Arizona Mortgage Blog by Kelly Zitlow

An Arizona Mortgage Specialist with over 15 years exp., Kelly produces this Arizona Mortgage Blog for realtors & home owners in Arizona who wish to be informed concerning the ever-changing Mortgage Market and FHA Loans, VA Loans, and Conventional Mortgages. Information about obtaining a Mortgage in Arizona can be found at

Archive for tag: FHA

FHA Loan Guideline Revisions

Last week I posted and sent an Arizona Mortgage Update concerning revisions to FHA Loan guidelines that could really affect some closings. If you have a client that will be a FHA Loan borrower and they are self-employed, have disputed credit accounts , or a collection account you will want to read this first.

Click here to access Arizona FHA Loan Guideline Revisions

Then have your client talk to us about it upfront. We can eliminate any last minute problems that could effect the FHA Loan closing.

Always here to answer your questions.

~ Kelly

FHA Extends Property Flip Waiver

The FHA property flipping waiver was set to expire On Dec. 31st of 2011 has been extended through December 31st of 2012!!! Great news for the Arizona mortgage and real estate market. For now all terms of the existing waiver remain the same. It may have been some time since you reviewed the FHA Loan rules on properties flipped and owned for less than 90 days in Arizona.

Click here to read some reminders that may be helpful.

~ Kelly

Buying a House After Foreclosure, Short Sale, & Bankruptcy

Believe it or not we are already starting to see buyers who have met their waiting period time frames and are getting close to buying a house after a foreclosure, short sale, or bankruptcy. Many people think they have to wait 7-10 years and their is a lot of rumors and miss-information circling around. Knowing what their individual waiting periods are can be liberating.

The wiating period time frame following a foreclosure, short sale, and bankruptcy is based on their completion date of their unfortunate event.

To read last weeks update which broke down each situation and the waiting period for a FHA Loan, VA Loan, Conventional and more, just click here for waiting period update.

I have also launched a helpful and informative website to educate borrowers about their waiting periods and how we can work together during their waiting period to have them ready when their individual time frames are up.

If you or a client ever has a question, do not hesitate to call me. I'm here for you.

Mortgage Insurance Tax Benefits

Conventional mortgage volume should be increasing as the FHA's loan limit is set to decrease Oct 1st and as I have reminded many of you, 3% down conventional mortgages are available again. Due to borrowers ability and desire to put down less than 20%, mortgage insurance is becoming more common again.

Is mortgage insurance tax deductible? It might be? Last weeks market update covered this and the summary can be read here.

Our thoughts and prayers go out to the people on the east coast who have dealt with the hurricane and the resulting power outages.

~ Kelly


Most Common Concerns on FHA Appraisals

As you may know, FHA has MPR - Min. Property Requirements which have to be met to obtain a FHA Loan in Arizona. The appraiser will reveiw the FHA list of items and if an item needs to be addressed they will be listed as "subject to" the required repairs. Typically the FHA lender will require the repairs be completed and re-inspected prior to close of escrow.

I included a list of the most common areas of concern for FHA Loans in my Arizona Mortgage Update this week.

Click here to read the summary of that list.

Have a safe and fun holiday weekend

~ Kelly


Mortgage Success Stories!!!

In Arizona with our unique real estate market, ever-changing mortgage guidelines, and all the different buyer or property circumstances it can seem like the perfect storm with any deal today. I am constantly solving problems where big banks couldn't perform and deliver for the clients and their realtors.

In just the last couple of weeks my team and I solved the problems and closed the loans on time witht he following scenarios -

  • FHA Property Flips and the FHA Loan waiver will expire Dec. 31st of this year
  • Conventional Property Flips and the seller didn't need to own for 90 days
  • Spouse has recent BK/Foreclosure and closed a conventional mortgage
  • Sister purchasing home from brother with trouble documenting rent payments

Mortgage education is my passion and sharing my knowledge and experience with you and my clients is my goal. You can call me with any "tricky or difficult" scenario and we will work through it.

To read more specifics on the loan scenarios above, click here or call me.

~ Kelly

FHA Loan Limits in Arizona to Decrease

Barring congressional action by October 1st of this year, the FHA Loan limits will revert back to their original levels. To fight the economic downturn, Congress temporarily increased them to $346,250. But without any action taken in time, they will revert back down to $271,050.

This is only 3.5 months away and should be something that is discussed with any potential buyers.

To read my complete FHA Loan Limit Update concerning this, adjusted purchase prices, and ARMLS stats from this year -click here.

I'll be sure to keep you posted as I hear more on FHA Loan Limits and Arizona Mortgage developments. In the mean time, please don't hesitate to contact me should you have any questions!

~ Kelly

FHA Loan Options for Arizona Property Flips Exist!

I get many calls & emails on this topic and there still seems to be some confusion out there if FHA loans can be obtained on property flips. Yes they can!

Earlier this year FHA extended the FHA property flip waiver to Dec. 31, 2011 which allows a buyer using a FHA loan to purchase a property being flipped in less than 90 days when the new sales price is 20% or more than the seller's acquisition price.

Click here to read more guidelines that Az mortgage lenders follow.

FHA property flips don't have to be frustrating! Don't hesitate to call me with any questions. Enjoy the long holiday weekend!


~ Kelly

Residential Sales Approach 10,000 in March 2011 !!!

The 1st quarter of 2011 closed out with a bang! ARMLS reported nearly 10,000 residential sales in March in the Greater Phoenix, Arizona area! June 2004, June 2005 & August 2005 are the only other months in Arizona history when sales have hit 10,000.  This is great news for our stressed housing market and indicates buyers are taking advantage of the phenomenal affordability that the Greater Phoenix area offers today.

How were these single family homes purchased?

46% with cash ~ investors are back in our market

23% with an FHA loan

4% with a VA loan

And much more....

To read the complete summary I compiled and put in my last Arizona Mortgage Market Update click here.

There's no doubt our Arizona market is one of the most unique in the country and it takes strong, hard working individuals to survive! If you haven't already done so don't forget to RSVP to our FREE Thriving in Challenging Times event this Friday! Join me for a wonderful breakfast and learn a few key items that will help to catapult your business! RSVP to me or Lynn Doiron at

This is an exciting time....we're gaining true momentum!!! Let's keep it up. Don't hesitate to call me in our current mortgage environment with any scenarios or Arizona mortgage questions. I look forward to talking with you.

~ Kelly

HUD REO's and FHA Loans are Hot in Arizona

HUD Homes are starting to gain traction in Arizona again! These HUD homes may be a great opportunity for your buyers, but there are many quirks. Understanding the nuances of this very unique process will help create a smooth mortgage transaction for you and your buyers.

I've summarized some of the many terms and the many different Financing Types on my weekly Arizona Mortgage Market Update. Click here to read the entire newsletter post.

There are scenarios listed that qualify for FHA Loans and the rehab 203K FHA Loans, as well as a few that do not qualify for FHA Loans. These are definitely different than the normal loan process and there's little to no room for error with HUD!

The key is to be well prepared for the process with an experienced Arizona Mortgage Lender. I have years of experience originating FHA loans for buyers of HUD REO homes.  I'm happy to talk with you in more detail about this fantastic opportunity for your buyers. Don't hesitate to call with any questions.

~ Kelly