Unlock Your Dream Home with 2020’s Enhanced FHA Loans

Is the dream of homeownership dancing in your head? The Federal Housing Administration (FHA) is all set to make your dream a reality with a significant boost in loan limits in 2020. This surge, combined with low interest rates, opens the doors wider for potential home buyers. Let’s dive into the dynamic landscape of FHA loans this year.

The Skyrocketing FHA Loan Limits

For those mulling over high-priced homes in “high-cost” counties, 2020 brings a windfall. FHA single-family home loans have seen a limit increase to $765,600 – a robust hike of almost $40,000 from the previous year. A cursory look at recent trends shows a consistent rise in these limits. From a mere 200 counties benefiting from the hike in 2016 to over 3,000 in 2019, the FHA’s trajectory only points north.

What’s Brewing in the FHA Cauldron in 2020?

The ripple effects of these increased loan limits are manifold:

  1. Market Magnetism: The elevated limits are poised to attract more lenders to the FHA mortgage arena, broadening the horizons for potential homeowners.
  2. A Bounty of Loan Products: Word in the real estate corridors hints at the emergence of FHA loans tailored for two- to four-unit properties. Picture this: You acquire a multi-unit property (capping at four units), reside in one, and rent out the rest. While short-term rentals (think AirBnB) are off the table, longer tenancies spanning 30 days or more are fair game.
  3. Interest Rates – A Predictive Puzzle: While the wizards at Freddie Mac and other mortgage seers forecast a stable 3.7% interest rate for the first half of 2020, it’s wise to tread with caution. Predictions, after all, are a tricky game. Even though the Federal Reserve Board, slated for a January meeting, has hinted at no immediate shifts in the federal funds rate, banking on such forecasts might be premature. That said, it’s hard to ignore the allure of sub-4% interest rates for FHA home loans that have been consistent since January 2019.

The 2020 FHA loan narrative paints a promising picture for aspirational homeowners. The combination of increased loan limits, tantalizingly low interest rates, and the potential influx of loan products makes it a golden year to embark on your homeownership journey. If you’re keen on harnessing these opportunities, now is the time to act. Start the year with a resolve to turn the key to your dream home.

Ready to navigate the FHA loan landscape? Dive deep with the expertise of California Platinum Loans and make your dream home a reality this year!




Busting Mortgage Myths: Between Market Spins and The Real Estate Pulse

Hold onto your wallets, Californians! Today’s bulletin will traverse the media’s spin cycle, where sometimes economic seasons make things look chillier than they are. But fear not; California Platinum Loans is here to warm your understanding with some heated insights. Grab your morning brew, and let’s dive in.A Media Mirage on Housing Appreciation?

A Media Mirage on Housing Appreciation?

The financial arena echoed with a slight tremor yesterday, with mortgage bonds experiencing turbulence. If we were to take a leaf out of an aviation book, we’d say, “Expect some turbulence, but keep your seatbelts fastened for a smooth landing.” Why, you ask? Despite the negative rumble about housing, the actual value of homes continues to appreciate.

So, here’s a spin tale: Black Knight recently released a report. And while Daniel decided to pick the non-seasonally adjusted number (up by a mere .23%), it translates to roughly 3% inflation if we delve deeper. Putting it in layman’s terms, for those who put down a mere 10%, that’s a handsome 30% return on their investment. And here’s the kicker – they interpreted this as an indicator of an impending decline in home values. Aren’t statistics fun? One can show a storm on the horizon, while another reveals sunny days ahead.

The Fed’s Song & Dance: What’s Next on The Playlist?

Have they ever tried reading tea leaves? Interpreting the Fed’s next move feels a lot like that. As the grand September 20th meeting looms, there’s anticipation in the air. Will they hike? Will they pause? If only we had a crystal ball!

But here’s a silver lining. Loretta Mester from Cleveland’s Fed and Philly’s Patrick Harker have sprinkled some insights. It’s like a sneak peek into the upcoming blockbuster, where inflation and rates are leading. The overarching message? The Fed no longer relies on past data but gauges the road ahead.

Of Oil Prices and a Slippery Slope

Ah, oil! The lifeblood of our cars and, sometimes, the bane of our wallets. Recent data shows a 10% hike, pushing oil to $87 a barrel. This hike comes as Russia and Saudi Arabia play a little complicated with their production cuts. And what does this mean for our dear friend, gasoline? The prices remain stable, hovering around $3.80 per gallon. But, with the strategic petroleum reserves dwindling, any hike in oil prices could trigger a surge at the pump.

To wrap up today’s bulletin with a neat bow, while mortgage bonds took a slight hit, the true essence of the market showcases promise and resilience. The housing market remains robust, the Fed is looking ahead, and oil prices… well, keep an eye on your gas tanks.

Stay optimistic, financially savvy Californians! Plenty of opportunities are on the horizon between the ebb and flow of the market. Until next time, keep your real estate compass pointed towards prosperity, and remember, California Platinum Loans has your back in every twist and turn!


Do You Have An FHA Home Loan? STOP Wasting Money: Refinance NOW And See How Quick it will Clear Away Your PMI/Mortgage Insurance

If you have an FHA loan, you may be getting tired of paying mortgage insurance every month in addition to your house payment and property taxes. There are so many advantages to FHA loans, but they do require you to pay mortgage insurance, sometimes called MIP (Mortgage Insurance Payments). On a conventional mortgage, mortgage insurance can also be called PMI (Private Mortgage Insurance). Unlike your life insurance policy, MIP doesn’t protect your family if you should become ill or die. It protects your lender and the amount of money they have loaned for your home.

Can you remove mortgage insurance from an FHA loan?

If you paid less than a 10% down payment on an FHA loan, you will pay mortgage insurance for the life of your loan. Part of the insurance is a one-time mortgage insurance premium, which is paid when you took out the loan. Usually, the lender will finance this one-time insurance payment as part of your loan. You’ll also continue to pay an annual mortgage premium based on the length of your mortgage.

FHA rules for mortgage insurance payments are complicated. If you got your FHA loan after June 3, 2013, and you made a down payment of more than 10% on a 15, 20, 25, or 30-year FHA loan, you are eligible to apply for cancellation of your mortgage insurance payment (MIP) after 11 years. For older FHA loans taken out before June 3, 2013, you will pay MIP up to 78% LTV based on your original purchase price. Older FHA loans with borrowers who paid more than 22% down never had a MIP requirement. You may be able to refinance your FHA loan with a lower MIP depending on your equity in the home. If you’ve missed a mortgage payment during your loan, you won’t be able to drop the MIP until or unless you refinance into a conventional loan. HUD and FHA can change these rules at any time at their sole discretion.  So it’s best to reach out to an independent mortgage broker and home loan professional at California Platinum Loans for the most current guidelines as they relate to your specific FHA loan.

Can you refinance your FHA mortgage to eliminate MIP?

Another option for getting rid of mortgage insurance is refinancing the mortgage completely. You have many options for different home loan products which could not only eliminate your mortgage insurance requirement but could also provide you with lower monthly payments.

If you’re tired of paying mortgage insurance every month and you want to put the money to better use, contact a home loan professional today to learn your options for eliminating mortgage insurance on an FHA mortgage by refinancing your current FHA loan into a new conventional mortgage loan.