Good news.  Common sense is starting to come back into the loan the market.

This is going to really help the average home buyer of today who is 34 years old and has an average credit score of 654.

Feeling Lucky

Non-QM (Qualified Mortgages) are expected to double this year.

It has been difficult for investors and self-employed borrowers to obtain a real estate loan since the market crashed about seven years ago.   Good people cannot get a good loan.

Due to the requirements of the secondary market or what is often referred to as “Fanny Mae/Freddie Mac,” their market guidelines have set the rules for lending that many people cannot meet.  Borrowers who cannot meet the Fannie/Freddie benchmarks must pay “hard money” rates that can be exorbitant.

With 50% of the American population having a credit score that is less than 680 it adds thousands to the cost or sometimes prevents them from qualifying for a home loan.

In general, this is what it will take to get a decent NON-QM loan:

  1.  Have some skin in the game.  You will need at least 10% down
  2. You must document your ability to pay back the loan as agreed

Credit must be reasonable, with evidence that you pay your bills now on time.


Fannie Mae and Freddie Mac, Lehman Brothers, General Motors and dozens of other companies that have all either morphed or collapsed since the “Great Recession” came on the scene, got bailed out, sold or merged in 2008.

Too Big to Fail


There might be some who think we’re past the worst of it.

Things are getting better aren’t they?  The nightly news anchors tell us that all the politicians are back to work.

Rates remain low, housing is getting more expensive as the REOs have been absorbed and the stock market is at all time highs.

There remains an unease on main street. Unemployment remains high and the jobs that are available don’t pay enough to support the same life style that the middle class once had.  Those who lived in the 50’s; middle class families enjoyed higher standards than they do today.

What happened to us?

Ozzie and Harriet Nelson, the Cleavers, and single parent Andy Griffith would have a hard time meeting their financial obligations today. The Brady household with 3 boys and 3 girls would certainly not be able to afford Alice, the housekeeper today.

This is controversial, but it needs to be said. Our cash system that is supported by the full faith and credit of the USA is vulnerable. The US Dollar, the world reserve currency since WWII is being supported with a printing press and the Federal Reserve that has been until recently buying  $85,000,000,000 (billion) per mo. of USA Treasury promissory notes. This is not sustainable.

There is a crisis brewing that can threaten your way of life. Where you shop, where your kids go to school, your savings and where you vacation will be impacted if inflation returns… and it will.

Save money for a rainy day, the traditional wisdom says. Where you ask?
Here is the list:

Think this through. Every saving vehicle that you invest in has some risk. Everything you invest in offers increase of your capital. They are not equal.

Here is what you should look at with each investment.
1. Income
2. Depreciation
3. Equity build up
4. Appreciation
5. Leverage

Then look at a home and compare a rental home…    it should start to make sense.

The future of the U.S. real estate market in 2013 is bright
Real Estate Is Back – 2013 ActiveRain Survey


This is Confidence


Knowing that you are building equity and that your kids will have a place to come home to.

Owning a home will be one of the best things the average middle class citizen can do to protect them self from aggressive inflation that is just beyond the horizon. Read the rest of this entry



Renter  Look Ahead

The curve is falling

 Make your move! 

The landlord might come knocking and say  “the rent is going up…Sorry but…”

Occupancy rates in residential properties are rising,  vacancy rates are falling, even in the hardest hit areas.


US Census data shows that


Mortgage Rates remain low.  Rents are going up.  The population has increased to 311.6 million people in the USA.  Demographers expect population growth to pick up when the economy rebounds fully.


Vacancies drop when the number of households grows faster than the number of housing units.   This trend is happening nationwide.  This is great for owners in hard hit markets like Nevada, Florida and Arizona.  It makes for some challenges in tight job rich metro areas and markets like coastal California.

Read the rest of this entry

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