And if you live in Arizona and have bought your house in the last couple of years, chances are that you owe more on the mortgage than your house is currently worth.

Can you still take advantage of lower interest rates and refinance even if you owe more on your mortgage than your house is now worth?

You can with the FHA streamline without appraisal refinance program.

Last fall, HUD changed the guidelines on the FHA streamline no appraisal program and now if you are going to do an FHA streamline without appraisal, you can’t finance your closing costs into the loan. I thought this meant that FHA streamlines were pretty much dead — until interest rates went lower than I thought possible.

These changes now mean that anyone who wants to do a FHA streamline is going to be bringing in money to close your FHA loan under the FHA streamline no appraisal program — unless — interest rates drop significantly.

And interest rates have dropped to historic low levels.

Which means that you can now do a FHA streamline refinance without an appraisal and have it still make sense financially.

So if you are in the situation where you want to lower your interest rate and monthly payment but are worried that you can’t refinance because you owe more on your mortgage than your home is worth – don’t worry.

Just ask your loan officer about the FHA streamline without appraisal program.

More information about the Arizona FHA streamline refinance program

Related posts:

1. FHA Streamline Refinance: Is It Still Possible? The FHA streamline refinance mortgage program is not dead, but...
2. Arizona FHA Loans Arizona FHA Loans Just a few years ago, FHA loans...
3. Popular Reasons People Refinance In Arizona Refinancing your house in Arizona can be scary - but...

Related posts brought to you by Yet Another Related Posts Plugin.

There is more than one person right now who is frustrated with how difficult it can be to get financing for jumbo loans in today’s market.

Some lenders are doing them but have high down payment requirements and/or pristine credit score requirements – and the truth is that many lenders are not even doing jumbo loans at all.

But there is a program that may make sense to look more into if you are in the market for jumbo financing – the FHA jumbo loan program.

It is somewhat new – and it is even possible that it won’t be around very long.  The FHA jumbo loan program is that it was part of the legislation passed which was created by HUD. It is actually at risk of going away at any time.

But while it is available, the FHA jumbo loan program is great for people who are in the market for jumbo financing — the rates are low and depending on where you live in the country, FHA will allow you to finance up to $729,000 with just 3.5% down.

So for all of those houses that only a few years ago were $1m + and are now $500k? They might be a perfect candidate for FHA jumbo loans.

FHA Jumbo Loan Guidelines (The Highlights):

• Up to $729,000 financed. (based on the county loan limits published by HUD)
• 660 FICO score required
• 3.5% down payment
• 30 year fixed rates around 5%

Heck, there are even lenders who can get your FHA jumbo loan closed in ten days.

So if you are one of those people who have been frustrated by the process of getting “regular” jumbo loan financing, you might want to ask your loan officer about the FHA jumbo loan financing options and whether or not it is right for your situation.

Before it is too late and the program goes away!

Related posts:

1. Arizona Jumbo Loans Arizona Jumbo Mortgage Loans Jumbo loans in Arizona are any...
2. Arizona Jumbo Loans: Rates Lowest Since 2003 Refinancing your jumbo loan in Arizona could save you tens...
3. Arizona FHA Loans Arizona FHA Loans Just a few years ago, FHA loans...

Related posts brought to you by Yet Another Related Posts Plugin.

Top Five Benefits of an FHA Mortgage in Phoenix AZ

1. FHA Mortgages Have Low Fixed Rates – In the past, if you needed a mortgage with a low down payment or if you had bad credit, it is likely that you would have obtained a subprime mortgage with a high variable interest rate. But FHA loans offer low, fixed mortgage rates and help you stay in your home.
2. FHA Mortgages Help You Qualify if You Have Had Bad Credit – Truth be told, FHA has no minimum credit score requirement, but most FHA lenders in Phoenix now require that you have a 620 score or higher. Also, you also won’t be automatically disqualified if you have a foreclosure, bankruptcy, or short sale in your past.
3. FHA Mortgages Have Flexible Qualifying Criteria – FHA guidelines offer greater flexibility for evaluating borrowers. For example, FHA has a higher debt-to-income ratio tolerance than conventional mortgages, allow for gift programs, and allow for non-occupant co-signers.
4. Low Down Payment Requirement – FHA currently only requires a 3.5% down payment making it easier to qualify.
5. The Seller of the Home You Are Buying Can Pay Your Closing Costs – FHA currently allows the seller to contribute up to 6% of the purchase price toward closing costs.

FHA loans have been around for over 75 years. However, there are common misconceptions that exist about them. You may have heard that FHA mortgages in Arizona take too long or that they require too much paperwork. This is not true. But, many misconceptions about FHA mortgages in Phoenix still exist.

Applying for an FHA mortgage to buy a house in Phoenix is easy. You’ll save a good deal of time if you have:

1. your social security numbers for everybody applying for the mortgage;
2. a list of the addresses where you have lived for the last 2 years;
3. the name and number of your employer(s) for the past 2 years;
4. copies of your checking and savings account statements for the past 2 months;
5. and your last two recent paycheck stubs detailing your earnings.

We have had the opportunity to help numerous home buyers with their Phoenix AZ FHA mortgage. If you have questions and would like to find out more information, contact us today.

Steve Lines – 480-344-3662

Corbin Olsen – 480-580-1400

Related posts:

1. FHA: Some Facts and Tidbits Now that subprime loans are a faint memory of the...
2. FHA Jumbo Loan in Arizona: A Good Option FHA Jumbo Loan in Arizona can be a good option...
3. Mortgages Everyone knows that there are many different kinds of mortgage...

Related posts brought to you by Yet Another Related Posts Plugin.

Thinking about real estate investing? The FHA flip rules are something that you can’t afford to ignore.

Related posts:

1. Top Five Benefits of FHA Mortgages in Phoenix AZ FHA Mortgages are a great option for people looking to...
2. FHA Jumbo Loan in Arizona: A Good Option FHA Jumbo Loan in Arizona can be a good option...
3. FHA: Some Facts and Tidbits Now that subprime loans are a faint memory of the...

Related posts brought to you by Yet Another Related Posts Plugin.

There is some confusion out there regarding the new guidelines for FHA Streamlines. The new guidelines have been out since November of 2009. We didn’t know how some investors would interpret some of the new guidelines but those concerns are now gone. Some borrowers think they have missed the boat which is not true. Streamlines are still around and interest rates are still at all time lows. The FHA 30 year fixed rate is currently around 5.0%.

There are more changes to the streamline process than listed below but these are the biggest changes that will most likely affect you.

1. Net tangible benefit – FHA wants to see that you at least have a 5% reduction in your mortgage payment be refinancing. For example, if your principal and interest is $1,000 per month your new mortgage payment must be at least $950 or less. Pretty simple.
2. Verification of Income – The new guidelines require that you are “employed and have an income.” This was one of the grey areas that we did not know how it would be interpreted. All we require at Academy Mortgage is that you are employed though a verbal verification of employment. No paystub or other income verification documents are typically required.
3. Maximum Loan Amount – This is probably the biggest change. The new maximum loan amount for a streamline refinance without an appraisal is the current principal balance – UFMIP refund + the new upfront mortgage insurance premium. What this means to the borrower is that they cannot roll any closings or pre-paids/escrows into the loan. Having out of pocket expenses can be tough for some to come up with at closing. Keep in mind, there will not be a mortgage payment due for the month after your closing so this will help offset some of those out of pocket expenses. You will also get a check back from your current lender for your escrow account once they are paid in full. In summary, even though there will be some out of pocket expenses, you can reimburse yourself for those funds.
4. No Appraisal required – This is nothing new but I wanted to reiterate that there are still no appraisals required on FHA streamlines. This is one of the biggest benefits of the streamline loan and they did not take this one away.

If you have an FHA loan and currently have an interest over 5.5% it probably makes sense for you to do a streamline. If you have a $300,000 loan and save 1% off your note rate by refinancing you can save over $60,000 in interest!

Related posts:

1. Arizona FHA Loans Arizona FHA Loans Just a few years ago, FHA loans...
2. Popular Reasons People Refinance In Arizona Refinancing your house in Arizona can be scary - but...
3. FHA Jumbo Loan in Arizona: A Good Option FHA Jumbo Loan in Arizona can be a good option...

Related posts brought to you by Yet Another Related Posts Plugin.

Today I want to hone in on the down payment assistance CDC has to offer. It is called an Individual Development Account. Essentially, eligible homebuyers can receive $15,000 toward the purchase of a home, matching up to $3 for each $1 saved by the participants.

Now…the key with this program, as with any assistance program, is to read the fine print. To know if you should even consider applying, you must know the specific requirements of the program.

So, with that said…here are the guidelines:

•You must be a first-time homebuyer! (Remember, this means that you haven’t owned a home in the past 3 years)

•You must earn 80% or less of the HUD Area Median Income (1 person family: $36,900; 2 person: $42,150; 3 person: $47,450; 4 person: $52,700; 5 person:$56,900; 6 person:$61,150)

•As a part of the program, you must complete an approved homebuyer education and counseling program.

•Funds may only be used toward down payment or closing costs on a primary residence. (So…this means funds can’t be used for remodeling or for an investment home.)

•Your debt-to-income ratio cannot go above 43%. (This means that the total payment on the mortgage…principal, interest, taxes and insurance and home owners association fees…cannot exceed 43% of your total income)

•The funds are not a grant, but a forgivable loan. You must live in the home for 5 years. If you live in the home less than 5 years, the repayment will be prorated.

•The assistance money can be used for any property in Maricopa County.

•Your mortgage must come from a participating financial institution.

•There is a $435 administration fee, a $35 enrollment fee and a $400 closing fee.

•In order to receive matched funds, you must open an IDA savings account with a participating bank, make regular monthly deposits of $20 for a minimum of 10 months and you must open escrow on a home purchase within five years of enrolling in this program.

Since its inception, the IDA Program has provided more than $1.8 million in IDA match funds to first time homebuyers. There is, however, one issue! This money runs out fast! According to a Newtown representative I spoke with on the phone recently, in 2009 the money didn’t actually get released until about April and completely dried up by August. If you want these funds, you have to be on the ball! This means you apply for the program now , begin saving now , get pre-qualified now, find a realtor asap and be ready to put in offers come next April when the money is hot off the press. This program is for the diligent, for the planner, for the go-getter!! And if that is what you are, I have no doubt that you will be the recipient of these funds in 2010.

Related posts:

1. Save Money on Your Mortgage in 2010 Save money on your mortgage in 2010 using these tips....
2. Zero Down Payment Mortgage Available In an era of the credit crunch a common belief...
3. 2010: Hottest Real Estate Markets Top 10 real estate markets for 2010. Forget the coasts...

Related posts brought to you by Yet Another Related Posts Plugin.

Now that subprime loans are a faint memory of the past, we often look to the FHA loans to fill in the void. Not that we miss those ugly sub primes all that much. But alas, FHA does provide a hearty loan for those who may have had a shaky credit past.  So, here are a few fun facts and figures on the famous FHA loan.

1)  You do not have to have perfect credit to qualify for an FHA loan! Yes, this is great news. In fact, even with a bankruptcy or a mortgage late, it is easier for you to qualify for an FHA loan than a conventional loan.

2)  FHA loans have a low 3.5% down payment. This money can come from a family member, an employer or even from a charitable organization as a gift. Most other loan programs do not allow this unless you have a much larger down payment or 5% of your own money invested.

3)  FHA rates are competitive! Believe it or not, because the Federal government insures these loans, they offer comparable rates. Your rate won’t be sky high if you opt for FHA instead of a conventional mortgage. The government makes sure of this!

4)  FHA helps you stay in your home. This may have sounded funny a few years ago. But today this is extremely relevant! The FHA has been in place since 1934. They want to protect the folks who have bought. FHA has various options to help keep you in your home should you run into difficulties and to help you avoid foreclosure in the long-run.

5)  You can buy or refinance various types of new or existing homes on an FHA loan: A one-unit, single family home; a duplex, triplex or four-plex; a condominium unit or even a manufactured home (provided the manufactured unit is on a permanent foundation). Sorry, no houseboats as of yet!

6)  Finally, for qualified buyers FHA mortgages are assumable!  This means a buyer of your home may take over your existing mortgage if they qualify.  This may help you sell a home with an FHA mortgage down the road if interest rates have gone up.

So, there you go. A few little details on the famous FHA loan.  Most likely tidbits you have heard before, but worth remembering for the day you may choose to use an FHA loan.

HUD’s internet site provides plenty of additional information. I also suggest talking to your realtor about their experience with FHA clients.  And, if you want to see if you qualify for the FHA loan, just give Mike or me a call. We can let you know in no time!

photo credit: Kamal H.

Related posts:

1. Arizona FHA Loans Arizona FHA Loans Just a few years ago, FHA loans...
2. Top Five Benefits of FHA Mortgages in Phoenix AZ FHA Mortgages are a great option for people looking to...
3. FHA Jumbo Loan in Arizona: A Good Option FHA Jumbo Loan in Arizona can be a good option...

Related posts brought to you by Yet Another Related Posts Plugin.

Under the 203k you are allowed to purchase or refinance a property and finance the construction costs for home improvements at the same time. The loan amount is based on the projected value of the property with the work completed. The 203k program is excellent for properties that need home repairs to be liveable or for home buyers that want to give a home a makeover.

Many listing agents who represent properties in need of repair have used the 203K program to market these distressed properties. This program allows borrowers that otherwise could not purchase the property to buy it and do the necessary rehabilitation. Some contractors who are familiar with the requirements of the 203k program will put together a proposal for necessary repairs on the property listed for sale. The agent can then market the property similar to a new build. The buyer can pick the paint color, cabinets, flooring, etc.

Many buyers agents use the program to find homes for their clients at bargain prices or to make a potential home work when it needs a little help.

Many lenders have stayed away from this program because on the additional layers of risk involved and some have added additional requirements to those of FHA. From our experience the key to a smooth transaction is to have an experienced, reliable 203k consultant and contractor. Surety companies can be very helpful in this type of transaction. This program will take longer and will be more stressful than a regular FHA loan even with the most competent team. The process can be a nightmare if your team is lacking. However, if you work with the right group of professionals who are experienced then you don’t have to pass up on a REO just because it needs a little bit of love.

Related posts:

1. Arizona FHA Loans Arizona FHA Loans Just a few years ago, FHA loans...
2. USDA Loans Offer 100% Financing USDA Loans offer 100% financing and Academy Mortgage can close...
3. FHA Jumbo Loan in Arizona: A Good Option FHA Jumbo Loan in Arizona can be a good option...

Related posts brought to you by Yet Another Related Posts Plugin.

—————————

FHA loans are some of the most sought-after loans when people are planning to buy a home, more so now because of the fiasco that happened with the sub- prime market. For the uninitiated, a Federal Housing Administration (FHA) loan is one that is administered by the federal government for people who fit in the low income bracket. The FHA does not actually give out the loans; it only insures the loans provided by private lenders.

FHA loans are perfect for those who are buying a home for the first time and don’t have too much money to offer as down payment. It also helps that monthly installments are not too high and that they do not fluctuate beyond one or two percentage points (if you go in for an adjustable rate loan).

The FHA Construction/Rehabilitation 203(k) loan is available if you want to buy an existing home and perform any renovation work on it or add to the existing building. The FHA does not insure loans for building new homes, ones where you want to buy the land and secure finance for the materials, labor and the design. However, if you are planning to build a new nursing facility or a home for the aged and infirm, the FHA 232 loan allows you to borrow money for the construction costs.  You can also take out a loan to buy an existing facility and renovate or improve it.

If you are looking for a way to build a new home with an FHA loan, you could apply for the 203(k), buy an old house, tear it down completely, and then build the house of your dreams. If not, you’re better off choosing a construction loan offered by private lenders, or you could go in for the HomeStyle loan offered through lenders who are approved by Fannie Mae.

By-line:

This article is written by Kat Sanders, who regularly blogs on the topic of construction management degrees at her blog The Fixer-Upper Blog. She welcomes your comments and questions at her email address: katsanders25@gmail.com.

—————————

Note:  Some hyperlinks were added for editorial reasons.

Related posts:

1. FHA: Some Facts and Tidbits Now that subprime loans are a faint memory of the...
2. Top Five Benefits of FHA Mortgages in Phoenix AZ FHA Mortgages are a great option for people looking to...

Related posts brought to you by Yet Another Related Posts Plugin.

Heather Barr over at The Phoenix Agent blog has a great blog post detailing all aspects of this provision. For one thing you can use the $8,000 to cover closing costs, include additional cash down payment and any mortgage interest rate buy-down costs. Notice you can’t use these funds to cover the required 3.5% down payment. Read Heather’s post for additional details.

Here is a portion of the HUD announcement for those interested:

WASHINGTON – Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration’s new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today’s action will help stabilize the nation’s housing market by stimulating home sales across the country.

Related posts:

1. $8000 Tax Credit May be Extended The much coveted, desired and advertised $8,000 first time homebuyer...
2. Last Call for Tax-Credit Buyers!! Time is a runnin’ out! Here is one last call...
3. $8,000 Slipping Away… The $8,000 firs time homebuyer tax credit won’t last forever....

Related posts brought to you by Yet Another Related Posts Plugin.