Focus on the Lender: An Interview w/Dean Wong - First Cap. Mortgage

In an effort to find solutions for my Buyers, I took the time to interview Dean Wong at First Capital Mortgage. I have known Dean for 5 years and have worked with him on many transactions.
TOM:First of all Dean, thank you for taking time to chat with me. My readers really appreciate any clarity you can provide in these changing times.
DEAN:It is really my pleasure Tom.
TOM:With the Subprime fallout, are there some new products that Buyers should be aware of?
DEAN:With the demise and implosion of almost all subprime lenders, FHA has become a very popular loan program once again as they offer loans with as little as 3% down payment. It’s even possible to go 0% down if the seller is willing to “gift” the buyer 3% of the sales price towards the down payment!  FHA also is very lenient on credit challenged borrowers. 620 FICO is acceptable! 
TOM:Are buyers able to get a loan if they have less than 20% to put down?
DEAN:Absolutely. FHA can go as low as 3% down payment up to 729k in L.A. County and Conventional loans can go 10% down up to 729k. Above 729k will require 15-20%depending on FICO, loan amount, and reserves.
TOM:Can you help with Multi-Family loans? How are those different?
DEAN:Yes, as a residential lender I can fund 1-4 unit dwellings. General guideline is that the more units the larger the down. For a 4 unit dwelling, lenders require 20% down payment for Owner Occupied borrowers. 25%+ for Non-Owner Occupied borrowers.
TOM:Are there any "special" products for first time buyers.
DEAN:Yes, FHA is the most popular first time home buyer program as the down payment required is low and the FICO score of 620 is lenient. FHA is Full Documentation only. 
TOM:What are the "hidden" fees Buyers should look out for.
DEAN:The most common variance one will see from a lender who provides a GFE (Good Faith Estimate) will be escrow costs and title insurance costs. Many lenders do not quote the actual amount and instead quote a base price. Once you’re in escrow, always contact the escrow company directly to inquire on the estimated cost for escrow and title insurance. If this amount is significantly higher than the lender’s GFE, one must ask what other fee may be low-balled or not disclosed. Working with a referred and trusted lender one will get a more accurate GFE on the front end which will prevent frustration on the back end.
TOM:Very good information Dean. Will you come back and speak with us soon?
DEAN:How's next week?
TOM:See you then.
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Please contact Dean and tell him you saw him here - www.RealEstateBlogLA.com
Dean Wong-Senior Loan Consultant-First Capital Mortgage
Direct:310-656-8210, Cell:310-344-3252
http://www.firstcapitalmtg.com/wong.shtml