Long Beach California Real Estate Loans

Long Beach, Ca. As you may be aware, last week on Friday,  the House passed by a 219-212 vote and energy bill commonly referred to as "Cap and Trade" because it puts "caps" on the carbon emissions from every U.S. company and industry and imposes trade limits and tariffs on imports.  Proving no industry is immune from the hand of the Federal government and global climate activism, the Cap and Trade bill has some provisions that are very detrimental to the real estate industry, and especially in Southern California where real estate short sales consist of over 50% of closings and many sellers simply do not have the funds to bring their properties  up to the standards required by the new law if it passes through the Senate and is signed into by Obama.

As part of the legislation every existing home sold in the United States using FHA financing will require an energy audit, paid for by the seller.  The audit will cover all appliances, water, gas, heat, cooling; all energy systems will be audited to see if they meet federal standards.  If any system or appliance fails to meet the standards the house cannot be sold until it is retrofitted to meet the new standards.  The standards are being set to achieve a 20% improvement in energy usage.

You list a home built in 1960 with elderly owners who have lived in the home since 1988 and have not retrofitted the home since purchasing the home almost 21 years ago.  What are the chances the home will meet the new federal standards?  If the buyer is not an FHA buyer they may not need to worry about it but the market is now limited to mostly FHA  buyers because conventional loans require a minimum of 10% down wherein FHA only requires 3.5% down.   What if you have a qualified buyer, but they are only qualified using FHA financing? Many sellers may not take their offer because they do not want to go through the energy audit and retrofit.  Many banks may wait until a conventional loan offer comes in; thus, shutting out many sales opportunities in an already hurting industry.

The Cap and Trade bill as passed by Congress is discriminatory against FHA buyers and sellers--typically the lower income and first time buyers in our market.  Our current market in Long Beach, Californis and indeed; the nation  is still reeling from a devastating period.  Fortunately because of FHA financing we have increased sales, Cap and Trade will kill much of this market.

The real estate industry needs to fight this bill and specifically this provision before it gets adapted by the Senate.  Please contact CAR, NAR and Senator Feinstein and Boxer, plus encourage your colleagues to do the same to kill this bill before it goes any further.

Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing.  Contact him at:  562-989-4608 ext. 110

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Long Beach, CA. We wanted to share information about how buyers finance in today's marketplace. Below is a lot of information for your review.  Our job is answer questions and help guide you for the best decision.

As we know, the $8,000 federal tax credit for first time buyer's drove the marketplace the past several months to where it is primarily a seller's market for entry level home prices Six months ago, it was a buyer's market. To qualify for this rebate you wlll have to fill out IRS form 5405 that when you file with your 2009 federal taxes determining the amount and eligibility of this important tax credit. Please review with your tax preparer.

 The State of CA through CalHFA has down payment/closing cost assistance available based on household income. A first time buyer (someone who has not owned property in three years) is eligible for 3% of the sales price for down payment and/or closing costs assistance. Please visit www.calhfa.ca.gov where you may become more familiar with their programs. Currently, 1st mortgages from CalHFA are difficult to acquire due to lack of product. As a result, buyers will get a standard FHA or a FHA Energy Efficiency Mortgage and combine it with a CalHFA CHDAP 2nd mortgage (3% of the sales price) for closing cost assistance. The CHDAP is a silent second mortgage with no payments and a 3.25% interest rate as long as you live; do not refinance; or sell the property. The buyer makes the traditional 3.5% FHA down payment.

Cities have down payment assistance programs based on income and property sales prices. The income limits are often mirrored by the income limits we see with CalHFA. Also, cites have these programs based on specific properties too. This allows the buyer an opportunity to purchase a home that otherwise would not exist.

 FHA has three standard popular programs available for buyers.

1. The standard FHA 1st mortgage has only a 3.5% down payment requirement. Two years ago less than 10% of all owner occupied purchases utiilized FHA. Now, more than 75% of the same purchases use FHA financing and the percentage grows as conventional financing is more restrictive and difficult to get.

2.The FHA Energy Efficiency Mortgage allows up a buyer to finance energy efficient improvements (i.e. windows, doors, hot water heater, dishwasher, insulation, heating/air conditioning). The amount of money is based on the sales price (generally 5% of the sales price may be available for improvements). This was increased from a previous limit of $8,000 just a few weeks ago!

3. The FHA 203(k) Streamline allows a buyer to finance improvements and non structural repairs (flooring, paint, kitchen and bathroom fixtures/cabinets, appliances, pool equipment). The maximum amount is $35,000. Please see the attached HUD document outlining this valuable program.

Given the condition of many properties, the FHA 203(k) Streamline is more and more popular. I have personally provided this mortgage and have a couple in escrows right now with more buyers out shopping using this financing. The FHA Energy Efficiency Mortgage may be combined with the FHA 203(k) Streamline for maximum financing. The repairs/upgrades require use of a licensed general contractor and allow the normal close of escrow. A buyer of mine in San Diego bought a duplex with a pool that was bank owned for $340,000. We financed $43,000 (using 203(k) and Energy Efficiency combined) for the repairs/upgrades. The bottom line is the improved property value exceeded $400,000! The client made money day one! The beauty is ONE 30 year fixed payment!

One important aspect of FHA is the FHA Sreamline Refinance programs the home owner may utilize if interest rates decline after the home is purchased. This important refinance allows the buyer to refinance with a benefit to the buyer (lower home payment) without the cost of an appraisal; without declaration of income and assets! This simplified refinance right now is being/has been utilized by home owners who utilized FHA last year. Many are financing 6% plus interest rates into interest rates in the middle 5% range with the issue of an appraisal!

There are teacher and veteran programs available. The VA financing allows 100% financing. The CALSTRS financing for those who work for a public school system allows an 80% 1st mortgage and a 17% second mortgage with no payments for five years! Plus, there are other specialty finance programs.

About me and Golden Empire Mortgage (GEM). This has been my full time job for more than seventeen years. I work/am available six and one half days a week. Focus, listening, and execution of a game plan is how I operate. My client (you) is the only person I care about in a transaction by law and ethically. It is my job to protect your interests period.

GEM is a direct lender processing, underwriting, loan documenting, and funding the loan in our name. Our underwriters have delegated underwriting authority from numerous banks. What this means is we can approve a mortgage for Bank of America without having to ask B of A for permission to fund the mortgage. Our FHA underwriters are approved by HUD and banks for approving FHA loans. This allows us to look at many of the national lenders on a daily basis for the best rates and programs. For example, Bank of America has been very aggressive with their FHA interest rates. The past few weeks, GMAC (now that they have some issues resolved) has become aggressive too. The bottom line is the client (you) benefit as we seek out the best rates and terms. All of our lending functions are done here in California by Californians. We do not outsource our operations.

Long Beach, Ca.  I remember one day my father took me to some homes he was building in Hacienda Heights in the early 1970s.  He was so proud to show me how the homes were built into the hills.  I was nonplussed and told him that I wanted an "action job like being an army man, a fireman or maybe even a policeman."  He laughed and found much pleasure in those statements. Although not a civil servant, a guess today proved that being a real estate broker can be an action packed job. 

Fast forward almost 40 years and I find myself putting together an open house in Bixby Knolls.  A beautiful listing by Mr. Mike De Martino.  The property at 4641 N. Cerritos, in Bixby is a beauty with over 2000 sq. feet featuring 3/4 inch oak floors throughout, brand new Dynasty Omega cabinets in the kitchen and baths.  Definitely a handsome contribution to Long Beach, Californias real estate repertoire. 

I smile when I think of the hectic day we had when holding this home open.  There were no less then 15 couples that came through the open house, all interested and most were definitely qualified. 

Although the home appears rather humble on the outside, after you pass through the courtyard wall, you enter into an enchanted and peaceful world.  The pineapple fountain dribbles and splashes a greeting to you as you enter through the courtyard giving the home a feeling of privacy. 

You stroll down the path to the main entrance door which is all glass.  A benefit of having a security door at the courtyard is that you can have a lot of glass doors opening up into the courtyard which really makes the house breath and flow.

As you enter the foyer, there is a partition wall separating the Family/Living area and Kitchen form the bedrooms hallway.  The layout is an open plan which makes the home feel very large.  In fact, the spacious 10000 sq. foot lot is well utilized.  Even more French doors open into the garden in the rear which makes the back patio feel like another outdoor room.  

If you are considering purchasing in  Bixby Knolls and interested in seeing a finely staged home, take the time to see this home.

Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing.  Contact him at:  562-989-4608 ext. 110

Subscribe to this site at:  www.longbeachrealestateandloans.com

Long Beach, Ca.  Unfortunately, in today's world, when we hear the words "customer service," too often we draw a blank when thinking of when was the last time we really experienced it.  However, good service is still there, you just have to look out for it and when you find it, acknowledge it and make sure that you support the institutions that provide it.   

For those of us over forty years of age, we can still remember the marvel of,  "Full Service," at the local filling station growing up.   If you opted for the full service, you would have a young man greet you at your vehicle, he would pump the gas for you, check your oil and tire pressure; of course, he would notify you if there was something awry, then he would finish off by cleaning your windshield to a sparking clarity.  Can you imagine this approach in your local "service station," today?

Another example of great customer service is easily understood when having a positive fine dining experience.  The entire dining affair becomes a pleasant and memorable adventure.  You are greeted by the maitre d', welcomed and seated by the host, acknowledged by the waiter, played to by the  musician and even possibly visited by the Chef.   Each person that you meet enhances the experience, fills the voids, and rounds out and completes the evening.  Like the layers of servers, the food also comes in waves or courses.  It proves that there is an exchange going on between the service provider and the customer. 

Still another way to witness good service is if you have ever traveled First Class across the Continent or overseas, there is simply no comparison to "Coach."  You are pampered, given hot towels to rejuvenate your skin, complimentary cocktails, and the best meals,  normally, you have plenty of legroom and a protective steward at your call ready to assist you in any matter.   It makes the time go faster and can actually be fun not to mention comfortable.

This concept of good customer service is dumbfounding to most Americans these days,  but it doesn't have to be that way.  You see, understanding how to provide excellent customer service should be a primary and mandatory philosophy of every enterprise and every customer, too. . Let us revisit the idea of customer service and really hammer out what it means to, "Serve others."   

And now something that may shock you.....your success in experiencing service depends on your own disposition.  This idea of providing service is what life is all about.  Learning how to take care of your fellow man is a simple and  basic exercise of etiquette and civility.   Learning how to communicate, treat, and relate to others is paramount to understanding the fundamentals of providing good service. 

If you want to find out quickly how another person really is on the inside, just buckle up and drive through a heavy traffic jam with him.  Here, the real person will definitely come out.  You will soon see either  total profanity, crass shouting and screaming, and lewd gestures issuing from the driver if  he has no concept of decency and service or; on the other hand, the refined citizen will drive in a more giving and generous style that is not only safer and steady, but can actually make the whole experience enjoyable.   What is the real difference between the two drivers?

Although there are countless ways to better serve each other, we can boil the whole concept of good service down to several factors:

1. Creativity.  This is where you can discover the service artist in yourself.   What is it about your product or service that gives your own custom signature and style of doing business. 
2. Attention to detail.  Here, in what appears to be the smallest of matters in a transaction, we see where the true Masters of Service really shine.  What happens, is that by carefully thinking out every step and stage of the experience of working with the customer, and making sure that each stage runs smoothly, the entire experience is raised in the level of service that the client experiences.
3. Acknowledging others.   Learning how to address your clientele, and making sure that they understand that you are aware of their presence and quickly respond to their needs makes the customer secure and happy.
4. Knowing your clients.   Building personal relationships creates longevity and loyalty in a customer base. 
5. Planning for success.   Structuring and designing the experience your clients are going to participate in requires careful attention and a blue print for the direction of how your customers will be treated.
6. Putting other needs above our own.  Sacrificing or giving yourself up to your client is a great act.  Putting them above yourself in regard to giving them the necessary time, attention, and service, even when you have other things to do. 
7. Learning to listen to the customer.   Remembering that body language communicates a lot more then what we can verbally.  Understanding how to listen and observe a customer so that you can read between the lines and take care of their concerns.
8. Consistency and discipline of routine.  Clients come back to a business because they are attempting to return to the same positive experience that they had during a previous exchange.
9. Being aware of the big picture.  Almost like a pilot who is flying a jumbo jet, you have to be aware of the big picture of what is going on, where you are at in the process, what are the prevailing weather conditions, and constantly in communication with the passengers.
10. Follow up.   Reaching out to the customer after the close of the transaction.  This sets a service provider above the rest of the competition.

Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing.  Contact him at:  562-989-4608 ext. 110

Subscribe to this site at:  www.longbeachrealestateandloans.com

Long Beach, Ca.  Just the idea of a physical road block may conjure up frustration and lost time on the road to where you are going in life.  But I would like to point out that within every roadblock that you may be facing, that there are probably some good reasons for them and that there are strategies on how to deal with them in your lives. 

Roadblocks, in the physical sense, are often built by authorities, civil servants, to protect the traveler from unseen dangers.  If the traffic was allowed to pass through unhindered, there may be a tragic accident resulting from unseen road conditions ahead. 

So, as much as you may want to proceed, we need to figure out what is really in your best interests.   It is more likely that a roadblock can be a good thing; that is, a signpost to adjust your aim, to rethink and reassess your plans, to slow down, an to reconfigure your approach.

Roadblocks are like loud neon signs that say, "Danger, caution, do not approach this way," and further evidence that life does not unfold perfectly into every whim that you may have.   That true success comes from reinventing an idea over and over again until the idea is perfected.  Because there is no true perfection in this world, we are faced with ever changing conditions which must be adapted to in order to survive and prosper.  Learning about life means learning about the road conditions that we face on it.  Having knowledge about what obstacles are on the road will make us more knowledgeable drivers and better pilots.

Roadblocks come in many varieties.  For example, small business not being able to get a business loan from a bank.   This is very evident in the current market dynamics.  Everyone who actually needs a loan can't seem to get it.  So, the traditional approach of going to a bank for a business loan has to be re-analyzed.  

What are the options that a small business has in lieu of the traditional bank loan?  Carefully delineate what all your options are.  Instead, consider raising capital from private sources instead.  There are many types of private investors.  The market itself will dictate whether or not your business plan is worthy to be financed.   You might check out local venture capital firms, or investment clubs.  Be prepared to pay higher interest rates and even to give up part of your ownership in order to get your dream off the ground. 

The whole process is part of living.  The roadblock is pointing you to another direction.  Find the right way and have fun getting there! 

Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing.  Contact him at:  562-989-4608 ext. 110

Subscribe to this site at:  www.longbeachrealestateandloans.com