Looking for a great neighborhood in Lamorinda for trick or treating? 

LAFAYETTE
Happy Valley: The Peardale loop (North and South Peardale), Leroy  and Rose Lane
Downtown Lafayette:  Monroe, Victoria, Victorica Court and Moraga Blvd. (Between 1st and Hawthone) 
Burton Valley: Merriewood Drive and Silverado

MORAGA
Sanders Ranch
Sanders Drive
Deerfield
Corliss

ORINDA
 Martha (in Glorietta)
Orinda Downs

HAPPY HALLOWEEN!

Don’t forget that it is Fleet Week in San Francisco…

There will be performances this weekend by the Marines AV-8B Harrier and by TWO jet teams, The Blue Angels and Canadian Snowbirds!

Fort Mason, Crissy Fields or the Marina Green and are all great places to watch the show!

Check out the website: http://www.fleetweek.us/

We thought this was a great article from the Wall Street Journal and wanted to share it with you……

Illustration by Scott Pollack

With traditional investments delivering low returns, some are considering buying rental housing.  However, potential investors should do their homework and avoid the following
common mistakes.  Making sense of the story-

• Investing in real estate right now can be profitable, if everything goes as planned.  Rents are increasing in many areas, and more properties may be coming on the market.
• Last month, the Obama administration asked for proposals on how to convert at least some of Fannie Mae’s and Freddie Mac’s inventories of foreclosed homes into affordable rentals.
• Traditionally, investors rented out properties for 1 percent of the purchase price per month.  However, according to one property management firm, today, some investors are receiving as much as 2 percent of the purchase price.
• While it may be true that in some areas home prices are relatively low, that doesn’t mean the property can be rented out.  Homes in deserted subdivisions aren’t any more appealing to renters than they are to buyers.  The same is true for less-attractive properties or those in less-desirable school districts. Prior to purchasing a property, investors should also factor in closing costs of 3 percent to 6 percent, the costs to fix up the place and maintain it, and the holding costs.
• Investors become landlords, and as such, need to keep in mind that, just like homeowners, tenants may not always be able to pay rent.  Evicting tenants can take several weeks.
• It’s also important to remember that owning a rental is not the same as owning a home.  An owner may put up with flaws in a home that a renter wouldn’t tolerate.  Additionally, many states and communities have strict laws for landlords, even for those who own only one property.

Read the full story

As you may know, unless Congress extends the expiration deadline, Federal Housing Administration (FHA) loan limits set in 2008 will drop significantly beginning October 1. Congress raised the loan limit amount in response to the housing crisis to help spur the homebuying market. FHA loans offer borrowers very competitive rates and terms, and they only require a 3.5% down payment. Allowable debt ratios are higher than the typical debt-ratio limits imposed for conventional loans, and there are no income limit qualifications, so more people can qualify for them.

If the loan limit drops on October 1, many California homebuyers will face higher down payments, higher mortgage rates and stricter loan qualification requirements. Borrowers seeking larger mortgages will have to apply for conventional loans or jumbo loans, which may be subject to higher interest rates and down payments. Here are four things you should know to help your clients now.

1. LOWER LOAN LIMITS. The conforming loan limit determines the maximum mortgage amount that FHA, Fannie Mae and Freddie Mac can buy or guarantee. If your client wants to stay under the current loan limits, then encourage them to purchase now and close by September 30th.

2. DROPS BY COUNTY. Under the new FHA loan limits, some counties will see significant drops in their loan limits. San Diego County will experience a $151,250 drop, Sonoma County a $141,550 reduction, while Orange and Los Angeles Counties will drop by $104,250. To see a full, county-by-county list of changes, click here.

3. JUMBO LOANS. The current FHA loan limit is $729,750. After October 1, that limit may drop to $625,500. Mortgage loans higher than that amount will be considered non-conforming jumbo loans, which typically have rates that are 0.875% to 1.5% higher than conforming rates, depending on the loan product, and require higher down payments.

4. MORE STRINGENT REQUIREMENTS. FHA loan requirements may allow for lower credit scores. So an applicant with a lower FICO score can still qualify for an FHA loan, even if they can’t for a conventional loan. Your clients may be able to obtain an FHA loan three years after defaulting or having a loan foreclosed.

Once again, all Lamorinda school’s API scores are above 900.  See below for the 2011 scores….

In the announcement from district superintendent John Nickerson, he says
“never has a California high school district had an API above 900.”
The Acalanes Union High School district’s composite score is 903.

Below are the scores for the Lafayette, Moraga and Orinda high schools:

• Acalanes High School       910
• Campolindo High School   923
• Miramonte High School       923

See the following link for more info:
http://lamorinda.patch.com/articles/high-school-district-achieves-historic-api-result

Mortgage rates are sitting at an all time low.
 If you have been considering refinancing your home, now is the time. 

http://abcnewsradioonline.com/business-news/mortgage-rates-tumble-to-near-all-time-low.html

If you were counting on the current High Balance Conforming loan amount of $729,500 (for high cost areas like Lamorinda) when purchasing a home, you need to move quickly.  September 30th is the deadline before the new conforming loan limit is dropped to $625,500.00. 

http://www.cnbc.com/id/44178578/Wells_Fargo_Lowers_Conforming_Loan_Limits

 Please contact your lender for more information.

Lafayette’s Art and Wine Festival is just around the corner. 
Mark your calendars now…September 17th and 18th. 

Lisa and I will be working the Alain Pinel Beer Booth Saturday morning (I think we are pouring Stella), so stop by and see us! 

http://lafayettechamber.org/events/art-wine-festival/

It is that time of year again….summer activities are coming to an end and fall activities are beginning. 

Lafayette schools start next Tuesday, August 23rd and Moraga/Orinda schools start on Wednesday, August 24th.
We hope that your summer break was everything you wanted it to be and that you are ready to jump back into the school year.

For those of you who are interested in Fall or Year-Round Swimming, it is not too late to sign up through the Orinda Aquatics
for programs at both the Sleepy Hollow pool in Orinda and the Soda Aquatic Center (Campolindo H.S.) in Moraga.

You can go to http://www.orindaaquatics.org for more info.