Coastal Updates, Market shifts and a Sailing Story

Spring has definitely arrived here in Southern California—and with it comes a mix of sunshine, shifting markets, and some pretty special moments around our local community.

I’ve got a little bit of everything for you this month… from real estate insights to life down at the harbor.

---

What’s Happening in the Market?

If you’ve been watching the headlines, you know things are… evolving.

The big picture:

• Home prices are leveling off after the rapid appreciation we’ve seen over the past few years
• Mortgage rates have moved up again, keeping buyers a bit cautious
• Inventory is still relatively tight, but we’re seeing small increases in listings

What does that really mean in plain English?

• It’s a more balanced market
• Strategy matters more than ever (pricing, timing, financing)
• Opportunities are still there—you just have to know where to look

For buyers, this can actually be a window where there’s less competition.
For sellers, it means pricing correctly is key.

---

🌟 Client Spotlight

One of my favorite parts of what I do is helping first-time buyers cross the finish line—and we just had a great win I wanted to share.

We recently closed on a purchase for a first-time homebuyer who bought a condo on a ground lease—which can sometimes add a few extra layers to navigate with the HOA and lease approval process.

There were definitely a few hoops to jump through, but with good communication and the right team in place, everything moved along smoothly…

• We closed on time
• The process stayed on track
•  And most importantly—one very happy new homeowner

These are the kinds of transactions that remind me how important it is to have the right guidance, especially when things aren’t totally “vanilla.”

---

⛵ A Quick Trip South: Newport to Ensenada

We just got back from the Newport to Ensenada International Yacht Race—and what an experience it was this year!  We had ten boats from our harbor entered, and they all did well!

There’s something pretty incredible about leaving the California coast behind and heading into Ensenada with a fleet of boats, good friends, and just enough unpredictability to keep things interesting.

It’s one of those traditions that reminds you why we love living here—community, adventure, and a little salt air therapy.  

---

🌴 Dana Point Local Highlights

State of the City at Dana Point Yacht Club

We recently hosted the Dana Point State of the City at DPYC, with over 300 people in attendance—an amazing turnout and such a great reflection of how engaged this community is.

One of the highlights was hearing from representatives of the Yuhaaviatam Nation, who recently completed the purchase of the Waldorf Astoria Monarch Beach Resort & Club.

This is a big moment for Dana Point, and it will be exciting to see how their stewardship shapes the future of one of our most iconic coastal properties.

---

 Final Thoughts

This time of year always feels like a reset—longer days, more activity, and a sense that things are moving forward again.

Whether it’s real estate, community events, or just enjoying where we live, I feel incredibly grateful to be part of it all—and to stay connected with all of you.

If you need anything at all—advice, a second opinion, or just a quick question—I’m here.

Spring Into Action- April Market Update

Spring has officially arrived in Orange County — and honestly, can it get any better than this? The jacarandas are blooming, the ocean breeze is back, and whale-watching season is in full swing off Dana Point. If you haven't made it down to the harbor yet this spring, put it on your list. It does everyone some good.

I'm here with your monthly roundup of what's happening in the world of real estate and mortgage lending, and a few local goings-on you won't want to miss. Grab your coffee — let's dig in!

 WHAT'S HAPPENING WITH INTEREST RATES?

 

Here's the good news: rates are more settled than they've been in a while. As of this week, the conforming 30-year fixed is hovering right around 6.22–6.46% (depending on your loan type and lender), and the 15-year is sitting near 5.72–5.77%. VA loans are even sweeter — we're seeing 30-year VA rates around 5.90%.

Here's the context: after rates dipped below 6% briefly in February (I know — don't hate me for mentioning it), they bumped back up in March amid some geopolitical turbulence and a couple of stubborn economic reports. The Fed held rates steady at their March meeting and will meet again April 28–29. Most forecasters expect them to stay put for now.

The silver lining? Rates today are still lower than they were a year ago at this time (6.64% in April 2025). And experts are still forecasting a gradual drift downward as 2026 progresses — Fannie Mae is projecting rates could dip closer to 6% by year-end. Not a dramatic drop, but movement in the right direction.

Bottom line: buyers who've been on the sidelines waiting for rates to fall dramatically may want to reconsider. Rates in the mid-6s with the ability to refinance later is still a sound strategy — especially in a market where home values are holding strong.

ORANGE COUNTY REAL ESTATE: SPRING MARKET UPDATE

 

Spring selling season is officially here, and the OC market is showing some really interesting dynamics right now.

The median sale price in Orange County is sitting around $1.2 million — basically flat compared to this time last year, which actually tells a healthy story. We're not seeing the wild appreciation of 2021–2022, but we're also not seeing the corrections some predicted. Values are holding.

Inventory is slowly, steadily improving. Active listings are up about 11% year over year, and we've got around 2.5 months of inventory for detached single-family homes and 3.1 months for attached (condos and townhomes). That's still technically a seller's market for detached homes, but buyers have a little more breathing room than they did a year ago.

What does that mean practically? Well-priced, well-presented homes are still moving — and multiple offers are still happening on the right properties. Overpriced homes are sitting longer, and sellers who price to the market are winning. The days of "price it high and see" are over for now.

For buyers, this is actually a really decent window. More options, less frenzy, and sellers who are often more open to negotiating on terms — rate buydowns, closing costs, repairs. This is the market where having a great lender in your corner (ahem 😊) makes a real difference.

LOAN SPOTLIGHT: ARE YOU LEAVING MONEY ON THE TABLE?

 

A quick note for my realtor and financial planner friends — I've been having a lot of conversations lately about clients who simply don't know what programs are available to them. Here are three worth mentioning:

VA Loans: If you have a client who served — or whose spouse served — and they're not using their VA benefit, please send them my way. No down payment, no PMI, and today's VA rates are some of the best out there. It's one of the most underutilized benefits in the country.

Non-QM Lending: Self-employed clients, real estate investors, foreign nationals — traditional bank guidelines often don't work for them. Non-QM loans open doors that conventional lending closes. Bank statement loans, DSCR (Debt Service Coverage Ratio) loans for investors — I have great programs.

Reverse Mortgages: For clients 55+, the reverse mortgage has evolved. It's a legitimate financial planning tool — not the last resort it used to be perceived as. CPAs and financial advisors: let's talk about how this fits into a retirement income strategy for your clients.

SPRING IN ORANGE COUNTY — WHAT'S COMING UP

 

Because we don't just live here for the real estate — we live here because it's genuinely one of the most beautiful places on earth. Here are a few things happening this spring:

Newport to Ensenada Yacht Race (April 24–27): One of the oldest international yacht races in the world, departing from Newport Beach. Even if you're not racing, the send-off is spectacular to watch from the harbor.My husband is crewing on a Benetau and I will be taking the DPYC bus down to Ensenada to cheer them on!!

Whale Watching at Dana Point: We're smack in the middle of blue whale migration season — the largest animals on Earth are passing right by our coastline. Captain Dave's and the Dana Point Harbor have great seasonal tours.

Festival of Arts prep, Laguna Beach: The famous Pageant of the Masters and Festival of Arts kick off in July, but artist jurying and early season events are happening now. A great client gift idea, by the way — tickets go fast.

 

As always, I'm just a call or text away — whether you have a client with a tricky loan scenario, a question about rates, or just want to grab coffee and catch up. I truly love what I do, and I love the community of people I get to do it with.

Wishing you a beautiful April — get outside and enjoy that OC sunshine!

Warmly,

Karen and The Card Team

1031 Exchanges and Mortgage Strategy: What Your Investor Clients Need to Know

If you work with real estate investors — whether they're seasoned pros or just getting into their second or third property — you've likely had conversations about 1031 exchanges. It's one of the most powerful tax-deferral strategies available to real estate investors, and guidance on the tax side is invaluable.

 

But there's a piece of the puzzle that often gets overlooked until it's almost too late: the mortgage side. And that's where I come in. I want to share a few things I see come up regularly that I think are worth raising with your clients well in advance.

 

The Financing Timeline Problem

A 1031 exchange has strict IRS timelines — 45 days to identify a replacement property and 180 days to close. Those deadlines don't flex, and they don't care about appraisal delays, underwriting backlogs, or a lender who doesn't specialize in investment properties.

 

Where I see exchanges stumble isn't usually on the tax side — it's on the financing side. An investor finds their replacement property, has a solid 1031 in place, and then hits a snag getting the loan approved in time. Conventional lenders who aren't experienced with investment property transactions or who have slow turnarounds can put the entire exchange at risk.

 

The fix is simple: get the financing conversation started early — ideally before the relinquished property even hits the market. I can have a pre-approval ready and a loan strategy in place so that when the replacement property is identified, we're already prepared to move quickly.

 

Equity, Leverage, and the Mortgage Decision

Here's an area where the mortgage strategy and the tax strategy intersect in an interesting way: how much equity does your client want to roll versus how much leverage do they want to take on in the replacement property?

 

The IRS requires that the replacement property be of equal or greater value and that the investor reinvest all the equity to fully defer taxes. But "all the equity" doesn't mean they can't also finance a portion — it means they can't take any cash out of the exchange. A well-structured mortgage can actually allow an investor to acquire a higher-value property by adding debt on top of the rolled equity, which can make sense from both a tax-deferral and a portfolio-growth perspective.

 

This is worth walking through with your clients as part of the overall exchange planning — and I'm happy to be part of that conversation.

 

DSCR Loans for Investor Clients

One more thing worth mentioning: many of your investor clients may have robust real estate portfolios but show modest personal income on their tax returns — especially if they've done a good job of maximizing deductions. Traditional lenders can struggle to qualify them for additional investment property loans as a result.

 

DSCR (Debt Service Coverage Ratio) loans are a Non-QM product specifically designed for real estate investors. Qualification is based on the rental income of the property itself, not the borrower's personal income. If the property cash flows, the loan can be approved. This is a game-changer for investors looking to grow their portfolio without being penalized for smart tax planning.

 

Let's Work Together

The best outcomes for investor clients happen when the tax strategy and the mortgage strategy are coordinated from the start. I love working alongside CPAs and financial advisors to make sure nothing falls through the cracks — and frankly, my clients who have that kind of coordinated team tend to make better decisions and close more smoothly.

 

If you have a client planning a 1031 exchange or expanding their investment portfolio, I'd love to connect early in the process. Let's make sure the financing piece is buttoned up from day one.

Non-QM Loans - The Secret Weapon for Self-Employed Borrowers

If you work with entrepreneurs, freelancers, business owners, or independent contractors — and chances are you do — you've probably run into this scenario: your buyer is clearly successful, clearly has money, and clearly wants to buy. But when they go to get pre-approved, they hit a wall. Their tax returns don't tell the full story.

This is where Non-QM lending comes in, and it's something I think every great real estate agent should have in their toolkit of knowledge.

 

What Is Non-QM, Exactly?

"QM" stands for Qualified Mortgage — it's the standard set of underwriting rules that most conventional loans follow, largely governed by Fannie Mae and Freddie Mac guidelines. These guidelines rely heavily on W-2 income, tax returns, and traditional employment documentation.

 

Non-QM loans operate outside those guidelines. They're still fully legal, still held to responsible lending standards, but they use alternative methods to verify that a borrower can repay the loan. They're not "subprime" — that's an important distinction. These are well-underwritten loans for creditworthy borrowers who just don't fit the traditional mold.

 

Who Are These Loans For?

The self-employed buyer is the classic candidate — especially those who, quite smartly, write off a significant portion of their income for tax purposes. Their adjusted gross income on paper might look modest even if their business is thriving. Non-QM programs can use bank statements (typically 12–24 months) to reflect actual cash flow instead of what's on the tax return.

 

But self-employed isn't the only use case. Non-QM can also help with:

 

— Investors using rental income or DSCR (Debt Service Coverage Ratio) qualification rather than personal income

—  Borrowers with significant assets who qualify based on their liquid assets

 

— Borrowers with recent credit events (bankruptcy, foreclosure) who've re-established strong financial habits

 

— Foreign nationals or borrowers without traditional U.S. credit history

 

— High-net-worth buyers with significant assets but low reported income

 

What Does This Mean for You as a Realtor?

It means fewer deals falling apart at the pre-approval stage — and more clients you can actually take to closing. The self-employed buyer who got turned down somewhere else isn't necessarily unqualifiable. They may just need a lender who knows how to structure the loan correctly.

 

It also means you can be the agent who says, "I know the right person to call." That kind of referral confidence builds trust with your clients and separates you from agents who just hand out a generic lender list.

 

A Few Things to Know

Non-QM loans typically carry slightly higher rates than conventional loans — that's the tradeoff for the flexibility. But for many buyers, the difference is well worth it to get into a home now, especially if they can refinance into a conventional product later once their documented income picture improves.

 

The key is identifying these buyers early. The sooner we can get them in front of me for a conversation, the more options we have to work with.

 

Have a self-employed client who's been told "no" before? Let's talk before you let that deal slip away. I'd love to take a look and see what we can do.

Is Now a Good Time to Buy a Home?

I get this question more than almost any other. And honestly? I love it — because it tells me that people are thinking seriously about one of the biggest financial decisions of their lives. So let me give you a real answer, not just a cheerleader's answer.

 

The truth is, "is now a good time to buy?" is the wrong question. The better question is: "Is now a good time for me to buy?" And the answer to that depends on a few things that have nothing to do with what the news is saying about interest rates or housing inventory.

 

Let's Talk About Rates

Yes, rates are higher than they were a few years ago. There's no sugarcoating that. But here's what I want you to consider: rates move. What doesn't move — or at least doesn't move predictably — is home prices in a supply-constrained market. If you wait for rates to drop to 4% before buying, you may find that the home you're eyeing today has gone up $50,000 or $100,000 in the meantime. And you'll be competing with every other buyer who was also waiting.

 

There's a phrase many lenders use: "Date the rate, marry the house." When rates drop — and historically they do cycle back down — you can refinance. You can't refinance the purchase price.

 

The Case for Buying Now

If you have stable income, down payment funds, and a home you genuinely plan to stay in for at least 3–5 years, buying now may make a lot of sense. Here's why:

 

1. You start building equity immediately. Every mortgage payment is a forced savings plan — part of it is paying down the principal on an appreciating asset. Rent, no matter how reasonable, does none of that for you.

 

2. You lock in today's price. In many markets, inventory is still limited and prices are holding firm or even climbing. Waiting doesn't automatically mean saving money.

 

3. You get the life you want. Maybe it's the school district. Maybe it's the yard. Maybe it's just the stability of knowing no landlord can raise your rent or sell the property from under you. That has real value.

 

The Case for Waiting

I'll be honest — sometimes waiting is the right call. If your credit needs work, your savings aren't quite there, or your job situation is uncertain, it makes sense to take a few more months and get positioned better. Buying before you're ready is just as risky as waiting too long.

 

The good news is, getting ready doesn't have to take years. With a little planning, many of my clients are surprised at how quickly they can get into a strong position to buy.

 

So, What's the Answer?

There isn't a one-size-fits-all answer — and anyone who tells you otherwise probably isn't asking the right questions. What I can tell you is that a 30-minute conversation can give you a really clear picture of where you stand, what you'd qualify for, and what your actual monthly payment would look like. No pressure, no obligation. Just a real conversation between people who want to help you make the smartest decision for your situation.

 

Ready to find out if now is the right time for you? Let's talk. Reach out anytime — I'm happy to walk through the numbers together.

Is 2026 the Year To Buy Or Refi? Let’s talk!

We are seeing new opportunities opening for buyers, homeowners, and investors. I want to share a quick update on where mortgage rates may be headed, highlight a powerful loan strategy many people don’t realize is available, and showcase a recent client success story that proves creative financing still gets deals done.

Mortgage Rates: Where Are They Going?

Mortgage rates are showing signs of stabilization, with possible room to improve as inflation cools and economic conditions shift. Many experts believe 2026 could present meaningful opportunities for:

• Buyers waiting for improved affordability
• Homeowners considering refinancing
• Investors watching for better cash-flow opportunities

If you’ve been waiting on the sidelines, this may be the year to start planning your move.

Loan Product Spotlight: Reverse Mortgage for Purchase

Most people think of reverse mortgages only as a refinance option — but Reverse Mortgages for Purchase can be a powerful strategy for buyers age 62+.

This program can allow eligible buyers to:

• Purchase a home with no monthly mortgage payment
• No income qualification with a large down payment
• Improve monthly cash flow in retirement
• Buy closer to family or downsize with greater financial freedom

It’s an underutilized tool that can be a game-changer for retirees and their families.

⭐ Client Spotlight: No-Ratio Investor Loan Success (Texas)

Did you know we can finance “business purpose” loans anywhere in the US?  We recently closed a single-family rental property in Texas using a No-Ratio Investor Loan — a program designed for investors that does not require traditional income qualification.

Instead, approval was based on:

• Property cash flow potential
• Asset strength

This allowed the client to secure the loan without jumping through traditional underwriting hoops.

It’s a great reminder that there are still creative lending solutions available — if you know where to look.

How I Can Help This Month

If you or someone you know is thinking about:

• Buying or refinancing
• Investing in rental property
• Exploring retirement-friendly mortgage strategies
• Or simply wants a custom game plan for 2026

I’m here to help. Every scenario is different — and the right strategy can make all the difference.

Let’s make smart moves this year.

Warm regards,
Karen Card

Kick off 2026 - Outside-the-Box Loans for Today’s Market

2026 has started off with a bang! The year-end brought us the lowest interest rates we saw all year, and many are optimistic that this trend could continue. We’re heading into the new year encouraged by improving affordability and the potential for increased sales activity.

Home values are still expected to rise, but at a more moderate pace—likely closer to 2% annually, depending on location. That kind of steady appreciation is healthier for the market and creates opportunities for both buyers and sellers.

RATES

Mortgage rates are currently hovering around 6%. As always, some scenarios command lower rates while others are higher, depending on credit profile, loan structure, and property type. Most industry experts agree that rates are not likely to move meaningfully lower in the near term—although with so many moving parts, anything is possible.

If you’re on the fence waiting for “better” rates, it may be time to get moving. Waiting hasn’t been paying off for many buyers, and opportunities often come from strategy rather than rate alone.

LOAN PROGRAMS – The Rise of Non-QM

We are absolutely seeing the rise of Non-QM loans. Non-QM simply means these loans don’t fall under the government’s “Qualified Mortgage” guidelines used for Fannie Mae, Freddie Mac, and government loans (VA and FHA).

Some of the most common Non-QM programs we’re using include:

• Bank Statement loans (business or personal, 12–24 months)
• DSCR loans (Debt Service Coverage Ratio – rental income supports the payment)
• 1099-only income loans
• Investor No-Ratio loans (rental properties only)
• Asset-based loans, either imputing income from assets or using assets to meet Ability-to-Repay requirements

There are many more options as well. Some programs are tailored specifically for self-employed borrowers, while others are available to anyone. And believe it or not, interest rates on these programs are often very comparable to traditional full-documentation loans.

CLIENT SPOTLIGHT – A REAL WIN

My clients entered escrow to purchase a single-family property they planned to use as a second home and short-term rental in a mountain resort area. Unfortunately, their original lender—who had already issued a pre-approval—backed out and declined the loan.

With a very short escrow, the holiday season underway, and storm season approaching in the mountains, timing was critical. We were able to step in, structure a solution, and close the loan in just 21 days from start to finish using a Total Asset loan based solely on the buyer’s assets.

This is a great example of why loan structure and experience matter.

I hear a lot of frustration right now about rates not dropping further. The reality is that today’s rates are very close to the 40+ year historical average. The real challenge—especially here in Southern California—is affordability and home prices, not just interest rates.

We are eternally grateful for your referrals and continued trust. If you—or someone you care about—has questions, I’m always happy to help.