Can I buy a home after a short sale in Arizona or California ?

The answer is yes.

What do you do if had to short sale in your home in Arizona or California?   Often times, most lenders won't even bother listening and shut the door right in your face.  It almost feels like there isn't any hope.  The great news is that at Academy Mortgage in Arizona and California, we do care and we do understand that many families are deserving of that second chance. YOUR EYES ARE NOT DECEIVING YOU!  

I did just say that we can finance you after a short sale with a USDA Home Loan.  How you ask?  See the USDA Short Sale Matrix below for more information on how you can buy a home after a short sale in Arizona or buy a home after a short sale in California:

Short Sale with Late Payments:

• Must wait for a minimum of 12 months from the last late payment
• Short Sale Hardship Letter
• GUS (Automated Underwriting) Approval

Short Sale with No Late Payments:

• Must wait until the short sale appears on your credit report and we can finance immediately thereafter (1-2 months after the short sale)
• Short Sale Hardship Letter
• GUS (Automated Underwriting) Approval

Not only can we close most loans in ten days* but we can also finance families that are willing to purchase a home in an Arizona USDA designated area or California USDA designated area after a short sale. 

For more information on how to buy a home after a short sale, contact Ted Canto or call me directly at 480.650.8602.

FHA: Including My House In My Chapter 7 Bankruptcy

 

You filed a Chapter 7 Bankruptcy and included a mortgage/ or property in Arizona and you want to know when you can qualify for an FHA Home Loan in Arizona.. Am I correct?

What?
You may have even been told by a FHA mortgage loan lender in Arizona that after 2 years from the Chapter 7 Bankruptcy Discharge date you can qualify for an FHA Home Loan . Does that sound familiar? For the most part this information, technically, is true.
Like many others who have not been informed of the correct information, you now are being told that you do not qualify (After waiting for 2 years) and are left scratching your head as to what happened. The fact that you have included a mortgage/ or home home in your Chapter 7 Bankruptcy changes the well-known 2 year bankruptcy rule to the more conservative FHA 3 year foreclosure rule.

  Why?
The fact that there was an FHA mortgage and/or property included in the Chapter 7 will revert you to FHA's 3 year foreclosure rule which is obviously the more conservative approach. Lenders will almost always take the most extreme situation and apply the guidelines from that point. The foreclosure simply is considered more serious than the Chapter 7 bankruptcy.

Click here to learn more about Chapter 7 Bankruptcy including a mortgage.
For more information, call Ted Canto at Academy Mortgage in Arizona today and I will guide you and provide with sound advice on how to qualify for an FHA home loan after your Chapter 7 Bankruptcy

FHA Extends The Less Than 90 Day Flip Rule for 2011 in Arizona

FHA 90 Day Flip Rule Is Extend For the Year 2011 in Arizona

HUD has informed us that they are going to extend the FHA 90 day seasoning financing rule for buyers & sellers in the greater Phoenix & Arizona area.  This obviously will be extended to all states in the U.S.

What does this mean for you as a buyer?

The extended FHA 90 Day Flip Rule will allow you to purchase a home that was currently purchased, in the most recent 90 days, by an investor and sold for a profit. Read more about FHA Less Than 90 Day Rule for borrowers.

What does this  mean for an investor/ seller of a property that is seasoned for less than 90 days?

To learn more on what the FHA 90 Day Rule for sellers/ investors, click here for more information.

USDA Home Loan: Disclaiming Your Spouse’s Credit

Non-Purchasing Spouse/ Disclaiming Spouse in Community Property States:

Except for debt obligations specifically excluded by state law, the debts of Non-Purchasing Spouse’s also known as a “Disclaiming Spouse” (Spouse’s that will not go on the loan) must be included in the borrower’s qualifying calculations/ ratios when the home buyer resides in a community property state or the property guaranteed is located in a community property state. The Disclaiming Spouse’s credit history is not considered a reason to deny a loan application. Click here for more information on USDA Disclaiming Spouse's Credit

Your 2011 Business Plan Starts NOW!!  What will the Internet say about you?

Last year, I posted a featured post which earned me some attention as well as some business from REALTORS that were either impressed with my enthusiasm, experience and/or good looks (kidding).

I believe that this year will be more important than the last.  Let's face it, as we head for a new economic and political spectrum (please refrain from making partisan remarks), we will need to be ready for the GOOD, BAD or THE UGLY.   The truth is we, either, are going to sink or swim.  I don't know about you but I am not sinking! 

The truth is 2010 seemed uncertain for many of us and behold!  Here we still are doing what we know best and doing it right!  What I do now is this, if I was able to survive this long and perform in 2010, I can't wait to get into 2011.   

It is of no coincidence that I began last year's post with the title of Your 2010 Business Plan Started Days Ago: How To Market The Extended Homebuyer Tax Credit.    Maybe I saw something that many of us didn't see or it was plain old luck..

The reailty is that at the time:

• We didn't believe that 90% of First-Time Home-buyers were going to search online.
• We didn't believe that out of the 90%, there were approximately 70-75% of them that go with the first REALTOR they find (ONLINE). 
• We weren't convinced that adopting Internet Marketing, Social Media and Blogging was an effective tool to grow our business.
  
• We didn't believe that direct mail, postcards, and flyers were not only dead but that it was not a petrified species found at the bottom of our desks (sometimes useful if you know what you are doing. Sorry, many of you do not).

WE'RE CONVINCED NOW!!   And by any chance you haven't bought into this yet/ still, well read on.. I believe it still drives a message home.  My blog post went exactly like this except the stats are recent (the parentheses are last years numbers):

I posted a blog on USDA: Running Out Of Funds? UPDATE as of 06/01/10 - USDA NOW HAS FUNDS in AR and also on my Facebook.  I had approximately 5 (45) posts on the AR blog and about 47 (26) personal replies and on Facebook I had no posts and about 35 (30) personal replies. I hyperlinked the blogs with www.Bitly.com and had about 41 (33) people opt to follow me on Twitter. If you are left wondering what were the personal replies about, the majority of them were from REALTORS asking me to share with them some marketing ideas and as to when I thought USDA would have funds available.  Get this?  REALTORS asking ME for marketing tips!  Well, I confess!  This is my expertise and I am a marketing wiz of sorts.

                     

What is my point?  Well I started marketing the idea of marketing the USDA: Running Out Of Funds? UPDATE as of 06/01/10 - USDA NOW HAS FUNDS on my blog that resulted a total of 3398 (1300) views, 87 (134) replies and additions to my database of which I was able to generate 15 (7) appointments with REALTORS and it also generated about 12 (4) referral (buyers) clients to my team.  I would say that was a pretty big start.  Don't stop the press yet, I just got started!  To simplify what I have and continue to do, let me make it simple:

1. Blog, blog, blog and then blog some more.
   1. Sign up on as many blog sites as you can and write material worthy of reading and educate the masses (learn more at www.tedcanto.com).
   2. Let people know about anything and everything that is affecting, effecting or going to affect their home buying decisions.
2. Call, call, call and then call some more on your database.
   • This is the foremost important aspect to what we do as sales consultants.  WE TALK!! Do I need to say more
   • Do not call asking if your client wants to buy or sell.  They likely DO NOT!!  Use them to extend the word out to their sphere of influence.  Let them know that this is the best opportunity for them to help their friends and family take advantage of historic lows and INSANE LOW RATES!!
     
   • Ask your clients if they are in need of an attorney, accountant, housing counselor, loan officer - YOU GET THE POINT?
   • Conduct more calls!
3. Get together with your Marketing Rep and/ or Loan Officer
   1. Strategize on a viable marketing plan (FYI: This takes speaking to a real Marketing Rep. (Not someone who is going to just throw postcards at you) or even an LO who understands marketing (not many do). Not an LO who just answers calls and sends preapproval letters.  I am an LO and I can tell you that many just don't get it too well.
   2. Obtain a list of homeowners that purchased in 2003-2007 and still live in their homes.  Believe me, there are more than you think.  Here in Arizona the count was in the 100's of thousands. 
   3. With the help of your Marketing Rep and/or LO, devise a letter worth reading and highly informative. 
   4. Don't try to be elegant on the letter. 
      • Think about this.. When you get a letter solicitation in the mail in 10-12 size font: How Many Seconds Does It Take You To Throw It Away?
      • Now think about this:  When you get a letter solicitation in the mail with big 18-42 size font: How Many "MINUTES" Does It Take You To Throw It Away?
      • BIG, LOUD, and GAUDY WORKS!!
   5. Take out your check book. There will be an investment and make sure it is well worth it. The best things are not free and take TIME, MONEY and DEDICATION.  Sorry! No Freebies here.
   6. Talk to an web designer, call a Social Media company, talk to anyone and everyone who may have value for your business.
      
4. Repeat Step 1 through 3 all over again. 

Fellow associates... this is not rocket science but it does involve some hard work and dedication.  Keep in mind that Real Estate & Mortgage sales and is a lot like holiday shopping where now everyone begins as early as September to buy gifts.  For us, we go selling!  October, November and December is our 2011 New Year.  Our 2011 is already in the works.  If you are not devising and/or implementing a plan of attack, you leave the playing field open to the REALTOR & LO next door.  We must earn our keep and get our hands dirty and consult our clients to the best of our ability.  As you already know, the cream of the crops is rising in the industry and there will be more collateral damage.

As always, the 90/10 Rule Applies here.. What will the Internet say about you?

          Direct lender and licensed in most states across the U.S.

Real Estate Information You Can Trust

 

Ted Canto

Sr. Mortgage Consultant

Direct: 480.650.8602

Visit www.tedcanto.com

                          Ted's Blog:  www.thecantoteam.com

  Home of the 10 Day Close!  www.tendayclose.com

                                          Company site:  www.academymortgage.com/tedcanto

New FHA Upfront MIP on Oct. 4, 2010

FHA Homebuyers will see the new FHA Upfront MIP go down as of October 4, 2010.  

Over the past 2-3 months, Congress has taken action and passed H.R. 5981. This bill gives FHA the authority to adjust it's annual mortgage insurance premium yielding approximately $300 million per month to the FHA Mutual Mortgage Insurance Fund at a time when its reserves are perilously low. As a result, FHA has decided that effectively on October 4, 2010, the UFMIP (Upfront Mortgage Insurance Premium) and the Monthly Insurance Premium will change in order to meet the demands of future FHA Homeowners.  

What does this mean for you and how does it affect your ability to qualify for an FHA Loan? 

To learn More about (click here) FHA MIP Information

NMLS - Loan Officer Look Up Service

Do you know your Loan Officer? I mean do you really know your Loan Officer?  Has he/ she have any pending litigation?  Have committed fraud or have scammed anyone?  Better or worse, are they licensed?

You may or may not know but the Federal requirement to become licensed under the NMLS (The Nationwide Mortgage Licensing System) expired July 1, 2010.  This means that any "Former" Loan Originator who is not licensed, is unable to discuss any financial matters with a potential client nor take a loan application.  They are prohibited from advertising, sending emails, and any form of communication that conveys that they are a Loan Officer.

This now allows professionals and consumers alike the ability to verify license status and check whether or not the Loan Originator has anything that would prevent the consumer from working with that person. 

As a real estate professional, you want to ensure that, if, you are currently working with a Loan Officer, that they be licensed accordingly and are able to complete your clients' loans. More interestingly, up to 60-70% of Loan Officers filed 3 weeks prior to the deadline.  This means a backlog of license applications that will take some governmental departments up to 2-4 months to review, process and approve or reject license applications.  These figures do not represent the number of applicants that have failed the state and national requirements. 

How do you know if the Loan Officer is licensed?  You can go to The NMLS Consumer Access Website located at http://www.nmlsconsumeraccess.org/Home.aspx/MainSearch and learn more.  Do keep in mind that the site is not fully updated and the frequency it is updated may be determined by the backlog of agencies reporting in a timely manner.

Homebuyer Tax Credit Extended

It's OFFICIAL!!  They finally agreed on something and were able to do something right!

The Senate and Congress has finally sent President Obama a plan to give home buyers an extra three months to qualify for up t0 $8,000 in federal tax credits. Buyers who already have executed contracts prior to April 30th will now have until Sept. 30 to complete their purchases. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The House approved the measure on Tuesday. Legislation in the Senate was approved Wednesday night by unanimous consent. Talk about pulling a rabbit out of the hat!

Now breathe and relax and make sure that your loan gets closed by Sept. 30th.  Also check to see if your Loan Officer is licensed and bonded as it will be a requirement as of July 1st.

For more market information go to:  www.tedcanto.com

 

 

USDA Has Funds Available For Home Financing 

Effective 06/1/2010

Effective June 1, 2010, USDA Home Loan financing is available to homebuyers.  However there are some major changes to the program.

First: The USDA Funding Fee is no longer 2.00% (two percent)

Second: The "NEW" USDA Funding Fee is 3.50% (three and a half percent)

Third: The GUS System (Guarantee Underwriting System) is currently turned off.  This means that the homebuyer's qualification will be strictly adhered to the USDA Guidelines.

**With GUS; the homebuyer can potentially qualify for a higher sales price

If you have any questions, please call us at 480.344.3671

Academy Mortgage - Mesa, AZ

Ted Canto, Mortgage Consultant

www.academymortgage.com/tedcanto

www.tedcanto.com

www.tendayclose.com

www.arizonamortgageteam.com

 

 

USDA Running Out of Funds   As of 06/10/2010 - USDA now has funds available.  For more info go to : USDA Has Funds

It is well known that USDA is running out of money in May 2010.  However, one should consider the consequences to the depletion.  USDA has informed us that they are now leaning on $24 million dollars. When considering how much the program has gained in popularity, this amount will not go very far, if at all last until May. 

There is some cause for concern, however knowledge is king and it is not the problem rather the solution we must focus on. 

FHA is raising the Upfront Mortgage Insurance Premium from 1.75% to 2.25%.  Although this doesn't necessarily affect the qualifcation, it is indicative that the industry is gauging their previous losses with a magnifying glass.  On another change, FHA has announced that come early summer, the maximum seller contribution will become 3% compared to the current 6%. This means buyers will need to not only bring in their 3.5% required down payment but also another 1-3% depending on the loan amount and the hard costs associated with it.  This may very well lock out buyers who cannot come up with 5-6%, especially in these hard times. 

Another thing to consider are the homes under contract that are depending on USDA financing. What happens to those sellers and buyers if they fail to secure the necessary USDA financing?  How many of those borrowers have sufficient funds to initiate a Plan B (Placing 3.5% as a down payment)? 

This information is not to be alarmist rather inform both professional and consumer that they will need to weigh their options and form a Plan B in the event these changes and future changes affect the outcome of finalizing the purchase of a home. 

One tip is to seek a lender that is known for closing quickly and try to lock in either an FHA Case Number before April 5th or underwrite the USDA loan quickly and solidify what is known as USDA's Final Commitment.  A company that can offer a Ten Day Close and that has their own underwriting and funding under one roof. 

Ted Canto

Sr. Mortgage Consultant

Academy Mortgage - Mesa, AZ

www.academymortgage.com/tedcanto

www.tedcanto.com

www.tendayclose.com

www.arizonamortgageteam.com