The Luevanos Group at Exp Realty

What are solar panels, and how do they work?

Solar panels attract sunlight and convert that into electricity. They typically lay stagnant on your roof.

Typically leads to day one savings of about 50% depending on the solar system size.

Join thousands of Homeys who are receiving news and personalized updates weekly: https://theluevanosgroup.com/homey

Home buyers are now asking for more.

As buyer demand starts to waiver and supply starts to increase, sellers do not have the advantage they once had. The days of 10+ offers for a home are likely behind us.

Buyers are starting to expect more. Sellers will need to adjust their expectations and allow buyers to have slightly better terms.

For our “How to get a good deal in a seller’s market” eBook, see the link in the bio or click here: https://bit.ly/3px1vsj

It helped one of our clients buy a home for $17,000 under market value in the ultra-competitive market!

Rent vs. Buy FHA 3.5% down

Does it make more sense to rent for $3,000 monthly or purchase a $750,000 home?

If you can afford the mortgage, purchasing may be better.

After five years of renting, you will have spent $191,128 in total rent.

After five years of owning, you will have accumulated $293,635 in total equity.
$26,250 down payment
$207,211 appreciation
$60,174 principal paydown

After five years, if you decide to sell, you will be walking away with about $229,928.
$957,211 purchase price
$663,575 balance
$1,583 protracted tax credit
$65,290 closing costs

*FHA 3.5% down
*5% appreciation
*3% rent increase
*5% interest rate
*0.5% maintenance
*five-year breakdown
*These are estimates, and we cannot guarantee future outcomes

Adjusted tax payment will be roughly $4,793 monthly.

Opportunity cost:
$26,250 initial investment with $1,793 invested monthly at a 10% annual return after 5 years is $183,191.07

Please comment on any comparisons you would like a breakdown for.

Can you guess how much this Reynier Village home in the Westside of Los Angeles is selling for?

A. $1.2M
B. $1.4M
C. $1.6M

Call or text (562) 850-1715 📲 for more details.

For full-length home video tours, see our Youtube channel
https://www.youtube.com/c/TheLuevanosGroup/videos

Home prices went up 18.8% in 2021 across the United States! The fifth highest reading on record.

In Los Angeles, home prices went up 19.3%.

For our “How to get a good deal in a seller’s market” eBook, click here: bit.ly/3px1vsj

That feeling when your client is ready to start looking at homes.

For our “How to get a good deal in a seller’s market” eBook, click here: bit.ly/3px1vsj

Check this home out in Lake Elsinore, what do you think ? If you want to see more homes like this send us a message 📩 or click contact in our bio to call us directly 📞

Home prices aren’t the only thing going to the moon. Rents are up 16% in the last year! 🚀

https://linktr.ee/theluevanosgroup

Does it make more sense to rent for $3,000 monthly or purchase a $700,000 home?

If you can afford the mortgage, purchasing may be better.

After five years, you will have $294,383 in equity compared to spending $191,128 in total rent.

If you decide to sell, you will be walking away with about $236,887.

Please comment on any comparisons you would like a breakdown for.

*Conventional 5% down
*5% appreciation
*3% rent increase
*3.75% interest rate
*five-year breakdown
*These are estimates, and we cannot guarantee future outcomes

Are you noticing more vacation or second homes purchased?

According to Redfin, demand for second homes is up 87% from pre-pandemic levels compared to 42% for primary residences.

As mortgage rates continue to increase, it's creating urgency for many buyers.

Interest rates recently raised over 3.5% and are expected to surpass 3.9% in 2022.

Purchasing a single-family residence with a detached garage is a great way to lower your mortgage and build equity.

Homes with detached garages are much easier converted to an ADU.

Once the ADU is completed, it will add tremendous value to your home and help you offset the payment.

Watch this video for a breakdown: https://www.youtube.com/watch?v=VKofOpzHd5Y&t=1s

Does it make more sense to rent for $3,000 monthly or purchase a $700,000 home?

If you can afford the mortgage, purchasing may be better.

After five years, you will have $288,711 in equity compared to $191,128 in total rent.

If you decide to sell, you will be walking away with about $231,122.

Please comment any comparisons you would like a breakdown for.

*FHA 3.5% down
*5% appreciation
*3% rent increase
*3.5% interest rate
*five-year breakdown
*These are estimates, and we cannot guarantee future outcomes

Purchasing a duplex is a great way to keep your mortgage down. You can use the rent from the other unit to get pre-approved for more and help offset your payment.

You can purchase with as little as 3.5% down using the FHA loan or 15% down using the conventional loan.

There is usually less competition also.

Beware of tenant-occupied property. They may be paying lower rent.

Watch this video for a breakdown: https://www.youtube.com/watch?v=VKofOpzHd5Y&t=1s

The FHA loan is not just for first-time homebuyers. Anyone who doesn’t already have an FHA loan can leverage a lower down payment, credit score, and interest rate. The higher debt-to-income ratio helps you qualify for more. This is a great option to help you get into the door.

See link in bio for more details.

Would you sell your home in this market? Yay or Nay?

Comment your answer below.

The mortgage insurance premium should automatically remove after 11 years. However, many homeowners have over 20% equity within three years with current home appreciation. In this case, the only other way is to refinance the loan.

See link in bio for more details.

Yes, you can rent a home that FHA finances. However, anytime you purchase a home with owner-occupied financing, you are required to live there for at least one year. Once the year is up, you can rent your home.

See link in bio for more details.

Do you think home prices in LA County will go up or down this year? ⬆️ or ⬇️

Comment your answer below.

Prices in Los Angeles County just had their most significant decrease since Jan 2021.

The median sales price decreased from $836,000 in November to $825,000 in December. In the last 12 months, the median sales price is up $104,000 and 14.4%

The number of homes for sale has increased slightly, and inventory months supply increased to just 1.3 months. Median days on the market increased to 14 days which is our most days since July 2020. Remember 5-6 months is a balanced market, and 6+ is a buyers market.

All in all, we are still in an extreme seller’s market. As interest rates increase, this should affect how much prices increase moving forward.

*percentages are comparisons year-over-year

For more details and charts, click: https://theluevanosgroup.com/market-trends

Yes, the home must be the borrower’s primary residence to qualify. Also, you can only have one FHA loan at a time unless you decide to purchase another home at least 100 miles away. We recommend consulting your lender if you have any questions.

See link in bio for more details.

The maximum debt-to-income ratio for the FHA loan is 56.99%. In addition, the maximum housing expense is 46.99%. To qualify, you need to stay under both ratios.

Example:

$10,000 can have debt up to $5,699 in total, and all debt cannot exceed that, and mortgage payment cannot exceed $4,699 a month

See link in bio for more details.

A mortgage insurance premium is required with every FHA loan and protects FHA-backed lenders from higher-risk borrowers. MIP upfront payment will be equal to 1.75% of the total value of your loan. Annual MIP is usually about 0.85%, although it varies between .45 and 1.05%, depending on the loan amount.

Example:

$600,000 loan. Upfront MIP is $10,500
$600,000 loan. Annual MIP at 0.85% is $5,100

See link in bio for more details.

The minimum credit score for the FHA loan is 500, but you will need a 10% downpayment. Many banks won’t look at less than a 580 credit score. However, you’ll get a much better interest rate and have a better chance of qualifying once you meet a 620 threshold.

See link in bio for more details.

The minimum down payment for the FHA loan is 3.5% down. You should also account for about 2.5% of closing costs.

Example:

For a $600,000 home, you are looking at $36,000 out-of-pocket.

See link in bio for more details.

There are two critical non-negotiable services that every buyer’s agent should offer: availability and clear communication. Buyer agents should proactively be sending homes, offering themselves on weekends or weekdays to show properties, and be available to answer any questions their clients have. Buyer agents should also establish clear lines of communication and demonstrate that they are aggressively working on getting their clients’ offers accepted. We found that the buyer’s agents calling listing agents before submitting bids, creating relationships, and submitting the most transparent and frictionless offers are the realtors that the listing agent and seller want to work with during escrow.

See link in bio for more details.