[ekrev98]

Loving how the backyard is looking. My guys do quick and great work. Had to spend a little more for the glass panels but it's all worth it for that view!

BEFORE

AFTER

 

[dc777]

 

[Fozz]

^Awesome! Looks really nice!

 

[dc777]

 
^Awesome! Looks really nice!

Thank you sir. Hope NoVa treating ya right!

 

[stork]

Loving how the backyard is looking. My guys do quick and great work. Had to spend a little more for the glass panels but it's all worth it for that view

Any updates? You can post the Bp link if there is one.

 

[ekrev98]

Any updates? You can post the Bp link if there is one.

I'm out of town so I don't have any updated pics. I'll be back in town next week so I'll have updated pics of all of my projects.

I usually don't post on BP until I sell a property. But for more up to date pics, you can follow me on IG @sdcityhomes

 

[lilchico4life]

Can't believe what a year 2016 has been. Aside from my buy and hold, cash flowing properties, I had been working on my only flip of the year. It was discouraging after the deal fell through 4 times. So happy to say I closed the deal earlier this week. Bought and sold within 11 months. Can't wait to see what 2017 has in store

Wishing everyone a prosperous new year!

 

[lazyj10]

After a lot of back and forth including changing contractors my home addition finally began. Pumped. Passed inspection so concrete pour begins on Tuesday.

 

[solecali]

Can't believe what a year 2016 has been. Aside from my buy and hold, cash flowing properties, I had been working on my only flip of the year. It was discouraging after the deal fell through 4 times. So happy to say I closed the deal earlier this week. Bought and sold within 11 months. Can't wait to see what 2017 has in store

Wishing everyone a prosperous new year!

Damn, salute! 

  I'm about to close on a property next week. It never seems like a good time to buy but I feel like we all have to take the plunge eventually. This will be the third house I've bought.