ENCOUNTERS WITH MYSTERY

Living in the city, it’s hard to imagine a time when buildings didn’t dominate the landscape. Recently, I discovered that approximately one-third of the Earth’s surface is covered in deserts. You don’t have to travel far to experience this unique environment.

For me, this encounter took place in Desert Hot Springs, a city just fifteen minutes from Palm Springs. My wife and I visited it to celebrate our daughter’s birthday at her husband’s house, which sits on the edge of the desert. During my morning strolls, I’d briskly walk through the dry underbrush, taking in the breathtaking views of distant hills dotted with windmills and snow-capped mountains.

The desert landscape was shrouded in mystery, but it was also marred by the remnants of human neglect – trash discarded by unknown individuals. I found myself pondering the stories behind the waste. I kept asking myself, “Who are these people? Why are they doing that? What is the stuff they are discarding?”

Over the course of our three-day visit, I captured enough images to fill a book, which I’d title “42 Encounters with Mystery.” Stay tuned for more. For now, enjoy these three images.

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HOW TO BUY A CONDOMINIUM WITH A REVERSE MORTGAGE?

When you hear the words “Reverse Mortgage,” what’s your reaction? If you have any reservations, I invite you to explore my book, “Retirement Solutions for Smart People. How to Accomplish Financial Comfort”. It shares inspiring stories of clients who achieved financial comfort in retirement, often by leveraging the equity in their homes.

Interestingly, my first reverse mortgage clients were buyers, not homeowners. Many people overlook the potential of reverse mortgages for “rightsizing” – a concept that’s evolved from traditional “downsizing.” When selling a larger home, it can make sense to purchase a smaller condominium. While some may have enough cash for the purchase, others might find it more practical to use a reverse mortgage, preserving their cash for future needs.  Alternatively, buyers can purchase with cash and establish a reverse mortgage line of credit later.

For a deeper dive into this topic, you can watch my discussion with Brad Byrnes from Finance of America Reverse.

For personalized assistance, call me: (415) 225-7920, or send me an email to: [email protected]

Best wishes,

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

NMLS #205637
DRE #00874630

DO YOU KNOW
WHO MIGHT NEED MONEY?

The answer is obvious: “Everyone does.” But let’s refine the question: “Who owns one or more real estate properties?”

Unlocking the Power of a Line of Credit

Recently, we’ve received inquiries about obtaining a Line of Credit (L/C). If you have substantial equity in your property and qualify for a new loan, the solution may be straightforward: check with your bank or credit union. However, when specific conditions aren’t met, that’s where we can help.

Our tailored solutions address individual circumstances. If you’re struggling to secure a Line of Credit, contact me directly at (415) 225-7920 or [email protected]. You might know someone whose cash flow is experiencing a “cash flu.”

A recent example illustrates our approach. A potential client inherited property with his sister and wanted to buy her out. While he initially asked about an L/C, we determined that cash-out refinancing was a more feasible option. In another case, we arranged a Reverse Mortgage Second to preserve a low interest rate from the first mortgage.

Current Market Update

Interest rates are trending downward. For instance, an $800,000 30-year mortgage currently has a rate of 5.999%. As spring approaches, new opportunities emerge. These three images of flowers can attest to that.

Feel free to reach out to me to explore your options!

HOW FIRST TIME HOME BUYERS CAN BUY THEIR FIRST CONDO

Condominium Mortgage Options

If you’re planning to buy a condominium and want to secure a conventional mortgage, getting the best interest rate will typically require a 25% down payment. However, there may be exceptions for jumbo loans exceeding $1,209,750. Some lenders don’t differentiate, offering the same interest rate for condos and single-family residences (SFRs).

For example, a $1,210,000 mortgage on a $1,512,500 condo (80% loan-to-value) might qualify for the same rate as an SFR.

FHA Loans for First-Time Buyers

If you haven’t owned a home in the last three years, you might be eligible for a Federal Housing Administration (FHA) loan, which requires a down payment as low as 3.5%. However, your income must not exceed the Median Income Limit, which varies by county.

To learn more about these options and the income limits in your area, you can:

• Call me at (415) 225-7920
• Visit online resources

Meanwhile, follow this link to watch a discussion on the topic with Aussy Manuhu from Rocket who was recently presenting in our office.

Stay tuned for our next online class scheduled for March 5, 2025

Best wishes,

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

NMLS #205637
DRE #00874630

What Is Tu BiShvat?

The Jewish calendar is different from other religious and secular calendars, primarily because it follows the lunar cycle (as do some other cultures, including Chinese). In addition, it shows four New Years. Rosh Hashanah, which translates to Head of the Year, usually takes place in the fall, and celebrates the birth of the first man Adam. The actual new year starts in the spring and is called Passover. It celebrates the Israelites’ exodus from slavery in Egypt.

And then there is another reason to celebrate. It takes place between these two major events and is called Tu BiShvat or the New Year of Trees. This year, the holiday fell on February 13^th. In Israel it is celebrated as a Jewish Arbor Day, and trees are planted in celebration.

The fourth New Year takes place on the first of month Elul, which is in the fall. Its history goes back to the Jerusalem Temple times, when there was an obligation to tithe every tenth animal of one’s flock. It is difficult in our times to relate to these experiences. Nevertheless, it is still considered as one of the New Years.

There are many quotes about trees. I particularly like this quote by Thomas Fuller, “He that plants trees, loves others besides himself”. I like to photograph trees and sometimes to display them in artistic ways, as you can see from the three images decorating this story.

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HOW TO GET CONDO APPROVAL

Understanding condo approval process is the topic of our today’s online class.

When a real estate agent lists a new condominium, the first question to be asked is whether the condo is approved by Fannie Mae or Freddie Mac. This approval status determines if the condominium is warrantable. As a result, it affects which lenders can provide financing for the unit.

Some lenders maintain a list of approved condominium projects, which can be crucial in certain situations, such as insurance coverage shortages.

For a detailed explanation of the condo approval process and its benefits for borrowers, watch the video presentation by Aussy Manuhu from Rocket that was recently recorded in our office.

Need guidance? For personalized assistance, call me at (415) 225-7920.

Stay tuned for our next online class scheduled for February 26.

Best wishes,

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

NMLS #205637
DRE #00874630

WHAT IS GALENTINE’S DAY?

No, this is not a typo. When I was doing research about Valentine’s Day, I came across Galentine’s Day. Unlike Valentine’s Day, which celebrates friendship, admiration and romantic love, Galentine’s Day, which is traditionally celebrated on February 13^th, is a celebration of women’s friendship.

Meanwhile, let’s return to the question who Valentine was. There are numerous legends connected with the holiday. However, it turns out that the true history might have a different origin.

The modern roots are attributed to the English poet Geoffrey Chaucer, who lived in the 14^th century and wrote a poem about birds choosing their mates on “Saint Valentines Day”. William Shakespeare has also been credited with popularizing the holiday’s romantic associations.

Valentine’s Day began to become popular in the XIX century with printing cards often with an image of Cupid. Later, in 1913, Hallmark Cards of Kansas City, Missouri began mass production of Valentine’s Day cards. In addition to cards, heart-shaped chocolate boxes, and romantic dinners, red roses became popular as a gift on this romantic day.

As my gift to you with an expression of my love, I give you three red roses, that are part of my next book, “Reflections. The Healing Images ™”, which is going to be available in March.

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NON-QM LOANS: SHOWCASES OF CUSTOM MORTGAGE SOLUTIONS

How to qualify and get mortgages through alternative sources?

This Wednesday, February 12, I decided to talk a little bit more about non-QM loans, providing you with examples of how I can assist my clients in qualifying for proprietary programs offered by mortgage banks, specifically in condominium-related transactions.

My brief video is available on YouTube: https://youtu.be/M–GXbjEdtA

Before you start watching, I want to remind you that a “non-QM loan” stands for a “non-qualified mortgage,” which is a loan given to borrowers who do not meet the standard criteria for a qualified mortgage (QM), meaning they may not be able to qualify based on traditional income verification methods like tax returns, allowing them to use alternative methods like bank statements or property cash flow to secure financing. Essentially, it’s a mortgage option for borrowers who don’t fit the typical guidelines for a conventional loan.

Non-QM programs usually have higher interest rates and offer qualifications based on alternative calculations of income.

For any questions, please don’t hesitate to call me: (415) 225-7920 

Stay tuned for our next online class scheduled for February 19.

Best wishes,

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

NMLS #205637
DRE #00874630

 

 

 

UNKINDNESS AND CONSPIRACY, RAVENS AND CROWS

You might be wondering what the words “unkindness” and “conspiracy” have in common. The answer may surprise you. This is what a group or flock of ravens is called. I learned online that historically ravens used to be a sign of bad luck or death. That could be an origin  of those “unkind” names. Additionally, a group of crows is called “a murder”. The reason is perhaps because they are scavengers and have often been found near battlefields, cemeteries and dead bodies.

Surprisingly, a group of crows are also called a horde, mob or parliament. One of the ways to distinguish between ravens and crows is by the size of their beaks, by the shape of their tails and by their voice. Regardless of what you might think or call these birds, they fascinate me.

Crows are very smart birds; they are considered to be among the most intelligent birds in the animal world. Scientists have found that crows might be as smart as a 7-years old human child.

The only reason I decided to write about these remarkable birds is because I like them.

The three images illustrating this story might attest to my statement.

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HOW TO DEAL WITH
NON-WARRANTABLE CONDOMINIUMS?

Dear Real Estate Professionals, Future and Current Homeowners,

I am glad to present to you Class IV  of my new educational program, “Condos with Manny Kagan: Classes by a Mortgage Broker”.

My presentation on Non-Warrantable Condominiums is available on YouTube at this link.

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

CLASS IV  TAKEAWAYS

A condo is considered non-warrantable when:

1. The project is new construction and/or has yet to be completed.
2. The developer has not turned over control of the HOA to the owners.
3. A high percentage of units are occupied by non-owners.
4. The community allows short-term rentals.
5. A single person or entity owns more than 10% of the total number of units.
6. The building owner or developer is involved in litigation.
7. There are problems with HOA (lack of insurance) and maintenance

NON-QM programs offer alternative income calculations, often with higher interest rates. These programs address issues with condominiums and borrower qualifications.

In many cases, mortgage brokers who work with various mortgage banks can provide their solutions. These banks specialize in non-QM mortgages, sourcing funds from financial institutions, insurance companies, hedge funds, or specialty investors.

Becoming a professional mortgage broker requires years of experience, as it involves connecting complex details and finding suitable lenders.

With nearly 40 years of experience as a mortgage brokerage company, Pacific Bay Financial Corporation has established relationships with numerous mortgage banks. Our dedicated team maintains these relationships, ensuring access to a range of lending options.

To be continued next Wednesday, February 12, 2025

***

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

Best wishes,

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

NMLS #205637
DRE #00874630