SHANAH TOVAH U’METUKA: HAPPY 5786!

According to  Jewish calendar  on the evening of September 22, the holiday of Rosh Hashanah begins, ushering in the year 5786. Tradition tells us this is the birthday of Adam, the first human, and with him, the creation of Eve.

Perhaps that is why the holiday lasts two days, ending on September 24—because it is not only about one person, but about the beginning of life, the unfolding of all creation.

Ten days later comes Yom Kippur, the Day of Atonement, a time when one cycle ends and another begins—a chance to look back, to reflect, and then to step forward renewed.

During Rosh Hashanah, families gather at the table and dip apple slices into honey, a small but powerful act that says: may the coming year be sweet. The Hebrew greeting Shanah Tovah U’Metuka carries that same wish—a good and sweet year.

And so, when families join together around a table filled with holiday prayers and songs, we celebrate life. We share, we care, we pass the sweetness around. These are the moments that give rhythm and meaning to our days—and this is exactly what I wish for you: a good and sweet year, filled with joy, renewal, and love.

Three images of apples illustrating this story serve as the reminder of the beauty in our world.

Shanah Tovah U’Metuka!

REVISITING THE TOPIC

Not too long ago, I touched on this important question in my social media posts, and I’d like to dive a little deeper today. Many of my clients have been able to buy properties even with very little money for a down payment—and I want to share some insights that could help you too.

That is possible thanks to a variety of down payment assistance programs available on the market. These programs usually consist of two parts:

• The first mortgage, which typically covers 95–97% of the home’s value.
• The remaining amount, which can come from different assistance sources, each with its own terms.

However, there’s a trade-off: because of the assistance, the interest rate on the first mortgage is often higher. This means a higher required income to qualify. In addition, many of these programs have income limits that can affect eligibility.

Recently, during a recent presentation at our office, Lynn Jackson from Plaza Mortgage discussed how FHA loans can offer 100% financing. Click this link to see a piece of Lynn’s presentation. While that sounds appealing, these loans also come with higher mortgage insurance premiums.

That’s why I often suggest another option: using a gift for the down payment. With as little as 5% down, buyers can qualify for first-time homebuyer programs that often carry lower interest rates compared to down payment assistance loans.

And here’s the key: interest rates are expected to come down. When that happens, we’ll likely see another buying frenzy.

Don’t wait—call me today, and let’s structure your transaction the smart way.

Best wishes,

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

(415) 225-7920

NMLS #205637
DRE #00874630

 

 

HELLO FROM PORTLAND

The title of my story comes from the name of a shop in downtown Portland, Oregon. We came here to celebrate our granddaughter’s fifth birthday. She and her parents live in one of the city’s leafy residential neighborhoods, so this visit was also a chance to explore Portland itself.

The city’s name comes from a coin toss in the 1840s that decided whether it would be named after Portland, Maine, or Boston. Portland has since gathered a bouquet of nicknames—Rose City, Rip City, Stumptown, Bridge City, and even Viva. Each reflects a different chapter of its history. And then, of course, there’s the slogan: “Keep Portland Weird.” Adopted in 2003 and inspired by Austin, Texas, it began as a playful marketing effort to support local music. Over time, it grew into something more—a celebration of individuality, creativity, and alternative lifestyles, along with a healthy resistance to corporate sameness.

Walking through the city, I couldn’t help but notice how many people embrace this spirit. Tattoos are everywhere, a kind of living canvas of personal expression. Portland also takes pride in being one of the most bike-friendly cities in the U.S., with the longest stretch of dedicated bike lanes and nearly 30,000 cyclists.

Each morning, I like to walk along the Willamette River, where a riverside park and shared roadway bring together runners, bikers, and walkers. This path feels like a living snapshot of Portland’s diversity. On one morning, I noticed a man wearing clothes in support of Palestine. Then came another cyclist in American flag shorts and a baseball cap stamped America First. A couple rode past who seemed to fall somewhere in between.

That mix, side by side, felt to me like the essence of Portland: share the road, share the city, and share the care!

JUMBO MORTGAGES EXPLAINED

Mortgages generally fall into two main categories: conforming and jumbo.

Conforming loan limits are set each year by the Federal Housing Finance Agency (FHFA). These limits apply to loans that can be purchased by Fannie Mae and Freddie Mac, and they vary based on both geography and the number of units in the property.

In addition to standard conforming loans, there are agency high-balance loans, which apply in higher-cost areas such as the San Francisco Bay Area.

For 2025, the current loan limits for single-family homes or condominiums in our area are:

• Conforming:$806,000
• Agency High Balance:$1,209,750

Any loan amount above $1,209,750 is considered jumbo. Loans over $3 million are referred to as super-jumbo. Each category has its own underwriting guidelines, and jumbo loans often require alternative ways to calculate income.

Why am I bringing this up? Because just last week, during our staff meeting, Fiona Khan from Wall Street Mortgage (WSM) shared their new jumbo fixed-rate programs. Then, almost immediately, a former client called me about purchasing a $2 million home with 20% down. Naturally, their loan amount of $1.6 million would be jumbo. I received a quote from WSM at 6.25%—a very competitive rate.

Last week, I also attended an open house where the property was listed at $3.885,000. With a 25% down payment, the loan amount would be $2,913,750. At the same 6.25% rate, the monthly payment would be about $17,940. To qualify, the buyer would need an annual income of roughly $600,000.

Fortunately, we have alternative qualification methods that can help clients in situations like this.

Above, I’ve attached The Jumbo Mortgage Flyer for your review. You can also click this link for a printable version.

Meanwhile, feel free to call me anytime at (415) 225-7920 with questions related to the subject matter.

Best wishes,

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

NMLS #205637
DRE #00874630

 

WHY BUY A SECOND HOME?

Our family’s love affair with The Sea Ranch began in 1986, when we first visited this magical stretch of California’s coast. From that first trip, we were captivated by the ocean views, the serenity, and the beauty of the trails. We kept returning, year after year, until one day — three years later — we mentioned to our real estate broker Cindy Kennedy, how much we loved the place. She told us about a lot where only the foundation had been poured. On the drive back to San Francisco, we decided to stop and take a look.

As I stood there, looking at that foundation and reviewing the drawings, I told my family: “This is our house. ” Of course, the question was: How can we buy it? My first thought was to use a line of credit on our San Francisco home and take out a mortgage. But the real solution came when we decided to sell one of our rental properties in San Francisco, using the proceeds for the down payment.

For the next ten years, Sea Ranch became our family’s favorite destination. Eventually, when it was time to move on, we sold the house but never stopped returning, often renting from others. As the years passed and our finances improved, we began thinking again about buying. But Cindy, now a friend, reminded us of something important: she would only sell us a home if we intended to live there permanently. And she was right — houses on the coast require constant maintenance, and the costs add up quickly.

Today, renting a home big enough for four of us — including our daughter and her husband — can cost $2,000 for just four nights. Buying is even more of a challenge, with most homes at Sea Ranch selling for well over $1 million. Currently there are about 1200 people reside in The Sea Ranch. Some of them are artists. Both myself and my wife are artists as well, however I am not ready to retire yet. For now, we will continue renting other people’s second homes

Three images you can see above, are showing what attracts us to The Sea Ranch.

Care and share!

“LOW MORTGAGE RATE” SCAM ALERT

Two years ago, I helped my client secure a mortgage. Now that interest rates have come down, he can refinance with two excellent options:

• 6% fixed for 30 years
• 5.75% fixed for 5 years

Both would lower his monthly payments.

But last night, he told me he received a letter from his current lender, Rocket, offering 4.5%. Since that rate was far below market, I suspected it was a scam. When he sent me a photo of the letter, it became clear—the whole thing was designed to lure borrowers into giving away personal information. So, he called Rocket directly at their 800 number, and they confirmed the letter was not from them.

Be careful—if you receive a similar letter, don’t fall into the trap.

Good news is you can call me instead. I’ll verify the information and review your mortgage options. Together, we may be able to lower your payments and save you money.

Give me a call anytime — I promise to help: (415) 225-7920

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

NMLS #205637
DRE #00874630

 

 

 

WE ARE SURROUNDED BY BEAUTY

It was last Thursday evening, and we just returned from an hour-long walk along the ocean trail in The Sea Ranch—one of the most beautiful places our family knows, just three hours north of San Francisco. The drive along Highway 1 winds through rolling countryside, past idyllic farms where animals graze peacefully in the fields.

As we walked, our daughter kept pointing out how beautiful everything was—and she was right. The beauty here is everywhere.

The Sea Ranch is a unique 10-mile coastal community that began in the 1960s. Private homes, carefully designed to blend into the meadows, forests, and rugged shoreline, attract visitors from near and far. Just to the north is the charming town of Gualala, where you can find everything needed to enjoy a stay in this remarkable place.

We have been coming here for many years. At one point, we even owned a home in the meadow, which we eventually sold, though our connection to the Sea Ranch never left. Now, whenever we have the chance, we return.

Our last four-day stay there was no exception. It gave us time to rest, breathe the fresh ocean air, and immerse ourselves in the scenery. As a bonus, last weekend was the Open Studios event, a wonderful opportunity to meet local artists and experience the creative spirit of the community.

If you’ve been here, you already know what I’m describing. If you haven’t, and you’re looking for a place of beauty, serenity, and mild weather— the Sea Ranch is waiting.

The three images enclosed with this story are just a small reflection of our experience.

Care and share!

REPETITION IS THE MOTHER OF LEARNING

Every week, we at Pacific Bay Financial Corporation meet with a different lender. At first, many of them seem to offer similar programs, but each time we discover something new that can help our current and potential clients.

This week was no exception. Kyle Schmidt and Diego Velez from theLender presented DSCR programs for rental properties—with a new twist. Please take a moment to view the video available at this link.

If you ever have questions, face challenges, or need assistance, I’m here for you. Give me a call anytime — I promise to help: (415) 225-7920

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

NMLS #205637
DRE #00874630

START WITH WHY

I’m reading a book by Simon Sinek called Start with Why. In it, he writes about companies—some succeed, some don’t. What makes the difference? The successful ones start with a simple but powerful question: Why are we doing what we’re doing?

This lesson is true in business, but also in life. Recently I met a client, the same age as me—78. He sold his home, but now wants to buy another one. At first, you may wonder: Why would someone at this stage of life take on a mortgage, property taxes, and insurance? His answer is simple. He plans to buy two units, rent one out, and use the income to offset his mortgage payments. He asked why and found a solution that makes sense for him.

I face the same question myself. A young woman at one of our lenders recently asked me: Why are you still selling mortgages at 78? My answer is also simple. In Japan it is called IKIGAI

• I do what I love.
• I do what I’m good at.
• I do what helps others.
• I do what generates income.

That’s my why. Every morning, I wake up and ask myself again: Why? and How can I help more people today?

To stay focused, I meditate three times a day using my book “Reflections”. It helps me listen to my own inner voice. If you’d like, you can find it on Amazon.

So, I’ll leave you with this: always start with why. It makes the what and how so much easier.

Three images are from my next book I am currently  working on: “Joyful Retirement”. Stay tuned to my weekly news.

Care and share!

 

AI AND I

CAN ARTIFICIAL INTELLIGENCE REPLACE
MORTGAGE PROFESSIONALS LIKE MYSELF?

Honestly, no one really knows what tomorrow will bring. Things are moving very fast—AI can already write stories, compose music, and even control complex systems. But in my experience, there is still no substitute for the human brain, human expertise, and—most importantly—human relationships.

Every transaction I handle is different. Right now, I’m working on three purchases and a refinance. Each one requires a unique approach, because every client has different needs, circumstances, and challenges. That’s where experience, knowledge, and personal attention truly matter—something no machine can fully replace.

So, let’s wait and see where technology takes us. In the meantime, my advice is simple: enjoy your life. And if you ever have questions, face challenges, or need assistance, I’m here for you.

Give me a call anytime — I promise to help: (415)-225-7920

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

NMLS #205637
DRE #00874630