1. New price points for real estate financing

• a. New max loan limits:
  

  • i. Conventional = $548,250
    

    • 1. 5% down = roughly $575,000
      

    • 2. 20% down = roughly $675,000 ($685,000)
      It is a great year with great financial opportunities 

  • ii. FHA = $356,362
    

    • 1. 3.5% down = $365,000
      
      Reach out to your clients, since things have changes because of Covid - 19 , there are great opportunities.

2. Cash VS Financing
You can eliminate a lot of stress, interest and paperwork of you pay in cash.
Being able to borrow money in a rate less than inflation is a good option as well.

• a. Depends – Ramsey VS Kiosaki (highly recomended books to better understand this topics)
  

• b. Cash purchase and then cash out REFI or HELOC if needed
  

3. Cash outs in Texas

• a. Easy. Once per 12 month period. 80% LTV on primary, 70% on investment
  Line of credit is similar, but you don't pay anything until you use it. It is a great option, it is amortized daily.

4. Leverage your 401k

• a. Awesome deal
  There is no more penalty for withawing money, but you still have to pay taxes. In order to avoid that you can withdraw money from your 401 
  401 Loan repayment 

5. Buy then sell options.  
They increase the cost to your client, if they have any other option it would be the best course of action.

• a. Suck for your client
  

  • i. Stuck with 2 mortgages
    

  • ii. Double the costs
    

  • iii. Good for the bank only - they have great amount of interest 
    

• b. Better courses of action
  

• c. Two deals instead of one
  
  

6. Forebearance and what we may see in the future
There are many individuals that lost jobs, lost their houses and asked forebearance.
Option 1- live there and pay for 3 months and at the end you owe it all.
Option 2 - add it to the end of the loan.
Forebearances will start to come due on February or March 2022.
More foreclosures will be coming into the market. It will present an oportunity in real estate market.