Loans can be underwritten by an approved lender which includes most of the major banks in the country. FHA has the some high loan limits as Freddie Mac and Fannie Mae (which have been extended to the end of 2010). You can buy a home with a 3.5 percent down payment as compared to at least 10 percent down for a Freddie Mac or Fannie Mae home. You can get your loan scored for approval through a variety of underwriting engines including Fannie Mae's Desktop Underwriter and Freddie Mac's Loan Prospector.
Linda Shank is a Real Estate broker in the Phoenix Southeast Valley Gold Canyon area. She can be contacted at www.ISellAZsunshine.com
Showing posts with label Arizona real estate. Show all posts
Showing posts with label Arizona real estate. Show all posts
Monday, January 25, 2010
Monday, October 5, 2009
NEW Community-Owned or Privately Maintained Streets FNMA Requirements
In our ever-tightening environment appraisers are doing their research more carefully and lenders are finding that many streets thought to be publicly maintained are actually private roads. This triggers an underwriting requirement to provide the recorded road maintenance agreement---which often does not exist.
If the property is not situated on a publicly dedicated and maintained street, then it must be situated on a street that is community owned and maintained or privately owned and maintained. There must be adequate vehicular access and there must be an adequate and legally enforceable agreement for vehicular access and maintenance.
Community-Owned or Privately Maintained Streets
If the property is located on a community-owned or privately-owned and maintained street, an adequate, legally enforceable agreement or covenant for maintenance of the street is required. The agreement or covenant should include the following provisions and be recorded in the land records of the appropriate jurisdiction:
| • | responsibility for payment of repairs, including each party’s representative share, |
| • | default remedies in the event a party to the agreement or covenant fails to comply with his or her obligations, and |
| • | The effective term of the agreement or covenant, which in most cases should be perpetual and binding on any future owners. |
Note: If the property is located within a state that has statutory provisions that define the responsibilities of property owners for the maintenance and repair of a private street, no separate agreement or covenant is required.
If the property is not located in a state that imposes statutory requirements for maintenance, and either there is no agreement or covenant for maintenance of the street, or an agreement or covenant exists but does not meet the requirements listed above, the lender must indemnify Fannie Mae for any losses or expenses it may incur due to the physical condition of the street or in order to establish and/or retain access thereto.
HOUSING AFFORDABILITY CONTINUES TO CLIMB
Price declines and low interest rates continue to motivate buyers to enter the most affordable housing market in 28 years. But, at the same time, only 1 in 10 of today's homeowners say they have delayed selling due to those same market conditions. In the past year, the National Association of Realtor's Housing Affordability Index has increased 29% overall and 19% for first-time home buyers---the highest levels during the Index's 28 year history.
The survey also found that most Americans aren't aware of how affordable homes are becoming in today's fast-changing housing market. More than 3/4's of consumers think a median-income family can afford less than half of the homes for sale in their area. In reality, however, a family earning a median income of $53,182 can afford to buy nearly 75% of the current homes for sale. For 14.6 percent of first-time home buyers, the government's $8,000 tax credit provides the impetus to shop for a home this year.
Courtesy of Sherri Buttler, Sun American Mortgage Company sherri.buttler@SunAmerican.com
The survey also found that most Americans aren't aware of how affordable homes are becoming in today's fast-changing housing market. More than 3/4's of consumers think a median-income family can afford less than half of the homes for sale in their area. In reality, however, a family earning a median income of $53,182 can afford to buy nearly 75% of the current homes for sale. For 14.6 percent of first-time home buyers, the government's $8,000 tax credit provides the impetus to shop for a home this year.
Courtesy of Sherri Buttler, Sun American Mortgage Company sherri.buttler@SunAmerican.com
Wednesday, September 30, 2009
DON'T BUY ON THE REBOUND
It happens to thousands of homeowners each year. They find their dream home but are outbid by another buyer. Out of frustration they buy the next house they see. BAD IDEA!!!
Sure, it's disappointing to lose the "perfect" house. But rushing to find a replacement can bring an even greater regret. The fact is that most home buyers face some kind of a setback during their home search...albeit it pricing or financing or timing. The key is to approach each step in the home buying process as part of a valuable learning experience.
Finally, buying a home is not the ultimate goal. Buying the right home is the goal. Compromising with an inadequate choice is a sure path to Buyer's remorse. I found out a long time ago that there will be another house coming on the market soon very often better than the first one you thought was the "perfect" house.
Courtesy of Sherri Buttler, Sun American Morgage Company sherri.buttler@SunAmerican.com
Sure, it's disappointing to lose the "perfect" house. But rushing to find a replacement can bring an even greater regret. The fact is that most home buyers face some kind of a setback during their home search...albeit it pricing or financing or timing. The key is to approach each step in the home buying process as part of a valuable learning experience.
Finally, buying a home is not the ultimate goal. Buying the right home is the goal. Compromising with an inadequate choice is a sure path to Buyer's remorse. I found out a long time ago that there will be another house coming on the market soon very often better than the first one you thought was the "perfect" house.
Courtesy of Sherri Buttler, Sun American Morgage Company sherri.buttler@SunAmerican.com
MORTGAGE IS DENIED? HERE'S WHAT TO DO
Talk about raining on your parade! You find your home, make an offer & then learn that your loan application as been turned down. What to do now?
You may be able to turn a "NO" into a "YES" by taking the right steps:
Low appraisal-Try negotiating with the Seller or consider making a larger down payment should you have the money.
Not enough up front Cash-Lender determines that you don't have enough money to cover the downpayment + closing costs. Ask the Seller to assume some of the closing costs or consider a non-repayable gift of funds from a relative. Your lender will instruct you how to document this gift.
Insufficient Income-Due to governments "Making Homes Affordable" program, lenders are using a 31/38 rule when calculating allowable loan limits. Monthly PITI (principal, interest, taxes & insurance) should not be more than 31% of your gross monthly income. Your total debt (car loans, credit cards etc.) plus the PITI should not exceed 38% of your gross monthly income. If your credit record is good & you've been carrying an equivalent housing payment, try to convince the lender to ease this guideline. If you or your spouse are expecting a salary increase, tell the lender who can then verify the forthcoming income increase.
Unsatisfactory credit (FICO) score--Lenders are looking for defaults, bankruptcies as well as late or missed monthly payments. The lender needs to know the full picture if these issues are due to an illness, job layoff, marital problems or other short-term situations. If you've regained financial stability for at least a year, the lender may reconsider. If you have an up-and-down credit history, the only solution is to reestablish prompt payment practices. There are also a few good lenders that will assist you in "cleaning up" your credit report and therefore increasing your FICO score. Please contact me and I can refer you to these lenders which do not charge for this service...they just want to handle your loan when it comes time to buy.
You may be able to turn a "NO" into a "YES" by taking the right steps:
Low appraisal-Try negotiating with the Seller or consider making a larger down payment should you have the money.
Not enough up front Cash-Lender determines that you don't have enough money to cover the downpayment + closing costs. Ask the Seller to assume some of the closing costs or consider a non-repayable gift of funds from a relative. Your lender will instruct you how to document this gift.
Insufficient Income-Due to governments "Making Homes Affordable" program, lenders are using a 31/38 rule when calculating allowable loan limits. Monthly PITI (principal, interest, taxes & insurance) should not be more than 31% of your gross monthly income. Your total debt (car loans, credit cards etc.) plus the PITI should not exceed 38% of your gross monthly income. If your credit record is good & you've been carrying an equivalent housing payment, try to convince the lender to ease this guideline. If you or your spouse are expecting a salary increase, tell the lender who can then verify the forthcoming income increase.
Unsatisfactory credit (FICO) score--Lenders are looking for defaults, bankruptcies as well as late or missed monthly payments. The lender needs to know the full picture if these issues are due to an illness, job layoff, marital problems or other short-term situations. If you've regained financial stability for at least a year, the lender may reconsider. If you have an up-and-down credit history, the only solution is to reestablish prompt payment practices. There are also a few good lenders that will assist you in "cleaning up" your credit report and therefore increasing your FICO score. Please contact me and I can refer you to these lenders which do not charge for this service...they just want to handle your loan when it comes time to buy.
Tuesday, September 22, 2009
FIRST TIME HOMEBUYER CREDIT ENDS DECEMBER 1, 2009
To qualify for this credit, the closing date for the home must take place after December 31, 2008 and before December 1, 2009. If a taxpayer is building a home they must occupy the home between those dates. The credit amoung is the lesser of 10% of the purchase price of the home or $8000. The home must be occupied by the taxpayer for 36 months. In addition, the taxpayer must not have owned a home in the United States for three years prior to taking the credit. Selling or converting a home to rental property before the 36-month perior may subject the taxpayer to repayment of the credit. The credit is not available for vacation homes or rental property. In addition, this credit also has a phase-out range based on income. You can find details on the IRS website http://www.irs.gov/
Thursday, September 17, 2009
TIPS FOR FORTHCOMING 2010 CENSUS - PROCEED WITH CAUTION
There will be a mass mailing of US Census forms to fill out in 2010. Be CAUTIOUS of what information you give to any Census worker---NO Social Security Number, NO Banking Information or addresses of rentals. (tax returns reflect that information.) and NO SALARY INFO. With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but prudent, so not to become a victim of fraud or identity theft.
The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually more than 140,000 Census workers will count every person in the US and will gather information about every person living at each address, including name, age, gender, race and other relevant data.
The big question is - How do you tell the difference between a U.S. Census worker and a con artist? The BBB offers the following advice: If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. And NEVER invite anyone you don't know into your home.
Currently, Census workers are only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the
U.S. Census. While the Census Bureau might ask for basic financial information, such as a salary range, it will not ask for Social Security, bank account, or credit card numbers nor will employee solicit donations.
Finally, Census workers may contact you by telephone, mail, or in person at home. However, they will NOT contact you by Email, so be on the lookout for Email scams impersonating the Census. Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.
FOR MORE INFORMATION OR ADVICE VISIT http://www.bbb.org/
The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually more than 140,000 Census workers will count every person in the US and will gather information about every person living at each address, including name, age, gender, race and other relevant data.
The big question is - How do you tell the difference between a U.S. Census worker and a con artist? The BBB offers the following advice: If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. And NEVER invite anyone you don't know into your home.
Currently, Census workers are only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the
U.S. Census. While the Census Bureau might ask for basic financial information, such as a salary range, it will not ask for Social Security, bank account, or credit card numbers nor will employee solicit donations.
Finally, Census workers may contact you by telephone, mail, or in person at home. However, they will NOT contact you by Email, so be on the lookout for Email scams impersonating the Census. Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.
FOR MORE INFORMATION OR ADVICE VISIT http://www.bbb.org/
Wednesday, September 16, 2009
REAL ESTATE MOVES-TOP MOST FORGOTTEN ITEMS
When you are running around on moving day, here are some items to remember:
A. Copies of family medical records, vet records and prescriptions to transfer to a destination pharmacy. Also your child's permanent school record and shot records.
B. Anything that you have placed in a hidden spot....like jewelery, wills or other valuables.
C. Check with the dry cleaners to make sure you haven't forgotten to pick up your favorite piece of clothing.
D. Keep your new address handy....you may be so stressed that you can actually forget it.
E. Leave out cleaning supplies for a final cleaning. Many of these items mover's won't transport anyway.
F. Don't pack your garage door openers and appliance instruction manuals. Put them in the cabinet over the stove with a sign for the movers "Don't Pack" on the doors. Spare house keys, mailbox keys and pool keys should be placed there too.
G. Don't forget your pets. Make arrangements for their transport....just don't leave them with the house....like so many people are doing these days.
H. Open a destination bank account about a month before your move so that you will have immediate access to your funds and local bank checks. This also gives the Title company an account for the transfer of closing funds from the sale of your home.
I. Collect all the spare keys (from neighbors or other outside hiding places) and leave them in a predetermined spot for the new owners.
A. Copies of family medical records, vet records and prescriptions to transfer to a destination pharmacy. Also your child's permanent school record and shot records.
B. Anything that you have placed in a hidden spot....like jewelery, wills or other valuables.
C. Check with the dry cleaners to make sure you haven't forgotten to pick up your favorite piece of clothing.
D. Keep your new address handy....you may be so stressed that you can actually forget it.
E. Leave out cleaning supplies for a final cleaning. Many of these items mover's won't transport anyway.
F. Don't pack your garage door openers and appliance instruction manuals. Put them in the cabinet over the stove with a sign for the movers "Don't Pack" on the doors. Spare house keys, mailbox keys and pool keys should be placed there too.
G. Don't forget your pets. Make arrangements for their transport....just don't leave them with the house....like so many people are doing these days.
H. Open a destination bank account about a month before your move so that you will have immediate access to your funds and local bank checks. This also gives the Title company an account for the transfer of closing funds from the sale of your home.
I. Collect all the spare keys (from neighbors or other outside hiding places) and leave them in a predetermined spot for the new owners.
Monday, September 14, 2009
DON'T MAKE MAJOR CREDIT PURCHASES DURING LOAN QUALIFICATION
Home buyers---don't go on a spending spree using credit if you are qualifying to purchase a home. Your loan pre-approval is subject to a final evaluation of your credit report just a fewdays prior to closing. Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility ie. $300 car payment could mean that you qualify for $30,000 less in a mortgage. Even if you have sizable savings, don't make any large purchases until after closing. The last thing you want to happen is to have your loan declined and lose your new home.
SHORT SALES DEFINED & WHAT INFO TO PROVIDE LENDER & REALTOR
Here's my definition in a nutshell: A short sale is nothing more than negotiating with loan holders a payoff for less than what they are owed. Otherwise, a sale of debt generally on a piece of real estate, short of the full amount owed. It does not extinguish the remaining balance unless this is clearly settled in the acceptance of the offer. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing since there are legal and other carrying costs that are associated with a foreclosure. This occurs on a daily basis since many homes have loans that are considerably higher than the current value of the home. If you would like my Homeowner's Short Sale 16-Step Instructions emailed to you please contact me through this blog site.
ARIZONA HOME BUYER'S PROPERTY INFORMATION WEBSITES
Bank-owned and foreclosure homes are currently being sold "AS IS" without the homebuyer receiving any kind of Seller's Disclosure regarding the history of the property ie. repairs, room additions, criminal issues, environmental sites or any other disclosure that may affect the buyer's decision to purchase. A real estate agent can provide you with websites containing this vital information; however, if you are purchasing property without an agent, here are some websites that you may want to peruse.
County Assessors/Tax Records Maricopa County www.maricopa.gov/assessor or http://treasurer.maricopa.gov/parcels Other Counties www.az.gov/webpage/portal
Termites & Other Wood Destroying Pests www.sb.state.az.us/TermiteInsp.php orhttp://www.sb.state.az.us/
Lead-Based Paint Disclosures www.epa.gov/lead/
Roof Information http://www.azroofing.org/
Septic/Other On-Site Water Treatmentwww.azdeq.gov/environ/water/permits/onsitenot.html
Swimming Pools http://azdhs.gov/phs/oeh/pool_rules.htm
Mold www.cdc.gov/mold/default.htm
Deaths/Felonies on the Property www.azleg.state.az.us/ars/32/02156.htm
Superfund Sites www.adeq.state.az.us/environ/waste/sps/phx.html
Sex Offenders https://az.gov/webapp/offender/main.do
Crime Statistics http://www.faxnet1.org/
Schools http://www.ade.state.az.us/
Soil Problems http://www.az.nrcs.usda.gov/ (Search shrink/swell)
Finally, be sure to talk to the surrounding neighbors and drive around the neighborhood.For additional Maricopa & Pinal county real estate homebuyer related websites contact me through my blogsite.
County Assessors/Tax Records Maricopa County www.maricopa.gov/assessor or http://treasurer.maricopa.gov/parcels Other Counties www.az.gov/webpage/portal
Termites & Other Wood Destroying Pests www.sb.state.az.us/TermiteInsp.php orhttp://www.sb.state.az.us/
Lead-Based Paint Disclosures www.epa.gov/lead/
Roof Information http://www.azroofing.org/
Septic/Other On-Site Water Treatmentwww.azdeq.gov/environ/water/permits/onsitenot.html
Swimming Pools http://azdhs.gov/phs/oeh/pool_rules.htm
Mold www.cdc.gov/mold/default.htm
Deaths/Felonies on the Property www.azleg.state.az.us/ars/32/02156.htm
Superfund Sites www.adeq.state.az.us/environ/waste/sps/phx.html
Sex Offenders https://az.gov/webapp/offender/main.do
Crime Statistics http://www.faxnet1.org/
Schools http://www.ade.state.az.us/
Soil Problems http://www.az.nrcs.usda.gov/ (Search shrink/swell)
Finally, be sure to talk to the surrounding neighbors and drive around the neighborhood.For additional Maricopa & Pinal county real estate homebuyer related websites contact me through my blogsite.
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