Fed indicates that they will drop rates by the end of 2024, should I wait to buy? 

I understand the desire to wait for interest rates to drop; however, with the expectation of the interest rates decreasing this will only push the real estate market upwards.   If you are considering buying a home.  It’s likely that home prices will increase due to competitive offers such as over list price with no contingencies, similar to 2021(COVID times).   It makes more sense to buy your home at a lower purchase price and then refinance your home when the interest rate drops.  Like they say, Marry the House – Date the Rate.

Here are some estimated projections for 2024:

  • Current Interest Rate 6.5%       Purchase Price $2M      $10,113 (P&I with 20% down payment)
  • Projected Interest Rate 5.75% Purchase Price $2.2M  $10,271 (P&I with 20% down payment) 

We want to buy a new home before we sell our current home. We have the down payment for the new home; however, our income won’t qualify us for both loans. What can we do?

We have loan options that will exclude your current mortgage/housing payment, so we would just qualify you on the new housing/mortgage payment.

We don’t have the down payment, so we need to use the equity from our current home to buy the new home. What can we do?

We have loan programs that allow you to leverage the equity from your current home without selling your home first.  Some examples are:

  • Cross-Collateralization
  • Bridge-to-Sale
  • Home Equity Lines of Credit
  • Cash-Out Refinance

I want to buy a home now, but I need to wait to file my 2023 tax returns. I’m Self-Employed and my income in 2023 was substantially stronger than the previous years.

We don’t need to wait for you to file your 2023 returns. To expedite the home buying process and avoid increasing home prices, we have loan programs that will use your last twelve months of income without filed tax returns.  These programs use your business financials and/or bank statements to represent your current income position.

We want to buy our dream home now, but we don’t have a consistent monthly income as we are living off of our net worth. 

We offer loan programs that qualify you based on your net worth and do not require monthly earnings/current employment.   You qualify based on your asset & equity position.

We want to buy an investment property, but do not qualify based on our current income. 

We offer investor financing that qualifies you only based on the property’s rental (current or projected) income, regardless of your current liabilities and income.  Rental property is treated as its own separate entity.

Mohamed Tawy
Producing Branch Manager/SVP of Mortgage Lending
O: (619) 599-5643  C: (619) 599-5643