California’s super-hot housing market is finally starting to cool. Median prices fell from May to June, and then again from June to July.
The statewide median home price dipped to $833,910 in July, down 3.5% from the previous month, according to the California Association of Realtors.
While the slowdown is a welcome one for buyers, it does nothing to reverse the very real challenges buyers face in the nation’s largest and most expensive housing market.
In many parts of California, $1 million is just a starting point in the housing market – and that means jumbo loans, interest-only mortgages, non-warrantable condo loans and investor loans are hot products.
LendSure offers mortgages to meet the needs of borrowers seeking all four types of loans. Here’s a rundown:
- Jumbo loans. The conforming loan limit for 2022 tops out at $970,800 in pricey markets, including Silicon Valley and the San Francisco Bay area. However, even after the recent softening of prices, sale prices remain far above the conforming loan limit in many areas. In San Mateo County, the median price in July was $1.97 million. Three other counties – Marin, San Francisco and Santa Clara – experienced median sales prices of $1.7 million or higher. LendSure’s JUMBO PRIME product is tailor-made for these high-priced areas.
- 10/40 Fixed Interest-only loans. California’s home prices are high in part because wages are high. Still, the state is coping with a major affordability squeeze. In the second quarter of 2022, the nation’s five least affordable large housing markets were located in California, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index. The nation’s five least affordable small housing markets also were in the Golden State. LendSure’s 40-YEAR FIXED INTEREST ONLY product gives buyers some flexibility to reduce their payments with Interest Only payment options for a full 10 years followed by a 30 year fixed period.
- Condo loans. Sky-high home prices have spurred some buyers to shop for condos rather than single-family homes. In July, the median prices of condos and townhouses sold in California was $645,000, nearly $200,000 less than the price of a typical house. In some cases, the choice is more about lifestyle than price. Past generations of buyers favored single-family homes, but today’s urban professionals may find condos better suit their lifestyles. But borrowers can face numerous challenges qualifying for financing of condos. Enter LendSure’s loans for Non-Warrantable Condos, a program that brings common sense to condo mortgage lending.
- Investment property loans. Rents have risen sharply in California, and many renters are unable to transition to homeownership because of the state’s affordability challenges. As a result, property investors are looking to expand their portfolios in California. LendSures loans for Investment Properties offer many opportunities for property investors. Our roster of benefits includes interest-only loans, debt-service coverage ratio (DSCR) loans and rate buydowns.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio or refinancing of a currently-owned property.
Are you ready to grow your business? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, the tools, support and the guidance they need in order to say “yes” to more of their clients. This ensures happy borrowers and opportunities for bottom line growth. What are you waiting for? Let’s get started!
Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.