Posts Tagged ‘North San Diego home prices’

FHA Annual Mortgage Insurance Premiums Reduced

Wednesday, January 11th, 2017

By Elvin J. Wesley, President and Broker of Ranch and Coast Mortgage Group

What a great way to start the week and 2017!!!

Monday morning HUD announced that it had achieved the balance of its statutory operational goals and as a result of that it requires a reduction of the Annual MIP charged. This exciting announcement from HUD yesterday morning that represents a 25 basis points improvement on most FHA Loans (not to interest rate, but to the Annual Mortgage Insurance Premium charged by HUD on FHA loans)

The Revised MIP schedule is effective for Endorsements of Mortgages with a Closing / Disbursement date on or after January 27, 2017. Closing / Disbursement date is defined as the later of the date of the signing of the Mortgage or the Disbursement of the Loan Proceeds as is entered in FHA Connection. Unlike changes in the past the change is effective based on the closing date and not the case number assignment date!
The Revisions applies to all FHA Title II Forward Programs excluding Mortgages insured under the National Housing Act section 247 (Hawaiian Homelands).

Here is a Summary of the changes

What does this mean in regards to $$…payment reduction when a buyer/borrower is purchasing a home?


Old – $550K base loan amount based on 0.85% MIP = $389.58 per month

NEW  – $550K base loan amount based on 0.60% MIP = $275.00 per month

That’s a $114.58 reduction in MIP payment, which means lower overall payment for buyers/borrowers and more BUYING power!


On November 23rd the Federal Housing Finance Agency (FHFA) announced that the maximum conforming loan limits for Fannie Mae and Freddie Mac in 2017 will increase, which of cources has now taken place. This will be the first increase in the baseline loan limit since 2006.  In higher-cost areas, higher loan limits will be in effect as shown below.

This change has already taken place for FHA and VA loans limits as well.

2017 Conforming and High Balance Loan Limits-

SAN DIEGO NEW LIMITS $424,100 Conforming and $612,500 High Balance

LOS ANGELES NEW LIMITS $424,100 Conforming and $636,150 High Balance

ORANGE COUNTY NEW LIMITS $424,100 Conforming and $636,150 High Balance

*See attached spreadsheet for more counties and limits for 2-4 unit properties



Number of Units Maximum base conforming loan limits for properties NOT in Alaska, Hawaii, Guam & U.S. Virgin Islands Maximum base conforming loan limits for properties in Alaska, Hawaii, Guam & U.S. Virgin Islands
  2017 2016 2017 2016
1 $424,100 $417,000 $636,150 $625,500
2 $543,000 $533,850 $814,500 $800,775
3 $656,350 $645,300 $984,525 $967,950
4 $815,650 $801,950 $1,223,475 $1,202,925


High Balance/Super Conforming:


Number of Units Minimum/Maximum Original Loan Amount Properties in Alaska, Hawaii, Guam & U.S. Virgin Islands
  Minimum Maximum Minimum Maximum
1 >$424,100 $636,150 >$636,150 $954,225
2 >$543,000 $814,500 >$814,500 $1,221,750
3 >$656350 $984,525 >$984,525 $1,476,775
4 >$815,650 $1,223,475 >$1,223,475 $1,835,200


Please refer to the full County Loan Limits list attached or just contact Elvin Wesley at Ranch and Coast Mortgage

(CA DRE license: 01316249, NMLS: 234795):

c 760.580.1733

t 760.230.2042

f 760.487.1295

f 866.683.5399 toll free

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Multi-Family Housing is Growing in Popularity

Friday, August 2nd, 2013

You have probably been hearing it for some time, but lately it really seems to be even more apparent: many buyers are looking for multi-family housing. What does this mean? Although it may conjure up images of apartment buildings, it can mean anything from single family homes that have an extra room for a parent, to duplexes and triplexes that can house relatives in close proximity to each other but not necessarily in the same space, and even expands to smaller apartment buildings.

According to the Mortgage Bankers Association (MBA), lenders have reported that loan originations are up for multi-family loans. Apartment buildings are seeing the biggest increase, with loan originations on these purchases up 31% from 2012’s first half of the year total.

In many parts of the country multi-family housing can be difficult to find, especially in suburban areas. Lately I have had several buyers looking for homes to accommodate their families and their aging parents, from single family homes with downstairs living space or guest homes on the property, to duplexes where parents could live independently on their own but next to their children. In North San Diego there are options for people looking for these types of homes, but they are not overly abundant and much depends on price range.

Many people these days seem to desire a single family home for their family, with a downstairs bedroom or even a guest home for a parent/s. These types of homes can be hard to find, and much depends on budget. One also has to consider that having another person live with you and your family, if you are not used to it, can be an adjustment for all.

There are many ways to get creative if you need a multi-family dwelling and also desire your own space. Duplexes and triplexes are a great solution. You can live in one, have your relative(s) in another, and even rent a third/fourth if you purchase a triplex or a four unit building. This is a great way to bring in some income as well, especially if you are in a location that is close to desirable areas such as shopping, dining and transportation.

If you really want to earn income you can consider purchasing an apartment building. Depending on the area, some buildings have only a few apartments, while others contain many. Of course, it all depends on your price range and goals, and the time you have to manage it, or whether you can hire someone to do it for you.

If you are considering purchasing multi-family properties, speak with a skilled Realtor who has experience with such parcels. While many residential agents may feel comfortable with selling duplexes or triplexes, you should speak with a commercial agent if  you are considering an apartment building or any property containing more than 4 units. Do your research and learn about the different types of properties that might meet your needs, and connect with a lender who lends on these types of dwellings. You might find that buying this type of property is a great option for you.




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Is There Any Truth to the Double-Dip Rumors?

Friday, May 6th, 2011

In case you haven’t heard, rumors that our housing market is going into a double-dip are once again alive and kicking. Several people have asked what I think of this in relation to North San Diego, and whether it really is true. My answer: yes and no (you didn’t think it would be simple, did you?)

The latest news, just released yesterday by Clear Capital, states that prices fell in March and April, compared to the same time last year and the prior low in March of 2009. They credit the bank owned inventory (REOs) as the main culprit, stating that there has not been a rate of decline this strong since 2008 – the rate was cited as 11.5% over the previous 9 month period. As more than one third of home sales nationwide are REO the company predicts that prices will continue to drop, since these properties typically sell for less than regular sales, thus bringing down comparable solds.

Although it is true that the Western states were cited as particularly effected by the above data and predictions, it is a misnomer to compare this data to the hyper-local North San Diego market. Let’s take a look at Carlsbad to compare:

1. Average median sales price: Although the average median sales price – $540,000 – dropped slightly from January to March (by an average of $35,000, or -0.6% decrease compared to last year), home sales were up 5.8% compared to last year. The median sales price appears to have remained steady over the last several months, with only slight drops. Comparing to the Clear Capital report for the nation, Carlsbad’s prices have fallen slightly less than the national number (.06% to .07%).

It appears that we are seeing prices drop slightly, but not quite as much as in some other areas, such as the midwest, where they have already entered into a true double dip market.

2. Lower number of REOs compared to other areas. Right now there are currently 31 REO properties on the market in all four zip codes that comprise Carlsbad. There are 695 total active properties listed, so REO listings comprise only .04% of total actives.

3. Lower number of short sale properties: There are currently 95 short sales in Carlsbad, or 0.14% of listed homes are considered short sales. This number is undoubtedly smaller than other areas across the country like Las Vegas or Phoenix. In this light I think Carlsbad and other north coastal areas are fairing quite well. In fact, Carlsbad 92011 in the past had been the zip code with the lowest number of foreclosures in the entire county (I am looking into whether this is still the case, but I assume if not is it surely still one of the lowest).

Even some areas in our own county have higher numbers, like Chula Vista for example. Of 769 active listings in Chula Vista, 98 (0.13%) are REOs and 350 (0.45%) are short sales. These numbers are three times as high as Carlsbad’s numbers. Areas with less distressed properties will not likely see drops in price quite as large as one may see in markets saturated with these types of properties.

The bottom line is that yes, prices have dropped slightly in North San Diego. But you really do need to focus on a specific areas rather than the big picture if you are a buyer or seller. Not doing so is a common mistake many people make, so if you are thinking of buying or selling consult a local, experienced agent in your specific area to provide a complete analysis of prices and sales.

If you would like live market data for North San Diego cities (like the chart above and with different categories to choose from), please visit my website at Click on the resources tab at the top right, and then Live Market Data. You can even sign up to receive weekly reports.

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