5 San Diego Home Loan Trends I Am Seeing in 2021
(Please note - This video was created prior to 2021 - but, these loan amounts are updated for the higher loan amounts of 2021)
In this video I want to break down the 5 trends I am seeing right now in the San Diego mortgage markets as of this video - mid July 2020. (Scott's Note: These are even more *real* as I type this in February and shows the trends I am seeing are dead on.)
If you missed it - you can see my San Diego real estate trends here.
I want to be very clear - I call things as I see them from over 20 years doing real estate, loans, and investing, not only in San Diego, but overseas as well. You might agree, disagree, or have different takes. Everyone has a different standpoint depending on different life factors.
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Here are the 5 trends:
There's access to all the different loan types I had prior to Covid, unemployment, lock downs, etc including:
103% financing up to a $753,250 loan amount (more details on these here).
$0 down VA loans with no loam limits (more details on these here)
$0 down USDA loans if you want to live in the outskirts of San Diego (more details on these here)
3% down conventional financing up to a $548,250 loan amount (more details on these here)
3.5% down fha financing up to a $753,250 loan amount (more details on these here)
5% down super conforming from the $548,250 loan amount up to the $753,250 loan amount (more details on these here)
5-20% down for any jumbo loans over the $753,250 loan amount (more details on these here)
The rates are trending down especially if you want to go borrower paid on your loan versus lender paid (video explains what that is.)
Still very little access to aggressive loan products that were available from 2001 to 2007 including things like stated income/stated asset, no income/no assets. pay option arm, neg am loans, etc.
With more 15 and 30 year fixed loans we are seeing people stay in their homes longer as they do not need to either refi or sell as they did previously
No loan "gotchas" we have had in the past like pre payment penalties, adjustable rate mortgages with short fixed terms, abnormally large lender fees (such as discount points, loan origination, loan rebates, etc).
More and more home owners are taking advantage of *not* paying their mortgage currently due to Covid 19 hardships, letting their interest tack onto their principal, and then tacking on those missed payment at the end of their loan.
Bonus: Trend #6
Non QM loans are still touch and go. These are the loans for self employed, using bank statements, or anything outside the normal Fannie Mae/Freddie Mac box
What are your thoughts?
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Your San Diego Mortgage Insider,