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Is It Time to Make Your Move? The cost of waiting! Part 1
Available inventory is VANISHING!
Detecting signs of VANISHING Shadow Inventory
Check out this chart! —> Buyer Purchasing Power
The percentage of shadow inventory is down 78% in Arizona!
What is Shadow Inventory: A looming mass of delinquent and foreclosed-upon homes that threatened to destabilize the market.
In April 2014, Corelogic released its most recent figures on Shadow Inventory.
- The national residential shadow inventory declined 23% year over year this past January.
- The inventory has experienced double digit year over year declines for each of the past 16 consecutive months.
- The shadow inventory from Jan 2013- Jan 2014 has decreased an average monthly rate of over 41000 properties, according to CoreLogic.
Why the decline?
- Healthy housing market.
- Prices have been going up at a steady pace, positive home equity, simple increase in home value over the last few years.
- An abundance of short sales or modifications.
- Reducing inventory=less opportunity= higher prices= QUESTION? Why wait?
Is it time to make your move? What are you waiting for?
Apply today! www.fcfs.net
First Class Financial Services
Leslie Nilsen
602.294.9288 http://www.fcfs.net
MB#0902810 / NMLS # 162494
AZ Mortgage Rental Property Home Insurance Tips!
Arizona mortgage rental property home insurance tips:
First, THANK YOU to Loel Weatherly! My favorite American Family Insurance Agent! He has provided me some important pointers when it comes to home insurance for those of us that call ourselves landlords.
From Loel Weatherly, American Family Insurance Agency: “… A couple of points come to mind immediately…
•1) The proper policy form should be obtained once the property is rented out…typically called a “landlords” policy, “rental dwelling protection” policy, or a BOP (Business Owners Policy). The standard homeowner policy is not written or rated to provide coverage other than to the owner/occupant of the property.
•2) As part of these types of policies there is generally coverage provided for “loss of rents” or “loss of income” in the event that the property would be uninhabitable due to a covered loss.
•3) Another crucial part of these types of policy forms is the Liability coverage to protect the property owner….typically a minimum of $300,000 per occurrence and in many cases can be increased to $1 Million in coverage for a slight additional premium charge.
•4) Also, coverage for damage to the structure, walls and flooring as a result of a broken pipe either in the wall/ceiling or floor should be included. ”
Many times clients call me AFTER something has happened to ask how they should handle it. I am new to this landlord gig so I want to make sure to pass on all that I get as I go through the process!
Again, thanks Loel! You can reach Loel at American Family Insurance at 480.926.2766.
Having a dream is good, owning one is better!
Leslie Pelletiere, Owner
First Class Financial Services, proudly mortgage lending since 1999!
602.294.9288(O)
602.294.9830(F)
MB#0902810
NMLS #162494
AZDFI Loan Officer # LO-0911453
AZ Mortgage Question of the Day: Can I use money from my Home Equity Line for a down payment on an investment property purchase?
AZ Mortgage Question of the Day: Can I use money from my Home Equity Line of Cfredit for a down payment on an investment property purchase?
Yes. Yes you can! Couple of things:
1. Along with meeting the other investment property qualifying requirements, you need to be able to qualify WITH the new monthly payment from the home equity line.
2. You will need to show that is where your down payment money came from. This is important. IF you draw, for example, $20500 from your Home Equity Line of Credit, you cannot withhold $500 for yourself when you go to the bank to make the deposit. We will not be able to tie the two numbers together. Deposit exactly what you drew from the line. Then you will need to provide the statement from the line that shows the withdrawl and a statement from your account that shows the deposit. Voila! The numbers tie together and we can now “papertrail” the source of the funds.
3. You will need to provide the NOTE (your re-payment agreement) from when you acquired the Home Equity Line of Credit. This will show the terms of the line.
4. You will want to consider the Home Equity Line of Credit payment amount in your total exposure on the new investment property to ensure that it is still an income producing property.
NOW! Today! Immediately. PRONTO….is the time to consider purchasing investment property real estate. The opportunity is amazing. Property values are low and demand for rentals is extremely high!
Having a dream is good, owning one is better!
Leslie Pelletiere, Owner
First Class Financial Services, proudly mortgage lending since 1999!
602.294.9288(O)
602.294.9830(F)
MB#0902810
NMLS #162494
AZDFI Loan Officer # LO-0911453
Investment properties are HOT but how many can you mortgage?
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Investment properties are HOT right now but how many can you mortgage?
It is important to cover this at application time as many investors assume with good credit and the minimum down payment requirement they can mortgage as many as they would like. This can vary DRAMATICALLY between lenders and needs to be prior approved before the investor starts shopping! Each lender makes a distinction as to what underwriting guidelines they are going to follow. Most lenders have “overlays” over the top of the traditional Fannie Mae/ Freddie Mac guidelines. Many lenders have an “overlay” restricting that to 4 financed properties including any financed primary residence. Many lenders restrict the number the borrower can already have financed with them as well. Freddie Mac has a maximum financed properties of 4 including any financed primary residence. As an agent, be sure you ASK your loan officer what the restriction is for the number of mortgage properties. Many loan officers are not even aware of this restriction and again will only approve the borrower on credit/down payment merit. Having a dream is good, owning one is better! Leslie Pelletiere, Owner First Class Financial Services, proudly mortgage lending since 1999! 602.294.9288(O) 602.294.9830(F) MB#0902810 NMLS #162494 AZDFI Loan Officer # LO-0911453
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