Arizona Mortgage Blog by Kelly Zitlow

Our Arizona market has many investors paying cash today! These buyers are in a position to pay cash now with the intention to obtain a mortgage on the property in the future. Standard waiting period has been 6 months.

Great News! Fannie Mae just released and "Exception" which can waive the 6 month waiting period.

Read the requirments that need to be met here.

I know, I know.....there's a lot to digest! Good news is you don't need to know ALL of the details. That's what I do!

If you're currently working with cash investors, I am happy to research the mortgage guidelines and prepare a personal financing strategy for them to leverage their cash position. Don't hesitate to call me.

~ Kelly

Did you know that ARMLS reported 10,868 residential sales last month, surpassing the record of 10,252 set back in the bubble of June 2005. At the same time a record was also set in single family leases signed with 2280 and the highest number of short sales reported at 2,734.

Also, CNN Money ranked Phoenix in it's top 10 cities in the nation to invest in rental property.

To read more about these exciting developments in more detail, just click here.

We may find the business of being an Arizona Realtor and Arizona Mortgage Lender to be frustrating at times, there is no doubt the housing market in Arizona is thriving and opportunity exists!

~ Kelly

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

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

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 Program

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!

~ Kelly

Great news!  The doors continue to open as another great Arizona mortgage program makes its way back into the market.  The Arizona lending community recognized there are many buyers with significant retirement assets that have chosen to delay drawing income from the asset.

This "makes sense" Arizona mortgage program allows buyers to qualify for a conventional mortgage, using their retirement assets without actually drawing from them if the following guidelines are met:

CLICK HERE TO READ SOME OF THE GUIDELINES AND LEARN MORE

I've already been able to help several buyers qualify for a home loan with this fantastic, "makes sense" Arizona mortgage program. Feel free to call me with any mortgage questions or to discuss a specific scenario ~ the interest rate and closing costs are the same as any other conventional mortgage programs too!

~ Kelly

The 1^st 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 ldoiron@ccmclending.com.

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

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 happy.

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 2%.

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 make!

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

The Arizona market is once again very affordable.  With that, we are seeing many investors and second home buyers interested in returning to our Arizona market. Trulia.com analyzed the 50 largest cities in America as to which are better to buy in versus rent in.  They ranked Phoenix, Arizona #8 as the best to buy in!

As you are likely aware, Fannie Mae changed their guidelines a few years back which ultimately made it a bit more challenging to obtain traditional mortgage financing for those second home and investment property buyers who have multiple properties financed.

Great news ~ Cherry Creek Mortgage offers the Fannie Mae program which allows buyers to finance up to 10 properties! As a direct Arizona mortgage lender we have complete control over the loan process; from application to funding, we do it all!

A few notable guidelines to keep in mind:

• Down payment on a 1 unit property is 25% and the minimum credit score is 720
• Down payment on a 2-4 unit property is 30% and minimum credit score is 720
• Borrower can have no history of bankruptcy or foreclosure in the last 7 years
• Borrower cannot have any 30 day late payments on any mortgage loans
• Borrower must have reserves, requirements depend on number and types of properties owned

I am very excited to have this option for our Arizona clients!  Feel free to contact me with any questions or to discuss opportunities for you second home and investor buyers.

Another 70 degree weekend ahead of us…boy are we spoiled. Enjoy!

Kelly

Quote of the Week: Our words reveal our thoughts; manners mirror our self-esteem; our actions reflect our character; our habits predict the future. ~ William Arthur Ward