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2009 – A Bitter, Sweet Year for Military Homebuyers in San Diego

2010-01-06T20:03:00.000-08:00

The hot buyer’s market in the first half of 2009 was a big opportunity for military homebuyers to take the plunge and buy a piece of San Diego real estate. After all, the market was ripe with foreclosure bargains, low interest rates, first time homebuyer tax credit and most of all the ability to use the VA benefit to buy a home. Military members felt respected once again after being all but shut out during the boom. The stigma held by lenders and real estate agents against VA buyers had lifted. The military buyer was the new prized client because in this economy they had a steady job and were the only market sector that could get a loan with ZERO down!!! Veteran real estate agents dusted off their VA literature and even attended seminars to brush up on how to work with a service members and VA loans.

By the third quarter, a new problem started to emerge with the newfound market segment in high demand. Lenders of bank owned properties had too many buyers competing for deals and were reluctant to accept a VA offer. It’s too much hassle; more costly and longer to process were the responses coming from REO managers about VA loans. Real estate agents felt the frustration of spending hours showing properties, submitting multiple offers only to get their VA offer rejected for an all cash, conventional or even FHA offer instead. How could it have gone so sour so quickly? The much speculation and talk of the foreclosure shadow inventory being released to ease the inventory shrinkage didn’t happen. What we got was a slow trickle that whipped up the demand, increased prices and squeezed out more VA buyers.

The type of inventory available for purchase with a VA loan also created problems. Most VA buyer’s affordability fell in the condo range because they could get more value for money than an equivalent single family home. Which was OK, but herein lies another problem- many condos are not VA approved or the certification was questionable. This all tallied up to be an even bigger frustration for VA buyers looking to snag a deal and walk away with zero down. For some, the financial and physical burden of staying in a hotel usually on base during the buying process was overwhelming. It was very stressful on families who had to face offer rejection numerous times and much uncertainty about whether they would indeed get to actually buy a place despite the hardship. Oftentimes, I would personally feel the pain, understand the frustration and anxiety of how the market seemed to discriminate against VA buyers who were extremely credit worthy and hardworking.

It is fair to say, that the number of military families who brought a home with VA loans did indeed more than triple the 1,300 homes sold in the previous year. However, experts believe the number would have been much higher if real estate agents and lenders didn’t have such reluctance to work with VA buyers. Also, military buyers do have the option of going conventional or FHA. Just like any other buyer today, many are young, starting out and don’t have that type of nest egg.

Now with 2010 upon us, let’s see how the military buyer wanting to use a VA loan fares in the San Diego real estate market.

Lorraine Santirosa works with military families who need to buy or sell their homes as they relocate to and from the San Diego area.

Don't you wish you can buy a home in La Jolla, CA?

2009-08-14T12:45:00.000-07:00

If you're familiar with San Diego you've probably thought about the possibility of living in La Jolla. The area is well sought-after for so many reasons with the obvious being location, location and location. If you're a military family the chances of affording a home in La Jolla would be considered a pipe dream. Then this house was listed by my office and I began to think of ways a family that gives everything to their country could become an owner. Let me first say the house is located in the UTC/La Jolla area. The house was listed at $640,000 a bit pricey for an average military person pay check but a whopping deal based on area prices. So, how can this be a reality for a military family in San Diego to get the keys? If you have resources that comprises of a wealthy family member, profit from a previous home sale or savings to make a hefty down payment, then there's a way. That's right, over my years of selling real estate I've encountered military clients who have the resources to buy homes considered out of the normal price range. What's more military families can use their VA benefit to purchase a home with a jumbo loan. It can be done.

Post written by Lorraine Santirosa who strives to help military families in San Diego become home owners. Let me know your thoughts. www.supportforwives.com

Spouse Calls: Summer, the farewell season | Stars and Stripes

2009-08-10T14:01:00.001-07:00

Ever wondered what's the best way to say good bye to the friends you make at all those duty stations? You may discover a new way through this article...

By Terri Barnes, Special to Stars and Stripes
Stars and Stripes Scene, Sunday, August 9, 2009

There is no escaping PCS season. Either we are moving, or some of our friends are moving, or both.

This year, for me, it’s both. As I watched the painful parade of departures this summer, I noticed that all goodbyes are not alike.

Some people like a big party to say so long to everyone and get it over all at once — sort of like ripping off a Band-Aid.

Some brave souls prefer to bid farewell to each friend, facing the pain of each farewell.

Still others prefer not to say a final goodbye at all, slipping away without the formality — or the chance for tears.

Perhaps our preferences reflect the way we cope with the flux of military life. Or maybe it depends on how much time and energy remains after the preparing, the sorting, the packing and the cleaning. Sometimes the goodbye-ing is just one more thing to do, and a difficult one at that.

"Saying goodbye in any fashion is hard," said Cheryl Stark, an Air Force wife in Ansbach, Germany.

"The people you get stationed with become your family. They are there for the holidays, the celebrations, the good times, the bad times," Cheryl said.

"I have found that the longer we stay in, the harder it is getting to say farewell to those who have become yet another extension of our family."

"We are a huge party goodbye family," said Catherine Brown, whose husband is a military contractor. "I mainly do this for the kids, so that they have an opportunity to say goodbye to their friends."

Catherine, who now lives in Florida, said she invites friends over for a cookout or easy finger-food gathering before a move.

"Never forget to have the address book sitting out so friends can write their info down," she advised.

Donna Musil, who grew up in the military, suggested exchanging grandparents’ addresses as well, because they are more permanent. Donna is the creator of the documentary, "Brats: Our Journey Home," about military children.

"Do keep in touch after you leave. People are not expendable or interchangeable," she said. "I think military children need to learn that as they go along, or they’ll keep doing it when they grow up."

Valerie Mackin agrees: "I was a military kid, a military member and now a military spouse. Over the years I’ve learned that people just don’t stay in touch as much as they say they will," said Valerie, as she prepared to move from Texas to Florida.

"I like to see as many people as I can, either at a party or one on one, because I’m pretty sure I won’t be seeing most of them ever again," she said.

"Or maybe I think if I make a point of saying goodbye they might stay in touch that much longer. … There are always those one or two that just keep hanging in there with you," said Valerie.

Sandra Grey, an elementary school counselor in Grafenwöhr, Germany, said saying goodbye is important, so she approaches it intentionally.

"I think about the special qualities of each person and just tell them what they mean to me. It takes time and some deliberation, but I have learned … how important it is," she said.

"I am not a good good-byer. I cry a lot, so short and sweet is good for me," said Cindy MacKenzie, not long before I stopped by her house at Ramstein, Germany, preparatory to our move last month.

"It’s not goodbye. It’s see ya later," she said.

I’m with you Cindy, and I will see you later.

Terri Barnes is a military wife and mother of three. She finished this column sitting on the floor of her empty house in the middle of moving to Stuttgart, Germany. Spouse calls appears weekly in Stars and Stripes. Contact Terri at spousecalls@stripes.com and see the Spouse Calls blog here.

USAA and Navy Federal Credit Union Banking Wars!

2009-08-05T10:30:00.000-07:00

You've probably heard or seen the ads lately where USAA and Navy Federal Credit Union are competing fiercely for the military banking community. If you previously didn't bank at one of these institutions you most likely had never heard of either banks. That's because Navy Federal with the exception of a few years ago had enjoyed the luxury of dominating the market. It had such a strong hold that it really didn't need to advertise much or expand it's services to other military branches. However, USAA's recent aggressive marketing campaign changed the rules of the game. Navy Federal has now opened it's membership to include Army, Airforce, Marine, Navy, and Department of Defense civilian employees and contractors assigned to installations. USAA's latest ads claim to be number one in customer satisfaction and according to their website"You can save up to $600 a year on checking or keep watching your bank come up with ways to take it."

So, what does this all mean to the average banker like myself who's been a member of both instititutions for years? The other bank's slogan comes to mind "when banks compete you win." If that's the case this banking war has to be a good thing for me and the millions of other members...right? Umh.. Before I get a head of myself, let's do a reality check. You can only do online banking with USAA, 24/7 which is convenient. However, I haven't felt comfortable scanning my checks and depositing on line. It's just a trust issue and I'm trying to get used to web bill pay. One step at a time. When compared to Navy Federal, I can walk into a brick and mortar branch and take care of my business. There's just one tiny problem. Over the last 18 plus years that I've been a member of Navy Federal Credit Union, I can count on one hand the few times I've visited the bank and the lines haven't been almost out the door. When I walk into either of my local branches at the Imperial Market Pl or Mission Valley in San Diego I can expect to wait at least 30 minutes whether or not it's a military pay day. There never seems to be enough tellers open and members stand in line complaining and wondering if the branch manager will have pitty and open up more tellers to get the line moving faster. No matter how I dread going to the local branches I've been a loyal customer. For how much longer? Whoever wins the banking war on this issue- gets my vote. Let me hear what you think.

www.supportforwives.com

Another .75% Fed Rate Cut and What Does It Mean To Your Wallet

2008-03-20T11:37:00.000-07:00

The Federal Reserve cut rates by .75% again on Tuesday in an effort to stabilize the market that's taking a battering from the mortgage crisis. Over the weekend we saw a quick collapse of the bank Bear Stearns and many investors are wondering who's going to be next. But how's this really affecting ordinary people especially as it relates to military families relocating to San Diego who are in the process of buying a home? A few weeks ago, I sent out this letter and the same still applies today. Mortgage interest rates are actually creeping up and not much is being reported in the media about this. Here's what I said:

Dear Friends, Family, and Clients:

I felt compelled to draft a quick note addressing what you have been hearing on the news and reading in the newspapers the last few weeks. It is true that the Federal Reserve has recently cut rates; however, these rate cuts do not necessarily mean mortgage interest rates will go down. Dropping the Fed Funds Rate lowers short-term rates associated with business loans, consumer loans, credit cards, home equity lines of credit, and adjustable rate mortgages. The Fed Rate is the rate at which banks borrow money; not the rate at which they loan money. Fed Rate cuts do not have a direct impact on long-term fixed mortgage rates. In fact, they often serve to push them in the opposite direction. Here is an inside look on the impact that the last six Fed cuts have had on mortgage rates.

Period /Fed Rate Cut /Impact to Home Loan Rates

Jan – Dec 2001 /Down 4.75% /Rose .55%

May – Aug 2003/ Down .25% /Rose .78%

Sep 18, 2007 /Down .50% /Rose .19% within two days

Oct 31, 2007 /Down .25% /Rose .15% within five days

Dec 11, 2007 /Down .25% /Rose .125% within two days

Jan 22, 2008 /Down .75% /Rose .29% within two days

As you can see, mortgage rates usually have an initial drop after an announcement of a Fed Rate cut, but in most cases it only lasts a few hours or days and then moves back up again.
The leading indicator of how mortgage interest rates will respond is actually based on the activities of mortgage-backed bonds, commonly referred to as Mortgage Backed Securities (MBS).
Key issues regarding economic news and dramatic fluctuations in the stock market tend to influence interest rates more than a Fed rate cut. Our current market is in a state of flux.
The involvement of the Feds is an indicator that they are trying to regulate the stability of the economy. What does all of this mean to you as a homeowner? It means that you are not likely to see rates bottom out and stay low month after month.
However, if you can catch it at just the right time, the current market may provide a small window for you to lock in an excellent interest rate.
To take full advantage of any future dips in the market, my recommendation would be to contact me, so we can review your situation and determine exactly where rates need to be for you to benefit from a refinance.
Your Consultant For Life

http://www.sandiegomilitaryrelocation.com/

VA loans For Veterans Left Out Of Economic Stimulus Bill

2008-03-17T23:27:00.000-07:00

It's been described as a big "goof up" on Capitol Hill. When Congress passed the bi-partisan $150 billion stimulus package to raise the the loan limits for homeowners in high cost areas across the country, it left out VA loans. Fannie Mae, Freddie Mac and FHA all got their limits raised to $729,750 from $417,000 as part of the stimulus package. By completely leaving out the VA loan limits, it affects about 11,000 VA loans processed each month. It puts the VA borrower at a big disadvantage to other borrowers. For veterans looking to purchase homes in high priced areas like San Diego, the loan increase would greatly impact their buying power. It could mean a difference between a condo or a detached home. This is clearly an embarrassment for Congress.

To fix the problem, several Congressional representatives are rushing to pass bills including a "stimulus fix" bill. Stay tuned for updates.

Why Buying Instead of Renting Still Makes Sense For a Military Family In San Diego

2008-03-16T21:03:00.000-07:00

On Tuesday, I was fortunate to give another military family keys to their brand new home. It was an exciting moment and one they'll always remember. I'm sharing this with you for a number of reasons.

*The active duty member has over 20 years of service and never purchased a home until now.

* When asked if there is anything he'd do different, he said, "I should have stopped renting and purchased a house a long time ago."

* He purchased the home with a VA loan at an excellent rate, 30 year fixed and no mortgage insurance. VA loans are becoming more popular in CA. A great member benefit.

* He received up to 6 % of the purchase price in incentives to pay for closing costs, two years prepaid HOA and interest rate buydown.

* He was able to purchase the home with virtually no money down and obtain a mortgage payment just a little more than what he'd pay in rent.

* It was a fabulous deal and he was able to take advantage of the great buyer's market in San Diego.

As I helped celebrate the event with them, it reminded me of why I enjoy doing my job. To help military families buy or sell homes in San Diego by providing world class service. Congrats to the happy new "Home Owners."!