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FHA loans soar in Sacramento area
By Phillip Reese | Saturday, Oct. 3, 2009 - 12:00 am | Page 7B
The number of government-backed FHA loans jumped sharply last year, propping up a local real estate market otherwise saturated by loan denials.
During 2008, lenders issued 8,998 FHA loans in the Sacramento region, up from 649 during 2007, according to statistics released this week by the Federal Financial Institutions Examination Council.
"There's been such a shift in available financing as the market bottoms out," said Larry Bush, a regional spokesman for the U.S. Department of Housing and Urban Development.
FHA loans are primarily used by people who can't afford a big down payment, or who otherwise aren't able to obtain mortgage insurance. FHA buyers need put down only about 3 percent. With the credit market shot, most conventional loans require at least 10 percent down.
Other than FHA loans, there are "very few lenders out there that will even toy with 95 percent financing," said John Arvanitis, owner of Sunrise Vista Mortgage, a Citrus Heights-based company that specializes in FHA loans.
FHA loans fell out of favor during the housing boom, experts said, because it didn't matter much whether borrowers had enough for a substantial down payment. Banks were giving zero down, "no proof" mortgages left and right.
Also during the boom, FHA mortgages were capped locally around $360,000, which didn't buy much back then. Now, prices have plunged, and the cap has been raised to $580,000, covering the vast majority of the local market.
"Even during the subprime era, I was trying to get people to go with FHA loans," Arvanitis said, adding that it was a tougher sell back then.
FHA insures loans; it doesn't make them. Like any insurer, the government tries to be careful before it acts.
There's a pretty long list of standards that a home must meet before an FHA loan will be administered, said Scott Burton, who specializes in FHA homes and runs Burton & Co. Real Estate Appraisals, a local outfit.
For instance, homes often don't pass muster because of lead-based paint, or roof or termite damage, Burton said.
The number of FHA loans issued locally would be even higher if the banks that owned foreclosed properties were willing to fix them up to FHA standards. Instead, "they want to sell them as is," said Burton, adding that banks are slowly coming around.
The 8,998 loans for 2008 also includes a small number of VA loans, which have slightly different terms.
The FHA loans are one of the few bright spots in the new federal report. It showed lenders denying about one-third of home loan applications in the Sacramento region during 2008, roughly double the percentage of denials in 2005 and similar to 2007, another bad year.
Mark Van Winkle and his family recently bought a home in Carmichael using an FHA loan. He's been in the Sacramento area for decades and has owned a house before, but got into some financial trouble around the turn of the century, forcing him to rent.
"We had no choice but to go with an FHA loan because of financial reasons," said Van Winkle, who got his loan through Sunrise Vista.
Despite his hands being tied, "it went really smooth," Van Winkle added.
Default notices are on the rise
More homeowners are finding themselves in distress over mounting debts
By Andrew LePage -- Bee Staff Writer | Monday, February 6, 2006
"Everyone was anticipating getting in (a house) at any cost and then letting appreciation in the market handle it in the next year or two," said John Arvanitis, president of Sunrise Vista Mortgage Corp. in Citrus Heights.
"In theory, that's great if appreciation stays at certain levels, but it's not happening anymore."[This article on california mortgage news and the sacramento housing market was edited. For more information on Sacramento real estate information or california real estate news, visit sacbee.com]
Mortgage default notices are rising
Owners feel pinch on adjustable-rate loans.
By Jim Wasserman -- Bee Staff Writer | Wednesday, May 3, 2006
Story appeared in Business section, Page D1
The drop in default notices for El Dorado County was no surprise to John Arvanitis, president of Sunrise Vista Mortgage Corp. in Citrus Heights.
"Most of the people in El Dorado County have got some chips," he said. "They had equity when they walked into the property[This article on california mortgage news and the sacramento housing market was edited. For more information on Sacramento real estate information or california real estate news, visit sacbee.com]
Mortgage default notices are rising
Sacramento, Placer and Sutter counties show big increases in quarter.
By Jim Wasserman -- Bee Staff Writer | Thursday, August 3, 2006
"If we start seeing a leveling off in the market and properties start to dip, that's where you're going to see the trouble begin," John Arvanitis, president of Citrus Heights-based Sunrise Vista Mortgage Corp., said. "They aren't going to be able to get out."[This article on california mortgage news and the sacramento housing market was edited. For more information on Sacramento real estate information or california real estate news, visit sacbee.com]
Sharp rise in foreclosures
Capital region sees biggest increase since '90s, but home losses may ease
By Jim Wasserman - Bee Staff Writer | January 25, 2007
Story appeared in BUSINESS section, Page D1
"What's the old saying? 'The chickens are coming home to roost,' " said John Arvanitis, president of Citrus Heights-based Sunrise Vista Mortgage Corp.
Arvanitis called the foreclosure numbers "inevitable with the type of financing that most consumers were forced to accept to get into a house before they could no longer afford it." A majority of boom-era homebuyers used adjustable-rate loans that offer initial low payments for a specified number of years and then adjust to new interest rates and higher monthly payments.[This article on california mortgage news and the sacramento housing market was edited. For more information on Sacramento real estate information or california real estate news, visit sacbee.com]
2007: Something to talk about, Predicting 2007
December 30, 2007 | Story appeared in MAIN NEWS section, Page A24
>On the Foreclosure crisis
"What's the old saying? 'The chickens are coming home to roost.' " – John Arvanitis, president of Citrus Heights-based Sunrise Vista Mortgage Corp. [This article on california mortgage news and the sacramento housing market was edited. For more information on Sacramento real estate information or california real estate news, visit sacbee.com]
Builders try to unload homes with low rates
Staff says nearly half of $40 million has been returned to small firms.
By Dale Kasler | Saturday, February 2, 2008
Story appeared in BUSINESS section, Page D5
John Arvanitis, a Citrus Heights mortgage broker, said interest-rate buydowns are preferable to continued price reductions, which drive down market values for everyone in the community.
"You don't want to perpetuate (or) assist in a market crash," said Arvanitis, president of Sunrise Vista Mortgage Co. [This article on california mortgage news and the sacramento housing market was edited. For more information on Sacramento real estate information or california real estate news, visit sacbee.com]
John Arvanitis was interviewied on video regarding the damage to the banking industry in the first qaurter of 2008 by Jim Wasserman and Dale Kasler of the Sacramento Bee on 03/26/08. The video was published to Jim Wasserman’s Home Front blog on sacbee.com. You may view it on YouTube here http://www.youtube.com/watch?v=vhMpx3rxXq8
Sacramento area sees rebirth of 1990s realty scams
By Jim Wasserman | Friday, March 28, 2008
Story appeared in MAIN NEWS section, Page A1
• Be suspicious if the loan officer doing your Federal Housing Administration loan has to place it through another broker. Your initial broker may not be authorized to do these government loans. Extra commission money demanded by a second authorized broker for doing the deal may add to your borrowing costs.
Sources: Sacramento County Sheriff's Department, Sacramento Association of Realtors, Sunrise Vista Mortgage Corp.[This article on california mortgage news and the sacramento housing market was edited. For more information on Sacramento real estate information or california real estate news, visit sacbee.com]
Home Front: Seesaw mortgage rates make it tough to decide when to lock in your loan
By Jim Wasserman | Friday, July 4, 2008
Story appeared in BUSINESS section, Page D1
"We've been ranging 5.5 to 6.5 percent," says John Arvanitis, president of Sunrise Vista Mortgage Corp. in Citrus Heights.
"I think we're going to be in a very volatile range at least until the (presidential) election," Arvanitis said.
And what does Arvanitis think? Will rates stay below 7 percent in the second half?
"I certainly hope so," he said. [This article on california mortgage news and the sacramento housing market was edited. For more information on Sacramento real estate information or california real estate news, visit sacbee.com]
Feds' help for mortgage giants is said to aid Sacramento market
By Dale Kasler | Tuesday, July 15, 2008
Story appeared in BUSINESS section, Page D3
As a result, bailing out Fannie and Freddie was seen as absolutely necessary. "It's critical to keep Fannie and Freddie solvent," said John Arvanitis of Sunrise Vista Mortgage Corp. in Citrus Heights. "You take that component out, and you've got a huge void in lending."[This article on california mortgage news and the sacramento housing market was edited. For more information on Sacramento real estate information or california real estate news, visit sacbee.com]
$15 million-a-day hit for region predicted with Schwarzenegger's plan
By Dale Kasler | Thursday, July 24, 2008
Story appeared in MAIN NEWS section, Page A1
Depending on how long the minimum-wage order lasts, it could put the brakes on the fragile recovery in the housing market. John Arvanitis, president of Sunrise Vista Mortgage Corp. in Citrus Heights, was skeptical the governor's order actually would get carried out. [This article on california mortgage news and the sacramento housing market was edited. For more information on Sacramento real estate information or california real estate news, visit sacbee.com]
July 9th, 2008 Sunrise Vista Loan Officer Aaron Opfell was quoted in the Zillow.com Real Estate blog on the topic of being a Zillow.com preferred lender: "I have worked Internet leads like Lending Tree and Lower My Bills and I can say I actually prefer Zillow leads, for the pure fact I don’t have to chase anyone. Any loan officer can hunt; pounding the ground with their network or grinding on the phone making cold calls. But here on Zillow, we fish. I choose my river, cast my net and watch it work."
Capital-area homebuyers get path out of loan grief
House passes aid package that shifts subprime mortgages into an affordable FHA program.
By Dale Kasler | Thursday, July 24, 2008
Story appeared in MAIN NEWS section, Page A1
But John Arvanitis, president of Sunrise Vista Mortgage Corp. in Citrus Heights, said the provision won't help many who owe more than their homes are worth. "It's the proverbial rubber bone to the starving dog," he said.
Mortgage lenders were heartened that the bill makes permanent the higher limits on FHA, Fannie and Freddie loans.[This article on california mortgage news and the sacramento housing market was edited. For more information on Sacramento real estate information or california real estate news, visit sacbee.com]
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