Category: Loans and Real Estate

One of the toughest parts of buying a home is coming up with the down payment.  This, combined with the ridiculously high prices in Santa Clara, has made it nearly impossible for most lower income families to even hope of buying a home.  Housing Trust Silicon Valley has been around for almost 20 years and was formed with goal of helping people with home ownership.  With that in mind they have recently announced that they have increased their maximum down payment assistance to $95,000.  The GAP assistance program offers low income buyers a deferred interest loan that can be used to for up to %20 of the purchase price.  Income levels are determined by household size.  For example, a single member household can have a max income of $59,400 and a 4 person household can have up to $84,900.  Even in this expensive market there are many reasons to buy.  This is a chance to get into the housing market and build equity.  For more information about the GAP program and finding a home that meets the criteria contact me at 408-896-3580.  You can also check out their website at:

Gap Assistance Program (GAP)

 

If you’re thinking of buying a rental property in San Jose be sure to review the Ellis Act and the new ordinances that have been recently added.  On Tuesday, April 18th, on a narrow 6-5 vote, the San Jose City Council imposed new restrictions on the rights of rental property owners.  The new regulations include a “Just Cause” ordinance and payment of relocation expenses for renters in rent controlled apartments.

So what exactly is a “Just Cause”?  The council proposed the following 12 possible reasons for evicting a tenant.  Landlords must not only provide a reason but they must provide documentation to back it up.

1. Nonpayment of rent
2. Material or Habitual lease violation
3. Damage to the apartment
4. Refusal to sign a new agreement
5. Nuisance behavior
6. Refusing access to the apartment
7. Unapproved holdover subtenant
8. Substantial rehabilitation
9. Ellis Act Removal
10. Owner move-in
11. Order to vacate
12. Vacation of unpermitted apartment

The updates to the Ellis act can be found at  http://bit.ly/Ellis-SJ1  and http://bit.ly/Ellis-SJ2

The “Just Cause” ordinance and can found at http://bit.ly/TPOD2D8

 

The most important factor in getting a home loan may not be what you think.  Most people think credit score is the most important, and YES, it is important, but even with a great credit score there is one thing that can prevent you from getting a loan.  Debt to income ratio.  The DTI is what tells underwriters that you can afford the monthly payments.  This ratio shows what percentage of your monthly income is used to pay monthly debts.  If the percentage is to high (43% is the max for most loans) underwriters will deny the loan.  This is not a judgment call by underwriters, they really have no choice.  Since most loans are packaged and resold the DTI must fall within Fannie Mae and Freddie Mac requirements.

Keep in mind it’s not enough to have the income, you must be able to prove it via w2’s or tax documents.  For self-employed people this can pose a big problem since business owners often take advantage of writing off business expenses to show less income on tax returns.  So when considering applying for a home loan (new or refinance) be sure to make an assessment of your own income and projected debts and make sure you fall within the DTI guidelines.  Oh, and keep that credit score up as well.

Wondering if your home improvement project will pay off when you sell?  Here are some of the more popular projects and the returns for more upscale homes.  Returns can vary greatly depending on where you live and how much you spend.  While it’s a good idea to consider the resale value of your improvements, be sure to think about your needs as well!  Unless your planning a move in the near future you’re the one who will be enjoying all the changes.

Are you looking to buy your first home in San Jose or surrounding areas?  The California Association of Realtors Affordability Fund has a program that can help you pay for up to six months (up to $2500) of HOA dues.

Many 1^st time buyers are looking at condos so this program makes sense if you are just starting out or if you have not owned a home in the last 3 years. The requirements are simple:

• Must have worked with a California Realtor
• The property is your primary residence
• You are a 1st Time buyer which means you have not deducted from your tax returns for the last 3 years
• The home you purchased must have HOA dues

If you are interested in learning more about this program, please call Sonja Norland at (408) 896-3580 or email at Sonja.Norland@EliteRM.com for more information. This program is only available for a limited time so if you have been thinking about buying, call now!

 

Thinking about remodeling?  Not every remodel will pay off when selling your home.  Some remodels generate far greater returns than others.  Here in California certain improvements are more valuable to prospective buyers. Decks have long been at the top of the list.  Here in San Jose, California we spend a lot of time outdoors.  A deck is an easy and inexpensive way to add square footage to your home.  Here are a few of the most popular and valuable improvements that will increase the value of your home.

 

Thinking of adding a wet bar or an outdoor kitchen?  Before making that move check out the some of the least popular improvements for prospective buyers.

Not all remodels add value to your home.  While it’s always important to consider what you really want, it’s also a good idea to look into what home buyers want if you’re thinking about selling in the future. While it’s not likely that you’ll be adding an elevator (number 1 on the list), many of the other items get added to homes on a regular basis.  Some of these items may surprise you.  I would have thought an outdoor kitchen would be popular here in California and I’ve seen many beautiful kitchens with glass cabinets.  If you’ve always wanted a wet bar, well then go for it.  Just keep in mind that it probably won’t add equity to home the way other additions might.  For a list of additions that DO pay off check out the 11 top home improvements that pay off in California.