: Arizona

HomePath Loans in Arizona

With the number of REO properties increasing, HomePath financing is becoming more common compared to a year ago.  HomePath financing.  HomePath financing is available for Fannie Mae REO's (Real Estate Owned/ Bank Owned properties) by searching if the property is located on HomePath.com property search tool. 

The more REOs hit the market, the more questions we are being asked about the program.  I hope that this will provide you with some clarity or information that you can use to take advantage of this great program.  However, there are distinctions between the two types: HomePath Mortgage and a HomePath Renovation Mortgage.  The difference being, the HomePath Renovation Mortgage will allow minor fixes to the property. 

Here is a quick example of the HomePath Mortgage:

• Minimum 3% down for primary residence. (5% seems to be the prevalent outcome).
• 10% down investment property
• Borrower can own up to 10 financed properties (but need 25% down if they own more than 4)
  • Check with your local lender to determine if they have overlaying guidelines.  
• NO APPRAISAL NEEDED
• NO MORTGAGE INSURANCE
• High balance (jumbo) and interest only products available
• Seller contributions
  • up to 6-9% on primary residence (the larger the down payment, the larger the allowable contribution)
  • maximum of 2% on investment property
• The HomePath Loan tends to be higher in rate and at times, higher in cost when compated to a standard 30 year fixed conforming loan. 
  • If you want an equivalent rate to the going 30 year fixed, the loan will price with an additional (approx) 1% to 3.50% discount points.  However, these costs are often covered by the seller and there is no mortgage insurance.  In lieu of the discount points, one can just opt for the higher rate in lieu of the discount points.
• Same basic underwriting requirements of a conforming loan, but without the property issues (appliances missing, small wall patchwork, etc..) does not present problems with the financing.

--->>>Click here to learn more about HomePath Loans

Academy Mortgage serving Maricopa County (Chandler, Mesa, Phoenix, Tempe, Gilbert, Glendale, Scottsdale, Queen Creek and the greater Phoenix Metro Area)

USDA Home Loans Are Available

I have had many people contact me in the last couple of months requesting information or inquiring whether or not USDA Home Financing is available.  There have been stories of Loan Originators using stalling tactics to hold back their prospective clients from going to "THE OTHER LENDER" who claims to have available USDA financing. 

Today I am happy to say that USDA Home financing is indeed available, however with Congress yet to commit a new round of appropriation/ funding to the USDA Program, many lenders have decided to add a set of overlays (additional self-prescribed guidelines) that protect the lender against any liability.  Most lenders are manually underwrting these loans, so that means the requirements are a bit more strict. 

USDA Loans are available at Academy Mortgage, however with the following requirements:

1. Loan must have a 1st payment date of October 1st, 2010 (or later).

2. Borrower's first mortgage payment must be collected at closing. Academy will submit payment to investor.

3. Minimum FICO score for product (until further notice): 680 (no exceptions)

4. No Bankruptcies in past 36 months

5. Ratios limited to 29/41 (no exceptions)

 For more information, please contact me at 480.344.3671 or you can visit me at www.tedcanto.com

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

HomePath Financing is Available at Academy Mortgage, Arizona

If you are thinking about buying a home and FHA is not an attractive or viable option or better yet, the property does not meet FHA's stringent requirements, you might want to think about using HomePath Financing by Fannie Mae.   For a while many lenders and brokers remained at a distance from this program due to very few investors actually approving this program.  However, Academy Mortgage is now one of those lenders. We are well known for our efficiency and detailed customer service thus making the process as painless as possible.

Here is a quick synopsis of the HomePath Mortgage:

• Minimum 3% down for primary residence, 10% down investment property
• Borrower can own up to 10 financed properties (but need 25% down if they own more than 4)
• NO APPRAISAL NEEDED
• NO MORTGAGE INSURANCE
• High balance (jumbo) and interest only products available
• Seller contributions can be 6-9% on primary residence (the larger the down payment, the larger the allowable contribution), only 2% on investment property
• This loan does price with a higher rate than your average 30 year fixed conforming loan.  If you want an equivalent rate to the going 30 year fixed, this loan would price with an additional approx 1% to 3.75% discount points.  Keep in mind, much of this can be covered by the seller and there is no mortgage insurance.  Of course one can just opt for the higher rate in lieu of the discount points.
• Same basic underwriting requirements of a conforming loan, but without the property issues (appliances missing - no problem)

HomePath Renovation Loan

This will allow for light renovations to the property that can be included into the loan.  Information about this specific product is scarce.  In general, renovation and construction type of products work like this:

• An appraisal is done "subject to" the completion of the repairs.  The value will typically be the appraised value or the cost of the house plus renovations, whichever is lower.   The down payment is based on this value (hence, most of the renovation work gets financed into the loan).
• The loan closes and the repairs are completed by a licensed contractor within a specified amount of time
•  There is more involved with these types of loans, such as: bids, inspections, draw schedules, etc. 
• The interest rate is typically higher than your general conforming 30 year fixed

With the streamlined process, we at Academy Mortgage make it easier with our Ten Day Close Guarantee, call us and ask for more details.

www.tedcanto.com

www.academymortgage.com/tedcanto

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

FHA Changes on April 5th, 2010: 3% Seller Contribution Maximum

And if you think things could get any tougher for an FHA borrower!

In an effort to tighten up its latest embarassment, (FHA's balance sheet and dwindling capital reserves), the Federal Housing Authority is rolling out sweeping financial changes that can affect you or your customers. FHA borrowers will need to look better on paper and be better credit risks moving forward in 2010.

To boot, Mortgage insurance premiums are rising from 1.75% to 2.25%.

Click for major FHA Changes on April 5th.

You may or may not have heard, USDA has announced that they anticipate funding for the guarantee program will be exhausted by the end of April.   This announcement is different from the past announcements regarding exhaustion of funds, in that this time new funding is not certain.  USDA will not be issuing conditional commitments with the conditional statement “subject to appropriation of funds”.  Click here for USDA  Update

USDA Rural Development Home Loan Program - Running out of funds

Appraisals:  FHA vs. Conventional

Once upon a time, there was a difference between an FHA appraisal compared to a Conventional appraisal.  For many years, real estate professionals, investors and motivated buyers avoided an FHA loan out of the fear that the appraisal, known for it's vigorous inspection of the condition of the property, would complicate the transaction and therefore opening preference to a contract offer involving a conventional loan program versus accepting an offer with an FHA loan. 

To say it bluntly:  That was then, this is NOW!  In today's lending industry, there is no difference between a conventional appraisal when compared to an FHA appraisal.  It is an industry wide fallacy that has corrupted the minds of real estate professionals and consumers alike.  

The reasons are simple!  Click here for -> Differences on FHA and Conventional Appraisals