Starting October 1st the USDA started to add mortgage insurance
to USDA Home Loans. For those buyers who wanted to obtain a
mortgage in Arizona using an USDA Home Loan this is still a great
Still ZERO DOWN, 30 yr Fixed Rate, No Pre-payment Penalty, and
But I encourage everyone to check the USDA website
Eligibilty Map to view boundaries, very easy to use.
To read more great highlights on a USDA Mortgage in Arizona, click
here to view my latest update.
Feel free to call me with any mortgage questions you have.
Enjoy the cool fall weather this weekend!
Fannie Mae announced mortgage incentives for eligible
Arizona HomePath properties for loans closing by June 30,
2011. Arizona buyers who are purchasing the home as
their primary residence are eligible to receive 3.5% in
closing costs assistance and Arizona
selling agents whose buyers purchase and close within the allotted
time will receive a $500 bonus!
I am an experienced Arizona Homepath mortgage lender and these
fantastic incentives have lead to a lot of interest from agents and
buyers. It's a great time to buy using an Arizona HomePath
Mortgage! Call me to discuss the details.
Click here to read highlights of the Arizona HomePath Mortgage
This Arizona mortgage program could be great for buyers you are
currently working with or are trying to get started
with. Don't forget to remind your buyers about the Homepath
loan's flexibility as well as the great incentives Fannie Mae is
offering through the end of June!
USDA Updates Eligibility Boundaries for
USDA Rural loans have been an extraordinary mortgage tool for
many cash strapped Arizona buyers by offering 100% financing with
NO monthly Mortgage Insurance. The USDA has recently updated
their boundaries for homes eligible for Rural mortgage
financing. The following USDA website allows you to view an
Arizona map and determine specific property eligibility within the
Arizona market. The map is very user friendly allowing you to
zoom right in to view exact street locations.
As a whole, most of Maricopa County is ineligible for rural
financing with the exception of Buckeye and certain parts of
Anthem. Most of Pinal County is eligible. All of San
Tan Valley and the Pinal County portion of Queen Creek are
If you have a buyer interested in rural financing, I encourage
you to visit the USDA website and call me and I can assist you in
determining an eligible Arizona property.
I've listed a few reminders of the mortgage program on my weekly
newsletter post along with a couple of contract writing tips
now that the new AAR Contract has been released.
Feel free to contact me with any questions you have about this
wonderful ZERO down mortgage program!
80 degrees in the forecast! I hope you have the opportunity to
get outdoors and enjoy the beautiful weekend ahead.
New AAR Contract &
The new Arizona Association of Realtors (AAR) contract will take
effect Monday 2/28. I know many of you have attended a class
or two on the new contract and your heads might be spinning right
about now! While some of the changes might feel a bit
overwhelming, I'm confident the new contract will create better
communication between all parties involved as well as provide
mortgage details that agents have wanted over the years. My
team and I have systems in place to utilize the new forms and
contract to their full potential. Keeping the buyer, and the
agents informed of our progress has attributed to our success over
the years and we intend on maintaining this goal by incorporating
the PQF and LSU.
The biggest concern I'm hearing from Arizona agents regarding
the contract relates to the LSU and getting Arizona mortgage
lenders to complete the form. I'm shocked to hear there are
mortgage lenders out there that don't understand their role in the
home buying process. That being said my answer has been simple
~ .....find an Arizona Mortgage Lender that will
provide the PQF and LSU!
I thought it might be helpful to you to share some of the key
points regarding the Financing (section 2) portion of the new
Arizona contract, the PQF and LSU.
Click here to read my complete newsletter on this.
Below are links to the new forms in case you haven't had a
chance to review them yet.
~ Sample Contract
~ Sample PQF
~ Sample LSU
Feel free to contact me with any questions you have about the
financing section of the new contract, the PQF or LSU. I'm
happy to discuss how we can work together to incorporate the new
Arizona contract into our respective businesses.
Know the maximum allowable seller concessions
before you write the contract
Most of us in Arizona are aware maximum allowable seller closing
cost contributions vary by loan type. But did you know the maximum
allowable seller contributions vary dramatically on Conventional
Mortgages? It's true! The buyers down payment AND
occupancy type (owner occupied, a second home or an investment
property) will determine the maximum allowed. Knowing the following
before you write a contract will keep you and your buyers
I've seen several conventional mortgage transactions over the
last few months with the seller contributions exceeding the maximum
allowed by Fannie Mae. Investment properties have the
lowest threshold with the maximum allowable seller contribution of
Imagine this scenario ~ Short sale takes 3 months to get
approved. The executed Arizona contract calls for the seller to pay
3% of the closing costs. The buyer is buying a house that is an
investment property and therefore the maximum seller contribution
is 2%. You can see where this is going…not a fun phone call to
Here is a link to my Arizona Mortgage
Market newsletter that covered the details. You will
find a summary of the maximum seller concessions by loan type
for Conventional, FHA Loan, and VA Home Loan.
Maximum Seller Paid Costs by Loan Type
This week HUD announced in
mortgagee letter 10-40 the 2011 FHA loan limits.
Great news! The FHA
Loan limit for Maricopa & Pinal Counties in Arizona will
remain at $346,250 for all case numbers assigned
January 1, 2011 through September 30, 2011.
All County FHA Loan limits for Arizona
are accessible on the following website:
As a reminder $358,000 is
the corresponding price point to maximize
the $346,250 FHA loan limit. Other FHA financing
features are as follows:
Our Arizona mortgage market has seen a
significant increase in FHA loans over the last few years and we
expect the trend to continue in 2011. If you have questions
regarding FHA financing; how to complete section 79 of the purchase
contract, need clarification on FHA's property flipping rules or
have questions on condos for FHA buyers, don't hesitate to contact
me. As many of you know, I teach a CE Financing course and these
FHA Loan questions and more are answered in depth during the class.
To register for my next class on Tuesday December 7th
from 8:30-11:15 go to http://www.southwesternschool.com.
Wishing you a wonderful Arizona
Quote of the week: Courage
does not always roar. Sometimes courage is the quiet voice at the
end of the day saying, 'I will try again tomorrow.' ~ Mary Anne