Investors: Looking to Purchase Under Your LLC?

 We Can Help.

If you’re expanding your real estate portfolio, now is a great time to explore financing options that allow you to purchase investment properties directly under your LLC. This approach can offer clearer liability protection, streamlined bookkeeping, and a more professional structure for growing your holdings.

Whether you’re acquiring rentals, short-term properties, or long-term assets, we can walk you through:

• Loan programs designed for LLC-owned properties
• Requirements and documentation you’ll need
• How to structure your purchase for smoother underwriting
• Opportunities to leverage equity for your next investment
• Ready to grow your portfolio with confidence?

Let’s review your goals and find the right financing strategy for your LLC.

NMLS ID 394275 | DRE ID 01769353

Rates Are Down

A Great Time to Revisit Your Options!!!

Good news: mortgage rates have dropped and are significantly lower than this time last year. That means better buying power, improved monthly payments, and new opportunities for refinancing.

Curious what today’s rates could mean for you?

Let’s take a quick look at your options.

Work and Associates Home Loans,

 1350 Old Bayshore Hwy Ste. 520, Burlingame, California, 94010, 

916-847-3090

Buying or Refinancing in 2026?

If purchasing a home or refinancing your mortgage is on your radar this year, your credit score should be front and center. In today’s rate environment — where every fraction of a percent matters — strong credit can help you qualify, secure a lower rate, and ultimately save thousands over the life of your loan.

1. Pay Every Bill on Time — No Exceptions

Payment history remains the top factor in your credit score calculation.

Just one 30-day late payment can cause a significant dip, especially if you’re preparing to apply for a mortgage. Set automate payments or digital reminders so nothing slips through the cracks.

2. Tackle Balances and Reduce Your Credit Utilization

• Using too much of your available credit signals risk to lenders.
• Aim to keep balances below 30% of your limits, and lower is better. Even small, steady paydowns can make a measurable difference by spring or summer.

3. Monitor Your Credit Reports for Errors or Fraud

You can request free reports from all three major bureaus each week at AnnualCreditReport.com.

Checking consistently helps you catch:

• Late payments
• Duplicate accounts
• Identity theft or unauthorized credit
• Disputing errors early helps protect your score before you apply.

4. Skip New Credit Until After Your Loan Closes

• Credit card approvals, car loans, and store financing all trigger hard inquiries and may temporarily lower your score.
• If a mortgage or refinance is coming, press pause on new accounts and let your history continue working in your favor.

5. Preserve Older Accounts

• Length of credit history still counts.
• Closing long-held cards shortens your profile and can increase utilization overnight. So keep older accounts open when you can — especially those with no annual fees.

6. Postpone Major Purchases and Big Debts

Large new loans can change your debt-to-income ratio, which lenders analyze closely in today’s tighter lending environment. If it’s not urgent, wait until after closing day for car upgrades, personal loans, or furniture financing.

Whether you’re gearing up to buy a first home, upgrade your space, or refinance for better terms, your credit score plays a crucial role. Maintaining consistent, careful credit habits today can put you in a stronger position to unlock better rates, lower payments, and more lending options — whenever you’re ready to make your move in 2026. Source

The Power of getting Pre-Approved

Buying a home is exciting — but let’s be honest, it can also feel overwhelming. As we move through 2026, buyers will need to navigate a housing market shaped by shifting inventory, evolving buyer demand, and fluctuating mortgage rates. In this environment, preparation isn’t just helpful — it’s essential.

One of the smartest first steps you can take? Getting pre-approved for a mortgage.

Why is a pre-approval so powerful?

A pre-approval isn’t just another box to check — it’s a strategic advantage. Here are five key ways it sets you up for success in today’s market:

1. Know Your Budget and Shop With Confidence

A pre-approval shows you exactly how much home you can afford, helping you set realistic expectations before you start touring properties. That clarity saves time, reduces stress, and keeps you focused on homes that truly fit your financial picture.

2. Stand Out to Sellers and Strengthen Your Offer

In competitive markets, sellers want certainty. A pre-approval shows that your finances have already been reviewed and verified by a lender, positioning you as a serious, well-prepared buyer. When multiple offers are on the table, that credibility can be the difference between winning and missing out.

3. Move Faster When the Right Home Comes Along

Much of the financial legwork is completed during the pre-approval process, which means fewer hurdles once you’re under contract. That efficiency can help you close faster — an advantage sellers often prioritize when choosing an offer.

4. Protect Your Rate and Save Over Time

Depending on market conditions, a pre-approval may allow you to secure a more favorable interest rate. And even small rate differences can add up to significant savings over the life of your loan.

5. Catch Potential Issues Early

A pre-approval includes a review of your credit and financial documentation. If there are any errors or red flags, you’ll have time to address them before they can delay — or derail — your purchase later in the process.

Source

NMLS ID 394275 | DRE ID 01769353

The Pros and Cons of Adding a Co-Signer to Your Mortgage Application

If you’re hoping to buy a home but finding it difficult to qualify for a mortgage due to credit challenges, limited employment history, or higher debt levels, adding a co-signer may seem like a practical solution. In today’s housing market, many buyers — especially younger and first-time purchasers — are exploring this option as a way to get into the market sooner. While a co-signer can offer meaningful benefits, it’s important to understand the risks involved for both parties before moving forward.

How a co-signer can help

A co-signer is someone who agrees to share legal responsibility for your mortgage. When a co-signer is added to your application, the lender reviews both borrowers’ credit, income, employment history, and overall financial profiles.

This combined financial picture can:

• Increase your chances of qualifying for a mortgage
• Help offset a higher debt-to-income ratio or limited credit history
• Potentially allow for better loan terms or interest rates

For many buyers, a co-signer provides the additional support needed to meet today’s lending standards.

Co-signers help buyers enter the market — not buy bigger homes

Recent data continues to show that co-signers are most often used as a pathway into homeownership, rather than as a way to purchase more expensive homes.

According to the National Association of REALTORS® 2022 Home Buyers and Sellers Generational Trends Report:

• First-time buyers accounted for 34% of all homebuyers, up from 31% the year prior.
• 81% of Younger Millennials and 48% of Older Millennials were first-time buyers, followed by 22% of Gen X buyers.
• Older Millennials made up the largest share of buyers at 25%, with a median age of 36.
• Gen X buyers followed at 22%, with a median age of 49.
• Gen X households reported the highest median income at $125,000, while Older Millennials had a median household income of $110,300.

Data from the Home Mortgage Disclosure Act (HMDA) further reinforces that younger buyers typically use older co-signers to qualify — not to stretch their budget. Median home prices and down payments for young buyers with older co-signers are similar to those without, and both groups fall below the overall median for all homebuyers.

The risks of adding a co-signer

While the benefits can be meaningful, co-signing a mortgage comes with serious responsibility — especially for the co-signer.

If you miss payments, your co-signer is legally obligated to make them. This can:

• Create financial strain for the co-signer
• Negatively impact their credit score
• Affect their ability to qualify for future loans, credit cards, or housing

In severe cases, missed payments could even impact employment or rental opportunities, as credit reports are often reviewed by employers and landlords. Beyond financial risk, there’s also emotional risk. Late payments or financial hardship can strain — or even permanently damage — personal relationships if expectations aren’t clear from the start.

Where co-signers are most common;

Co-signers are more prevalent in regions with higher home prices. States in the West and Northeast tend to see more young buyers relying on older co-signers, while more affordable markets in the Southeast and Central U.S. see fewer. This trend highlights how housing affordability continues to influence buying strategies in 2026. Source

NMLS ID 394275 | DRE ID 01769353

5 Real Estate Takeaways for the New Year

January is a time of perspective, a great time for reflecting. Whether it’s for personal or professional goals, many of us ask the same question: what worked and what didn’t work last year? If you’re a prospective homeowner, it’s helpful to ask this question with the housing industry. You’ll want to know when to seriously dive into the market, how to time any potential rate drops, and begin strategizing your 2026 game plan...

1.) Improved Affordability

Realtor.com®’s chief economist cited three factors that have enhanced affordability for home buyers in the last year.

• Pricing sensitivity and balance-- There was a push and pull effect in 2025. With about 6% of sellers pulling their listings off the market, it’s reflective of a more balanced economy. While sellers have had to adjust property prices or delist altogether, buyers have been gifted with a little more room to negotiate. This is a big change considering that sellers had the upper hand throughout the pandemic.
• Monthly payments loosening-- It’s been forecasted that monthly payments are going to decrease for the first time since 2020. This prediction could mesh nicely with another forecast: incomes are expected to grow in 2026.
• Seller concessions, temporary buy downs, and loan programs-- The economic hurdles of the last few years have created exceptionally savvy home buyers. Throughout 2025, many turned to creative methods to boost housing affordability, including concessions with sellers, buy downs, and down payment assistance programs. They worked with knowledgeable lenders and agents to uncover options to keep costs down. This savviness will only continue in 2026.

The Takeaway: Link up with loan professionals to keep tabs on the economy and make a game plan, marking what conditions need to be met before you leap off of the sidelines.

2.) Rate Dips Boosted Competition

While rates didn’t drop below 6% in 2025 like many had optimistically predicted, the small nudges and dips still created size-able boosts in mortgage applications. With every dip, the markets began moving faster. Admittedly, this meant that negotiating power was reduced for buyers, and fewer sellers were likely to offer concessions. A good note to keep in mind for rate dips in 2026!

The Takeaway: Buyers should prepare early and get pre-approved ahead of time so that they’re better positioned to hop on rate drops when they happen. The early bird catches the worm!

3.) Emerging First-Time Buyers

With gradually increasing inventory and improving affordability conditions, first-time home buyers are emerging. They understand homeownership as a wealth-building tool and desire the stability it provides, wishing more than ever to kick their landlords to the curb. 2026 is predicted to entice first-time buyers off the sidelines even more, with forecasted rate drops and more homes on the market.

The Takeaway: Research first-time home buyer programs, many exist! There are regional down payment assistance options as well as ones for specific occupations.

4.) Home Sales Predicted to Rise

Redfin predicts that home sales will rise 3% in 2026, believing that a stronger home buying season awaits this spring. However, they’ve tempered this prediction with a realistic expectation: “sales will increase only slightly because affordability will improve just enough to lure some on-the-fence buyers.”

The Takeaway: While home sales may rise, more inventory is needed to match the incoming demand. A lot can happen between now and the spring. Again, pay attention to the market and keep your savvy loan officers on speed dial.

5.) A Much Needed Housing Reset

Redfin has predicted that 2026 will be the year of the Great Housing Reset. They’re forecasting a “years long period of gradual increases in home sales and normalization of prices as affordability gradually improves.” They’re optimistic that incomes will rise faster than home prices, for a potentially prolonged period not seen since the Great Recession.

The Takeaway: As mentioned, Redfin is touting a more optimistic prospective for 2026. While all those predictions could happen, it’s best to be realistic. As they say, prepare for the worst, hope for the best.

Source

NMLS ID 394275 | DRE ID 01769353

What Is a Cash-Out Refinance, and How Does It Work?

If you’ve built equity in your home, a cash-out refinance could help you put that value to work. This option allows you to refinance your current mortgage and borrow against your home’s equity at the same time. Whether you’re planning renovations, paying off debt, or preparing for a large expense, a cash-out refinance gives you a way to fund it using what you already own.

What makes a cash-out refinance different?

A standard refinance replaces your current mortgage with a new one, usually to secure a different rate or term. A cash-out refinance does that plus gives you a lump sum of cash at closing. It’s like combining a refinance with a home equity loan.

Your new loan balance will include:

• The amount you still owe on your existing mortgage
• The cash you choose to take out
• Any closing costs or fees, if rolled in

That means your total loan amount and monthly payment will go up, but you’ll walk away with funds you can use for whatever matters most right now.

How much can you borrow?

The amount you can take out depends on how much equity you’ve built. Equity is the difference between your home’s value and what you still owe on your mortgage. Most lenders will allow you to borrow up to 80% of your home’s current value.

Example:

If your home is worth $400,000 and you owe $300,000, you have $100,000 in equity. If you need to leave 20% equity in the home, that leaves about $20,000 available to borrow.

Keep in mind:

1. You need to have equity built up, which usually takes a few years of mortgage payments
2. You will still pay closing costs (typically 2 to 6% of your loan amount), though some borrowers choose to roll them into the new loan

Why would someone choose a cash-out refinance?

There are a lot of smart ways to use the value you’ve built in your home. Some of the most common include:

• Home improvements: From needed repairs to dream upgrades, this can boost comfort and property value
• Outdoor projects: Patios, pools, landscaping, and tree removal
• Energy efficiency upgrades: Solar panels, tankless water heaters, new windows, or insulation
• Smart tech additions: Connected thermostats, lighting, security systems, and other automation
• Debt consolidation: Replacing high-interest debt with one lower-interest mortgage payment
• Medical expenses or emergencies: Covering major out-of-pocket costs when needed
• Big life events: Weddings, education, or other long-term investments in your future

Pros and cons of a cash-out refinance;

Potential Benefits

• Interest rates on mortgage loans are often lower than personal loans or credit cards
• Can simplify finances by consolidating debt
• May provide tax advantages (talk to a tax advisor for specifics)
• Helps free up cash flow for large purchases or pressing needs

Things to Consider

• You are increasing your total loan amount
• You will pay closing costs on the full loan, not just the cash-out portion
• You are resetting your mortgage term, which could extend how long you’re in repayment
• Your original payment history closes with your old loan, which could temporarily affect your credit

Should you consider a cash-out refinance?

Rates fluctuate, but equity is a long-term asset. If you bought your home a few years ago and have built up value, a cash-out refinance might be worth exploring. It all comes down to your goals, your current mortgage terms, and how you plan to use the funds.

A loan officer can walk you through personalized options, help you compare loan types, and run the numbers to see what’s right for you. Source

How Could the Housing Market Change in 2026?

Entering 2026, the housing market appears to be settling into a more familiar pattern. Recent data suggests improving inventory, steadier mortgage rates, and slower price growth, all of which support a more predictable environment for buyers. However, a new announcement has added an element of uncertainty that could affect how quickly conditions change. While it may turn out to be a short-term headline, it has the potential to introduce bigger market swings than many expected just weeks ago.

What the Data Says About the Housing Market in 2026

Mortgage Rates

Mortgage rates have remained in the low six percent range for several months, giving buyers a level of consistency they have not had in recent years. (MBS Highway)

That steadier range has supported activity. The Pending Home Sales Index recently posted its strongest performance in nearly three years after seasonal adjustment, signaling that buyers are reengaging as rate movement has become more predictable. (MBS Highway)

Looking ahead, the National Association of Realtors expects existing home sales to increase by roughly 14 percent nationwide in 2026, reflecting improved buyer participation as rates, inventory, and expectations begin to align. (NAR)

Home Price Growth

Home prices continue to rise nationally, but the pace of growth has slowed meaningfully compared to recent years. (HousingWire)

Data cited by MBS Highway shows significant regional variation, with roughly half of major markets seeing price declines while others, particularly in parts of the Midwest and Northeast, continue to experience growth. (MBS Highway)

NAR forecasts modest national price appreciation of approximately 2 to 3 percent in 2026, pointing toward a market where prices are moving more in line with income growth rather than accelerating rapidly. (NAR)

Inventory

Inventory conditions have improved compared to recent years, expanding buyer choice. Active housing inventory has returned to near-normal levels for the first major time since early 2022. (HousingWire)

In addition, NAR reports that overall inventory is roughly 20 percent higher than last year, easing some of the urgency and competition that defined prior market conditions. (NAR)

While inventory remains below pre-pandemic norms in many markets, the increase alone has helped shift the balance toward a more functional housing environment for buyers. (HousingWire)

A New Announcement Could Change How the Market Moves

While the broader outlook for 2026 points toward normalization, a recent announcement has introduced a new variable.

President Donald Trump ordered his representatives to purchase $200 billion in mortgage-backed securities, with the stated goal of lowering mortgage rates and improving housing affordability. (Reuters)

Large purchases of mortgage bonds can help push mortgage rates lower, which helps explain why mortgage-related stocks moved higher after the announcement.

What remains unclear is how quickly this plan could take effect or how long any market reaction might last. Headlines like this sometimes lead to short-term rate swings that fade, but they can also create brief opportunities before the market settles again.

This announcement does not necessarily negate the broader 2026 outlook, but it does serve as a reminder that rates, competition, and affordability could shift suddenly, and more quickly than expected.

Source

Should You Buy a Home? 5 Things to Do First

For most people, deciding to buy a house is a huge decision. And when home prices and mortgage rates are high, it can be daunting. I know from experience. When we were in the market for our first home, the economy was uncertain. And so were we. Owning a home was just one of our priorities. We also like to travel, entertain, and give to charity. These things bring joy to our lives. Would having a mortgage mean we had to give them up? Were we ready to?

It quickly became clear that buying a house was a big financial decision, and there was a lot more to consider. That's why when first-time buyers come to me with questions, I suggest they do these five things before stepping into that first open house...

1. Decide what you can afford, financially and personally.

When it comes to affordability, the price of a house is one thing; how making a monthly mortgage payment and maintaining a home will impact your life is another. So, the first thing you need to do is prepare a personal budget. For instance, we had to ask ourselves, how much of our monthly budget did we want our mortgage to take up? Could we carve out enough to cover the ongoing costs like real estate taxes, homeowners' insurance, and maintenance? What could we comfortably add to our current budget and still enjoy the other things in our life? 

I understand it's not easy to find extra space in your budget when the cost of groceries keep going up, student loan payments are due again, and other debts may be a factor. You need to take a detailed look at all your current expenses and decide what trade-offs you'd be willing to make to cover the added costs of owning a home. Then look at the big picture. How much debt do you already have, and how much more can you take on? There's a general industry rule of thumb that says no more than 28% of your gross income should go toward home debt; no more than 36% toward total debt. Can you stay within that?

Once you've decided how much of a mortgage payment you can handle, talk to a lender and get pre-approved. A lender will look at the financial details—assets, income, debt ratio and more—and help you come up with a number. You might be surprised that the bank says you can afford more house than you thought. I was. But don't be lured into taking on a bigger mortgage—and bigger mortgage payment—than you want. It's not just about money, but your overall quality of life. Stick with your priorities.

2. Prepare for 20% down — but know your options.

If you haven't already, start saving for a down payment now. The ideal is to put 20% down. With median home prices just over $400,000, according to the National Association of Realtors, this can be upwards of $80,000, depending on where you live. That's a big number, and it can take time to save what you need. That's okay — having a budget and a plan can help you get there. In general, the more you put down, the easier it will be to qualify for a loan and the better interest rate you'll get.

Plus, with a 20% down payment, you can avoid Private Mortgage Insurance (PMI). PMI is insurance the bank charges you to protect themselves (not you) in the event you aren't able to make your mortgage payment. If you fall short of the 20% down payment, this cost will be added to your monthly payment. Then, you'll pay PMI until the loan to value of your home reaches 80%. With a new appraisal you might then be able to drop PMI.

Also, there are other types of loans, such as FHA and VA loans, that don't require such a high down payment. Your lender can help you explore and understand your options.

3. Be clear about your mortgage choices.

When it comes to a mortgage, it's important to dive into the details. For instance, a fixed rate-mortgage is more stable and predictable. You'll generally have the same payment over the life of the loan. However, if taxes and insurance are included, your payment could go up—or down—which can take people by surprise. 

An adjustable-rate mortgage may catch your attention because it initially offers a lower interest rate for a period of time, say five years. But then it resets. You may think, "Great, I plan to sell before then, or refinance." But I always caution that you have to be willing to take on the risk that interest rates could rise before you can follow through with your plan. You may also have heard about mortgage buydowns. Essentially, this means pre-paying up front to reduce your interest rate over a set period. If you have more cash on hand, it could save you significantly over time. No matter which type of mortgage you choose, get the specifics from your lender. Read the fine print. Make sure you know what it means for both your current and future payments.

4. Get your credit in shape.

It's always wise to know your credit score. It's particularly smart when you're in the market for a home loan. The better your score, the better loan deal you'll likely be able to negotiate. If your score needs a boost, make sure to pay your bills on time and keep your credit balances low. And it's best not to open any other credit accounts while you're shopping for a loan. Each inquiry could be a hit on your score. 

5. Take steps to protect yourself and your future home.

Owning a home is both a financial and an emotional responsibility. The thought of losing it can be scary if something unexpected should happen like a fire, or if you were to lose your home due to a health issue or job loss. So prepare in advance. 

Make sure you have an emergency fund to cover three to six months of essential expenses, including your mortgage and other home-related costs. Compare home insurance policies ahead of time and know that they will likely increase in cost in the future. How quickly and by how much depends on where in the country you live. The impact of more severe weather in greater frequency is pushing insurers to raise premiums across the country. Consider both short- and long-term disability insurance. See what your employer offers, and if that's not enough to cover your expenses, look at private policies to supplement it. It may be an extra cost now, but it can keep you from losing sleep—and possibly your home—in the future. Lastly, make sure you have adequate health and dental care coverage. Overdue debt for medical bills can snowball quickly.

The bottom line is that buying a home is both a financial and a life choice. If you've taken these five steps and are ready, buying your first home can be a smart way to help build future wealth. But to me, it's also personal. If owning a home is going to be a financial burden, stop and think. If it will bring you joy and fulfillment, go for it. 

Source

New Year, New Home: How to Get Yourself Into a New Home in the New Year

Moving in the new year is possible. Act now to get into the housing market. It could help you buy sooner, smarter and cheaper to start the new year in a new home. Get everything lined up - including a lower mortgage rate, faster and easier home-purchase process, and a home that’s a better match for the location, size, style and floor plan you want.

Create a plan:

1. Make your list.

• Write down what you need vs. what you want in a home.
• Think about size, layout, features, and location.
• Prioritize your list as clear goals help guide decisions and reduce regret later.
• Popular wants: granite/quartz countertops, spacious backyard, high-end appliances, home office
• Design preferences: open floor plan, exterior style, tall ceilings, one or two-story

2. Research smart.

• Use resources like online tools including NewHomeSource.com to help you on your journey.
• Look into mortgage options, school districts, and available homes in areas you like.
• Spend time in those neighborhoods.
• Be ready to adjust your wish list to match your budget.

3. Save more than you think.

• Even with builder warranties, some costs will fall on you.
• Determine your down payment.
• Don’t forget to plan for moving costs, utility deposits, maintenance, landscaping, and window coverings.

4. Talk to a pro.

• A sales consultant can walk you through pricing, floor plans, financing, and timelines.
• No pressure to buy – use them as a resource.
• Booking an appointment often means better answers and attention.

5. Take your time.

• New home buying can be exciting but exhausting.
• If you don’t have a deadline, move at your own pace.
• When the right home shows up, you’ll be ready to act.

The bottom line: Buying a home is a big move. Start early, plan ahead, and stay focused on what really matters to you. A little prep now can lead to a better home – and a better deal – in the new year. Source

NMLS ID 394275 | DRE ID 01769353

Moving Up or Downsizing?

Whether you’re upsizing for your next chapter or downsizing to simplify, the right loan makes all the difference. I can help you explore financing options that support a smooth transition.

Contact Work & Associates Home Loans to start planning your move.

*Loan programs, rates, and terms are subject to change and borrower qualification.

Loan Inquiry

Work and Associates Home Loans, 1350 Old Bayshore Hwy Ste. 520, Burlingame, California, 94010, United States (US), 916-847-3090