Mortgage Rescue for San Diego Homeowners

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by Roberta Murphy

mortgage rescue

A Mortgage Rescue?

We field questions all the time from frightened homeowners whose mortgages are resetting, whose homes are worth less than what they owe, or who simply wish to lock in future security and peace of mind. And we are not alone in trying to solve these problems.

Yesterday afternoon, I spoke at length with William Johnson, author of the wonderful Real Estate Textbook and former president of the San Diego Association of Realtors. We were discussing the San Diego real estate market in general, and mortgage solutions in particular. He suggested that I write, once again, about the Acorn Loan–especially as it applies to our local markets.

I’ve written about the Acorn Loan program before, but this time will specifically target San Diego County homeowners who are seeking affordable mortgages, mortgage relief and some degree of financial security and predictability. It is a program that can be used for either purchasing or refinancing a San Diego home or condo.

Benefits of the Acorn Loan are near-amazing:

1. Market rate with no points. Can pay points to buy down rate
2. No PMI (private mortgage insurance)
3. Very liberal debt-to-income ratios.
4. Very low down payment required (0-5%)
5. Underwriting will credit some cash income and alternative sources of credit.
6. Credit and FICO scores are not as important with the ACORN Loan as they might be with other financing.
7. No pre-payment penalties.
8. No loan points.
9. Choice of terms include 10-year interest-only mortgage that automatically converts to a fully amortized 30-year loan.
10. A certain amount of “soft” income can be counted for loan qualification.

And what are the requirements for the San Diego Acorn Loan program?

1. Applicants adjusted gross income must be less than $92,000 per year.
2. Home loan must be $500,000 or less.
3. Applicant can only own one parcel of real estate. The Acorn Loan is good for not only first time homebuyers, but any San Diego home buyer who owns only one property.
4. Also an excellent tool for refinancing (out of riskier mortgages, perhaps?)
5. The San Diego home can be purchased for more than $500,000, but the mortgage loan amount cannot exceed that amount.

The program is offered exclusively through Bank of America and Chase. It is not a program offered through brokers (at least in the San Diego area), and we have personally used Judy Miller at Bank of America Mortgage in Carlsbad. She understands the program thoroughly–and can be reached at 760-943-6124.

(The benefits of the ACORN loan now reflect market rate and the ability to pay points to buy down the rate. Additionally, the 10-year interest-only option converts to a 30 year fully-amortized loan at prevailing rates.)

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5 responses to “Mortgage Rescue for San Diego Homeowners

  1. Hi Roberta, Excellent presentation and I am so glad to have it all organized as opposed to the notes I took in our conversation on the loan that looks like I wrote on a matchbook cover.
    I have the site bookmarked and will actulally reprint this. You are sweet for mentioning that I suggested it.
    Great Job and very well presented!

  2. William:

    You are too kind! But I agree that this information needs to get out to those who need mortgage relief–and who could so easily qualify for the Acorn Loan program.

  3. Cyndee:

    Thanks! We are still working on it–trying to improve functionality, content and load time.

    There is so much we learn from each other.

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