California Homeowners Associations: Do You Belong to One?

There are over 49,000 HOAs in California, and over 14 million people live in California homeowner associations. That's 35% of the of the California population and almost 25% of the total of California homeowners. 

Associations are made up most commonly of multiunit condominium buildings, PUD (planned unit developments) with single family housing, or other community apartment (own-your-own) associations, or stock co-operatives, making up a total 5.45 million homes. (Long Beach has all three types.)

If you were represented in the purchase or sale of a property inside of an association by a Realtor, your transactional documents make it clear that the buyer is wholly responsible for reading the CCRs and other HOA documents. Were the CCRs recorded? is the property defined as a "unit" or a "lot"? What are the use restrictions?  Has the required balcony/walkway/elevated elements inspection been completed and a report been made to the HOA? 

Has the HOA insurance been renewed? PUDs have an HO-3 policy, which is coverage for the entire lot and everything on it. Condominiums, co-ops, OYOs, and other community apartment projects have HO-6 policies, or "walls in" which is the airspace inside the unit (master policies cover the commons areas). 

There was a common practice in the past where property managers would charge sometimes excessive amounts for the transfer of HOA documents to a new owner, until a California law was passed stating an additional fee cannot be charged for electronic delivery, but the fact is that there is still a fee charged by management companies for their work time and effort even if delivered electronically. 

HOA members are required to follow rules in associations, along with all the laws which govern them and there are many, so if you're considering buying into an association you should do a self-assessment on your fit into this type of living situation. There are other restrictions such as parking, fines for not  following the rules, if you can rent out your unit or not, smoking and nuisance issues, can you use the unit for childcare, and is your view protected? 

Are you considering a unit located near the community pool? Maybe there will be noise issues at certain times. Know the difference between a Pet and a Emotional Assistance animal, different rules may apply.

Is the HOA self-managed (not unusual in small associations) or does it have a property manager, how well is the association funded (look at the reserve study)?  

Many buyers are attracted to HOAs as affordable options in more expensive SFR neighborhoods, they also require some study due to age of the infrastructure, insurance, HOA dues, purchase financing (is it VA or FHA  approved?) and other requirements imposed on owners.  

Condos are a road to ownership, and if you're a buyer find an agent with HOA experience.

 

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Benefits of a Revocable Trust vs. Probate in California

House with Tile Roof, 3 car garage

I wanted to take a moment to share some insights on the significant advantages of placing residential property in a California trust, and why this is an important step for both property owners and their heirs. If you own property but do not have a trust, this may be important information for you  at this time. This is a rather lengthy post, but one that could be helpful.

Benefits of a California Trust for Residential Property

One of the primary reasons people place their residential property into a trust is to ensure that their assets pass seamlessly to their heirs without the need for a lengthy and costly court process. A California revocable living trust can hold title to your property, allowing it to be distributed according to your wishes upon your passing. If something happens do you want to be the one that makes the decisions of where your assets go or do you want the state to make the decision for you?

How This Helps Heirs

A key benefit for your heirs is that, upon your passing, your property can be transferred directly to them without the delays of probate. Probate, which is the legal process of administering an estate, can take months or even years to resolve. It often involves public proceedings, legal fees, and court delays. By using a trust, your heirs will avoid these complications, receiving their inheritance much more swiftly and privately.

Importance of Keeping Your Trust Updated

It is essential to periodically review and update your trust, particularly if there are significant life changes—such as the acquisition of new property, the birth of a child, or changes in your family dynamics. An up-to-date trust ensures that your current wishes are reflected and that all assets are properly accounted for. Failure to update your trust can lead to unintended consequences, such as certain assets being excluded from the trust, leaving them subject to probate.

Why Probate Court Should Be Avoided

Probate is often a lengthy and expensive process. In California, the cost of probate can be substantial, including court fees, executor fees, and attorney fees, which are generally based on the value of the estate. These costs can quickly eat into the value of your estate, diminishing the inheritance left to your heirs. Furthermore, the probate process can be a public affair, meaning that the details of your estate, including asset distribution, may be accessible to anyone. This can lead to unwanted scrutiny or potential family disputes.

A trust, by contrast, allows for a much smoother, private, and efficient transfer of property. Assets held in the trust are not subject to probate, and your wishes are carried out according to your instructions, without the need for court intervention.

In summary, placing your residential property in a California trust offers significant benefits, including avoiding the hassle of probate, ensuring that your heirs receive their inheritance promptly, and maintaining privacy throughout the process. I strongly recommend that you consult with an estate planning professional to create or review your trust to make sure it reflects your current desires and protects your heirs from unnecessary legal complications.  The Los Angeles County Tax Assessor has additional information to help you: https://assessor.lacounty.gov/real-estate-toolkit/wills-and-trusts -- find out more about trusts and tax savings.

PROBATE 

Many people do not realize how much probate fees may impact an estate.  Let's dive into the probate costs in California for an estate valued at $900,000.

In California, probate fees are determined by a statutory fee schedule, which is based on the gross value of the estate (before debts and expenses). These fees are set by California's Probate Code (Section 10810) and can be quite significant, especially for larger estates.

Example:  Probate Fees for a $900,000 Estate

1. Probate Court Fees*:

   • First $100,000 of the estate: 4% of the value.

   • Next $100,000: 3% of the value.

   • Next $800,000: 2% of the value.

Here's how the breakdown works for a $900,000 estate:

• First $100,000:
  4% of $100,000 = $4,000

• Next $100,000:
  3% of $100,000 = $3,000

• Next $700,000 (for the remaining value over $200,000):
  2% of $700,000 = $14,000

Total Probate Fees for the Estate

Adding these amounts together: The total probate fees for a $900,000 estate would be $21,000.

Additional Costs to Consider

In addition to the statutory probate fees, there are other potential costs that can add up:

Executor’s Fees: The executor (or personal representative) of the estate is entitled to a fee, which is the same as the attorney's fees (based on the same statutory schedule). For a $900,000 estate, that’s an additional $21,000 in fees.

Attorney’s Fees: Probate attorneys are usually compensated based on the same statutory fees as the executor. This means that the total legal costs (for both the executor and the attorney) could be around $42,000.

Other Court Fees: There may be additional costs for filing fees, bond fees (if a bond is required for the executor), and other miscellaneous administrative costs.

Time: The probate process in California can take anywhere from 6 months to over a year, depending on the complexity of the estate, and during this time, your heirs may not have access to the property or other assets.

For an estate valued at $900,000, the total probate costs (including court fees, executor fees, and attorney fees) could easily reach $42,000 or more. These costs can significantly reduce the value of the estate and cause delays for the heirs. That's why many people choose to place their property into a trust to avoid the lengthy probate process and the associated expenses. *See California Probate Code Sec. 10810 for a complete description of fees.

If you'd like more detailed information on how to sell a trust property or a property that is going into probate, or have any follow-up questions, feel free to ask.  Note:  I am not an attorney, but as a Realtor I can provide information required to complete the listing and sale of a property in a trust or probate. For legal handling of setting up a trust, or what to do if you are an heir to a property, please consult a trust/probate attorney. 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

June Sales Information for Long Beach and Los Angeles County

Long Beach June Market

 This year-to-date, published every month in the third week, shows county/city market information. In this case, the screenshot is narrowed to a few cities which include Long Beach single family housing.

The number of single family houses sold by the end of June in Long Beach came to 505 SFRs, which is 1% more volume than same time last year.  The median price growth increased by 7%, and days on market was 23. Sales over list price was 47%, which is how many homes sold this year sold over list price. 

The top line is the total number for Los Angeles County for the month of June. 

 This dashboard includes all counties in the state, and cities in each county -- it's available if you'd like to request the information.  This is a California Association of Realtors (C.A.R.) publication, and I  can make it available to you on request.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Aerospace Company Making Long Beach its Headquarters

Commercial space station model- Photo: Thomas R Cordova

 

 

Vast is building an 189,000 square foot campus neat the Long Beach Airport, to create and launch the next commercial space station. The company now has a 950 person workforce, starting  from 40 in 2021.

This is an ideal time to search out the area for a new home to be near this latest addition to Long Beach industry and economy.

 If you're in the market, or just want to find out more, it's an ideal time to start laying the foundation. 

 Check out Long Beach zip codes, including 90808, 90815, 90814, 90803, for homes on the market. A quick search is on my website below at the property search, or contact me for more buying information!

  

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

How Are Interest Rates Impacting Long Beach Buyers?

Downtown Long Beach

The Long Beach housing market in early 2025 has been shaped by high mortgage rates and tight supply.

By June 2025, the median Long Beach home price hit $1,075,000 (up ~7.4% year-over-year).  Sales volumes rose modestly (around 240 homes sold in June, up 11.4% from 2024, but homes took longer to sell, the median was 30 days on market, about 12 days longer than last year.  In other words, prices remain elevated despite rising rates. Nationally, 30-year fixed mortgage rates have hovered near 6.9% in mid-2025 after a low of 6.5% in March (investopedia.com). This high-rate environment is a headwind for affordability even as demand persists.

Rising Rates & Monthly Costs

Higher interest rates translate into much larger mortgage payments and carrying costs. For example, at 6.9% interest, a 30-year loan of about $732,000 (20% down on a $915,000 home) has principal-and-interest around $4,800/month. When you add ongoing expenses, the total monthly housing cost exceeds $6,000. Typical breakdowns for a median Long Beach home are approximately:

• Principal & Interest: = $4,800/month (30-year at 6.9%).

• Property Taxes: $950/month. Long Beach’s effective tax rate is 1.25% (plus other indebtedness measures) so a $915,000 home has about $11,400/year in taxes (≈$950/mo).

• Homeowners Insurance: $90–$100/month (average California premium ~$1,148/year (moneygeek.com).

• Utilities: ≈$364/month. Long Beach residents pay roughly $364 per month for basic electricity, water, gas, internet and trash (viprealtyca.com.)

Each of these costs strains a buyer’s budget. 

 Key components: 

    30-year mortgage at 6.9% investopedia.com, | taxes at 1.25% of value | home insurance at $1.15K/year moneygeek.com, and | utilities at $364/mo viprealtyca.com.

First-Time Buyers Face an Uphill Climb

First-time buyers have been hit hardest by the rate surge. National data show their market share fell to just 24% in 2023–24 (from 32% a year earlier) nar.realtor.These buyers typically have lower incomes (median ~$97,000 and smaller down-payments (~9% of price nar.realtor). In Long Beach’s expensive market, high rates and prices squeeze them further. National Association of REALTORS notes that “first-time buyers face high home prices, high mortgage interest rates and limited inventory” making it difficult to enter the market. For example, a first-time buyer using an FHA loan (3.5% down) on a $915,000 home would still borrow $882,000, resulting in principal and interest well above $5,400/month before taxes/insurance.

Unfortunately, the city’s First-Time Homebuyer Assistance Program has closed for now, but see City of Long Beach buyer programs. Programs like these can help cover down payments or closing costs. More information about down payment programs are available at this link for down payment help. Still, buyers must plan for big monthly payments and save aggressively. In practice, many first-timers are waiting longer (the average age is 38 now) and relying on gifts or loans from family (in 2024, 25% used family assistance) nar.realtor.

Repeat Buyers and Cash-Purchases

Current homeowners (repeat buyers) are generally better positioned. Many have built-up equity or savings. In 2024, the median down payment was 18% of home price (vs 9% for first-timers) and a record 26% of buyers paid all cash nar.realtor. This capital advantage lets sellers “trade up” or buy with big down-payments instead of high-rate loans. In practical terms, a Long Beach homeowner selling an older home can put significant cash down on the next purchase, or even skip a mortgage entirely. That means repeat buyers feel the rate pinch far less than first-timers. Nonetheless, rates above 6% still encourage many repeat buyers to negotiate harder – for example, by asking sellers to buy down the rate or reduce price.

Looking Back and What’s Next

Compared to earlier years, Long Beach’s spring 2025 market is relatively stabilized by high rates. In 2022–23, record-low rates (3%–4%) and surging demand sent prices skyrocketing. By mid-2023, rates had already climbed above 6.5%, and sales activity cooled. The 2024–25 data show prices still above pandemic-era levels but slowing: e.g., a 7–8% year over year increase in mid-2025 versus double-digit leaps in 2021–22. National forecasts expect rates to remain “mid-6%” through 2025 realtor.com, so affordability will not improve dramatically soon. As one Realtor.com report puts it, home buying in 2025 should be “friendlier [to buyers] than in past years” due to higher inventory and slower pace realtor.com, but it will still be “costly due to stubbornly high mortgage rates and home prices.” Buyers should expect a more balanced market than the frenzied seller market of 2021–22.

Practical Takeaways for Buyers

• Budget for High Rates. Current 30-year fixed rates are near 6.9% investopedia.com. Lock a rate early if possible.

• Include All Costs. In your monthly budget, add property tax (1.25% of home value, and insurance ($1,150/yr on top of the mortgage. Don’t forget utilities (roughly $364/mo in Long Beach).

• Plan Your Down Payment. First-timers often put down 9%, while typical buyers put down 18% nar.realtor. Larger down-payments (or any cash) reduce monthly payments. 

• Use Assistance Programs. Check local help for first-time buyers. 

• Shop Around. Compare lenders and loan options (e.g. jumbo vs conventional) to get the best rate.

Finally, remember that an experienced local REALTOR can be your greatest ally. A knowledgeable Long Beach agent knows how to navigate bidding wars, negotiate concessions (like rate buy downs), and connect you with loan officers offering competitive rates. In a market burdened by high rates, having the right team – lender, agent and possibly financial advisor – is key to finding the most affordable deal.

Thanks for making your way through this lengthy post. For more explanation, please contact me!

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Review of Southern California Real Estate Market in 2024

 

Find out the overview of last year's market to compare to what is happening now.  Just click on the image and it will take you to the full digital ezine! Zoom in for closer view. (double click to open, might be best viewed on desktop) or Link to Report.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

A Guide to Bathroom Remodel Costs

If you are looking to sell, or if you're a buyer who found the right home but it needs a bathroom refresh, you might find the help you're looking for in this article: 

Looking for a refresh or an overhaul? Either way a bathroom remodel could be just the thing to boost home value and your enjoyment of the space.

Image:Maggie Stuart|HouseLogic

Image:Maggie Stuart| HouseLogic

Image:Maggie Stuart |HouseLogic

Image:Maggie Stuart | HouseLogic

Many homeowners are excited to turn their bathrooms into a spa-like oasis with exciting upgrades. But before starting an ambitious remodel, it helps to understand the costs of such a project. Let’s review various factors in bathroom remodeling and the associated costs.

Factors Influencing Bathroom Remodel Costs

Remodeling costs vary based on components like location, labor, and the size and style of the space. Here are a few factors to consider.

Size and Scope of Your Bathroom Remodel

Size – the square footage involved – is self-explanatory. The scope of your project could include existing plumbing, the difficulty of demolition, the floor plan and layout, the number of upgrades and fixtures, and the doors and windows. Problems that require repair (such as water damage) may add to your costs. A complex project with many changes will cost more than a few surface-level or small-scale changes.

Permits and Regulatory Costs

Permit requirements vary by location. Check with local authorities about county or municipal codes and get an understanding of current permit costs. You may need to factor in $150 to $1,000 for permit costs based on location and project. A contractor can also tell you whether your remodel requires a permit.

Labor and Materials

Labor is one of the primary costs associated with a remodel, and rates can vary based on where you live. Interviewing a few contractors in your area will help you plan your labor budget. For a basic bathroom remodel with about 50 hours of labor, expect costs to start at $4,000. For a major bathroom renovation and about 90 hours of labor, expect to pay up to $11,200. The materials also affect the cost of your remodel. Certain materials – like natural stone or quartz countertops, brass faucets, or heated flooring – can make your bathroom look more luxurious, but they may also drive up the price of the project.

Types of Bathroom Remodels

Identifying the depth of changes you’re planning can help you budget for your remodel.

Levels of Bathroom Remodeling

Let’s review a few levels of bathroom remodeling. Your project may not fit easily into just one level, but this offers a look at the options.

• Cosmetic upgrade: Involves changing fixtures, updating paint, replacing hardware, installing new lighting, and adding accessories.
• Tile and flooring update: Focuses on changing the flooring and/or wall tiles, which can significantly alter the aesthetics of the bathroom.
• Plumbing and electrical updates: Can include updating or relocating plumbing and electrical components to improved functionality and efficiency.
• Luxury remodel: Covers everything from chic changes to updates focused on comfort. It may include installing premium fixtures, using high-end materials, adding luxury amenities like a spa tub, or incorporating advanced smart home features.
• Mid-level remodel: Includes both cosmetic and functional upgrades, often involving updating fixtures, changing the layout, installing new flooring and tiles, and revamping plumbing and electrical systems.
• Complete gut and remodel: Requires demolition of the existing space and rebuilding from scratch.

Bathroom Remodel vs. Bathroom Renovation

While the terms “remodel” and “renovation” are often used interchangeably, each has a distinct meaning. A renovation implies a refresh. It may involve repairing or restoring existing elements of your bathroom with cosmetic upgrades. Remodeling implies a deeper level of changes including structural changes, new installations, or a total redesign.

Key Design Elements of a Bathroom Remodel: Costs

Certain design elements of your bathroom can make a big visual impact. Here’s a breakdown of some of the costs associated with these upgrades.

Vanity and Cabinets

Installation of a bathroom vanity can cost $565 to $839, according to Homewyse. These are rough estimates that would be affected by your location and the materials you select. The average cost of refinishing bathroom cabinets ranges from $6.85 to $15 per square foot.

Flooring

The average cost to replace a basic ceramic floor in a 50-square-foot bathroom is roughly $500. However, most bathroom floor replacements cost $250 to $2,500. If you uncover mold or other issues during the remodel, costs will increase.

Ceramic tiles are easy to maintain but can get chilly. At $8 to $15 per square foot to install, radiant mats are a cost-effective option.

Fixtures: Sinks, Faucets, and Toilets

The cost to buy and install faucets typically falls between $225 and $475. For sinks, expect to pay $300 to $5,500, and for toilets, you may spend $350 to $3,500.

Lighting

Lighting can make or break a space and is a key functional aspect of a bathroom. If you're seeking budget-friendly lighting options, a small change can make a big difference. For example, updating the color temperature of the bulbs can quickly warm up the space. For a bigger impact, you might change the fixtures. Homeowners may spend $1,709 to $2,071 on their bathroom light fixtures and installation, according to Homewyse.

Tub and Shower

Shifting your shower plumbing to a different spot in the bathroom can cost as much as $4,100, and purchasing and installing new shower fixtures range from $1,500 to $3,500. Installing a new tub ranges from $1,500 to $2,900.

Tiles and Backsplashes

Updating the tiles in your bathroom can transform the look of the space. Fancy tiles enhance your bathroom’s appearance and contribute to a spa-like feel. Your tile expenses will depend on your project. Some homeowners prefer to stick with tile in the shower; others may use tile for only the floor. Inexpensive tile options like ceramic and porcelain cost $10 to $44 per square foot, including installation. Glass tiles are pricier, at $27 to $114.

Bathroom Remodel Costs Based on Size and Type

The number of components and the size of your bathroom will inform the cost of your remodel. A full bathroom includes four main components: a bathtub, a shower, a toilet, and a sink.

Powder Rooms or Half Bathrooms

A powder room or half bath usually includes just a toilet and a sink. Fewer components may mean these bathrooms are less expensive to remodel than their larger counterparts. You could pay $1,200 to $4,000 for a half-bath remodel.

Three-Quarter Bathrooms

This bathroom style typically includes a shower or bathtub, a toilet, and a sink. Remodeling costs range from $3,125 to $6,000.

Full Bathrooms

Full baths vary in style and size but in general, a full bathroom remodel costs $5,250 to $16,000, while a partial remodel costs $3,500 to $12,000.

Bathroom Remodel Project Cost by Project Scope

Homeowners can determine the complexity and breadth of their project based on their budget.

Low-Cost Projects

A one-day remodel could give your bathroom a fresh new look without a big price tag. For this type of project, expect to pay as little as $3,000. Consider updates like surface liners on your tub and shower that can visually refresh your bathroom.

Mid-Range Projects

The average cost of a partial bathroom remodel with new flooring and fixtures and some design updates is $5,000 to $15,000.

High-End Projects

Lavish bathrooms with plenty of space and high-end fixtures and finishes come with a steeper price tag. Expect to shell out $27,500 to $100,000 for luxury remodels.

Successfully Navigating Bathroom Remodel Costs 

The level of bathroom remodel you choose will depend on your goals, budget, and the condition of your existing space. It’s a good idea to compare price quotes and material costs, develop a clear project plan, and work on a flexible budget before taking on a bathroom remodel. 

Bathroom Remodel Cost Frequently Asked Questions

Can I DIY a Bathroom Remodel to Save Money?

If you have renovation and construction experience, you may be equipped to execute a bathroom remodel. But you need to be well versed in the trades and understand local regulations and permits. Performing tasks like painting and decorating could help lower costs, but it's best to leave complex remodel tasks to the pros if you aren’t experienced.

When Should I Hire a Professional?

For complex projects with structural changes or plumbing or electrical work, consider hiring a professional, who is more likely to do the work safely and up to code. Professionals bring specialized knowledge and skills and are used to tight schedules. They can often complete the project more quickly than DIYers, especially if surprises or issues arise.

How Do I Budget for Unexpected Bathroom Remodeling Expenses

When you budget for your bathroom remodel, identify potential problems such as plumbing, electrical, or structural concerns. Look up common challenges associated with bathroom remodels and assess your space for those issues. Get opinions and quotes from multiple contractors and choose the best option. Lastly, set aside a contingency fund for unexpected expenses.

What’s the ROI of a Bathroom Remodel?

The National Association of REALTORS® 2025 "Remodeling Impact Report" estimated that homeowners would recover about 50% of the value of their bathroom remodeling investment. In the past two years, real estate agents have seen a 35% increase in the demand for bathroom renovation. In addition, 24% of real estate agents recommend sellers remodel the bathroom before selling. Consider high-ROI projects like accessibility modifications, new flooring, or a tub/shower upgrade.

How Long Does a Bathroom Remodel Typically Take?

Cosmetic upgrades may take a few days to a week. Extensive remodeling work can take several weeks or a few months. The availability of materials, the speed of contractors, and adherence to the project timeline all contribute to the overall time frame. Talk to your contractor about timelines and factor in a buffer period of a week or two when figuring when you’ll have use of your bathroom again.

Article courtesy of HouseLogic - May 2025

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

California Housing Market for May 2025

May 2025 Housing Market Snapshot

The first rate cut may not be until September, which may help the housing trend. Current rates are lower than a few months ago, however.

Buyers should be aware that there are programs to help with down payment, first time buyers are probably the group to most benefit from these programs.  There continues to be a belief by some that a down payment must be 20%-- just no true.

FHA and VA loans are 3.5% or less, and even buyers in the upper price ranges well over $700,000 are using FHA loans.  Talk to your mortgage professional!
 

Graph Yearly decline Median Price

 For more information about starting to work with a REALTOR, please see information about down payment resources  and more on buyer/broker relationship.

 

 

 

 

 

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

New Fire Hardening Low-Cost Project Disclosures Are On The Way!

Beginning July 1, 2025, disclosures will be required concerning any low-cost retrofits that have been made on the property. 

As you probably know, a California law as of "January 1, 2021, sellers will be required to complete a new home hardening disclosure for properties that are: 

 • Within high or very high fire hazard zones
• Built before 2010
• Residential one to four properties; condominiums or other common interest development units; or manufactured homes".

Cal Fire has developed these (considered) low-cost retrofits, so even in Long Beach it may not be thought that fire-hardening is an issue, just consider these, please, because fires can and have happened in neighborhoods in this area:

1. Class A fire-rated roof (when replaced).
2. Spaces between the roof covering and sheathing blocked with noncombustible materials (bird stops).
3. Installation of noncombustible gutter cover on gutters to prevent the accumulation of leaves and debris in the gutter.
4. Covered chimney and stovepipe outlets with a noncombustible corrosion-resistant metal mesh screen (spark arrestor), with 3/8-inch to 1/2-inch openings.
5. Installation of ember and flame-resistant vents.
6. Caulked and plugged gaps greater than 1/8-inch around exposed rafters and blocking to prevent ember intrusion into the attic or other enclosed spaces.
7. Inspection of exterior siding for dry rot, gaps, cracks, and warping. Caulk or plug gaps greater than 1/8-inch in siding and replace any damaged boards, including those with dry rot.
8. Installation of weather-stripping to gaps greater than 1/8-inch between garage doors and door frames to prevent ember intrusion. The weather-stripping must be compliant with UL Standard 10C.
9. Windows (when replaced) with multi-paned windows that have at least one pane of tempered glass. OSFM Wildland Urban Interface (WUI) Products.
10. Siding or deck (when replaced) made of compliant noncombustible, ignition-resistant, or other OSFM Wildland Urban Interface (WUI) Products
11. Covering openings to operable skylights with a noncombustible metal mesh screen with openings in the screen not to exceed 1/8 inch.
12. Installation of a minimum 6-inch metal flashing, applied vertically on the exterior of the wall at the deck-to-wall intersection to protect the combustible siding material.

When using a Realtor for your transaction, a form to be completed will  be provided for these disclosures which will only require checking a box that applies to the work done. This is a good time to review these smaller projects for your property. **No. 11, a screen for 1/8 inch mesh, is a very useful installation to keep fire sparks/embers from entering vent spaces.**

And please take a look at a new page on my site for several maps for exploring the local community's restaurants, walking trails, and other entertainment and culture. https://www.abodes.realestate/community-resources
 

Thanks, and contact me with any thoughts, questions or ideas! 

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

How to Buy a Home With Bad Credit — and Improve Your Credit

Keeping credit  good

Credit issues play a big role in preparing to buy a home. Here’s how to avoid buying a home with bad credit.

Too often, this scenario unfolds: A young consumer buys too much on credit while setting up a new place to live and preparing for a first job. Years later, they find their freewheeling use of credit took a big toll on their credit score. It matters now because they want to buy their first home, but they’re dealing with a low credit rating – in other words, bad credit.

Bad credit isn’t always a deal breaker, however. “Buying with bad credit is possible, but you may need to work on getting your score up, depending on how bad your credit is,” says Marco Smith, a real estate professional with The Maryland & Delaware Group at eXp Realty based in Fulton, Md. Some loan programs, such as FHA, aim to help borrowers with lower scores.

Nevertheless, a credit score is important. “When it comes to home ownership, your credit score is one of the major factors in determining what your loan terms will be,” says Brian Boruszak, senior home lending adviser at Chase Home Lending. “It’s a big part of what lenders use to assess whether you’ll be approved for a mortgage and if so, at what rate.”

Real estate and mortgage experts explain the basics and tips about buying a home with bad credit while improving your credit.

Understand and Interpret Credit Scores

A credit score is a three-digit number ranging from 300 to 850 that reflects your creditworthiness, or the likelihood you’ll pay your bills on time. A higher score indicates a person who’s considered less of a credit risk.

The score is based on:

• Payment history
• Credit utilization ratio (the amount owed)
• The length of credit history
• New credit
• Credit mix (the variety of credit accounts you have, like credit cards and other types of credit)
• New credit inquiries and account openings

The most widely used credit scores are FICO (from the Fair Isaac Corp.) and VantageScore.

What’s a Good Credit Score vs. a Bad Credit Score?

Here’s where your score falls:

Average credit score for a first-time buyer, according to Lending Tree: 700

How to Get Your Credit Report

Each year, you can request to receive by mail one free copy of your credit report from the three major consumer credit reporting firms:

• Experian
• Equifax
• TransUnion

You can do this in one step at AnnualCreditReport.com. You can also review credit reports online for free once a week.

Measuring the Impact of a Credit Score

Higher credit scores can influence the types of mortgages you qualify for, including whether you’re eligible for a larger loan, a lower down payment, lower loan fees, or a lower interest rate. “Any score in the mid-700s or above is considered good and could help you qualify for lower interest rates,” Boruszak says.

Here’s an example of how a credit score translates into dollars. Earlier this year, a borrower with a credit score of 620 typically qualified for a 7.89%, 30-year fixed-rate mortgage. A home buyer with a 760 score, however, qualified for an average rate of 7.18%, according to Experian. On a $400,000 home, with 20% down, that could translate to a payment difference of about $150 more per month — or $1,800 a year.

Most lenders require a score of at least 620 for a conventional loan, which is any mortgage loan that isn’t insured or guaranteed by the government (such as under the Federal Housing Administration, the Department of Veterans Affairs, or the Department of Agriculture loan programs).

If you’re a first-time buyer with bad credit, you may have access to special loans. For example, the Federal Housing Administration may accept scores in the 500s and are a popular choice for first-time buyers.

FAQs from Potential Borrowers With Bad Credit or No Credit History

If you have bad credit, you may be looking for answers to these questions:

Can I Buy a Home With No Credit History?

“For buyers with no credit history, manual underwriting is a path forward,” says Elena Novak, a lead real estate researcher and analyst at PropertyChecker.com. The process can help applicants with a “thin credit file or low credit qualify for a loan,” according to Experian. An underwriter will review documents that verify income and assets to determine qualifications to borrow. “Lenders can review alternative data, like rent, phone, and utility payments,.” Novak explains. Such alternative reviews for on-time payments can show creditworthiness to a lender.

Potential borrowers with a limited credit history may need a co-signer on their mortgage. That’s typically a close family member with good credit, Smith says.

How Does My Credit Score Affect Loan Eligibility?

Credit scores influence what type of loan you’re eligible for. For example, conventional mortgages — the most common type of mortgage — often require a credit score of at least 620. With FHA loans, borrowers may qualify with a credit score of 500 with at least a 10% down payment or a 579 score with a 3.5% down payment.

Here are loan types and minimum credit scores from Experian:

How Can I Improve My Bad Credit Score Fast?

Credit scores can shift frequently based on your monthly activity, Boruszak says. “Speaking with a mortgage lender and having them review your credit can help, because they can offer tips on improving your credit,” Smith explains. If you aren’t sure where to start, ask your real estate agent to recommend reputable lenders. Lenders may suggest steps like paying down debt and avoiding new credit applications to help improve your credit score.

Although you may think a credit score involves technical calculations that nonfinancial borrowers can’t understand, the formula is simple. The following tips each outline actions to improve the factors that figure into a credit score. Remember, even small changes can improve scores.

Credit Improvement Tip 1: Make Payments on Time

Payment history accounts for 35% of your FICO score and is the most important factor. Any late or missed payments can significantly lower your score. Experts recommend setting up autopay for at least the minimum payments due or using programs such as Experian Boost. They will give you credit for on-time payments for expenses like rent, utilities, and cell phone bills, which could help you become more creditworthy.

Credit Improvement Tip 2: Pay Down Debt

The amount you owe makes up 30% of your score and includes your credit utilization rate: how much of your available credit you’re using. Mortgage experts recommend keeping this below 30%. “Paying down high debt will boost your credit score, but high interest makes it hard to accomplish quickly, as those fees pile up each month and derail your debt repayment progress,” says Andrea Woroch, a speaker and blogger on consumer financing. You may want to explore tools like debt consolidation loans or balance transfer cards, she says. Avoid maxing out credit cards and be cautious with balance transfers if it means opening new lines of credit, because that could lower your score.

Credit Improvement Tip 3: Don’t Close Old Accounts

Length of credit history makes up 15% of your score and depends heavily on your oldest account. Closing old cards can shorten your credit history and hurt your score. Consider keeping unused accounts active by charging a small recurring bill, but only if you can commit to paying it off monthly.

Credit Improvement Tip 4: Diversify Your Credit Mix

Your credit mix accounts for 10% of your score. For example, a mix of credit cards, a car loan, and a mortgage is more favorable than having just one type of credit. However, don’t try to improve this category by taking on debt you don’t need. It’s a relatively small share of your credit score, financial experts say.

Credit Improvement Tip 5: Limit New Credit Applications

New credit inquiries and account openings make up the final 10% of your score. A single hard inquiry may lower your score by only a few points, but multiple applications in a short time can have a greater impact, according to Experian. Apply for credit only when necessary. These inquiries can stay on your FICO score for up to a year.

Credit Improvement Tip 6: Monitor Your Credit Report for Errors

Review your credit reports from Experian, Equifax, and TransUnion. Errors might be accounts that aren’t yours or incorrect late payments. When you spot them, dispute them immediately with documentation. Learn how at Consumerfinance.gov.

It pays to pay attention to your credit. “Credit scores matter, because they’re one of the first things lenders evaluate when deciding whether to approve a mortgage — and on what terms,” Novak says. “A higher score doesn’t just increase your odds of approval; it also lowers your interest rate. [That] can mean saving tens of thousands over the life of a loan.”

By: Melissa Dittmann Tracey at HouseLogic.com

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate for a property search| 562-896-2609 | California Lic. #01188996