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FHA & Conventional Loans About To Evaporate For Some Benicia, Vallejo Homebuyers?

June 18th, 2011 categories: Benicia, Buying, Loans / Financing, Solano, Vallejo

How Much Can You BorrowUnless Congress steps in soon, some Benicia, Vallejo homebuyers may find it impossible to get an FHA or conventional loan by early Fall.

That’s because loan limits for the two loan programs that cover probably at least 90% of the loans originated in Solano County are set to change come Oct. 1.

And barring Congressional action, the maximum you can borrow under both programs is going to drop substantially, which means that many Benicia, Vallejo and Solano County home buyers could suddenly find themselves needing to come up with tens of thousands more in down payment or accept a costlier “jumbo” loan.

Right now, the maximum you can borrow with an FHA or conventional loan is $557,500. But as it stands right now, after September 30, the conforming loan limit in Solano County will drop to $417,000 and the FHA limit to $400,200, which is certain to impact local borrowers who are planning to finance a home with a loan amount that exceeds the new limits.

In plain English, that means that any borrower in Solano County who is today planning to buy a home for more Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

10 Ways To Help Avoid A Short Sale Disaster

March 11th, 2011 categories: Benicia, Foreclosures / Short Sales, Selling, Solano, Vallejo

10 List - Short Sale GraphicAs anyone looking for a home in Solano County right now can tell you, many of the homes on the market right now are short sales (where the seller owes more than the home is worth and can’t complete the sale without their lender(s) agreeing to reduce the amount they owe).

Short sales are far more complicated than a regular sales transaction and can take far take longer, too, due to the time a bank can take to review the seller’s financial situation.

Right now, about 4 out of every 10 homes on the market in Solano County are short sales, including 43% of the homes in Benicia and 47% in Vallejo. And, despite what you may have heard, many short sales do indeed close escrow.

Most  of the short sales we’ve represented clients on over the past few years have successfully closed.Yes, there can be some drama or unexpected twists and turns along the way.

But sadly, many sellers or agents either throw in the towel far too early — either out of frustration or by giving up at the first sign of a short sale decline.

If there’s one thing I’ve learned from representing short sale clients it’s that there’s definitely an art to successfully negotiating a short sale. There’s far more to it than just shuffling papers and waiting for the bank to give its answer.

Over the years I’ve found that there are 10 critical factors that either the listing agent or the seller can directly control. Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

What Obama’s Mortgage Reform Plan Means For Solano County Home Buyers & Sellers

February 17th, 2011 categories: Buying, Contra Costa, Loans / Financing, Selling, Solano, The Economy

You may have heard that President Obama unveiled his plans to reform the mortgage industry last Friday. Since then, his proposal has taken a lot of heat in real estate circles, especially since one of his recommendations is to reduce the maximum loan limits on conventional mortgages in high-cost areas by more than $100,000 as early as this fall.

Among some of the proposals in Obama’s plan:

  • Drop the maximum loan amount in high cost areas (which includes much of the Bay Area) from $729,750 to $625,500.
  • Phase out both Fannie Mae and Freddie Mac by reducing their loan portfolios by 10% a year
  • Raise fees for borrowers
  • Increase minimum down payments borrowers

What This Means To Solano Home Buyers & Sellers

It’s still unclear whether the White House’s proposal to lower the maximum loan limit would really impact Solano County. Currently, for most of the U.S., the limit is $417,000. The majority of the Bay Area, though is at $729,750 — which is the amount that Obama’s plan wants reduced by about $105,000.

pull quoteIn Solano County, however, our limit is $557,500, which is higher than the rest of the U.S., but lower than most other Bay Area counties.

So if the White House plan reduces the loan limit for all high cost areas on a proportionate basis, then Solano County buyers and sellers could definitely feel a pinch, since buyers of homes priced above the new loan limit would be forced into higher-rate “jumbo” loans, which would no doubt kick some buyers out of the market or force some sellers to lower prices to attract conventional loan buyers.

But if the White House plan keeps our limit at $557,500, since it’s already below the proposed $625,500 ceiling, then Solano County Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

A GIANT Celebration Tuesday In Vallejo

February 17th, 2011 categories: Fun Stuff, Local Stuff, Solano, Vallejo

Trophy Tour LogoSpring Training has already started in Arizona, but if you’re like me and are still basking in the afterglow of the San Francisco Giants’ World Series title, you’ll have one last opportunity to soak up some of last year’s magical mojo this coming Tuesday (Feb. 22) in Vallejo.

Throughout the past month, the Giants have taken the World Series Trophy all over Northern California.  Tuesday afternoon, it comes to Vallejo — its only stop in Solano County — where local Giants fans can see the trophy up close and personal and even have their picture taken with it.

The particulars:

  • Tuesday, Feb. 22
  • 2:30 to 4:30 pm.
  • Dan Foley Cultural Center, 1461 N. Camino Alto, Vallejo

Take Tuolumne to North Camino Alto and keep going — it’s at the back of the park, just across the water from Six Flags.

I actually saw the trophy a few weeks ago, when it was in Walnut Creek. We got there about 30-45 minutes before the doors were supposed to open Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

April Solano Home Sales Report: Prices Holding Steady And Up County-Wide Over Last Year

May 11th, 2010 categories: Benicia, Buying, Fairfield-Gr Valley, Market Update, Selling, Solano, Suisun City, Vacaville, Vallejo

April’s home sales numbers are in for Solano County and on a county-wide basis, the median price last month was $200,000 — exactly the same as it was in March.

Vacaville, Vallejo and Suisun all reported median prices that were almost the same as the previous month, while Benicia’s median was way up and Fairfield’s was noticeably down.

April Median Sales PriceThe huge jump in Benicia’s median price is probably Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Solano Home Buyers Get 2-Month Extension On 3.5% Fannie Mae Closing Cost Credit

April 28th, 2010 categories: Benicia, Buying, Fairfield-Gr Valley, Foreclosures / Short Sales, Solano, Suisun City, Vacaville

Fannie Mae 3.5 Credit Non-Investors Who Buy A Fannie Mae Repo Can Still Get The Credit If They Close By June 30


In what amounts to an unexpected gift to buyers of Fannie Mae bank-owned homes in Solano County, the secondary mortgage market giant just announced that its 3.5% closing cost credit incentive program, which was scheduled to end Apr. 30, has been extended to June 30.

So if you buy one of the 96 Fannie Mae-owned homes in Solano County that are either presently for sale or about to come on the market and can close escrow in the next two months, you could be eligible for up to 3.5% in credits at close of escrow.

Of the 96 homes for sale in Solano, 89 are Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Solano Pending Home Sales Up, Inventory Down As Tax Credit Draws To A Close

April 28th, 2010 categories: Benicia, Buying, Fairfield-Gr Valley, Market Update, Solano, Suisun City, Vacaville

Whether it’s due to the impending federal tax credit deadline or just the normal spring real estate market surge, home sale activity has definitely picked up in recent weeks in Solano County, which in turn weekly-solano-home-reporthas caused the supply of homes for sale to drop.

This past week marks the first time all year that all five cities in our Solano County market area have seen their inventory of homes decline in the same week.

Vallejo (-20) and Fairfield (-24) both experienced double-digit drops in their housing supply, while the other three cities saw a nominal decrease (Benicia & Fairfield -4 and Suisun -2).

Yet, even that is a significant change from Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Inventory Of Available Homes Still Way Up For The Year Throughout Solano County

April 19th, 2010 categories: Benicia, Buying, Fairfield-Gr Valley, Market Update, Selling, Solano, Suisun City, Vacaville, Vallejo

weekly-solano-home-reportYou’d never believe it if you talked to most buyers, but the inventory of homes for sale throughout Solano County is still up dramatically for the year.

Every city in our Solano market area has at least 20% more homes on the market today than it did at the beginning of January.

The leader is Vallejo, with a whopping 55% increase in 3-1/2 months. There are 374 homes on the market there right now, compared to 242 on Jan. 4.

The other four cities’ year-to-date increases, in descending order: Vacaville +37%, Fairfield +26%, Suisun + 24%, Benicia +20%.

Now, if you’re a buyer who’s been involved in countless multiple-offer negotiations, Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Quarterly Stats Paint Uncertain Picture For Solano’s Real Estate Market

April 14th, 2010 categories: Benicia, Buying, Fairfield-Gr Valley, Market Update, Selling, Solano, Suisun City, Vacaville, Vallejo

1sr Qtr Report - Click HereI just downloaded and analyzed the 1st quarter housing numbers for Solano County and to be honest, it’s hard to tell exactly where we’re headed.

In fact, it’s hard to even figure out exactly where we’ve been. Or what these first quarter numbers really tell us.

Year-Over-Year (1st Qtr 2010 vs. Q1 2009)

If you look at the first quarter of 2010 compared to the same period a year ago, you’ll see that in the county’s most affordable cities (Vallejo, Fairfield & Suisun), prices are definitely higher today than they were for Q1 of 2009. But in the county’s most stable markets (Benicia and Vacaville) they dropped.

Countywide, prices were up 8%, from $185,703 last year to $200,000 in 2010. Here’s the rundown for the five cities in our Solano market area: Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

March Home Sales Activity Soars Throughout Solano County

April 13th, 2010 categories: Benicia, Buying, Fairfield-Gr Valley, Market Update, Selling, Solano, Suisun City, Vacaville, Vallejo

March Solano Home Sales ReportMeanwhile, Prices Drop In Benicia & Vallejo But Climb In The North County

After a February in which home sales activity in Solano County dropped noticeably, it roared back with a gusto in March, perhaps in part due to the upcoming end of the federal tax credit program.

Solano Up 44% Over Last Month

All five cities in our Solano market area showed robust gains in the number of closed sales last month. Countywide, the number of home sales in Solano was up 44% over February.

Vallejo led the way with an incredible 71% increase, followed by Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »