Understanding Jumbo Loans

In the recent months we have seen an increase in the demand for jumbo loans. A jumbo loan is not a conventional loan that will be sold to the government sponsored entities, Fannie Mae and Freddie Mac. Conventional loans have easier guidelines/rules and loan sizes are set each year by the government. A conventional loan size across
the nation is $424,100 currently. However, government sponsored entities have another loan product know as a high balance (HB) conventional loan, which is not to be confused with a jumbo loan. Each county limit is set by the government and can be found at https://www.fanniemae.com/singlefamily/loan-limits. To give you
an idea, In Nevada County the high balance loan amount is $477,250, Placer County is $488,750 and most counties in the San Francisco bay area have high balance limits set at $636,100.

A Jumbo loan will exceed those HB loan limits or conforming loan limits. Those loans will not be sold to government sponsored entities but to private investors, most commonly REITs or Wall Street investment banks. For this reason the lender requires much higher qualification requirements and much stricter documentation. Lenders  do not want any chance of a borrower defaulting, so the final investors set the rules/guidelines strictly to lend money for those products.

To start almost all lenders require:
1) Great credit over 740, no blemishes on credit and sufficient trade lines (lines
of credit)
2) Typically a 20-25% down payment
3) Income to debt ratios below 43%
4) Money in savings for reserves.

The lenders go over all documentation with a fine tooth comb and ask a lot of questions. Thus, if your loan officer does not vet your loan qualifications and dig through the guidelines upfront, the loan can be very difficult to close and will likely require extensions. If the borrower does not provide exactly what is asked for, the lender will certainly deny the loan. A good loan team can make all the difference in getting jumbo loans closed in a timely manner. If you have questions regarding jumbo loans, or if we can help you succeed in getting a jumbo loan closed, please feel free to contact us.

Soroptimist Wine and Restaurant Faire Fundraiser

Mark your calendars for the best summer kickoff event going!  Saturday June 3rd is the 43rd Annual Soroptimist Wine Tasting and Restaurant Faire.  This is the main fundraiser for our local Soroptimist chapter, Soroptimist International of Truckee-Donner, of which I’m a member.

It is the “oldest and best wine tasting around” , and supports our community by contributing funds raised towards Tahoe Truckee High School scholarships, youth education programs, families and children in need programs, senior programs, and many more. And of course, the organization dedicates 100% of the event proceeds towards these programs.

Soroptimist is an international volunteer organization for business and professional women, who work to improve the lives of women and girls in local communities and throughout the world.

Add wine and beer tastings, live music, a silent auction and 50/50 raffle, and culinary delights from local caterers and restaurants (some prepared on the spot!) to this fantastic setting, and who can resist?!  The silent auction items are worth thousands of dollars and the raffle offers three major prizes:  a $1000 Mountain Home Center Gift Certificate, A Squaw/Alpine Unlimited Ski Pass for 2017/18, and a Total Wine & More wine tasting event for 20, worth $500.  Tickets are $50 in advance and $55 at the door.  Tickets are being sold in advance at our office, 11836 Donner Pass Road, Truckee.  Other ticket venues are at the Chamber of Commerce downtown, and Truckee Physical Therapy in the Gateway Center. The event is held at the beautiful Coyote Moon Golf Course, 10685 Northwoods Boulevard in Truckee. 

You don’t have to be a golfer to enjoy and appreciate this lovely setting. It sits on 250 acres of granite outcroppings, tall pines, and Sierra views. It’s a delightful spot to spend an early summer evening. We hope to see YOU there!

Market Report

Inventory in the Lake Tahoe/Truckee area is extremely low, with average months of inventory between 4 and 4.5 months.  Only at the $1.5M and above price point do months of inventory exceed 6 months, which is what the industry considers a “balanced” market (i.e., neither a buyers’ nor a sellers’ market).

If you currently own property in our area, we’d be happy to provide you with a real estate review for your specific parcel(s).

FORE!

ON SALE NOW!!
It was a fabulous winter – and you can still ski the back country and Squaw and Alpine on in to June. But for most of our area, spring has sprung. Lawn mowers, instead of snow plows, are the sounds that will soon be filling the air. And NOW is the time to get your Golfing for Schools card. Most courses will be open between mid-May and mid-June. The cards are fully transferable and make great gifts – clients, Mother’s Day Father’s Day, graduation, etc. Just $325 affords you one round of 18 holes of play at seven area courses – Coyote Moon, Gray’s Crossing, Old Greenwood, Tahoe Donner, Resort at Squaw Creek, Northstar and Tahoe City.

Tahoe Truckee Excellence in Education Foundation is a non-profit foundation that enhances public education and strengthens the student learning experience within the Tahoe Truckee Unified School District. Each year, the Foundation partners with local businesses and the community to raise money and provide over $250,000 in classroom grants, resources, and partnerships to benefit students and teachers in a school district that encompasses 12 schools in a geographic area of 720 square miles. The 2016-17 school year marks the Foundation’s 30th year of supporting local educational efforts.

For more information or to purchase, follow the link above.  

Considering Cannabis

California voters last November approved Proposition 64, making it most populous state in the nation to legalize the recreational use of marijuana, and the largest market for marijuana products in the U.S.

To address the changes brought with the legalization of marijuana, the Town of Truckee Town Council will be holding a series of workshops to discuss the Town’s approach to marijuana regulations.

The focus of these workshops will include discussions on indoor and outdoor cultivation, manufacturing and processing, taxation, retail and commercial uses and delivery services.  Do we want to allow retail dispensaries in the town of Truckee?  If so, where should they be located and what should they look and feel like?  Do we want to impose a local tax on the sale of medical and nonmedical marijuana?  If so, how much should it be and what could those revenues be used to fund?

These workshops are open to the public and opportunities to submit public comment will be made available. Consider weighing in on this topic and being a part of the Town’s decision making for our future.  Once the workshops are wrapped up, Town staff will be working with the Planning Commission and Town Council—all during public hearings—to craft regulations addressing the legalization of marijuana.

Workshops will be held on the following dates in Town Hall Council Chambers (10183 Truckee Airport Road, Truckee, CA) from 6-8pm:

March 9th

  • Retail Dispensaries
  • Processing Facilities
  • Delivery Services

 

April 13th

  • Residential Cultivation
  • Commercial Cultivation

May 11th

  • Taxation
  • Personal Use and Possession

There was one workshop held in February where the topic was introduced and a voting exercise was held.  You can view the presentation from that night and see the voting results here.

If you wish to stay informed of cannabis-related items, check back regularly to the Town’s website page on this topic or email any questions to cannabis@townoftruckee.com.

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