Should I take out a reverse mortgage?

Question: “What do you think of reverse mortgages?” Answer: I think they’re a great option for many older people. My parents had one and it allowed them to stay in their home until they passed away. The downsides are the high 15K+ upfront costs and the obvious fact that the equity is slowly used up
Read more
No Comments

Is it more difficult to get a loan these days?

Question: “I’ve heard it’s very hard to get a loan because banks just aren’t lending. Is that true?” Answer: Not at all. It’s true that after the wild and irresponsible days of “fog the mirror” and you qualify for a mortgage, the pendulum swung the other way and banks were overly strict on qualifying. So,
Read more
No Comments

Can You Borrow Money for a Home Down Payment?

Question: “Can you borrow the money for the down payment on a home?” Answer: It depends how and when you borrow the money. Generally, banks only want you to borrow from a secured asset: HELOC, car loan, savings account loan, 401-k loan, etc. They don’t like personal loans that are not secured by an asset
Read more
No Comments

Using an FHA Loan to Buy Apartments

Question: “Can I use an FHA loan to buy apartments that I’m going to live in?” Answer: FHA loans are for 1-4 unit owner-occupied properties. So in theory, you can use one if you buy a duplex, triplex, or fourplex. However, the qualifying for a triplex or fourplex is so poorly thought out that’s it’s
Read more
No Comments

Will Lenders Make a 30-Year Loan to a Senior?

Question: “I’m 63 years old and would like to move and buy a home in San Diego. Will lenders make a 30 year loan to a senior? That would mean I’d be 93 when the loan is paid off” Answer: Good news. Lenders are not allowed to discriminate based on age. If you qualify, they’ll
Read more
No Comments

Can You Get a VA Loan to Buy a Rental?

Question: “Hi Gary. I’d like to buy a property to rent to my son and his family. Can I use my VA eligibility to get a VA loan?” Answer: Unfortunately, no. You can only get a VA loan on a home that you intend to live in. This is a longshot, but if you don’t
Read more
No Comments

Should You Apply for a Home Loan from a Credit Union

Question: “What do you think about applying for a home loan from a credit union?” Answer: There are pros and cons. In my opinion… The pro: Very occasionally credit unions may have a slightly lower rate than most lenders The cons (these are tendencies): They’re a little slow They have less loan options than other
Read more
No Comments

Are Banks to Blame for the Bureaucratic Loan Process?

Question: “[Bank name] is ridiculous! I just refinanced and they asked me for the stupidest things to verify things that shouldn’t even matter and frankly isn’t really any of their business. I will never use them again…” Answer: I don’t blame you for being angry. And frankly, I get mad and frustrated with lenders too.
Read more
No Comments

Why Have a Seller Pay Closing Costs for the Buyer?

Question: “What’s the benefit of having a seller pay closing costs for the buyer? They’ll want a higher price, so I don’t get why people do it.” Answer: Indeed, when I get an offer on a client’s home and the buyer wants the seller to pay their closing costs, many of my clients object. And
Read more
No Comments

Advantages of Cash Offers on San Diego Homes

Question: “Gary, a question. As the seller, what is the difference between a cash offer and one where the buyer gets a mortgage? Essentially, what’s in it for me? Are my closing costs lower with cash?” Answer: Your costs aren’t lower. What’s in it for you is: Your sale is more certain Possibly a shorter
Read more
No Comments