For most people, Memorial Day is not a holiday typically consisting of celebrations. There are no presents, and for the most part it is a day off. I think it is so important that we acknowledge why we celebrate Memorial Day, because it reminds us of how lucky we are.

Today I sent out an email to all my clients and friends, wishing them a Happy Memorial Day.  I received this response back from one wonderful client/friend:

The Department of Veterans Affairs just announced new higher loan limits for 2011. These limits apply to the VA Zero Downpayment Loans that close from January 1, 2011 through September 30,2011. The new loan amount for San Diego will be $537,500, a $100,00 increase from the 2010 limit of $437,500. This is fantastic news for veterans and active military wishing to purchase real estate in 2011.

The VA guarantees loans up to 25% of the local VA limits. If a veteran-borrower wanted to purchase a home priced above local maximum limits he or she would have to deposit a larger downpayment in order to make up the difference between 25% of the local maximum and 25% of the purchase price.

Here is an example from Kevin Kueneke with Primary Residential Mortgage:

If an eligible veteran with full entitlement purchases a home in San Diego county of equal or lesser value than $537,500, then no down payment will be required. VA will guaranty up to 25% of the local limit ($537,500) which equals $134,375. However, if that same veteran wishes to purchase a home priced at $550,000 then they would need to bring in the difference between 25% of the local limit and 25% of the purchase price.

• Maximum Guaranty Amount In San Diego County = 25% of $537,500 = $134,375
• 25% of Purchase Price $550,000 = $137,500
• Difference between $137,500 and $134,375 = $3,125

The required down payment in this example of $3,125 is less than 1%…not too shabby. The greater the difference between the purchase price and the VA local limit, the greater the percentage down payment.

• Purchase price of $600,000 in San Diego County will require down payment of $15,625 which is only a 2.6% down payment
• Purchase price of $650,000 in San Diego County will require down payment of $28,125 which is only a 4.3% down payment
• Purchase price of $700,000 in San Diego County will require down payment of $40,625 which is only a 5.8% down payment

During this crazy time of year I always like to remember that many people are not as fortunate as my family. It gives me the most pleasure to donate food to the needy and toys to children who might otherwise not have any. Here is a list of locations in San Diego county where you can drop off these items. Even if you only have a few dollars to spend it could make a big difference. I tried to make this list as inclusive as possible, but there are likely many drop off centers I missed. If you know of others please post in the comments. Many of these drop off centers only take drop offs through December 19 so act quickly! Have a wonderful holiday season!

Union Tribune Holiday Food Drive

Help raise over 1 million pounds of food for the San Diego food bank!!
Drop off any non-perishable food items at all VONS and STATER BROTHERS markets (they even have pre-packaged bags of food you can pay for, at various prices)
Visit http://www.signonsandiego.com/news/holiday-food-drive/ for more information. As of this posting 550,000 pounds of food had already been collected!

YMCA Toy Drop off locations:

• The Art Institute of California – San Diego
  7650 Mission Valley Road
  San Diego, CA 92108
  Drop at North Main Building
• Dos Gringos – A Flower Company
  3260 Corporate View Drive
  Vista, CA 92081
• Hewlett Packard
  16399 West Bernardo Drive
  San Diego, CA 92127
• Hoehn Motors ‚ Mercedes Store
  5475 Car Country Drive
  Carlsbad, CA 92008
• Massage Envy Carmel Valley
  11130 East Ocean Air Drive, Suites C104 & 105
  San Diego, CA 92130
  (858) 259-3689
• Massage Envy Solana Beach
  665 San Rodolfo Drive, Suite 125
  Solana Beach, CA 92075
  (858) 259-5585
• SKLZ
  5823 Newton Drive, Suite 130
  Carlsbad, CA 92008
• San Diego Daily Transcript
  2131 Third Avenue
  San Diego, CA 92101

YMCA Branch Locations:

• Border View YMCA
• Cameron Family YMCA
• Camp Surf
• Copley Family YMCA
• Downtown YMCA
• Jackie Robinson Family YMCA
• Joe and Mary Mottino Family YMCA
• John A. Davis Family YMCA
• La Jolla YMCA
• Magdalena Ecke Family YMCA
• McGrath Family YMCA
• Mission Valley YMCA
• Toby Wells YMCA
• Palomar Family YMCA
• Peninsula Family YMCA
• Rancho Family YMCA
• South Bay Family YMCA
• YMCA Child Care Resource Service – Mission Valley

East County Toy Drive Through December 19:

ANGEL TREE
Volunteers will accept donated toys at our
angel tree in the Parkway Plaza mall

AJ’s Kids Crane Donations:

GRACIE SAN DIEGO
7976 Engineer Rd
San Diego, CA 92111
(858) 505-9917 or

IKEA San Diego
2149 Fenton Parkway
San Diego, CA 92108
(619) 563-4532

Ultra Star La Costa Cinema
6941 El Camino Real
Carlsbad, CA 92009-4108
(760) 599-8221

Marine Toys for Tots Donations:

Go to online website to make a toy or monetary donation:
http://www.toysfortots.org/default.asp

The Hyatt Regency Mission Bay Spa and Marina (drop off center)
1441 Quivira Road.

The Belly Up Tavern
143 S. Cedros Avenue, Solana Beach 92075

Coffee Donations for Troops Overseas:

Purchase at any area Starbucks

Military families in need of assistance with making mortgage payments just got a boost from the government. Fannie Mae recently announced it will reduce or suspend monthly mortgage payments for up to six months for families whose struggles are related to the death or injury of a service member.

Fannie Mae also will refrain from reporting the payment reductions/suspensions to credit bureaus for up to six months, minimizing credit score drops for military borrowers.

To see if your family is eligible contact your mortgage lender or call 1-877-MIL-4566.