WHAT IS YOUR AGE?

On Monday, January 13^th , was my birthday. I was born in 1947. And when someone asks me, “How old are you?” my answer is sixty plus. The reason is that I do not feel old. My age is defined by what I would like to accomplish in this life.

One of my projects is to publish a book titled, “The Healing Images™. Reflections”. It will contain fifty-four beautiful images of roses, which will help viewers to get into a relaxed state, and the text that accompanies the images will be one sentence from each of 54 chapters in the Torah with my short comments.

The book is almost ready, I hope you will be able to benefit from it sometime in February. At the same time, I do not want you to wait. Starting next week, every Monday, I am going to post one page from the book on Facebook. Please add me as your friend on Facebook so you can benefit from the wonderful experience!

Meanwhile, enjoy these three flowers I’m sending your way.

Care and share with a friend!

CONDOMINIUMS:
TRANSACTIONS TECHNIQUES
AND MORE

Dear Real Estate Professionals, Future and Current Homeowners,

I am excited to continue taking you through my new course, “Condos with Manny Kagan: Classes by a Mortgage Broker”!

Class Two of the series is available at: https://youtu.be/Y2zKHy97BcI

Also, make sure you read the notes below and save them for your future reference!

CLASS II  (Week Two)

…Before moving forward, let’s take a look at who lends money for condos, i.e. where borrowers can get a mortgage. The major institutions, like Bank of America, Citibank, Wells Fargo and Chase are primarily interested in depositors. For those who keep their money in the bank, they might offer adjustable mortgages fixed for 3, 5, 7 or 10 years. These are portfolio loans which might have an interest rate lower than 30 years fixed loans, and are mostly Jumbo loans. To get them, there are two conditions – customers’ money in the bank and being able to qualify for the loan, which might be challenging.

Sometimes banks can offer Conforming loans as well, but these are sold to Fannie and Freddie and have rates similar to other lenders. In the past, banks like First Republic Bank, as well as Silicon Valley Bank, were able to bend the rules just to attract more customers. History has shown that those who did that, sooner or later got out of the business. Then there are medium size banks and credit unions. All of them follow internal guidelines. Sometimes one of them might offer loans where others could not. For example, some of them do not require an HOA certificate. Additionally, there are mortgage brokers who represent a variety of the specific wholesale lenders. Some of which, like Rocket Mortgage, are trying to drum up online business.

Mortgages are divided into two categories — QM (quality mortgages) and non-QM mortgages. Since the majority of the lenders sell their loans to Fannie Mae and Freddie Mac, their underwriting guidance for QM mortgages can be strict. The solution is offered by the mortgage banks who can offer financing for non-QM mortgages. The same lenders also offer mortgages for non-warrantable condos…

To be continued next Wednesday…

***

Need help? Call me: (415) 225-7920

Best wishes,

Manny Kagan,
President,
Pacific Bay Financial Corporation,
Your professional mortgage broker since 1983

NMLS #205637
DRE #00874630

I LOVE BOOKS!

I started collecting my personal library when I was a teenager in Riga, Latvia, where I was born and lived. In 1972, when I was twenty-five, our family moved to Israel. We packed all our belongings into wooden crates, specially built for such purposes. One of them was filled with books.

The border guards requested to open the crates to check if there was any contraband. Luckily, they started with the container of books. Turned out that the inspector also liked books. We both sat inside the crate, while he checked my books. I offered for him to take any books he liked as a gift. He did, and let the other crates go without opening.

When we moved to San Francisco in August 1980, some of my books followed, after I gifted many of them to my friends in Israel. And soon, as I could afford to buy, new books filled my bookshelves. In our house we have a room I call the “library”, because there are bookshelves filled with books – floor to ceiling. This is a room where I do my morning stretches. And every day my eyes are devouring them. I told myself that I would be able to read all of them when I retire. The problem is that this is not in my immediate plans.

Last week I got an idea. I am going to read one book every week. But my thoughts went further. From time to time, I will share with you some of my reflections after finishing reading. Currently I’m reading a book of poems by Marge Piercy “The Art of Blessing the Day”.

It was a gift from my younger daughter and her husband for Hanukkah. As you might know, I not only read poems, I also write them. My latest book, “42 Encounters with Illumination” has beautiful images of manifestation of light, which I illuminated with poems. You can order it on Amazon.

The three images of reading people you can see above were taken in different times in various places. Meanwhile, I am almost ready with my next incredible book called “Reflections. The Healing Images”, which is going to be available in February.

However, starting next Monday, I am going to post on Facebook every week one reflection together with one “Healing Image” from that book. If you are not yet among my Facebook friends, become one soon to be able to see my healing posts.

Stay Tuned! Care and Share!

MANNY KAGAN’S
EDUCATIONAL COURSE ON CONDOMINIUMS KICKS OFF!

As earlier announced, this morning I launched my new video course, “Condos with Manny Kagan: Classes by a Mortgage Broker”.

It would be fair enough to say that most people know what condominiums are, but not many know how they differ. Those who own condos or are planning to buy one, may not know that the property’s condition can affect financing. This includes owner vs non-owner ratio, as well as HOA budget and Master Insurance.

For starters, there are two types of condominium projects — warrantable and non-warrantable. Warrantable condos are approved by the two government sponsored enterprises – Fannie Mae and Freddie Mae, as well as government guaranteed financing through FHA and VA. To be warrantable, at least half of the units in the building must be owner-occupied. In addition, the community must contribute at least 10% of its annual budget to its reserve account every year. And what if the number of the non-owner units went up through the sale or just because some of the owners moved out without selling their unit and decided to rent? Or if the contribution to the reserves is less than 10%, or the HOA account is underfunded?

In these cases, the property would transition from being approved to the “unavailable” list. This means that yesterday this project was eligible to get a specific mortgage with the minimum down payment and lower interest rate, and now it is not. And the only way to find out about this is to request one of the lenders who can sell loans to one of the government agencies, to check the list in Condo Project Manager – CPM™. There are a number of problems that would put a condo project on the “unavailable” list, such as a lack of insurance coverage, or maintenance issues. If the building has balconies, they need to be inspected; and if necessary, repaired. Therefore, before we start, we need to check the list.

And this is exactly what we do before anything else. Fortunately, the status can be changed if the corrections are made, but this might take some time. Thus, to sell or to buy the unit in a particular condo project, we need to find out to which category project belongs, and the clients’ ability to get financing. This in turn requires determination which lender or program can be used. However, before we can do that, the listing  agent has to order “Home Owner Association Information Request” – and this might take some time…

To be continued next Wednesday, January 15, 2025

Manny Kagan,
President,
Pacific Bay Financial Corporation

Cell: (415) 225-7920
Email: [email protected]

NMLS #205637
DRE #00874630

HAPPY 2025, THE YEAR OF SHARING!

As I’ve mentioned in my last post of 2024, I intend to make 2025 the Year of Sharing and hope that you will join me. The idea of sharing can mean different things for different people. Therefore, I will share with you what it means for me.

In ten days, I am going to be 78. I could retire a while ago, and just focus on writing and publishing photo-books. However, my decision was to keep helping others have a better life, which is my life’s mission. When I set my intentions to assist 97 people with their mortgage needs in 2025, I knew that I couldn’t do it myself; therefore, I need your assistance.

There are many people who would like to reach their American Dream, to become homeowners, as well as others who own homes, but are short on cash and use credit cards to pay their bills. And many who would like to be or already are retired but think that they cannot afford their lifestyle as retirees. All these people may not know that I could assist, or may not know that this is possible. You and I can help them. Just think about sharing this message.

In addition to helping my clients with their mortgage solutions, I am finishing a new photo-book “Reflections. The Healing Images”. It is going to be a very special book. It is designed to help viewers find healing and accomplish their well-being. I decided not to wait until you get the real book. Instead, I will share one of the chapters illustrated with beautiful images every Monday on Facebook. Stay tuned to my FB postings, and make sure you are among my Facebook friends.

Meanwhile, please, enjoy and share with a friend these three images from the book.

WHAT ARE YOUR INTENSIONS?

By the power vested in me alone, I proclaim the year 2025 to be the Year of Sharing. It is a common practice to set New Year Goals. And it is also a common practice to forget about them shortly after January1^st.

Therefore, I do not call them goals; but rather, intentions. And many of them are combinations of practices I started previously. For example, in 2024 I lowered my weight to a comfortable 174 lb. I also started daily stretching exercises.

Thus, my intentions are to continue certain routines. Nevertheless, I wrote down seven intentions which I will have in front of me every day.

And since 2025 is a very special Year of Sharing, I will share them with you:

To maintain my weight of about 174 lb;

To work out/stretch daily;

To read 52 books (one book a week);

To publish two photo books;

To have three family vacations;

To develop educational marketing programs;

To assist 97 people in getting mortgages

In my list, I deliberately positioned my business intentions, last. Since to enable me to help others, I first need to concentrate on myself.

In one of my photo books, that is going to be ready in January, called “Reflections. The Healing Images”, I am sharing a way to help your well-being through combining spirituality, beauty and healing. You are welcome to order my other books on Amazon.

Meanwhile, enjoy and share three images from the above book!

HAPPY HOLIDAY SEASON!

Dear Friends, Valued Partners
and Esteemed Clients
of Pacific Bay Financial Corporation,

As the year comes to a close, we want to take a moment to express our heartfelt gratitude for the trust you’ve placed in us.

It’s been an honor to help you achieve your homeownership goals and navigate the ever-changing mortgage landscape.

We’re proud of the work we’ve done together and look forward to continuing our partnership in the years to come.

From our family to yours, we wish you a joyous holiday season and a happy, healthy new year.

Thank you again for your business and loyalty.

Enjoy your Holiday Season and share your positive energy with your near and dear!

Manny Kagan,
President,
Pacific Bay Financial

__________________________________

Cell: (415) 225-7920
Email: [email protected]

NMLS #205637
DRE #00874630

HAPPY HOLIDAYS!

The first thing which I noticed when we arrived at our timeshare in Kauai this December, was a Holiday symbol — an inflatable snowman decoration in front of the office. This year, three holidays which all represent light, are celebrated at the same time. On December 25^th, Christmas and coincidentally (because Jewish holidays follow the lunar calendar) the beginning of the Jewish weeklong holiday, Hanukkah, as well as the celebration of the African and African-American holiday, Kwanzaa, which also lasts for a week.

Each holiday follows certain traditions. And of course, for blended families, there are multiple celebrations. When I was growing up in Riga, the capital of Latvia, in the then Soviet Union, we didn’t celebrate Christmas; but instead, we celebrated New Years with similar decorations as on Christmas, known as Jesus’ birthday. Interestingly, December 25^th is not his birthdate. It is not the date when the Jewish preacher Yeshua, whose name was translated into Greek as Iesous, was born. During my vacation in Kauai, I was reading “Thou Art That: Transforming Religious Metaphor.” by Joseph Campbell.

According to Joseph Campbell, “The Christmas date was placed on December twenty-fifth, which was solstice time, in order to compete with the Lord of Light, Mithra. No one really knows when Christ was born. It is settled on December twenty-fifth for mythological, not historical reasons.”

Regardless of the reason and whose holiday it is, let’s celebrate and have a good time. In spite of the 80° F weather, the snowman is not going to melt in Kauai, where I encountered other various holiday decorations as well.

Enjoy and Share!

LOAN HAS THE LIMIT

According to the National Association of Realtors, as of 2023, two government owned agencies, Fannie Mae and Freddie Mac, were responsible for 70 percent of the mortgage market. Both have very specific underwriting guidance but are slightly different.

Loans are purchased from banks and mortgage lenders. Many of these organizations are getting their business from mortgage brokers, like our company. Every year these entities together with FHA and VA set new loan limits. Usually, new loans are funded after January 1^st.

Follow this link to look at some conforming loan limits in 2024 vs 2025. Just for the sake of comparison, in 1983, when I became a mortgage broker, the confirming limit was $108,300. Two years later, in 1985, when we started Pacific Bay Financial Corporation, it went up to $115,300. Things do change. You should also keep in mind that loan limits might vary in different US states and counties.

To learn more about confirming loans, call me at my cell number below.

I promise to help!

Manny Kagan,
President,
Pacific Bay Financial Corporation

Cell: (415) 225-7920
Email: [email protected]

NMLS #205637
DRE #00874630