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Apache is functioning normally

In our latest real estate tech entrepreneur interview, we’re speaking with Dana Dunford from Hemlane.

Without further ado…

Who are you and what do you do?

I’m the CEO and co-founder of Hemlane, a technology-enabled property management platform. Through real estate, I have become a strong advocate of purchasing properties anywhere, as the best investments are not typically in your backyard. I help real estate investors set up the most intelligent process to manage rentals from a distance, while connecting them with local, licensed professionals.

What problem does your product/service solve?

Most rental owners select between do-it-yourself management and hiring a traditional property management company. The majority of owners opt to take the do-it-yourself approach to management. Hemlane is a flexible and transparent solution, where rental owners can manage from anywhere with the option to use our 24/7 repair coordination team and local, licensed leasing agent partners.

What’s are you most excited about right now?

Our team at Hemlane. Steve Jobs once said, “A team of A+ players will run circles around a team of B and C players.” This is very true. While we only have 14 members on the team, they all have entrepreneurial spirits, a strong work ethic, and are downright great people. And, we’re planning to all reconvene post-COVID, which will be a great company event.

What’s next for you?

In the most immediate future, we’re launching new pricing tiers at Hemlane which will be more attractive to our user base. And, we’re really looking forward to our Series A round next year. On a personal note, I’m excited about the opportunity to go back to Africa after COVID to visit my husband’s family and watch our twins grow up.

What’s a cause you’re passionate about and why?

I care very deeply about the oceans. My mom is a geophysicist and oceanographer, my dad is a ship captain, and my husband is a surfer. I’ve always grown up near the beach. To help preserve sea life, my husband and I are deeply committed and connected to the Golden State Salmon Association.

Thanks to Dana for sharing her story. If you’d like to connect, find her on LinkedIn here.

We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).

Source: geekestateblog.com

Apache is functioning normally

Want to master your real estate market fast? Listen to today’s podcast with Geoff Zahler and learn how to become a well-rounded Realtor in record time. Geoff also shares a stat that every real estate agent should know, what clients really care about, and how to make sales without selling. Don’t miss it!

Listen to today’s show and learn:

  • The Las Vegas real estate market [2:30]
  • About Zahler Properties [7:28]
  • The best way to learn a new market [12:45]
  • Zillow leads back in 2014 [19:18]
  • Accepting the need to pivot [25:44]
  • Baby steps toward building a real estate business [28:00]
  • Buyers accepting the new mortgage rates [32:00]
  • The different types of leads [36:09]
  • Staying top of mind with previous clients [37:55]
  • A stat that every real estate agent should be aware of [39:32]
  • Selling without selling [41:34]
  • What potential clients really care about [44:12]
  • A mental shift that will help you become a better salesperson [46:47]
  • The real estate journey [50:04]
  • Where to find and follow Geoff Zahler [51:42]

Geoff Zahler

A loving Husband, doting Father, dedicated Real Estate Broker, and community volunteer that absolutely loves giving back to his city. Geoff is passionate about his family, watching his three children (2 girls and a baby boy) grow, cooking, traveling both in the US and abroad, growing vegetables in his garden, and being present in the lives of friends, family, and clients.

Geoff cheers passionately for his favorite Sports teams, laughs to tears at funny movies (and the occasional stupid internet video), and will forever love 90’s Hip-Hop.

He believes in a giving mentality, realizing that personal and business growth are all about putting others in front of his own goals.  By putting others first, he is able to provide an amazing life for his family and live life one laugh at a time.

He is the Broker | Founder and Team Leader for his family at work, Zahler Properties.

Related Links and Resources:

It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.

-Aaron Amuchastegui

Source: realestaterockstarsnetwork.com

Apache is functioning normally

The pandemic took a toll on the U.S. employment market, with unemployment hitting a record high of 14.7% in April 2020. 

For those still relying on unemployment, there’s another news item taking shape. A growing number of states have decided to end the extra $300 a week in unemployment assistance that was part of the American Rescue Plan. Here’s what you need to know if you’re affected by this change.

What’s Ahead:

Which states are affected?

For more than a year, if you were unemployed, you were able to apply to receive an extra $300 a week in unemployment compensation. This was part of the American Rescue Plan, which was designed to help Americans through the worst pandemic in a century.

But as more consumers are vaccinated, local governments are taking another look at the need for those extra payments. Some states have opted to end them altogether. In those states, eligible unemployed residents will go back to receiving the standard weekly unemployment payment.

Your first question is probably whether your state is affected. The problem is, the list is still growing. But as of today (June 3, 2021), 24 states are ending unemployment benefits. They are, in alphabetical order:

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • Florida
  • Georgia
  • Idaho
  • Indiana
  • Iowa
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • New Hampshire
  • North Dakota
  • Ohio
  • Oklahoma
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • West Virginia
  • Wyoming

If you’re receiving extra unemployment or Pandemic Unemployment Assistance (PUA), which is designated for freelancers and contract workers, it’s important to check into your state’s status. In most of the above states, both the $300 extra unemployment and PUA are ending early.

The $300 in extra weekly aid wasn’t going to last forever. It was set with a 2020 expiration date, which was extended to 2021. The original aid expired in December, but that expiration date was pushed back to September 6, 2021. If the remaining states don’t opt-out of the extra unemployment, those who qualify will continue to receive the boost in unemployment until September.

Each state that has chosen to opt-out has set its own deadline for ending unemployment. Below is a list of the end dates for each state:

  • June 12: Alaska, Iowa, Mississippi, Missouri.
  • June 19: Alabama, Idaho, Nebraska, New Hampshire, North Dakota, West Virginia, Wyoming.
  • June 26: Arkansas, Florida, Georgia, Ohio, Oklahoma, South Dakota, Texas, Utah.
  • June 27: Montana.
  • June 30: South Carolina.
  • July 3: Tennessee.
  • July 10: Arizona.
  • July 19: Indiana.

States offering incentives

If your state is on the above list, there might be some good news. In some states, governments are offering extra money for those who accept employment. Those states include:

  • Arizona: employees can qualify for a Return to Work Bonus of $2,000 for full-time work or $1,000 for part-time work after eight consecutive weeks of employment. You’ll need to begin this work between May 13 and Sept. 6. 
  • Montana: eligible employees can qualify for a one-time, $1,200 Return to Work Bonus after completing four full weeks of paid work. 
  • New Hampshire: through June 19, currently unemployed workers can qualify for a bonus of $500 for part-time employment and $1,000 for full-time employment.
  • Oklahoma: the Return to Work incentive offers eligible workers $1,200 after six weeks of full-time work.

Unemployment benefits cutoff

There’s another cutoff that applies to pandemic-era unemployment recipients. Each state has specific timeframes for collecting unemployment. In many states, six months is the limit. But during the pandemic, this cutoff was extended, with some states allowing people to claim unemployment for a full year or longer.

The pandemic has now passed the one-year mark, though, which means that the deadline might be approaching for many unemployed individuals. Whether you’re in a state that’s cutting off extended benefits or not, it’s important to pay close attention to your benefits’ end date. You may be able to apply for an extension, but there’s no guarantee your state unemployment office will grant it.

Getting back to work

Unfortunately, for many workers, heading back into the workforce isn’t as simple as landing a job. Daycares and schools face the same staffing shortages as many businesses, which means that parents have nowhere to send their children when they go back to work.

There’s also the issue of the lingering pandemic. Even in areas where vaccines are readily available, some employees are still concerned for their personal safety. For some, permanent remote work may be the only option. But when that isn’t available, workers face the tough choice of health versus paying the bills.

For those who are in the states that haven’t yet cut off unemployment benefits, there’s still a little time to sort things out. But if you’re in one of the states ending extra payments, it’s important to know what your options are.

What to do next

If your state is on the above list, you’re probably wondering what options you have. Here are a few things to do if you’ll soon be without that extra $300 a week.

Check with your unemployment office

Just because you’re reading online that your extra unemployment benefits are ending, that doesn’t mean there aren’t other options. Unemployment compensation is decided on a case-by-case basis, using laws set at the local level. Contact your local unemployment office and find out if there are options available to you.

Consider remote work

This obviously won’t be an option for everyone. But the good news is, the pandemic has made employers more open to remote work than ever. You can often search local job sites and find plenty of opportunities where you can work from home most of the time. There are also plenty of work-from-home opportunities in this list, but you can also search online for “remote work” or “work-from-home jobs” and find some options. 

Look for a bridge job

If you’re able to work at least part-time, consider a bridge job. These jobs are designed solely to get you through until things return to normal. At that point, you’ll (hopefully) be able to land your dream job. In addition to letting you pay your bills, a bridge job also helps reduce those gaps in your resume that can be concerning to future employers.

Consider summer childcare options

Parents do have one thing working in their favor: it’s summertime. The need for remote learning is put on hold for now, and there are childcare opportunities that don’t exist in the fall and winter months. If your local daycares are understaffed, consider enrolling your children in a summer camp. Local organizations like the YMCA and Boy Scouts often have summer camp opportunities, for example.

Summary

In most states, the $300 in extra weekly compensation will continue for now. But it’s important to prepare for it to possibly end soon. Stay in touch with your local unemployment office and make sure you’re aware of all your options. Even if the extra $300 cuts off, you’ll likely still be eligible for a weekly unemployment check while you continue to look for work. 

Read more:

Source: moneyunder30.com

Apache is functioning normally

This is final article of a three-part series on how he stumbled into real estate investing at age 23. Be sure to read part one and part two.

In the second part of this series, I discussed two mistakes I made when jumping into real estate investing. Despite running a successful property management company and knowing how the business worked:

  1. I bought a negative cash flow property without an emergency fund
  2. I got emotionally involved

In the conclusion of this series, I want to share three additional mistakes I made, and give my final thoughts on my experience. Let’s jump right in.

Mistake #3: I had a short-term mentality

I had just purchased an 8-unit apartment building, the value of which would take several years to restore. Despite knowing this, I was operating as if I could solve all the issues in the first four weeks. But it simply wasn’t going to happen. In real-estate slang, I had just bought the quintessential “buy-and-hold” property, but was approaching it as an aggressive “flip“.

On paper, I knew it was a long-term game all along. I had even cited the 2012 Super Bowl (being held in Indy) as having potential to add value to the area when we were pitching our buying plan. Once I signed the dotted line, I allowed my excitement to take control and I tried to inject value into the property as fast as I could. That almost never results in a positive outcome.

In my rush to make my first real estate purchase into a record-setting success story, I was actually doing serious harm. This unrealistic mindset:

  • caused me to rush decisions,
  • increased the stress of minor setbacks, and
  • encouraged more emotional attachment.

In hindsight, ensuring that I had a realistic mindset (on more than just paper) would have made a large, tangible difference. This was one of the few areas that I could have quickly corrected even after the purchase.

Mistake #4: I focused too much on price

As I outlined in part one, we had purchased 8 units for under $80,000. While only three tenants were paying, all units had occupants (meaning they were at least semi-livable). The price was so low, I couldn’t focus on anything else.

One of the main reasons for the low price was the neighborhood: It wasn’t just a low income area — it was one of the lowest income areas in the entire city. The units rented for an average of $450/month, which included all utilities.

Economically depressed neighborhoods bring plenty of unexpected issues for first-time real estate investors. I had factored in a higher vacancy rate and knew the average tenant would be more transient than normal. However, I hadn’t accounted for the emotional impact of dealing with issues like drug addictions or existing racial tensions.

I was especially naive of any racial issues. My race differed from the majority of my new tenants; I didn’t anticipate it, but this caused additional hurdles in many situations. As it turns out, you didn’t have to travel very far to find examples of racist landlords in the area. Whether I liked it or not, this was a real barrier that I had to work to break through.

Focusing too much on price also meant I skipped looking into problems with the paying tenants. One of the three paying tenants when we took over was named…Amber (at least that’s what we’ll call her here).

Amber had at least two, completely opposite personalities. The first was of a stereotypical southern belle. She’d greet me with a warm smile, invite me inside, and offer me something to drink or eat. She’d say things like, “I hope you have a Jesus day,” whenever I’d leave. The first three times we met, I assumed she was the best tenant of the whole building.

Unfortunately, Amber’s second personality was less friendly. It involved ranting, screaming, and at least three explicit words per sentence. She’d call and leave 17 voicemails within a hour, each one more incoherent than the last. At times it was so bizarre I felt like pinching myself to be sure I was conscious.

Despite annoying several of the other tenants and causing numerous problems for us, she paid her rent in full and on time. As I pointed out in part two of the series, our lack of emergency fund put us in a situation where kicking out any paying tenant was a very hard decision.

The final straw came one day when we were having a company install new furnaces in the building. Amber intentionally waited until the crew was almost done with the job and dialed the fire department. She claimed that the HVAC company was trying to kill her by piping gas straight into her apartment through the air ducts. As you would expect (and appreciate), the fire department takes any calls of gas leaks very seriously.

Within ten minutes, there were three fire trucks parked outside of the building. While examining Amber’s unit, she also took the liberty of informing the firemen that the HVAC crew had molested her cat. The biggest problem with her story was…she didn’t even have a cat.

While the fire department quickly realized the problem likely existed in Amber’s head, they weren’t taking any chances. It took almost 90 minutes to allow them to check every unit and for the HVAC company to demonstrate the condition of the new furnaces (which hadn’t been turned on yet). At the end of the day, the HVAC company had done everything 100% correct and there was no trace of even the slightest leak.

I left the property and drove straight to the courthouse to file the eviction. I had a long list of violations and tenant complaints against Amber and the on-time monthly payment was no longer worth the hassle. I had dealt with volatile tenants before, but nothing like what I had inherited in Amber!

Mistake #5: I should have partnered to eliminate my weaknesses

What I wanted to do was buy a property in decent physical condition with existing management issues. After all, management was (supposedly) what I was good at. However, I ended up buying a property with both management and physical issues.

While I had people that I trusted to do repairs and maintenance work, I had absolutely no experience in knowing what it would take to get certain jobs done. I was a relationships guy: I did a great job at acquiring clients, managing tenants, and finding dependable people to execute the repairs. What I couldn’t do was swing a hammer, let alone estimate what it would cost to replace the gutters.

And while I did have a partner, we had similar strengths and similar weaknesses. Looking back, we should have brought on an additional partner whose strength was in repairs and maintenance issues. This would have allowed us to focus on the management without distraction and would have lowered our need for money upfront.

An alternative solution would have been to partner with someone with deeper pockets who could properly fund our needs. It would have cost us more to outsource all the repairs (which we did anyway), but we could have made up the money by focusing more on our own strengths.

Concluding Thoughts

After a volatile year of management and countless hours of effort, I transferred the property for an amount that netted me around $10,000. To be fair, I had also made between $2,000-$4,000 throughout the year. But I’m actually terrified to think of what my hourly rate would be if I factored in the amount of time I spent researching, buying, managing, and eventually selling the units. All things considered, it could have turned out drastically worse. I consider myself very lucky.

Despite my turbulent experience, I’m not against real estate investing. In my experience (with both my own situation and many of my clients), most first-time investors rush into their purchases. My hope is not to discourage people from investing in real estate; instead, I hope that sharing my naive mistakes will help people evaluate whether they have the stability to invest and what type of property best fits their strengths and risk tolerance.

The property I bought was an amazing deal; I still believe that to be true. However, as you can tell from the series, I believe it was a terrible mistake on my part to purchase it. So if you take anything away from my experience, let it be this:

Real estate investing is subjective. A property or purchase can be a fantastic deal for one person and a horrible mistake for another. Crunching the numbers is essential, but you’ve got to take the steps to ensure it fits into your portfolio and life plans. Finally, keeping your emotions out of the process is going to be harder than you think. Prepare extra for this!

Despite everything, Courtney and I still plan to include real estate rentals in our long-term plans. It’ll be at least 5-10 years down the road for us. Once we’ve finished paying off debt and saved heavily for retirement and college, we’ll be ready for round two of real estate investing.

At the very least, we’ll have plenty of first-hand mistakes from which we can build!

J.D.’s note: Wow! As I mentioned when Adam started this series, I find myself drawn to real-estate investing. I have no experience with it, have no handyman skills, and have no spare time, but there’s just something about owning rentals that appeals to me. Unfortunately (or perhaps fortunately, depending on how you look at it), after Adam’s series on being a landlord, I don’t think Kris is ever going to let me own a rental!

Source: getrichslowly.org

Apache is functioning normally

Mortgage applications decreased 13.1% for the week ending Feb. 18 to the lowest level since December 2019, as mortgage rates eclipsed the 4% mark.

The Mortgage Bankers Association‘s seasonally adjusted refi index fell 15.6% from the previous week, bringing its share of total applications to almost equal the purchases share at 50%. Meanwhile, the purchase index dropped 10.1%, falling again for the third straight week.

Compared to the same week one year ago, mortgage apps overall dropped 41%, with a sharp decline in refi (-56.4%) compared to purchase (-5.4%). The survey, conducted weekly since 1990, covers over 75% of all U.S. retail residential mortgage applications.   

According to Joel Kan, MBA’s associate vice president of economic and industry forecasting, the 30-year fixed rate increased almost a full percentage point in comparison to one year ago. 

The trade group estimates that the average contract 30-year fixed-rate mortgage for conforming loans ($647,200 or less) increased to 4.06% from 4.05% the week prior. For jumbo mortgage loans (greater than $647,200), rates rose to 3.84% from 3.81% the week prior. 

“Mortgage applications dropped to their lowest level since December 2019 last week, as mortgage rates continued to inch higher,” Kan said. “Higher mortgage rates have quickly shut off refinances, with activity down in six of the first seven weeks of 2022.”

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The survey showed that the refi share of mortgage activity decreased to 50.1% of total applications last week, from 52.8% the previous week. VA apps rose to 9.9% from 9.3% in the same period.

The FHA share of total applications increased to 8.7% from 8.3% the prior week. Meanwhile, the adjustable-rate mortgage share of activity increased from 5% to 5.1% and the USDA held steady at 0.4%.   

Purchases applications, already constrained by elevated sales prices and tight inventory, have also been impacted by higher rates, Kan said. “While the average loan size did not increase this week, it remained close to the survey’s record high.” The average loan size was at $453,000. 

Economists had predicted rates would rise in 2022 as the overall economy stabilized, reducing mortgage applications.

For the coming weeks, Kan told HousingWire that If conditions stay in the current state, we’ll certainly see higher rates. However, rates could quickly head in the other direction, “if something abroad rocks the boat,” such as an armed conflict with Russia and Ukraine, an emergent Covid variant, or a sudden change in certain commodity prices. 

Source: housingwire.com

Apache is functioning normally

Today we’ll review Axia Home Loans, an up-and-coming independent mortgage bank that’s licensed in 17 states nationwide.

In case you were wondering, Axia is a Greek word that means “value” or “worth.”

They’re based out of the Pacific Northwest, Bellevue, Washington to be exact, and have been around for just over a decade, since 2007.

But they’ve still managed to become a billion-dollar mortgage lender, funding nearly $1.4 billion via the retail channel in 2019.

Axia Home Loans Fast Facts

  • Retail mortgage lender founded in 2007
  • Headquarters in Bellevue, Washington
  • Licensed to originate home loans in 17 states
  • Nation’s first 100% employee-owned independent mortgage bank
  • Funded roughly $1.4 billion in home loans during 2019
  • Half of their loan volume comes from Nevada and Washington
  • About two-thirds of total volume was home purchase financing
  • Just launched a mortgage broker division called United Reliance Wholesale (UR Wholesale)

Axia did about 30% of total loan volume in its home state of Washington, with another 20% in nearby Nevada.

Aside from those two states, they’re also licensed in Arizona, California, Florida, Hawaii, Idaho, Minnesota, Montana, North Carolina, Oregon, Pennsylvania, South Carolina, Texas, Utah, Wisconsin, and Wyoming.

They seem to specialize in home purchase financing, likely due to strong relationships with local real estate agents. But they also do a lot of refinance volume as well.

In October 2020, they launched a wholesale lending division for mortgage brokers called Unified Reliance Wholesale (UR Wholesale), with plans to focus on the West Coast, primarily in California.

How to Apply with Axia Home Loans

  • You can get started online, in-branch, or over the phone
  • They offer a digital mortgage application known as Axia Express
  • Allows you to securely link financial accounts and scan documents
  • Axia processes, underwrites, and funds all their home loans in-house

Axia Home Loans processes, underwrites, and funds their loans in-house, allowing them to close your mortgage quickly and efficiently.

They rely on emerging technologies like a digital mortgage application and smartphone app to make it easier to finance a new home purchase or refinance an existing home loan.

Their loan application is known as “Axia Express,” a platform that gives customers the option to automatically pull in tax returns, employment history, and bank statements.

Additionally, you can securely scan and upload documents from your mobile device and chat with your loan officer if you have questions.

Once submitted, you can track loan progress and receive status updates as your home loan makes its way to the finish line.

To get started, you can visit their website and select “Start the Home Loan Process” or “Connect with a Local Advisor.”

If you choose the first option, you can select a loan officer if you’ve been referred or know who you’ll be working with. From there, you can apply for a loan.

If you don’t have a loan originator, you’ll need to fill out a basic form with contact info and wait for a loan officer to contact you.

If you choose the Connect with a Local Advisor option, it’ll show you branches nearby and local loan officers who work there. Once you click through to a specific branch, you can apply online.

Axia Home Loans Mortgage Options

  • Home purchase loans
  • Rate and term refinances
  • Cash out refinances
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • Government-backed loans including FHA, USDA, and VA
  • Jumbo home loans
  • HomePath financing
  • Fixed-rate and adjustable-rate loans in various terms

Axia Home Loans offers both home purchase financing and mortgage refinances, including rate and term refinances and cash out refinances.

Those thinking of buying a home can take advantage of Axia’s Certified Homebuyer Program, which is an actual credit approval that is analyzed by their underwriting department (verified pre-approval).

You can get a home loan on a primary residence, second home, or an investment property.

They offer conventional loans backed by Fannie Mae and Freddie Mac and government home loans, including FHA, USDA, and VA loans.

Those in need of larger loan amounts can get a jumbo home loan from Axia as well.

Additionally, they provide HomePath financing on Fannie Mae-owned properties.

In terms of loan programs, you can get either a fixed-rate mortgage (such as a 15-year or 30-yer fixed) or an adjustable-rate mortgage, like a 5/1 ARM.

It’s unclear if they offer renovation or construction loans, or any home equity line/loan products.

All in all, they have loan programs to fit the needs of most customers.

Axia Home Loans Mortgage Rates

While Axia says they offer competitive rates, they don’t advertise mortgage rates on their website.

While this doesn’t indicate whether their rates are good, bad, or just plain average, it does make it a bit more difficult to get pricing.

In other words, you’ll need to get in contact with a loan officer to see what type of mortgage rate you qualify for.

The same goes for lender fees, which don’t appear to be listed on their website. Be sure to inquire about what they charge, such as underwriting, processing, and loan origination fee.

All that will factor into the mortgage APR, which is an important calculation that takes into account both the interest rate and the fees included.

Axia Home Loans Reviews

On Zillow, Axia Home Loans enjoys a 4.95-star rating out of 5 on roughly 2,000 customer reviews.

You can click on individual loan officer names as well to get their ratings if you want to work with someone highly-rated.

While they keep us in the dark regarding mortgage rates, many of the Zillow reviews indicate that both interest rates and closing costs were favorable.

On SocialSurvey, they’ve got a 4.92 rating out of 5 from more than 13,000 customer reviews.

And on BirdEye, a 4.9 rating based on more than 200 reviews. So they appear to consistently make their customers happy.

They also say they’ve got a 98% client satisfaction rating based on current surveys.

Lastly, they are accredited with the Better Business Bureau and currently have an A+ rating. There are no customer reviews on the BBB website and few complaints.

Axia Home Loans Pros and Cons

The Good

  • Can apply online, by phone, or in-branch
  • Offer free personalized mortgage consultations
  • Digital mortgage application
  • Free smartphone app
  • Free mortgage calculator on site
  • 100% employee-owned mortgage lender
  • Some of their loan officers speak Spanish and Vietnamese
  • Excellent customer reviews
  • A+ BBB rating

The Maybe Not Good

  • Only licensed in 17 states
  • Do not disclosed their mortgage rates
  • No mention of lender fees
  • Don’t offer home equity loans/lines

(photo: SounderBruce)

Source: thetruthaboutmortgage.com

Apache is functioning normally

If you’ve used Zillow’s Marketplace to compare mortgage rates, you may have come across Sebonic Financial.

While they may be unfamiliar to you, they’re actually a dba of Cardinal Financial, which is a top-40 mortgage lender nationally.

So while they might not be as big or as recognizable as other mortgage lenders out there, they’re backed by one the largest mortgage lenders in the country.

You can read my Cardinal Financial review as well if you’re curious about them, but for quick reference, they’re a mortgage bank based out of Charlotte, NC that’s been around since 1987.

Sebonic Financial Quick Facts

  • Direct-to-consumer lender located in Charlotte, North Carolina
  • A dba of Cardinal Financial, a top-40 mortgage company nationally
  • Considered the digital startup division of Cardinal Financial
  • Licensed to do business in all 50 states and the District of Columbia
  • A Zillow Marketplace mortgage lender

Sebonic says it’s a digital startup fueled by tech, new ideas, and fast execution, anchored by the resources of a well-established and experienced mortgage bank.

It’s unclear how long Sebonic Financial has been around, but I recall seeing them for years now, so I would assume nearly a decade or longer despite being known as a newcomer.

I also can’t tell you what the name Sebonic means, whether it’s a made-up word or a surname. I’d like to know the origin and will keep digging on that one.

However, they do appear to be licensed in all 50 states and DC thanks to their relationship with Cardinal Financial, which is a plus.

Additionally, they seem to be the more digitally-oriented division of Cardinal that deals mainly with borrowers looking to apply for a mortgage online, remotely.

So if that’s your thing, they could be a good choice for your mortgage needs, especially if their interest rates and lender fees are low.

Applying for a Home Loan with Sebonic Financial

  • You can apply by phone or request a free rate quote on their website
  • Or use their loan officer directory, then apply via that individual’s personal webpage
  • Some applicants may start the process via the Zillow Marketplace where they seem to advertise heavily
  • They offer a digital mortgage application process known as Octane

Like Cardinal Financial, they offer a proprietary digital mortgage application known as Octane.

It allows you to start the loan process online and complete most things digitally, as opposed to having to fax or email documents.

You can also e-sign documents, scan and upload conditions, check loan progress at any time, and receive status updates as your loan makes its way to the finish line.

You’re able to call them up directly to get started as well, or alternatively request a free rate quote via their website.

Alternatively, you can use the loan officer directory on their website to select an originator to work with, then apply directly via their personal webpage.

As noted, you might also get started if using Zillow’s Marketplace to compare mortgage rates, at which point someone will contact you once you submit your loan request.

Loan Types Offered by Sebonic Financial

  • Home purchase and refinance loans (including cash out)
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • Government-backed loans: FHA, USDA, and VA loans
  • Jumbo loans with loan amounts up to $3 million
  • Interest-only home loans

Sebonic Financial offers the full suite of loans programs on both home purchases and mortgage refinances.

You can also get a cash out refinance if you’re looking to tap your home equity.

You can get financing for a primary residence, second home, or investment property, including condos and townhomes and multi-unit properties.

In terms of loan type, you can get a conventional home loan backed by Fannie/Freddie, or a government-backed loan such as an FHA loan, USDA loan, or VA loan.

They also offer non-conforming stuff like jumbo loans up to $3 million loan amounts and an interest-only jumbo ARM.

You can get a fixed-rate mortgage such as a 30-year or 15-year fixed, or an adjustable-rate mortgage, such as a 5/1 or 7/1 ARM.

It’s unclear if they offer renovation or construction loans, such as the FHA 203k.

Sebonic Financial Mortgage Rates

While they don’t advertise their mortgage rates on their own website, you can often see their daily rates via the Zillow Marketplace.

They seem to be a big advertiser/partner with Zillow, so if you search for mortgage rates via that platform, they’ll often pop up alongside other lenders.

From what I’ve seen personally, their mortgage rates were pretty competitive relative to other lenders on Zillow.

While perhaps not always the very lowest listed, they often advertise their rates with $1 lender fees, compared to other lenders typically charging $1,000 – $2,000.

So while you might see a rate an eighth higher than the cheapest lender listed, don’t forget to factor in the closing costs.

Sebonic Financial Reviews

On Zillow, they’ve got a 4.49-star rating out of 5 based on more than 3,000 customer reviews.

That’s close to excellent, but there are some mixed reviews if you scroll through them.

Some past customers have complained about them not following up or communicating effectively, or even making contact to begin with.

But others have said they aren’t pushy and provide exceptionally responsive service – so your mileage may vary here.

As always, take the time to look at individual loan officer reviews to fine-tune who you ultimately work with for the absolutely best experience possible.

On SocialSurvey, they have a 4.62-star rating out of 5 based on more than 5,600 reviews, which is pretty consistent with their Zillow reviews.

While still very good, there are plenty of mortgage companies with even higher reviews on those sites.

There seems to be a consistency issue, with lots of customers very happy, and the occasional one seemingly dismayed.

This could be one of the drawbacks of working with an online mortgage lender without a physical presence.

The good news is their parent company Cardinal Financial is Better Business Bureau (BBB) accredited and has been since 2014.

They currently have an A+ BBB rating and a 4.25 out of 5-star rating based on roughly 200 customer reviews.

Sebonic Financial Pros and Cons

The Good

  • Licensed in all 50 states and DC
  • Backed by a very large and established mortgage bank
  • Provide a digital mortgage experience
  • Offer $1 lender fee options
  • Lots of loan programs to choose from
  • Mostly good reviews on both Zillow and SocialSurvey
  • A+ BBB rating
  • Free mortgage calculators on their website

The Possible Bad

  • Some mixed reviews with folks citing poor communication
  • No branch offices (you work with a loan officer remotely)
  • Don’t publish mortgage rates on their website
  • May not offer construction/renovation loans or home equity loans
  • They may not service your loan after closing

Source: thetruthaboutmortgage.com

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LOS ANGELES — The average long-term U.S. mortgage rate rose this week, snapping a three-week pullback after reaching a high for the year in early June.

Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan rose to 6.71% from 6.67% last week. A year ago, the rate averaged 5.70%.

The increase brings the average rate back to where it was three weeks ago. On June 1, it averaged 6.79%, its highest level so far this year.

High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market that remains unaffordable to many Americans after years of soaring home prices and limited housing inventory.

The median monthly payment listed on applications for home purchase loans in May rose to $2,165, up 14.1% from a year ago and a 2.5% increase from April, the Mortgage Bankers Association said Thursday.

The average rate on a 30-year home loan is still more than double what it was two years ago, when the ultra-low rates spurred a wave of home sales and refinancing. The far higher rates now are contributing to the low level of available homes by discouraging homeowners who locked in those lower borrowing costs two years ago from selling.

The dearth of properties on the market is also a key reason home sales have been slow this year. Last month, sales of previously occupied U.S. homes were down 20.4% from as year earlier, marking 10 consecutive months of annual declines of 20% or more, according to the National Association of Realtors.

Low mortgage rates helped fuel the housing market for much of the past decade, easing the way for borrowers to finance ever-higher home prices. That trend began to reverse a little over a year ago, when the Federal Reserve began to hike its key short-term rate in a bid to slow the economy to lower inflation.

Global demand for U.S. Treasurys, which lenders use as a guide to pricing loans, investors’ expectations for future inflation and what the Fed does with interest rates influence rates on home loans.

All told, the Fed raised its benchmark rate 10 times, starting in March 2022. The central bank opted to forgo another increase at its meeting of policymakers earlier this month. Still, the Fed warned that it could raise interest rates two more times this year in its battle against inflation.

That open-ended approach has heightened uncertainty about the Fed’s next moves, which could lead to more volatile moves for mortgage rates.

The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, also rose this week, increasing to 6.06% from 6.03% last week. A year ago, it averaged 4.83%, Freddie Mac said.

Source: abcnews.go.com

Apache is functioning normally

Housing inventory finally broke under 2022 levels last week. To give you an idea how different this year is from last year, last week in 2022, active listings grew 30,940 while this year they only grew 5,848. Mortgage rates rose last week after the better-than-anticipated jobless claims data but even with higher rates, we also had a third week of positive purchase application data.

Here’s a quick rundown of last week:

  • Active inventory grew by a disappointing 5,848 weekly 
  • Mortgage rates went above 7% again after better labor data 
  • Purchase application data showed 3% growth week to week

Weekly housing inventory

On May 15, I went on CNBC and talked about how inventory growth in 2023 resembled a zombie from the show The Walking Dead, slowly trying to rise from the grave. Since May 15, that trend has continued to the point that inventory in America is now negative year over year.

We have often discussed that the housing market dynamics changed starting Nov. 9, 2022, and today you can see the final result of that dynamic shift as inventory is now negative versus the 2022 data — all before July 4th. I recently recapped this crazy period on the HousingWire Daily podcast, going into detail about what happened in housing over the last year.

  • Weekly inventory change (June 23-30): Inventory rose from 459,907-465,755
  • Same week last year (June 24-July 1): Inventory rose from 441,106 to 472,046
  • The inventory bottom for 2022 was 240,194
  • The inventory peak for 2023 so far is 472,688
  • For context, active listings for this week in 2015 were 1,183,390

Seeing negative year-over-year inventory before July 4 would be a big deal if last year wasn’t so crazy. However, I need to put some context into what happened in 2022. In March of 2022 we had the lowest inventory levels ever recorded in history. Then in a short amount time, we had the biggest and fastest mortgage rate spike in history, which facilitated the biggest one-year crash in home sales in history, which helped inventory grow faster than normal in 2022. 

So the fact that housing demand stabilized and inventory is now negative year over year needs the context that 2022 was a once-in-a-lifetime event. As you can see in the chart below, 2023 inventory growth is very slow compared to 2022.


The other big story with housing inventory is that new listing data has been trending negative year over year since the end of June 2022. A traditional seller is also a traditional buyer, and certain homeowners have refused to buy their next home with mortgage rates above 6%.

We had new listings growth from 2021 to 2022, but that’s not the case this year. This is another variable contributing to slow inventory growth, which has now turned negative in the weekly listings.

Compare the new listings data last week to the same week in recent years:

  • 2023: 62,466
  • 2022: 91,530
  • 2021: 80,289

My concern lately is that we have seen four straight weeks of mild declines and are about to head into the seasonal decline period of new listings. This is one data line I will track like a hawk because it will be a negative for the housing market if this data line makes a noticeable year-over-year decline trend in the second half of 2023.

The 10-year yield and mortgage rates

For those who have followed the weekly Housing Market Tracker articles, I always focus on jobless claims data as it’s the critical data line at this point of the economic cycle for me and my forecast in 2023 for mortgage rates.

Last week we had a big move in the 10-year yield because jobless claims came in better than anticipated, and bond traders were caught off guard selling bonds on the news and sending mortgage rates above 7% again. As you can see in the chart below, that big spike was really about jobless claims getting better.

The following day, the PCE inflation data showed a cooling down in headline inflation year over year. Core PCE inflation is a bit more sticky than headline inflation, however, bond yields fell after that report and bounced back at the end of the day.

In my 2023 forecast, I wrote that if the economy stays firm, the 10-year yield range should be between 3.21% and 4.25%, equating to mortgage rates between 5.75% and 7.25%. As long as jobless claims trend below 323,000 on the four-week moving average, the labor market stays firm, which means the economy remains healthy. Jobless claims have stayed below this range all year, and job openings are still at 10 million. 

I have also stressed that the 10-year level between 3.37% and 3.42% would be hard to break lower. I call it the Gandalf line in the sand: You shall not pass. The setup for the 10-year yield to stay in the range is intact.

The counter to my 10-year yield range would be if the economy here or worldwide starts to accelerate higher; that would be a valid premise to get the 10-year yield above 4.25%.  Considering our economy this year, the 10-year yield and mortgage rates look about right to me.

Now the one thing that has changed in 2023 is that since the banking crisis, the spreads between the 10-year and mortgage rates have worsened, making mortgage rates higher than I anticipated versus the 10-year yield, which is not a positive for the housing market.

We haven’t seen anything in the data showing that it’s been improving recently. This is a big deal as we have seen housing inventory not get much traction with higher rates and hopefully in the future, lower rates can entice some sellers to move.

On jobless claims data, I always stress using the four-week moving average with this data line because we do have times when this data line can get hectic week to week. Therefore, I only believe the low jobless claims print once I see weeks of this data line improving. So, it will be critical over the next two weeks to see if this decline was a one-time blip in the data, which we have seen from time to time. As you can see below, that was a significant drop week to week, which looks abnormal to me.

Purchase application data

Purchase application data has surprised people with three weeks in a row of growth, while mortgage rates have been near 7% during this period. This now makes the positive count since Nov. 9, 2022, 20 positive prints vs. 11 negative prints. The year-to-date numbers are 13 positive vs. 11 negatives after making some holiday adjustments to the data line.

What do these numbers mean? They just mean that housing data has stabilized; nothing in the data shows decent growth after that first good move from November to February. However, the fact that housing demand has stabilized is a big deal because last year, we did have a waterfall collapse in the data, as shown in the chart below. The only downside to this is that we haven’t had the housing inventory growth I would like.

Now the year-over-year decline was down to -21%, which was the lowest since Aug. 24, 2022. However, we all have to remember that the second half of 2023 will have much easier comps, so even if demand stayed the same the rest of the year we will have some positive year-over-year data at some point. 

Be careful in reading too much into the better year-over-year data we will see in the future. The most recent pending home sales print came in as a miss from estimates, but the existing home sales data is still trending in the range I thought it would be in since I believed that first big print we had a few months ago was going to be the peak for year. When demand is coming back in a big way, purchase apps will be positive for a majority of the weeks as we are working from such low levels today historically.

The week ahead: Jobs, jobs and jobs data

Yes, it’s jobs week once again and with four labor reports coming up on this short holiday week, we’ll be able to see if the Federal Reserve is getting what it wants — a softer labor market. Recently, Fed Chair Powell once again stressed that the labor market is too tight and that softer labor is the way to get inflation down to the Fed’s 2% core PCE target.

Well, we have four reports this week: the job openings data (JOLTS), the ADP jobs report, jobless claims and the big one on Friday — the BLS job report — so we’ll see what happens.

So much of my COVID-19 recovery model was based on the labor dynamics being much different now, since I was the only person talking about job openings getting to 10 million in this recovery. Today as I write this, we are still at 10 million job openings, as the chart below shows.


I have a firm belief that the Fed doesn’t fear a big job-loss recession as long as job openings are this high. What they have enjoyed seeing is wage growth cooling down, as shown in the BLS job reports for 18 months now. So, for this week, we always focus on jobless claims data over everything else, but be mindful of the job openings data since the Fed wants to see this go down, and the wage growth in the BLS jobs report data.
 

Source: housingwire.com

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For many individuals and families, owning a home is a lifelong dream. However, with rising real estate prices, some may find themselves seeking financing beyond the conforming loan limit. This is when you may need to apply for a jumbo loan.

What is a jumbo loan?

What exactly is a jumbo loan in Iowa? A jumbo loan is a specialized type of mortgage that comes into play when you’re seeking financing for a home that surpasses the conforming loan limits (CLL) established by the Federal Housing Finance Agency (FHFA). Typically, this type of loan is necessary for upscale, luxurious properties or those situated in pricey housing markets.

If the loan amount needed is more than the CLL, you’ll need a jumbo loan. Iowa jumbo loans allow you to borrow more money to buy a more expensive home, but they also come with higher interest rates and stricter requirements than conventional loans.

What is the jumbo loan limit in Iowa?

In Iowa, the conforming loan limit is $726,200 across all counties. For example, if you’re buying a home in Des Moines County, where the median sale price is $132,000, a loan limit exceeding $726,200 would be considered a jumbo loan.

As a reminder, the amount being borrowed is what determines whether or not you’ll need a jumbo loan, not the home price. So, if you were to put $50,000 down on a $750,000 home in Burlington, the mortgage would be $700,000, which is under the conforming loan limit for this area. In this case, your loan wouldn’t be considered a jumbo loan.

For more information on the conforming loan limit in your county, use the FHFA map. 

What are the requirements for a jumbo loan in Iowa?

Borrowers must meet stricter requirements to qualify for a jumbo loan than they would for a conforming loan. The specific requirements may vary from lender to lender, but below are the typical requirements for borrowers seeking a jumbo loan.

Higher credit score: When it comes to jumbo loans, lenders generally look for a credit score of 720 or above to qualify a borrower. While some lenders may accept a score as low as 660, this is typically the lowest threshold for qualification.

Larger down payment: Jumbo mortgages typically require larger down payments than traditional mortgages. Generally, lenders require a down payment of at least 20% of the home’s purchase price to qualify for a jumbo loan. However, some lenders may require a higher percentage, depending on the borrower’s creditworthiness and overall financial situation. Keep in mind that larger down payments can help to reduce monthly mortgage payments, as well as overall interest costs over the life of the loan.

More assets: Jumbo loan lenders generally require borrowers to demonstrate a strong financial profile, including substantial liquid assets or savings. To qualify for a jumbo loan, borrowers must have enough reserves to cover at least one year of mortgage payments. This requirement ensures that borrowers have the financial flexibility to meet their loan obligations in the event of a financial hardship.

Lower debt-to-income ratio (DTI): When applying for a jumbo mortgage, Iowa lenders typically look for a borrower with a debt-to-income ratio (DTI) below 43%. Ideally, a DTI closer to 36% or lower is preferred. The DTI is calculated by dividing the sum of all monthly debt payments by gross monthly income. A lower DTI signifies a borrower’s ability to manage their current debt load while taking on additional mortgage payments. It also indicates greater financial stability and the ability to make on-time payments towards their non-conforming loan.

Additional home appraisals: When you buy a home in Iowa, mortgage lenders will require a home appraisal to confirm that the property’s value is equal to or higher than the loan amount. In some cases, a lender may require an additional appraisal for a jumbo loan. In areas with very few comparable property sales, the cost of the appraisal may be higher than in places with more frequent sales.

Source: redfin.com