Foreclosures and Evictions are Suspended

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We are in uncharted territories and our government wants to keep people in their homes during this national emergency. President Donald Trump announced today that the Department of Housing and Urban Development is suspending all foreclosures and evictions until the end of April.

“The Department of Housing and Urban Development is providing immediate relief to renters and homeowners by suspending all foreclosures and evictions until the end of April,” Trump said.

The Federal Housing Finance Agency also announced that it is directing Fannie Mae and Freddie Mac to suspend foreclosures and evictions for at least 60 days. This applies to homeowners whose single-family mortgage is backed by either Fannie Mae or Freddie Mac.

If you are a borrower affected by the coronavirus and now having difficulty paying your mortgage, it is highly advised to reach out to your mortgage servicer as soon as possible.

A good option is called payment forbearance, which would allow affected borrowers to suspend their mortgage payment for up to 12 months due to hardship caused by the coronavirus.

The housing industry is banding together to protect homeowners, renters, the housing economy and our professions. Please call our team at Focus Capital Funding if we can be of any assistance! We are all in this together.

Focus Capital 1-888-758-3004 

Info@focuscapitalgroups.com  
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0% Rates

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The Fed cut rates to 0%

What does this mean exactly and how will this affect mortgage rates?

The Federal Reserve announced it will drop interest rates to zero and buy at least $700 billion in government and mortgage-related bonds. This is part of an emergency action plan in response to the risks COVID-19 poses to the United States economy.

Mortgage rates have already dropped to 50-year lows in response to global concerns regarding the outbreak. The rate the government lends money to banks has now been cut to 0%. By cutting rates to 0%, the Fed is encouraging banks to lend at lower levels in efforts to help stimulate our economy.

Last week, mortgage rates actually increased slightly because the demand for refinancing was so high. Lenders needed to slow down the number of people applying for home loans and give themselves time to work through the backlog of applications that accumulated as rates fell.

The Federal Open Market Committee (FOMC) lowered the federal funds rate in an emergency reduction with a target range between 0-0.25 percent. It is the first time the U.S. central bank has reduced rates at an unscheduled meeting within 13 days of each other. In addition to cutting rates, the Fed also declared it would buy Treasury debt and mortgage-backed securities at a pace of $500 billion and $200 billion respectively.

While Fed officials spoke confidently about the U.S. economy’s ability to remain resilient against the COVID-19 slowdown, many experts have cautioned that a recession could be on the horizon.

Experts say the best way to recession-proof your finances begins by boosting your emergency savings. It is highly recommended to keep between four and six months worth of expenses liquid and accessible. Consider opening a high-yield savings account to get the biggest return on your fund. Prioritize paying off your high-cost debt.

Take advantage of the low interest rates and lower your monthly payments by refinancing your mortgage. It is imperative to save for your future.

Call Focus Capital with any questions or concerns, we are here to help you in these uncertain times: 1-888-758-3004
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Jumbo and Super Jumbo Loans

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A jumbo mortgage, also called a non-conforming mortgage, is a home loan used to finance properties that are too expensive for a conventional conforming loan. This loan, as implied by its name, is larger than other loan types. The maximum amount for a conforming loan, while it varies county to county, is $510,400, as determined by the Federal Housing Finance Agency (FHFA).

California is classified as a high-cost state as real estate is valued higher. California is classified as a high-cost state as real estate is valued higher. The expanded conforming loan limits in such high-cost states can be as high as $765,600 and anything that exceeds that amount is considered a jumbo loan.

  Super jumbo loans have loan limits even greater than jumbo loans with limits generally starting at one-million dollars. Jumbo loans can be used on almost any type of property to include a primary residence, secondary residence, vacation home, and investment property, while super jumbo loans are typically used more on a primary residence.

The limits of a jumbo and super jumbo mortgage are higher, thereby increasing the risk associated with lending the money. These larger loans are also riskier for lenders because they are not guaranteed by Fannie and Freddie, meaning the lender is not protected from losses if a borrower should default.

As a result of the high risk, understandably, both jumbo and super-jumbo loans have more rigid requirements compared to a conforming loan. You will need to provide proof you can support the monthly mortgage payments with your income, give the required down payment, and demonstrate through required documentation you are a solid borrower. 

While the standard lender is capped at giving at most two million dollars, Focus Capital Funding gives loans up to fifteen million dollars. If you are a borrower needing a jumbo or super jumbo loan for the purpose of your primary residence or an investment property, contact us today at Focus Capital: 1-888-758-3004

Info@focuscapitalgroups.com

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Emergency Cut in Interest Rates

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The virus COVID-19 poses serious damage to the economy. Governments around the world are ramping up their response. The Federal Reserve made an emergency cut this week to interest rates in hopes of curbing economic fallout from the coronavirus outbreak. It is the first emergency cut, and biggest one-time cut, the Fed has made since the 2008 financial crisis.

The virus first emerged around Wuhan, China in late 2019 and has now infected more than 95,000 people worldwide, killing more than 3,200. Italy is currently suffering the largest outbreak outside of Asia and the numbers show no sign of slowing down. Schools are closed affecting millions of students. Public gatherings are banned, and officials are even advising people to not huge or kiss when greeting.

In the United States, more than 150 people are infected, mostly in Washington State, and at least 11 people have died. California declared a state of emergency after the state’s first death from the virus.

In response, the Federal Reserve cut interest rates in efforts to push people to spend money in order to boost the economy. Officials around the world are similarly trying to curb the economic fallout with stimulus packages and interest rate cuts.

A question is emerging in the current low rate environment: Will lenders let mortgage rates go lower? The reasoning behind this question is the relationship to having enough staff able to keep up with the increase in volume generated by the millions eligible to take advantage of the current low rates.

We can assure you, at Focus Capital, we are not only equipped to handle a large volume of loans, we exceed every customer’s expectations for outstanding personalized service. Call Focus Capital and speak with one of our trusted Loan Officers about a new loan or to refinance your existing loan at a lower rate:

1-888-758-3004

Info@focuscapitalgroups.com

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Bridge the Gap with Bridge Loans

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John, a real estate investor, wishes to purchase an office building for a million dollars plus spend another million dollars to renovate it. He believes the building will be worth approximately $2.5 million after the renovation. John doesn’t have the $2 million it will take to make this happen right away and he doesn’t want to miss out on this incredible opportunity.

The clear solution is a bridge loan.

Bridge loans, also known as gap financing, swing financing, or hard money loans, tides you over financially during the gap in time between the purchase of a property and arranging its long-term financing. As the name implies, they serve to bridge the financial gap between current and future circumstances. A bridge loan can essentially allow you to buy a property quickly and without a contingency.

Using a bridge loan for speed to purchase a newly available property before the competition can get it is the most common example, but here are other situations:

  • Refinance an expiring balloon loan to position the property for a permanent loan with terms more favorable to the borrower

 
  • Down payment on the purchase of a new property your business is moving to and perhaps to pay off the remaining mortgage on the old property

 
  • To finance extensive renovation and then be replaced by long-term financing on the rehabbed property

 
  • By making timely bridge loan repayments, you might be able to boost your credit score in order to become eligible for long-term financing

The provider of a commercial bridge loan will approve borrowers based on the value of their collateral rather than on their creditworthiness. Therefore, a commercial bridge loan is easier to obtain than a standard mortgage. The proceeds from a commercial bridge loan can be applied to a property you already own, a property you wish to acquire, or both.

 
Focus Capital Terms for Bridge Financing
Loan Amount $1 million – $100 million
Interest Rates Starting at 5.25%
Loan Terms Up to 36 months
Loan-to-Value Ratio Up to 80%
In general, bridge loans are granted based upon the value of the property that serves as collateral rather than on the credit score of the borrower. Focus Capital has over 50 years of experience in commercial loans, with bridge loans being the most utilized. We deliver lending solutions that are quick, transparent and personalized in determining the best solution to get you the funding you need.  
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The Facts About Focus Capital

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Faster. Easier. Different. The tagline says it all. Focus Capital exists for the sole purpose of providing mortgage lending solutions for everyone – and we do it better than others. Creating new kinds of lending opportunities is exactly what’s needed now, especially at a time when demographics are rapidly changing and it’s becoming increasingly difficult for potential home buyers to secure lending options.

By re-defining “alternative lending” by creating disrupting solutions in the mortgage industry, Focus Capital provides expert services for clients looking for jumbo, super jumbo, non-prime, and other loan options for purchase and refinance transactions.

A History of Lending Solutions

With over 50 years of combined experience has allowed Focus Capital to specialize in delivering custom solutions for our clients by providing a variety of elite services in the areas of retail, wholesale, and private lending. We offer a host of residential and commercial loan programs and we’re confident that we can create a lending option that’s uniquely tailored to your individual needs.

Our industry tools equip buyers with knowledge and strategies that not only help them accomplish their buying goals, but enhance their borrowing experience as well. We partner with established banks and financial institutions that we know will be able to assist our clients and our experience over the years has given us the opportunity to develop meaningful business relationships while building trust within our network of partners.

The Difference

Focus Capital works directly with borrowers to structure their loans in the shortest time possible while relying on our team of expert in-house underwriters and mortgage professionals to expedite the lending process.

We make finding a loan easier than ever, utilizing cutting-edge technology, market savvy, and high-touch services that have been perfected through years of industry experience. Focus Capital always aims to personalize the lending process for our clients while streamlining it.

We pride ourselves in exploring all available options and working hard for our clients. Simply put, we go where others won’t. We find and create lending solutions that are tailored to each buyer’s circumstance. The result? Fewer steps, lower cost, and long-term opportunity.

The Bottom Line

Today’s mortgage and lending services demand ingenuity and flexibility to deliver solutions designed for emerging markets. Focus Capital strives to provide the highest level of service with a personalized platform that delivers creative financing and streamlined lending solutions to every client. We think the lending process should be easy, accessible, and affordable for everyone – and that’s exactly what Focus Capital consistently strives for.

Ready to experience an alternative lending solution that’s tailored to your buying needs? Contact Focus Capital today!

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Millennials and the Future of Mortgage Lending

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For a majority of people, buying a home, or any type of real estate, for that matter, isn’t as easy as finding a great property and simply asking the bank for a loan. Obviously, there’s much more to it – especially in this day and age. Today’s mortgage and lending services demand ingenuity and flexibility to deliver customized solutions tailored to emerging markets.

Believe it or not, one of the fastest-growing markets of home buyers is Millennials. For years, it was assumed that they would turn away from suburban home ownership in favor of big city living and, presumably, renting. However, that prediction hasn’t come true: according to recent analysis by Realtor.com, not only are Millennials “taking over” the U.S. mortgage market, they also hold the largest share of new mortgages by dollar volume.

While their timelines might be a little different than previous generations, the fact is that their attitudes are surprisingly similar – and they’re actually buying more homes than you might think. Home ownership is part of the American dream and, at least for now, it certainly seems as though Millennials aren’t looking to change it anytime soon.

New data reveals that Millennials (aged 19-37, specifically) have outpaced both Gen Xers and Baby Boomers in mortgages, purchasing a larger share of them since early 2017. So how are Millennials able to purchase homes, especially when the prevailing thought is that 1) the cost of living is astronomically high and 2) members of this age group are simply bad at saving money?

According to a recent article on BusinessInsider.com, while Millennials may be buying cheaper homes than Gen Xers and Baby Boomers at a median price of $238,000, they’re putting down less money up front (the average down payment by a millennial homebuyer on a mortgaged home was 8.8% in December 2018). Paired with rising home prices, it’s clear that Millennials are taking on bigger mortgages, as a group, in order to put down roots. Their attitudes toward homeownership remain positive – they’ve just taken longer to get there.

Focus Capital can help the Millennial market “get there,” by offering services specifically tailored to the unique needs of this buyer group. Working alongside our clients, we aim to create alternative lending solutions for a variety of loans including jumbo, super jumbo, non-prime, and others for purchase and refinance transactions.

Want to learn more about how Focus Capital’s alternative lending solutions can help you finance the home of your dreams? Contact us today!

Source:

Business Insider

https://www.businessinsider.com/millennials-taking-over-mortgage-market-homeownership-2019-2

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