Navigate the Complex Mortgage Home Loan Process Like a Pro: Don’t Do it Alone! Business Owners, Entrepreneurs, and Self-Employed Individuals All Trust California Platinum Loans to Guide them Every Day!

Home Loans for Self-Employed

Buying a home is a significant acquisition that can be more challenging for self-employed individuals and business owners to secure a home loan. Fortunately, several loan products are available to help them navigate the mortgage process and achieve their dream of home ownership.

Types of Home Loans for Self-Employed Individuals and Business Owners

Self-Employed Borrower Home Loan

A Self-Employed Borrower Home Loan is a home loan designed for self-employed individuals who need help meeting traditional loan income verification requirements. This loan product requires documentation such as tax returns and financial statements to verify the borrower’s income. The loan amount that can be borrowed will depend on the borrower’s income, credit score, and other economic factors. Self-Employed Borrower Home Loans typically have more flexible income verification requirements, lower credit score requirements, and lower down payment options than traditional loans, making it easier for self-employed individuals to qualify for a home loan.

No Income Verification Loan

A No Income Verification Loan is a type of home loan that does not require income documentation to be provided by the borrower. Instead, the loan approval is based on the borrower’s credit score and the value of the property being purchased. This loan product is typically used by self-employed individuals or those with irregular income who find it challenging to provide sufficient income documentation to qualify for a traditional loan. No Income Verification Loans may have higher interest rates and stricter qualifications than conventional loans due to the lack of income documentation. However, they offer a more straightforward application process and a faster approval time.

Stated Income Loan

A Stated Income Loan is a type of home loan that allows the borrower to state their income on the loan application without providing any income documentation to verify it. The loan approval is based on the borrower’s credit score and the value of the property being purchased. Stated Income Loans are typically used by self-employed individuals or those with irregular income who have difficulty providing sufficient documentation to qualify for a traditional loan. These loans are also known as “liar loans” since borrowers could overstate their income, making them riskier for lenders. Due to this higher risk, Stated Income Loans may have higher interest rates and stricter qualifications than traditional loans. However, they offer a more straightforward application process and a faster approval time.

Business for Self Loan

A Business Self Loan is a home loan designed for small business owners. This loan product is based on the borrower’s credit score and personal and business income. It allows self-employed individuals to use their business income as a source of income to qualify for the loan. The loan amount that can be borrowed will depend on the borrower’s business income, personal income, and credit score. Businesses for Self Loans typically have more flexible income verification requirements, lower credit score requirements, and lower down payment options than traditional loans, making it easier for small business owners to qualify for a home loan.

No Doc Loan

A No Doc Loan is a home loan that does not require any income or asset documentation from the borrower. The loan approval is based solely on the borrower’s credit score and the value of the property being purchased. No Doc Loans are typically used by self-employed individuals or those with irregular income who have difficulty providing sufficient documentation to qualify for a traditional loan. These loans are considered high-risk due to the lack of income documentation and contributed to the 2008 financial crisis. As a result, No Doc Loans are now more prevalent than they once were and may be harder to find. They may have higher interest rates and stricter qualifications than traditional loans if available due to their higher-risk nature.

Benefits of These Loan Products

One of the key features of these loan products is that they have more flexible income verification requirements, lower credit score requirements, and lower down payment options. These features make it easier for self-employed individuals and business owners to qualify for a home loan.

Consult a Financial Adviser or Mortgage Broker

Notably, these loans may have higher interest rates and stricter qualifications than traditional ones. Therefore, it is always good to consult a financial advisor or mortgage broker before making decisions.

Self-employed individuals and business owners have several loan products available to help them navigate the mortgage process and secure financing. These loan products include self-employed borrower home loans, no income verification loan

California Platinum Loans

  https://californiaplatinumloans.com

Pending Homes Down 6th Straight Month November New Home Sales Up 5.8% while Home Prices Hit Lowest Rate Of Appreciation In 2 Years

Pending Homes Down

November New Home Sales Up 5.8%

Over the holiday season, HUD and the Census Bureau revealed that new home sales increased by over 6% from October and exceeded the November forecast. According to the data, sales of new single-family homes increased to a seasonally adjusted annual rate of 640,000 in November, up 5.8% from the revised October pace of 605,000.

Sales in the South declined by 2.1% in November, down to 369,000 units from 377,000 units in October. However, new home sales in the West jumped by over 28% in November to 171,000 units, seasonally adjusted yearly, from 134,000 units in October. Sales in the Midwest increased by 21.3% in November to 57,000 units from 47,000 units in October. Sales in the Northeast decreased by 8.5% in November from 47,000 units in October to 43,000 units.

According to Odeta Kushi, Deputy Chief Economist with First American Financial Corp., the purchases of homes for which construction has not yet begun accounted for most of the increase in new home sales in November, which were up 46.7% month over month.

Furthermore, new homes sold in November saw a median sales price increase to $471,200 and an average sales price increase of $543,600. At the end of November, the seasonally adjusted estimate of new homes for sale rose to 461,000. The current sales rate represents a housing supply of 8.6 months.

Home Prices Hit Lowest Rate Of Appreciation In 2 Years

According to a CoreLogic report, the 21-month record of double-digit growth in home prices ended in November with an increase of less than 9% compared to the same month in 2021.

Using the data of home prices, 16 states, including Florida and South Carolina, continued to experience yearly double-digit growth. However, “appreciation is decelerating in many popular housing markets across the country” in general. In sharp contrast to the previous month, when home price growth rose 20.9% in April compared to the same month in 2021, home prices increased 8.6% year over year in November. From October 2022, housing prices decreased by 0.2%.

Potential borrowers are concerned about the unstable stock market, a recession entering the new year, and homes no longer viable investments. The analysts at CoreLogic predict that home price increases will decelerate further into 2023 and reach 2.8% by November. According to Selma Hepp, deputy chief economist at CoreLogic, “2023 will present its own challenges, as consumers remain wary of both the housing market and the overall economic outlook.” 

However, the fact that mortgage rates dropped from over 7% in October to 6.42% in December may encourage buyers to continue looking for a home. Hepp regards the decrease in mortgage rates as boding well for the housing market.

Pending Homes Down 6th Straight Month

The National Association of Realtors announced Wednesday that pending home sales fell for the sixth straight month in November, reaching their second-lowest monthly figure in 20 years.

In November, the Pending Home Sales Index, a measure of impending home sales based on contract signings, decreased by 4.0% to 73.9. Pending transactions decreased by 37.8% yearly.

Transactions dropped in each of the four U.S. regions monthly and year over year. The index decreased 34.9% in the Northeast from a year ago and 7.9% from October to 63.3. The Midwest index dropped 31.6% from a year ago to 77.8 in November. The South decreased by 2.3% to 88.5, a 38.5% decrease from the previous year; the West index fell 45.7% from a year earlier to 55.1 in November, a 0.9% decrease.

“The Midwest region — with relatively affordable home prices — has held up better, while the unaffordable West region suffered the largest decline in activity,” said NAR Chief Economist Lawrence Yun.

Next week’s potential market-moving reports are:

  • Monday, January 9th – NY Fed Inflation Expectations, Consumer Credit
  • Tuesday, January 10th – NFIB Small Business Index, Wholesale Inventories
  • Wednesday, January 11th – No Report
  • Thursday, January 12th – Initial and Continuing Jobless Claims, Core CPI, Federal Budget
  • Friday, January 13th – UMich Consumer Inflation Expectations, Consumer Sentiment Index

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (800) 216-1047.

California Platinum Loans

  https://californiaplatinumloans.com

U.S. Pending Home Sales Fall to Second-Lowest Level on Record But Double-digit U.S. Home Price Growth Streak Skids To An End

U.S. Pending Home Sales

U.S. Pending Home Sales Fall to Second-Lowest Level on Record But…

According to a statement released on Wednesday, the National Association of Realtors index pending home sales fell 4% this month to the lowest since before the pandemic for records dating back to 2001. Although the decrease exceeded all predictions from an economist survey conducted by Bloomberg, many feel that we are very close, if not already at the bottom of the market. This means that better times for housing may lie ahead in 2023.

The aggressive tightening effort by the Federal Reserve to control inflation has significantly affected the housing market in 2022. Home sales and, consequently, prices have been falling for months as borrowing costs have approximately doubled from where they were at the beginning of the year.

“There are approximately two months of lag time between mortgage rates and home sales,” Lawrence Yun, NAR’s chief economist, said in a statement. “With mortgage rates falling throughout December, home-buying activity should inevitably rebound in the coming months and help economic growth.”

MBA Weekly Survey Dec. 21, 2022: Falling Rates Boost Refis for 2nd Straight Week

The Mortgage Bankers Association said Wednesday that its Weekly Mortgage Applications Survey for the week ending Dec. 16 showed an increase in refinancing activity for the second consecutive week due to the lowest interest rates since September.

Although the unadjusted refinance index rose 6% from the previous week, it was still 85% lower than the last week a year earlier. More mortgages were for refinances, from 29.4% the last week to 31.3 percent of all applications.

Double-digit U.S. Home Price Growth Streak Skids To An End

When mortgage rates spiked above 7% in October, and further limited demand, annual price growth in the U.S. housing market fell into the single digits for the first time in roughly two years, a pair of highly monitored surveys indicated on Tuesday.

The S&P CoreLogic Case Shiller national home price index saw its first single-digit gain since November 2020 in October, rising 9.2% as opposed to 10.7% in September. This is the index’s first non-double-digit gain since September 2020. The annual home price increase rate decreased to 9.8% in October from 11.1% in September, according to the Federal Housing Finance Agency.

The Fed’s aggressive interest rate increases, intended to lower high inflation by reducing demand in the economy, have negatively impacted the housing market. The Fed increased rates by half a percentage point this month, capping a year that saw its benchmark rate grow at the fastest since the early 1980s, from nearly zero in March to between 4.25% and 4.5%. In 2023, rates, according to Fed experts, will likely reach 5%.

The National Association of Realtors predicted earlier this month that existing home values, which comprise the vast majority of the market, will stay steady in 2023.

Next week’s potential market-moving reports are:

  • Monday, January 2nd – No Report
  • Tuesday, January 3rd – Construction Spending
  • Wednesday, January 4th – Job Openings, Quits, FOMC Minutes
  • Thursday, January 5th– – Initial and Continuing Jobless Claims, ADP Employment Report
  • Friday, January 6th – Unemployment Rate, Average Hourly Earnings

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (800) 216-1047.

California Platinum Loans

  https://californiaplatinumloans.com