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What Will Happen to the Housing Market This Year?

What Will Happen To The Housing Market This Year

This is the question on everyone’s mind, whether you own or rent.  When the economy will turn around is crucial to all our lives.

The National Association of Realtors (NAR) did a flash survey on May 7, 2020 and concluded from their results that “home sellers are gearing up to list their properties with the reopening of the economy.”

Sellers are positioning themselves to make moves this year. More than 3 in 4 potential sellers are preparing to sell their homes once stay-at-home orders are lifted and they feel more confident, which means more homes will start to be available for interested buyers.

Several realtors reported prospective changes in desired home features, with home offices, bigger yards and more space for their families becoming increasingly important.

Buyer demand is strong right now, and many are simply waiting for more inventory to become available so they can make a move.

While re-opening the economy may seem slow, it does not mean there is no pent-up desire for selling and buying a home.  In fact, because our lives may revolve more and more around our homes, people are looking to make their residences as comfortable and efficient as possible.

So if you are a real estate agent, get out and find new listings and get new home buyers – they’re there!

And if you are a potential home buyer or home seller, hook up with a local, licensed Agent and take advantage of getting going before the crowds.

Loan of the Week – Next Generation

Next Generation Promo

Heading Into Our Next Generation of Lending

With over 3 decades in the business of alternative financing, we are one of the few Hard Money companies capable of lending in these uncertain times.  We continue to offer our services to those in need.  Below is just one of the many ways we can be of help, with our unique Alt-A Hard Money loan program.

Loan of the Week

Recently one of our brokers had a client who needed some fast funding.  He had to resolve some critical issues prior to building on one of his properties; There were permitting fees and road work that needed to be done and done quickly.

With an LTV of 53%, this loan of $750,00 was an easy one for us.

Even though this borrower would have qualified for a conventional loan, our Alt-A loan program was a better solution for him.  This program allows borrowers who don’t quite qualify for a conventional loan or who need a quick close, to access the financing they need without the usual lengthy process.  In addition, the interest rate on these loans is significantly lower than other hard money loan programs.

In 9 days, this Borrower was closing escrow and was able to secure all the necessary permits to begin work on his property!

If you are just shy of qualifying for a conventional loan, or need a fast close, give us a call at 707-523-2099.  We look forward to letting you know what we can do for you.

Who Predicted This Affect on California Real Estate?

Who Predicted This Affect On California Real Estate

One of the burning questions facing all Californians today is: with Californians self-distancing and “hunkering down” for the immediate future, what will the impact be on our real estate market and investments?  While this pandemic is causing various economic downturns, it hasn’t yet affected home values and most economist are still optimistic with regards to the real estate market in general.

Real estate sales, rentals and leasing are a $445 billion industry in California and has been a major driver in personal wealth for property owners over the past decade.

Seeing the effect of the covid19 pandemic on the world economy naturally raises questions regarding other markets, like real estate.  Experts have made clear that an economic slowdown does not equal a housing crisis, nor does it mean a repeat of the 2008 debacle.  There were other economic issues at work during that recession that have been resolved by laws that were enacted since.

What we may be seeing is a longer wait for homes to sell once they hit the market and there may be some lowering of prices, but no major crash is predicted by the experts.  Nor has there been any major dip in California values or home sale ranges despite this ongoing pandemic.

California housing demand remains strong and technology makes it easier to perform real estate shopping and buying online.  Some adjustments we might be seeing are that viewing houses and inspections may be done more by appointment, more attention on extra sanitizing for in-person viewings and virtual showings but it will not be impossible.

While we are home-bound, this time would be good time for potential buyers  to get their paperwork together for mortgage pre-approval, and for sellers to get their disclosures completed and begin the decluttering process.  Sellers can also line-up the pre-sale inspections and necessary photographs so this time at home is not wasted.

Because we are a family-owned and operated real estate financial business, Sun Pacific Mortgage is still working, getting loans funded with our usual efficiency.  We could be the answer to solving your real estate funding problems when other lending institutions are short- handed.  We specialize in fast, short-term mortgages that can be refinanced in as little as six months.  Give us a call at 707-523-2099.  We can handle all the necessary paperwork via phone call and email, so reach out!

Recently Funded – Helping Where Needed

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Let Us Be Of Help When Needed.

These are trying times for many.  Wouldn’t it be beneficial to discover a possible home loan program that could relieve some of the stress?  This is where we hope to be of help!

The Hard Money mortgage programs we offer are backed by real estate equity –helpful for purchases, refinances for debt consolidation, to pull out additional cash for upgrades or for business capital, etc.

We also have a unique Alt-A Hard Money program great for anyone who is fully qualified for conventional financing but wants a faster loan OR someone who just missed qualifying and still wants help.
Call Today 707-523-2099 with any questions or specific scenarios. We will quickly let you know what help we can provide to you, a friend or even your clients.

Others Recently Helped by Us

Location:  Cazadero, Sonoma County
Finance Program:  Primary Residence Refinance
Loan Size:  $380,000
Days to Close:  28
Reason Came To Us: Didn’t qualify as poor condition of property but needed business capital.

Location:  North Hollywood, Los Angeles County
Finance Program:  Investment Property Purchase
Loan Size:  $397,000
Days to Close:  14
Reason Came To Us:  Didn’t want to lose out on another investment opportunity.

Location:  Penngrove, Sonoma County
Finance Program:  Investment Property Refinance
Loan Size:  $325,000
Days to Close:  20
Reason Came To Us:  Credit was poor but needed to refi out of a loan that had come due.

Location:  Goleta, Santa Barbara County
Finance Program: Refinance of Primary Residence
Loan Size:  $450,000
Days to Close:  13
Reason Came To Us: Needed to quickly pay of the existing reverse mortgage of a relative who recently passed away, otherwise property would be foreclosed on.

Location:  Sacramento, Sacramento County
Finance Program:  Primary Residence Refinance for Business Purpose
Loan Size:  $235,000
Days to Close:  11
Reason Came To Us: Had too many bills and wanted to do debt consolidation to improve credit standings.

Home Equity to the Rescue

Home Equity To The Rescue

Despite the staggering number of unemployment claims being filed, there are many reasons we will not be seeing a significant number of foreclosures like we did during the crash of the last decade.  The major reason is that the amount of equity homeowners have today, positions them to be in a much better place than they were in 2008.

Here in California, we understand the significant equity existing in our real estate, painting a picture that brightens significantly.

The last recession was painful, and when prices dipped, many found themselves owing more on their mortgage than what their homes were worth.  The average equity that mortgaged homes have today is a significant amount of money which homeowners will not be walking away from, even in today’s economy.

Californian’s can see strength in our current market through homeowner equity that was not there in the past.  In fact, this equity may become the cushion some people need to get over the present hump.  By accessing their built-up equity, they can ease some of the pressure they may be experiencing.

But what if you need this money fast, or your credit has suffered in the past and you do not qualify for a conventional loan?  This is where Sun Pacific Mortgage can step up and help.  With a healthy amount of equity, we can provide a cash-out option to sustain you in the short term.  We are one of the few hard money lenders who have continued to offer owner-occupied loans.  Using your equity to get you these difficult times may provide you with fewer sleepless nights.

Give us a call at 707-523-2099 to see if we can provide you with a softer landing during these difficult times.

Unique Financing That’s Helpful Now

New Northbay Biz

Get Financing From Family Company – Ranked One of the Top 500

Despite current circumstances, we have successfully continued to lend to individuals who are in need of a home loan – to get fast cash-out from equity, to do repairs, money to buy a home, do debt consolidation, pay off balloon payments due, etc.

Our desire to assist those who need fast financing or have just missed qualifying for traditional “A-Paper” home loans, has prompted us to work closely with our myriad of investors and get a strong mortgage program that can be of help!

This unique “Alt-A Hard Money” program has benefited quite a few borrowers in need over these past few months, offering lower-than usual Hard Money rates:

Borrowers with good credit (640+)
Lower Loan To Value (55% LTV or lower)
Nice property in good location

We are known for providing fast financing and our specialty has become this new “Alt-A Hard Money” program.  In business for more than three decades, we remain family owned & operated and have helped thousands of individuals with their real estate financial needs throughout California.

Email back or Call Us at 707-523-2099 if you would like to see if you qualify for this unique mortgage program. We’ll let you know quickly if we can be of help.

Best, Broker & Broker – The Guys in the White Hats

California Real Estate Declared ‘Essential’… What Does This Mean in the Real World?

California Real Estate Declared Essential

The California real estate market got a boost recently, when it was reclassified as an “essential” industry.  Since March 20th face-to-face real estate sales have been non-existent.  As a result, and coupled with the economic anxieties, local house hunters in Sonoma County, Santa Clara, San Mateo, and San Francisco Counties (as well as the rest of California) have been hesitant to pursue any real estate deals.  But as of May 4, the new ruling allows occupied homes can be shown as long as the seller is not present.

This certainly does not mean “business-as-usual”, but homes may be shown following local and state regulations.  In general, that means only 2 buyers + their 1 agent may be present (no kids, no friends, no parents) and the 2 buyers must already live in the same household.  Many “virtual open houses” are popping up as well, to provide more options to interested Home Buyers.

It is the opinion of most real estate agents that May will be transitional and June more normal.

But what about after the “shelter-in-place” order? What will the market look like then?  Once we are through this period, which appears may be June 1st or so, there will be some challenges that linger for a while but this is where creativity comes into play from talented Realtors and motivated Home Buyers.

We will get through this.  Homes will sell again (maybe a little differently), but as with other past disasters, we will work with what we have.  We are fortunate that this pandemic didn’t happen in the 1980’s!  No internet or other digital resources would have brought the real estate market to a dead stand still.  With creative ways to communicate and share information online, it really is just a transition to newer ways of listing and selling real estate!

Sun Pacific Mortgage is deeply grateful to all the devoted first- responders and dedicated doctors and nurses who put their lives on the line everyday for us.  We haven’t forgotten the brave grocery store workers and others who have kept our tables full during these stressful times.  You are all our heroes.  Stay safe and stay strong!

We continue to provide our alternative financing services for real estate needs. Don’t hesitate to see what we can help you and/or a client with by visiting our website at www.Sunpacificmortgage.com

Recently Funded – Bringing Heroes to Financing

Recently Funded – Bringing Heroes To Financing

Our Loans Can Be The Hero You Need

If you or your client are in need of some heroic alternative financing for any real estate transactions, we are here to help.

As we continue to satisfy our multitudes of investors by tightening-up borrower qualifications with lower Loan To Values and slightly increased rates, we are staying busy providing short-term Hard Money loans to those in need.

Here are last week’s loans approved by some of our Investors – shown by location and LTV. This should give you an idea of the lower LTVs which can be financed by our office at this time:

Torrance – 64% LTV
Bakersfield – 58% LTV
Oakland – 45% LTV
Willits, CA – 54% LTV
Santa Barbara – 37% LTV 2nd
San Diego – 54% LTV
San Francisco – 59% LTV

Call us today at 707-523-2099 with your scenarios or questions.  We will quickly let you know what we can do for you and/or your clients.

Recently Funded By Us

Location:  Palo Alto, Santa Clara County
Finance Program:  Primary Residence Temporary Refinance
Loan Size:  $760,000
Days to Close:  21
Reason Came To Us:   Poor credit and trying to pay off taxes and construction debt.

Location:  Los Angeles, Los Angeles County
Finance Program:  Primary Residence Temporary Refinance
Loan Size:  $428,000
Days to Close:  29
Reason Came To Us: Inherited home with reverse mortgage and needed to refinance.

Location:  Belmont, San Mateo County
Finance Program:  Primary Residence Refinance for Business Purpose
Loan Size:  $500,000
Days to Close:  26
Reason Came To Us: To pay off credit card debt and launch new career.

Location:  Kings Beach, Placer County
Finance Program: Commercial Property Refinance for Business Purpose
Loan Size:  $825,000
Days to Close:  28
Reason Came To Us: Self-employed with difficult to prove income.

Investing Fears Allayed by Experts We Trust

Investing Fears Allayed By Experts We Trust

All investors are looking for certainty and guidance with the Covid-19 crisis upon us.  We want to know what the best course of action might be.  A passage from a letter to the Berkshire Hathaway shareholders written by Warren Buffet in 1986 could offer some inspiration now:

“[O]ccasional outbreaks of those two super-contagious diseases, fear and greed, will forever occur in the investment community.  The timing of these epidemics will be unpredictable.  And the market aberrations produced by them will be equally unpredictable, both as to duration and degree.

Therefore, we never try to anticipate the arrival or departure of either disease.  Our goal is more modest: We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

Even though the quote is 34 years old and we may balk at the term “greedy” (substitute “aggressive”) this sentiment has been repeated over and over again, in different contexts by Buffet.  Basically, he is saying, “Don’t follow the herd”! See the opportunities when others see only crisis.  If you are afraid, your competition is too.

Investing in real estate and trust deeds might seem to be the boldest and most exciting step you can take during this daunting time.  Done smartly, it could have huge payoffs for you and increase your wealth exponentially.

Sun Pacific Mortgage continues to have many healthy opportunities for your investment money.  Despite the crisis, we are receiving many calls for loans with smaller LTV’s and borrowers with strong repayment histories.  If you see the wisdom in Warren Buffet’s advice, give us a call at 707-523-2099 to discuss becoming one of our partners and advancing your family’s wealth during this otherwise difficult time.

Loan of the Week – Giving Faster Financing

All Here Avengers

Loan of the Week

We received a request from a Sonoma County Broker, who had a borrower with a note that had come due. Unfortunately, this borrower needed more time to repair her credit in order to qualify for conventional financing, so needed a short-term Hard Money loan.

She required $550,000 to satisfy her present lender and she needed it ASAP.

With a loan to value at 55%, we were able to finance her loan in just 12 days!  She now has 2 years to improve her FICO score and apply for a conventional loan.

If you find yourself needing a fast loan regardless of the amount, think Sun Pacific Mortgage and call us at 707-523-2099.

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