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Posts Tagged ‘arizona’

AZ Mortgage at 100% financing? YES!


 

AZ Mortgage at 100% financing? YES!

You can still have access to 100% financing on specific properties available through the USDA Rural Housing program. There are income and property restrictions so be sure to speak to your loan officer about availability. Through the USDA Rural Housing website, your loan officer can specify the property address of the Arizona property you are interested in and it will advise if the property is eligible. As the name implies, it is typically on RURAL properties but in Arizona that can include areas of Anthem, Maricopa, Buckeye, and outlying areas so don’t dismiss without checking.

There are also income restrictions for the borrowers depending on the size of their family and monthly income. The website also allows your loan officer to run the eligibility here too.

Listing agents… check your property against the website. Your listing may be eligible and it would be a great sales tool to highlight on your listing! Ask your loan officer, they can run them for you!

Having a dream is good, owning on is better!

Leslie Pelletiere, Owner First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O) 602.294.9830(F)

www.fcfs.net

MB#0902810 NMLS #162494

AZDFI Loan Officer # LO-0911453

AZ Mortgage Question of the Day: My wife mortgaged our primary residence only in her name, do I need to count that against me when I qualify?


AZ Mortgage Question of the Day: My wife mortgaged our primary residence only her name, do I need to count that against me when I qualify?
 

Simple answer, YES. Arizona (and many other states- see below) is a community property state so debt is considered “common” between husband and wife regardless of who signed the note.  This is important for several reasons but primarily for asset requirements.  Every loan has a “reserve” requirement.  This means “a number of months of principal/interest/taxes and insurance for EVERY property that you own needs to be available in liquid funds.”

 

IF the wife, in this case, holds the Arizona mortgage note but BOTH parties are on the deed, this is considered community property and is subject to reserve requirements.  We want to make sure that the amount of assets available meet the reserve requirement.

 

Reserves are considered checking, savings, stocks, mutual funds, bonds, and retirement accounts.  Retirement accounts only receive credit for 60% of their balance (due to restrictions on having access to the money).

 

Special rules apply to spousal property and income in the community property states:

  • Arizona
  • California
  • Idaho
  • Louisiana
  • Nevada
  • New Mexico
  • Texas
  • Washington
  • Wisconsin

Feel free to contact me if you have any questions.

 
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)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

AZ Mortgage Question of the Day: Can an investor buy a property from Fannie Mae and then sell it to a new buyer using HomePath financing?


AZ Mortgage Question of the Day: Can an investor buy a property from Fannie Mae and then sell it to a new buyer using HomePath financing?

Sorry. The answer is No.

Fannie Mae properties are offered with special financing called HomePath financing. This allows for a buyer to purchase the home directly from Fannie Mae and take advantage of the perks of the HomePath financing.

In this case the client was purchasing an investment property. On investment properties, HomePath allows for a minimum 10% down payment and NO monthly mortgage insurance requirement!

Most HomePath properties are designated that way due to condition issues. The HomePath financing does not require a property appraisal so any condition issues are not relevant to qualifying.

Fannie Mae also have a special incentive running now offering 3.5% closing costs assistance through 6/30/2011.

You can find out more about HomePath properties at www.homepath.com and about the special incentive at www.homepath.com/incentive/index.html

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner/Broker

First Class Financial Services, proudly mortgage lending since 1999.

www.fcfs.net                          

 mortgagedr@fcfs.net                        

MB#0902810             NMLS#162494

 

5 tips for First Time Home Buyers!


First, Congratulations on wanting to buy your first new home! NOW, is definately the time! This is not only an exciting time but a stressful one as well. Here are some tips to help you through the process:

1. Ask questions. Ask questions of everyone you can find. I mean EVERYONE! Chances are, they asked or experienced the same question at some point in their own lives. No question is a stupid question.

2. The first question to ask is: “Can you give me a referral to a good mortgage loan officer?” Your GOOD loan officer is going to be as valuable to you as your physician. Once you choose one, apply for your new home mortgage:

* How much do you WANT to spend?

* How much do you QUALIFY for? (these could be two radically different numbers)

* How much money will you need for your down payment?

* What, if any, issues will you need to deal with in order to qualify?

* What is the current interest rate and how much tolerance do you have for interest rate movement?

3. Once you have your qualified magic purchase price number, you need a GOOD realtor. Again, ask your sphere for a realtor referral. Interview them like they are applying for a job with you. They are! The will be “working” for you until you find your new home. You need to like them! They need to be clear about your needs/wants, available to take you out looking on your schedule and be someone you want to spend time with.

4. Start shopping! Hit the streets. What do you find? Does your price point accomodate your needs? Stay in contact with your loan officer. Do you need to tweak your pre-qualification in order to make the homes you are seeing work with your budget? What are mortgage interest rates doing?

5. Make an reasonable/realistic offer! It is a buyer’s market! You are in the driver’s seat here but be realistic. Listen to your realtor. Use their advice and make a reasonable offer!

Watch for future blogs to elaborate on each of these items. Again, buying a home can be in the top 5 most stressful things you will do in your lifetime. If you fill your sphere with knowledgeable and helpful professionals you can take a tremendous amount of stress out of the equation.

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner/Broker

Proudly mortgage lending in Arizona since 1999!

First Class Financial Services

602.294.9288                    www.fcfs.net                           mortgagedr@fcfs.net

NMLS#162476 / MB#0902810

“I can’t buy a new house, I understand it is much more difficult to qualify”


That statement is just simply not true!

I can’t tell you the last loan application that I took that a borrower did NOT qualify.  I’m sure there was one but it is definately not the norm. 

I dare you to ask 5 people today, “Could you qualify for a mortgage if you applied today?” If they say “No.” Ask “Why?” I guarantee they will say “I understand it is much more difficult to qualify” but they will not have specifics as to what they consider “more difficult”.  It appears that most are repeating what they hear in the media “Its more difficult to qualify”.  It’s just not true.

Here is what people think… AND the reality in BOLD.

* I need 20% down payment, that could be 10’s of thousands of dollars! ……….. FHA requires only 3.5% and that can be gifted from a blood relative.

* I don’t want an FHA loan but cannot get a conventional loan without 20% down payment……. Mortgage insurance companies are back in the game and allowing borrower and lender paid mortgage insurance up to 95% loan to value.

* My credit score is too low… FHA allows for a minimum of 580 credit score. Conventional loans allow for a minimum of 640 credit score.  The average American citizen has a 660 score. 

* I can’t qualify to afford the payment… Most borrowers are shocked that their monthly mortgage payment is LESS than they are paying in rent. 

* I don’t have enough credit… borrowers need only 4 open active tradelines on their credit report and enough history to meet the minimum credit score requirement.

* I’m on fixed income and cannot qualify for the monthly payment ….. FHA allows for up to a 50% debt to income ratio (this means if you make $2000 a month you can have $1000 go towards total debt)

* I do not have any down payment money… the USDA Rural Housing product allows for a 100% financing on eligible properties on borrowers who meet the income eligibility as well. 

I could go on and on.  You get the point.  Spread the word to your borrowers.  Most people don’t realize how easy it is to qualify and are waiting when they could be shopping! 

Please join my “Squash the Qualifying Rumor” campaign…….Pass it on!

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)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

Thank you to all of you tenacious realtors!


Here are some highlights from the recent member survey from NAR:

(read the full article here  —>) 

 http://rismedia.com/2011-05-18/nar-member-survey-shows-focus-on-training-commitment-to-profession/

These were among the ones that surprised me:

  • The typical NAR member has 12 years of experience; nine out of 10 say they are certain they will remain in the business.

 

  • NAR members in the business for two years or less earned a median of $8,900, while those in the business for 16 years or more earned $47,100. Sixteen percent earned a six-figure income, reflecting the entrepreneurial aspect of REALTOR® businesses.

 

  • Fourteen percent of REALTORS® work fewer than 20 hours per week, 30 percent work 20 to 39 hours per week, 41 percent work 40 to 59 hours and 15 percent work 60 hours per week or more.

 

  •  Half of the respondents use social or professional networking sites and 10 percent have a blog.

So basically the key to a successful realtor is committment, training and putting in the hours… WOW! Who knew?

I am also surprised that only half use social media and only 10% have a blog… something to think about… could that be a niche that you are fully missing out on?

Again, THANK YOU TO ALL OF YOU TENACIOUS REALTORS.  I love you!

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)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

To Condo or not to Condo?


Ugh. Condo’s.  I don’t want to be a big downer on condo’s but… here it comes.  Specifically to Arizona, condo’s are increasingly more and more difficult to lend on.  There are several reasons for this but primarily the lenders make a distinction between whether the condominium project is warrantable or non-warrantable.  Simply put, lendable or not?  

Conventionally the project needs to meet a miriad of restrictions:  (this is the short list.. there are more)

* 70% of the units need to be owned and occupied as primary residences.

* The HOA cannot be in any litigation with the homeowners.

* One owner cannot own more than 10% of the units.

* The HOA cannot have more than 15% delinquency.

* The HOA has to be turned over to the owners.

* In a new construction project, 90% of the units have to be delivered.

* The HOA has to carry a minimum of a $1million dollar liability home owners insurance policy and carry an employee dishonesty rider (Many other insurance requirements but this tends to be a big one)

For FHA, the project needs to have received its NEW FHA approval (all FHA approved condo projects needed to get reapproved in 2010)

Given the above restrictions, you can see why I would be a big downer on condos.  With the amount of default we have seen in the state of Arizona, most projects have a higher than 30% investor occupancy.  Many investors have gone in and bought several units and made the projects ineligible OR the current owner is in default/ delinquent on HOA dues. 

I understand the draw to the condo projects as there are many that are priced too low to pass up.  Ask the right questions initially in order to determine if it is eligible for lending.  On a conventional loan, the HOA MUST complete a “Condo Questionaire”.  Most HOA’s do not hand complete them any longer.  They are typically done through HOA Questionaire Services for a fee.

My last question? How difficult will it be to re-sell given the difficulty today?

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)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

YAY! Lender LOWERS FHA credit score requirement to 580!


I ask you… IF you can get a mortgage with:

1. A 580 credit score

2. Your grandmother can gift you the 3.5% down payment

3. The seller can pay ALL your closing costs

4. (You can have ZERO contribution of your own money)

5. You do not need reserves to qualify.

6. You can get an interest rate below 5%

7. You have more inventory to choose from than eggs at an easter egg hunt.

8. You can have a new mortgage payment less than you are paying in rent.

9. You LOVE your realtor.

10. You LOVE your loan officer.

11. You HATE your roommate.

What is everyone waiting for?

Spread the word. Life is good. We need to take advantage of it!

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner/Broker

First Class Financial Services, proudly mortgage lending since 1999.

602.294.9288(p)               mortgagedr@fcfs.net                www.fcfs.net

MB#0902810/ NMLS#162494

How does the new Loan Officer Compensation affect your buyer/seller?


First, did you know there WAS new loan officer compensation?

There is.  Basically (although unbelievably convulated and confusing) the new legislation says that borrowers have 2 options.  EITHER to pay their loan origination fee OR to accept a higher interest rate and have the lender paid the loan origination fee.  Seems simple, right?

Here’s where YOU, as their realtor, come in.  Does the loan officer that your buyer is obtaining their loan from, even have TWO options? Many lenders are adopting ONLY the lender compensation and ONLY offering the higher rate option to your client.  IF you buyer is unaware that their are two options available to them, they may not know to ask or search for another loan officer (me). 

Keep in mind, many times a lender paid, higher rate option works best.  My job is to ensure that BOTH are presented to the borrower so, through analysis, we can determine which is best. 

Also, on the lender paid option, most lenders have adopted a MINIMUM amount in order to ensure the loan officer receives adequate compensation regardless of the loan amount.  HOWEVER, the lender may have to increase the interest rate, considerably, in order to pay the minimum compensation to the loan officer, again dramatically impacting the quality of the loan for the borrower.

On another note, the new Loan Officer Compensation does NOT allow for ANYONE to pay for ANY additional costs associated with the loan OTHER than the borrower.   This typically comes up under lock extensions.  IF a loan needs to be extended at a cost, the buyer is the ONLY one that can pay that expense.  NOT the loan officer.  NOT the realtor. Regardless of WHY the lock needs to be extended AND given that this is a new expense, the buyer will need to re-disclosed this expense (with mandatory disclosure times) which could affect your close of escrow date.

Just be aware. Ask questions. If your business is referral based as mine is, it is critical we are advisors for our clients not just transactional.

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)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

 

Kids and Money… The 3 C’s


Critical. Control. Credit.  Critical is #1. Control is 1.1. Credit is #1.2.  (All close in line is what I am trying to say)  

I have talked to my son about all of these since he was a toddler.  Little did he know when we were talking about how inappropriate it was for him to be throwing a fit while begging for candy at the grocery store, that we were really talking about his credit report.   “You cannot get future great stuff without doing the right thing right now” 

Critically think first, practice some control and know that credit is like breathing.   Re-read that last sentence.  If we all jumped out of bed, said “Goodmorning Day” and adopted that as our new mantra… where would we be? 

So many clients come to me with the dream of home ownership only for me to tell them that their credit score it too low to qualify.  They have worked their butts off, they have spent years saving the down payment money, they have changed their lifestyle to handle the new dream mortgage payment but skid…… no dream home for you.  Their credit score is too low because last December, when they bought a new big screen TV instead of making the credit card payment,  they forgot… “You cannot get future great stuff without doing the right thing right now”  I have to also remind them that their credit score plummets and is like climbing Mount Everest to get the score back up again.   THAT conversation is why I write this blog.  Although titled “Kids and Money”, sometimes my 44 year old clients need to be reminded of the lessons they should have learned with they were 4.

Critical. Control. Credit.  Start with YOUR kids when they are 4. 

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services          www.fcfs.net         mortgagedr@fcfs.net
602.294.9288 (p)

MB#0902810 / NMLS#162476