Tucson By Choice!

ALERT: 

ARIZONA FIRST TIME HOME BUYERS - THE $8,000 TAX CREDIT DEADLINE IS NOVEMBER 30, 2009.  DON'T MISS IT.

Thanks to Lenn Harley in Virginia for spotlighting this. 

It applies to all 50 states!

The details are below.  This is the first program I've seen that really, really helps do two things:

1. Get foreclosures out of circulation and off the market.
2. Stimulate buyers to buy now.

HUD's Neighborhood Stabilization Program provides for 22% of the purchase price to be subsidized with a ZERO interest second loan.  The best part?  That 22% can be forgiven over a period of time.  (Details below.)

Grant money has been allocated for every state in the Union.  What does that mean to REALTORS and homebuyers?

What program can give you 22% of the purchase price, and what's the catch?

In Arizona, the grant program is called YOUR WAY HOME AZ.   Your Way Home AZ will provide second loans to eligible purchasers for up to 22% of the purchase price of the property.  Second loans will have a term of from five to fifteen years, depending on the amount of assistance, and will be forgiven at the end of the term if all program requirements have been met, and the borrower continues to live in the house.

NOTE:  AZ program is funded through HUD's Neighborhood Stabilization Program.  Every state has a similar grant program. 

Click this link to check out your state:  HUD_NPS1

PROGRAM OVERVIEW

BORROWER REQUIREMENTS

• The property you purchase must be your primary residence.
• You must use a lender from the ADOH participating lender list.  (That would include Mike in Tucson at Sunstreet Mortgage, LLC) 
• You must have maximum Debt to Income ratios of 31/43.  No exceptions.
• You must have two months' reserves PITI (mortgage payment--Principle, Interest, Taxes, Insurance)
• You must be AUS (Automated Underwriting) "Approve / Eligible."  That means pre-approved, with fully documentable application.
• You must attend and complete an eight-hour Homebuyer Education class provided by an ADOH approved non-profit counseling agency (list provided by lender once you begin the process)

DOWNPAYMENT REQUIREMENTS

• 3% downpayment required, of which 1% must come from the borrower's own funds, sourced and seasoned.  (That means we have to document where it came from, and how long you have had the money.)  2% can come from any other approved source.
• Standard lending practices apply.  (Credit, income, documentation, etc.)

INCOME LIMITATIONS

Eligible purchasers must have household gross incomes not greater than 120% of the median household income for the county in which the home is being purchased.  The table below will help you determine if your household qualifies to buy a foreclosed home under the program.  (Talk with your lender before concluding that you don't qualify, as some types of income do not have to be included.

ELIGIBLE PROPERTIES

• Foreclosed properties only.  Tax or mortgage foreclosure process must be complete.
• Vacant properties only.  Federal guidelines do not allow occupants to be displaced.  The property must be vacant at the time of listing.
  
• 1-unit single family homes, condos and townhomes are eligible.
• Homes must meet minimum property standards.

HOME PURCHASE PRICE LIMITS

The maximum purchase price varies by county, minus 1% for program-required discount.

ADOH 2nd LOAN TERMS

• 22% of purchase price
• All loans are forgivable after a period of time, based on the amount of the loan
  • 5 years for assistance of $15,000 or less
  • 10 years for assistance of $15,001 to $40,000
  • 15 years for assistance of more than $40,000
• All loans are zero percent interest with no monthly payment
• The loan is forgiven at the completion of the term (called an "affordability period")

How can you get started, now that you've decided you would like to buy a foreclosed home as your primary residence?

Check out your eligibility on YourWayHomeAZ.com.

Call me to get prequalified for a 75% first mortgage, and Arizona Department Of Housing's "Your Way Home AZ" forgivable second mortgage.

PLEASE NOTE:  Once escrow is opened, the loan MUST CLOSE within 45 days. 

Notify your favorite REALTOR that you're jumping in with both feet, but don't go home shopping until you've been approved and entered into the system, and you're signed up for the required counseling.  This is important!

Tomorrow, I'll blog about the step-by-step process in Part 2!

 ___________________

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.

SUNSTREET MORTGAGE
Call me if I can help you or someone you know with a purchase or refi mortgage;
(520) 349-9090

Which way for home prices?  Are they headed back up?  This morning's FHFA news release says "Yes." 

WASHINGTON, DC – U.S. home prices rose 0.9 percent on a seasonally-adjusted basis from April to May, according to the Federal Housing Finance Agency’s monthly House Price Index. The previously reported 0.1 percent decline in April was revised to a 0.3 percent decline. For the 12 months ending in May, U.S. prices fell 5.6 percent. The U.S. index is 10.7 percent below its April 2007 peak.

It's tough to predict a bottom of the market, except in the rear view mirror.  Seasonally adjusted prices from the government aren't always on target, and sometimes they have to eat their words, but still, I'm encouraged.  Today, when my buyer clients ask Which way for home prices? I'm pointing them to this news release.

 ___________________

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.

SUNSTREET MORTGAGE
Call me if I can help you or someone you know with a purchase or refi mortgage;
(520) 349-9090

June 10th, 2009 marked the highest yield for the 10 Year Treasury bond is the past eight months.  That yield was 3.9%.  What that means for the would-be homeowner is rising interest rates for a 30 year mortgage.  The average 30 year mortgage rate for the week ending June 18th was 5.625%.  That's wonderful from a historic perspective, but not so great for buyers who could have had an interest rate as low as 4.5% only two weeks earlier. 

Buyers are confused as go whether rates will come down again, and have decided to adopt a wait-and-see attitude.  That's not surprising, considering that the bond market is equally confused. Mortgage applications are at a seven month low.

It won't be long, in my humble opinion, before mortgage rates at 6% will be considered attractive, and we'll be pining for the days of 5.625%.

The reason:  Consumer Price Inflation.  Central bankers around the world are grappling with trying to reverse the stimulus they created just months ago.

Reverse it?  Isn't the Federal Reserve going to give us more stimulus?  The answer is that they cannot.  Don't look for a $15,000 gift from the government (your neighbors, actually) for first time homebuyers.  There was talk of monetizing the $8,000 first time stimulus for homebuyers so it could be used as the downpayment.  It hasn't happened.  It may not happen.

Here's the question facing REALTORS and their buyers:  Is inaction--doing nothing--the prudent course right now?  Or would you rather buy a home and secure your future?

 ___________________

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.

Call me if I can help you with a purchase or refi mortgage;
(520) 349-9090

Image courtesy Image Chef

Warren Buffett is no dummy, and where are his real estate dollars invested?

1.  In local real estate companies around the nation with strong local brands, and

2.  In companies which produce manufactured homes.

Cavco isn't one of Buffett's companies, but with factories in Phoenix and Tempe, it produces some of the best manufactured homes in the world.

The Durango log cabin features 2x6 construction with R-19 insulation in the walls and floor, and R-30 in the trussed ceilings.  Bedroom electrical outlets are half-switched, so you can turn on the nightstand lamp with a wall switch near the bedroom door, while the clock radio plugged into the same outlet is "hot" all the time.

Finishes are excellent.  Windows are thermopane, appliances are high end, and it's a long way from the "trailers" you may remember from your starving artist days back in the day.

With an FHA certified foundation, financing isn't a nightmare, either!

REALTOR and customer reaction to this model has been very positive once they see the product.  Floor plans start at about 1,200 square feet and go all the way to 2,200 square feet.

AZ REALTORS and Real Estate Agents:  Please call me if you have acre lots or bigger listed in Pinetop, Show Low, or Oracle / Oracle Junction.  Also Winkleman and the surrounding area.

Consumers:  Call me about new construction land / home packages, and we'll fix you up.  (520) 349-9090

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.

Think of me as your Tucson mortgage expert.

Call me if I can help you with a mortgage to buy your next house: 
(520) 349-9090

photos copyright Mike in Tucson
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