777-Jackpot!!??
September 29th, 2008 categories: Economics, For Buyers, phoenix real estate
Well if I was in Vegas, sitting at a slot machine- I would love to see triple 7’s.
But today, the stock market fell 777 points on the news that the “Bail Out Bill” failed to be approved by the House of Representatives- I was not so happy to see those triple 7’s
So what does this mean for Phoenix home buyers?
As I don’t and never will have a crystal ball- you need to go back and ask yourself the following questions:
- Can you afford to buy a house?
- How safe is your job?
- How long do you plan to live in the house?
- Do you have a “rainy day” fund, in the event you lose your job.
- Can you emotionally deal with the fact that if you purchase a home today, the value may decrease in coming months?
- Is is better for YOU to rent or buy? Would the tax benefits of home ownership benefit you?
As it is said-real estate is local- so do your homework, ask questions and do your homework.
FHA and VA financing is still available for qualified buyers, so yes there are home loans available.
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Very Important Updates-More News on Mortgages and Lending | Phoenix Real Estate
August 20th, 2008 categories: Mortgage and Lending, Real Estate News
I get some really great updates from Amy Swaney, Vice President of Artisan Mortgage and with her permission of I am posting this information I received in an email from her today.
It is good information if you are planning to purchase a home in the the Phoenix area, especially if you are purchasing a second home or if you are depending on any Down Payment Assistance Program such as Ameridream or Nehemiah.
Seller-Funded Down Payment Assistance Coming to an End
In response to recently passed legislation, FHA is eliminating the use of Seller-Funded Down Payment Assistance (DPA) programs. As a result of this change, most lenders have already eliminated or notified their customers of the proposed elimination of the ability to purchase these loans as of the end of August. Loans that have been locked, MUST close by their lock expiration and NO EXTENSIONS will be given. Many investors will not purchase these loans past September 19, 2008 to prepare to for the October 1 deadline. PLEASE talk to your lender for their specific requirements and guidelines regarding ALL your customers who are using or plan to use Down Payment Assistance Funds before October 1
FNMA and FHLMC Tighten Credit Guidelines for Converting Primary Residences to Second Homes or Investment Properties
If…Current principal residence is pending sale but the transaction will not be closed (with title transfer to a new owner) prior to the new transaction Then…Both the current and the proposed mortgage payments must be used to qualify the borrower for the new transaction.
The current principal residence will be converted to a Second Home
Then…• Both the current and the proposed mortgage payments must be used to qualify the borrower for the new transaction; and
• 6 months of PITI for both properties is required to be in reserves. Lender may consider reduced reserves of no less than 2 months for both properties if there is documented equity of at least 30 percent in the existing property (derived from an appraisal, automated valuation model (AVM), or Broker Price Opinion (BPO), minus outstanding liens)
If…The current principal residence will be converted to an Investment Property
Then…Fannie Mae will permit up to 75 percent of the rental income to be used to offset the mortgage payment in qualifying AS LONG AS
1. There is documented equity of at least 30 percent in the existing property (derived from an appraisal, AVM, or BPO, minus outstanding liens).
2. The rental income can be documented with:
- a copy of the fully executed lease agreement; and
- the receipt of a security deposit from the tenant and deposit into the borrower’s account.
If the 30 percent equity in the property cannot be documented
1. Rental income may not be used to offset the mortgage payment
2. Both the current and the proposed mortgage payments must be used to qualify the borrower for the new transaction
3. 6 months of PITI for both properties is required to be in reserves.
FNMA Determines Credit Requirements for Borrowers who have a prior pre-foreclosure sale
A pre-foreclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satisfy the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer. Due to the increased incidence of pre-foreclosure sales, Fannie Mae has established a 2-year elapsed time period for reestablishing credit following completion of the action. No exceptions are permitted to the 2-year time period due to extenuating circumstances.
If you are looking for a tax-deductible vacation- consider attending this great Symposium:
The 4th Annual Real Estate Tax & Law Symposium-October 19th-October 28th; The Fairmont Kea Lani Resort and Spa, Wailea, Maui HI
Email Amy if you would like more information
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Down Payment Assistance for Phoenix Home Buyers.
June 16th, 2008 categories: Mortgage and Lending
It is called the Home in Five program-you can read more about this program over at The AZMortgageGuru.com , a preferred lender for this program. If you interested better act quickly as the money goes fast……….
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