3 mortgage lenders will allow Airbnb income on refis

For the first time, homeowners who rent their primary residence on Airbnb can include their hosting income on mortgage applications when they refinance their existing loans with three lenders, including giant Quicken Loans.

Fannie Mae has agreed to back the loans and, if all goes well after a 90-day trial with the three lenders, “make it broadly available,” said Jonathan Lawless, Fannie’s vice president of product development and affordable housing.

This will be the first time that Fannie has considered income from a borrower’s home, rather than a separate rental property, on mortgage applications. It also represents a big step in recognizing income from the gig economy.

“We’re not just a W-2 economy anymore,” said Bob Walters, president and chief operating officer of Quicken Loans.

The loans cannot exceed Fannie’s loan limits, which range from $453,100 in most places to $679,650 in high-cost counties, including most of the Bay Area. Borrowers must meet other Fannie requirements, including a minimum credit score of 620.

The other lenders in the pilot project are Citizens Bank and Better Mortgage. Borrowers do not need to have an existing mortgage with the three lenders to refinance with them.

Fannie has agreed to the trial because Airbnb can verify income claimed on the refi applications. Borrowers must submit proof of income from Airbnb.

Read more at: https://www.sfgate.com/business/networth/article/In-first-3-mortgage-lenders-will-allow-Airbnb-12562420.php?t=f0e092e23d

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New laws for property owners and renters – California

ew laws went into effect last month that will probably come as a surprise to many landlords, homeowners and renters.

Gov Hutchinson, assistant general counsel for the California Association of Realtors, walked roughly 350 people through new legislation Thursday at a Greater San Diego Association of Realtors event in Mission Valley.

He said there are fewer new laws in 2018 than previous years, but were still important for real estate professionals to know about.

Undocumented immigrants (AB 291 and 299)

Hutchinson gave an example of what not to do: “If a landlord says to a tenant, ‘I’m going to double your rent. Don’t complain or I’ll turn you in.’”

If the landlord does reveal the status, and the renter isn’t deported, the renter is entitled to $2,000 if they prevail in court. Also, the landlord could face additional statutory penalties.

Marijuana (Prop 64)

Proposition 64 said homeowners 21 years old and older could grow six plants indoors — not on their lawn.

Renters don’t have much luck under the new law if they like marijuana. Landlords are allowed to prevent them from growing or smoking on the property.

Read more at: http://www.sandiegouniontribune.com/business/real-estate/sd-fi-new-real-estate-laws-20180201-story.html

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San Diego home price increases among highest in U.S. for 2017

San Diego had the fourth highest price gains in the nation in November, said a key real estate index released Tuesday.

The region’s home prices rose 7.4 percent in a year, said the S&P CoreLogic Case-Shiller Indices. Only Seattle, Las Vegas and San Francisco had bigger increases in the 20-city index.

San Diego had been in the top three cities for increases since August, representing a substantial rise in prices in 2017.

Price increases are rising throughout the nation, overall rising three times faster than the rate of inflation, as experts point to a lack of supply as the main factor.

“Since we have such historically low inventory, that has really caused prices to go up,” said Cheryl Young, senior economist at Trulia. “(At the same time) wages are growing, job growth is pretty strong and mortgage interest rates are very low.”

She said prices would likely continue to increase because the number of new homes built in 2018 is not likely enough to meet demand.

San Francisco had the biggest yearly price increase in California, 9.1 percent, but San Diego outpaced Los Angeles, which had a 7 percent yearly increase.

read more at: http://www.sandiegouniontribune.com/business/real-estate/sd-fi-case-schiller-20180130-story.html

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