Blog - JVM Lending

Rookies & No Short Sale Seasoning & 2nd Job Seasoning

March 3, 2014/in Our Blog, Self Education

We met First Time Home Buyers over the weekend who had been woefully misinformed by other lenders, driving home our point about the need for proper training and education in the lending arena. Below are a few things all loan officers should remember. No Seasoning is required after a short sale if there were no […]Read More

Very Strong Pre-APPROVAL Letter Necessary! Calling Listing Agents

February 28, 2014/in Homebuying, Our Blog

We received a copy of another lender’s “pre-qualification” letter today that was laughably weak. We seriously doubt that lender’s buyers will ever get an offer accepted b/c the letter was so vague and so weak. In this highly competitive marketplace, it is essential that all borrowers actually get 100% “Pre-Approved” and that borrowers get a […]Read More

“Flight to Safety”; “Escrow Holdbacks” Return

February 27, 2014/in Mortgage Industry, Our Blog

A “flight to safety” refers to the mass movement of investment funds from stocks to bonds (which are considered much safer investments). Yesterday’s “flight to safety” was triggered by Russia’s massive war maneuvers near the Ukrainian border. Threats of war typically spark flights to safety and reduce rates, as investors seek the safe haven of […]Read More

“Seasoned Funds” Revisited; Looking for Seasoned Funds

February 26, 2014/in Homebuying, Our Blog

We defined and addressed “Seasoned Funds” in Monday’s comments, and our trainer astutely pointed out that we missed a couple of significant sources for “Seasoned Funds.” This is especially important during tax season. This is also important b/c some loans (Investment property loans for example) allow for no gift money. Below is a list of […]Read More

Seasoned Funds: Earned Income; Equity Lines; In Bank for 3 Months

February 24, 2014/in Our Blog

This is a quick review of “Seasoned Funds:” money that has been in one’s bank account long enough to be considered one’s own funds (there are no large deposits on the bank statements indicating the funds were recently deposited). Lenders require borrowers to have “seasoned funds” for down payments to make sure funds were not […]Read More

No Cost Refi = No Risk = No Prepay Penalty = Savings for Free

February 21, 2014/in Our Blog, Refinance

We have many borrowers with Mortgage Insurance who qualify for “no cost” refinances that would save them as much as $500 per month in some cases. These borrowers are “ripe” for refinancing b/c their homes have appreciated rapidly since their purchase date. We of course contacted these borrowers and explained the benefits of a refinance, […]Read More

Construction Loans (Homestyle and 203k) Revisited: How They Work?

February 20, 2014/in Mortgage Industry, Our Blog

We are getting questions about our Homestyle “Construction” Loans in regard to how they work. For purchases, it is like this: Buyer contracts to pay $400,000 for a house that needs $100,000 of renovations. Buyer hires a HUD consultant (JVM provides names) and a contractor to discuss improvements and to create plans and specs. JVM […]Read More

Appraised Value Is Not Market Value; Solution?

February 19, 2014/in Appraisals, Our Blog

We have a transaction in which two buyers (both are clients of ours) are more than willing to pay $1.2 million for a property in Oakland with an appraised value of only $950,000. There are probably more buyers in the wings willing to pay a similar price. The appraisal came in so low b/c of […]Read More

60% LTV Financing, Based on Cash Flow of Property; Not Hard Money

February 14, 2014/in Homebuying, Our Blog

We offer financing on investment properties up to 60% LTV that is NOT based on income. It is based on the cash flow of the property and debt service coverage. Hence, buyers and owners with limited or no income on their tax returns can qualify for this financing. It is not hard money. The rates […]Read More

22 Habits Of Wealthy People – Avoiding Gossip?

February 13, 2014/in Financial Planning, Our Blog

22 Habits of People Who Accumulate Wealth. Tom Corley is a CPA and Financial Planner who spent four years interviewing “Wealth Accumulators” (WAs) and “Non-Wealth-Accumulators (NWAs) about their various habits. He compiled his statistics and made many fascinating observations, including those listed below. Many of the habits are just common sense practices that obviously work, […]Read More

Construction Financing Revisited; Money for Remodels/Additions

February 12, 2014/in Our Blog

JVM Lending now offers all types of construction financing, including: (1) Streamline FHA 203k loans up to $35,000; (2) Standard 203k loans up to FHA loan limits; (3) Fannie Mae Homepath Renovation Loans; and (4) Fannie Mae’s Homestyle Loans. Fannie’s Homestyle Loan is the best option among the four b/c borrowers avoid FHA MI and […]Read More

95% & 90% of FUTURE VALUE Construction/Rehab Loans

February 10, 2014/in Our Blog

Fannie Mae now offers Construction Loans up to 95% of the future value (after improvements) of a property for low balance loans of $417,000 or less. For high balance loans (to $625,500), the maximum loan-to-value is 90%. These are straight construction loans underwritten to Fannie Mae “rate and term” guidelines. They allow for most any […]Read More

Market Is Market Is Market; Sellers Will Not Leave Money on Table

February 7, 2014/in Our Blog

We have had many borrowers recently tell us that they refuse to pay a certain amount for a property b/c “the house is not worth it” despite that fact that there are five other offers on the house at the same or higher price. In a similar vein, one of our favorite Realtors told us […]Read More

Rates Up; $1.2MM Conforming or FHA Loan? Limits Are HIGHER for Units

February 6, 2014/in Our Blog

Conforming and FHA Loan Limits are higher for multiple units. Many people forget this and assume they need to obtain harder to qualify for JUMBO financing for any loan over $625,500. This is not the case. 2014 Conforming and FHA High Balance Loan Limits for High Cost Counties (Bay Area): One Unit: $625,500 Two Units: […]Read More

What Ever Happened to Shadow Inventory? Gov’t Policy Worked?

February 5, 2014/in Our Blog

For years after the foreclosure crisis of 2008 and 2009, everyone expected a huge surge of “shadow inventory” properties to flood the market. This never happened, and will likely not happen. Shadow Inventory includes all the properties held by banks after foreclosures, properties with pending foreclosures b/c of late payments or no equity, and properties […]Read More

“I’d 100% recommend JVM; class act all around” Low Ball Quotes?

February 3, 2014/in Our Blog

The following quote was emailed to us by a PhD engineer from Cal: “I’d 100% recommend your firm; class act all around.” This is not just JVM/Opes touting ourselves again (even though we love doing so). We bring this up b/c the borrower is a first time home-buyer shopping for financing. He came to JVM/Opes […]Read More

As Values Climb, Refi’s for Many Now an Option

January 31, 2014/in Our Blog

We have a borrower who has been stuck with a 6.5% interest rate for years b/c he thought he did not have enough equity in his Antioch home to refi. We checked today, and his loan-to-value ratio is under 90%; we can lower his rate 2% at no cost to him. He will now save […]Read More

Comment from Cal’s Baseball Coach: Valuable Business-Culture Lesson!

January 30, 2014/in Our Blog

A close friend of ours has a son in high school who is a top baseball recruit with the option to play for some of the best colleges in the country. What makes this story so interesting, however, is the school he is focused on and why. When he visited Cal with about 50 other […]Read More

WARNING To Fence Sitters: Rates Will Climb This Year; Tapering

January 29, 2014/in Our Blog

Despite recent rate-improvements, rates will most definitely climb significantly this year. The reason is that the Fed continues to announce reductions in the amount of mortgage backed securities and treasury bonds it is purchasing. The Fed is expected to reduce its overall purchases from $85 billion per month in December to zero as soon as […]Read More

Waiving Appraisal Contingency? More Down or Switch to FHA

January 28, 2014/in Our Blog

Appraisal Contingency Appraisals are used to estimate a property’s value. Appraisers use the property’s location, condition, and the current market to determine its appraised value. The Appraisal Contingency allows the buyer to walk away from the purchase contract if the property’s appraisal comes in lower than the contract price and the seller is unwilling to come down […]Read More

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