White House Lowers FHA Streamlined Refinancing Fees is a post from: Phoenix Arizona Mortgage

As many as three million borrowers with government-insured mortgages may be eligible for lower borrowing costs when they participate in streamlined Federal Housing Administration (FHA) refinancing, according to the White House Administration on Tuesday, March 6.

The fresh round of changes from the administration affects loans the Federal Housing Administration insures and would reduce fees on those mortgages for borrowers previously unable to borrow at lower rates.

Those using the so-called “streamline” refinance program allows FHA borrowers to win new FHA-backed loans without going through some of the more stringent guidelines that make locking into new loan terms more challenging.

The Obama administration said it will lower the costs on up-front mortgage insurance premiums to 0.01 percent for streamlined refinancings of FHA loans. The White House also said it will cut the annual fee for these refinancings in half to 0.55 percent.

Eligible borrowers for the streamline refinance program must have taken out those FHA loans before June 1, 2009.

The changes to the government’s streamlined refinancing program could help the typical FHA borrower find “significant monthly savings,” according to the administration.

Since mortgage rates are at historic lows and hover around 4 percent, the administration estimates a typical FHA borrower with $175,000 outstanding on their loan could reduce monthly payments to $915 a month and save $100 a month more than the borrower would have under current FHA fees.

Do You Need a Loan Modification Attorney? is a post from: Phoenix Arizona Mortgage

Some challenges residents are facing in the Paradise Valley real estate market and all over Arizona is dealing with loan modifications.

Contemplating Hiring a loan modification attorney?

There is more than one source readily available that might say you don’t need the help of an seasoned loan modification attorney to get your loan modification done. Even though it may be technically accurate that you don’t have to hire a loan modification attorney in order to see results, many people find that hiring a legal professional who works specializes in loan modifications results in “quicker, more effective” loan modifications.

The aid of a lawyer will make the loan modification process go a lot easier. Many homeowners never actually get their loan modified when they try to work with their lenders and are told reasons like “you aren’t late on your payments yet”. By picking the right loan modification attorney to help you with your case, you can rest assured that there will not be any “excuses” from lenders when there should be solutions.

Confer With an attorney

The loan modification process is not effortless – and working with lenders is tricky for two main reasons: first, you get different answers from different service reps every time you contact your lender; and second, they are not set up to help you unless you already know exactly what they want. To get the best loan modification deal, you need the help of an experienced law firm just as if you were going through bankruptcy, you would need an experienced bankruptcy attorney.

Fighting for a loan modification is similar to going to court. You might think that you are saving money by representing yourself, but you will get much better results in the long run by hiring a professional.

Searching The Phoenix MLS is a post from: Phoenix Arizona Mortgage

Finding a real estate agent to help you search Phoenix MLS

The most important first step in buying or selling your home is finding an excellent real estate agent. Picking the best agent requires some work on your part but considering that this transaction probably represents the most money you will ever spend, it’s important to find an agent who will represent you.

The agent you want representing your interests should have training beyond basic State licensing. You can tell if your agent has more training by the letters after their name. CRS means Certified Residential Specialist and means they’ve taken extra classes about residential real estate. ABR stands for Accredited Buyer’s Representative and if you are buying a home they’ve taken extra classes to represent you in a transaction. SRES means Seniors Real Estate Specialist and they’ve taken extra classes in helping seniors buy and sell.

Check to see if they have any complaints filed by the State Board of Licensing and Discipline.

Once you know they are qualified, check references. Ask for a list of clients and homes sold in the past year with contact information. How long has the agent been selling homes? Are they a seller’s agent and working for the seller or a buyer’s agent and working for you? Some do both. Have their peers given them awards, such as the Realtor of the Year award?

There is an organization called the National Association of Realtors who holds their members to a strict code of ethics that often goes beyond state requirements and they have access to the Multiple Listing Service (MLS). These realtors have the name REALTOR after their names to show they belong.

Anyone looking for a home in the Phoenix area would want a realtor who had access to the Phoenix MLS.

VA Loans, Other Mortgage Types and Real Estate Deals is a post from: Phoenix Arizona Mortgage

What do Cincinnati OH, Fayetteville NC, Phoenix AZ, Washington DC, Salinas CA, Medford OR, Mobile AL, Ft. Worth/Arlington TX, Las Cruces NM, and Memphis TN have in common? Each of these cities were listed in US News and World Reports as the top 10 cities in the US for “Real Estate Steals.”

While most of these cities saw a huge run-up in housing prices through 2006, most of these cities have also seen huge declines in home prices since 2006 making home buying in them attractive to many first time buyers and military personnel.

VA loans are as popular as ever for those active duty and Veteran personnel who are eligible. Home buying using a VA loan is one of the best no money down loan programs available. To take advantage of this program the home’s value that you want to purchase must match the sales contract price or you will have to negotiate the difference with the seller in the case where value is lower than the contract price. VA will only approve a loan for the home’s value or the sales price – whichever is lower.

If you are looking for buying a home but don’t qualify for a VA loan, then you may want to look at the Fannie Mae Homepath Mortgage Program. This program is specifically designed by Fannie Mae to help unload the huge inventory of Fannie Mae repossessed homes. This program allows for the mortgage from Fannie Mae to be based on the negotiated sales price versus the appraised value. But, for the Homepath Mortgage program you will have to have some money of your own for down payment and closing costs.

If neither of these programs interest you, then you have other options. You should speak to a loan officer about what loan programs are available to you.

Personally, if you have the personal skill to buy a Fannie Mae Repossessed home you may want to consider looking at these homes and using the Homepath Mortgage program as these homes offer some of the best home prices in any market – especially in Cincinnati, Fayetteville, Phoenix, Washington DC, Salinas, Medford, Mobile, Ft. Worth, Las Cruces, and Memphis where exceptional home prices can be found.

What is Better Short Sale or Foreclosure? is a post from: Phoenix Arizona Mortgage

FHA Streamline in AZ is a post from: Phoenix Arizona Mortgage

Are you looking for lower interest rates and to reduce your monthly mortgage payments? This may be possible even if you are upside down on your current FHA loan. There is now a FHA Rate Reduction Streamline Refinance available for people with existing FHA loans. This was designed to permanently lower your monthly payments and keep you in the FHA program and to streamline the whole process.  The process requires much less documents, processing and costs than your original FHA loan.

There is no appraisal done which is important in AZ because you won’t run into value problems. Therefore you will be able to take advantage of the program even if you owe more than the property is worth. Plus you won’t have to pay for the appraisal which is usually between $400 and $600.

There is also no income qualifying. You just need to verify that you have an income source, but how much you make and how much you owe is not part of the qualifying process. HUD may change this at any time however. Even if you are collecting unemployment you don’t have to worry about re-qualifying, though you will need to provide proof of pay.

There is also much less processing. Since you have already qualified for the FHA loan once so as long as you have maintained a decent credit profile that original qualifying carries over into your new streamline. No more waiting and wondering if you qualify.

There are also much lower closing costs. We are able to get discounts on the closing costs because these loans are a whole lot less work. Larger loan sizes may be able to have the bank pay for all closing costs.

Finally you might get to skip a payment! Lets you go the first month without making a mortgage payment. Your first payment will be due 30 days after your closing.

When you close on your FHA streamline do it at the end of the month. When you pay off the old loan you have to pay for a full month’s interest regardless of when it closes. By closing at the end of the month your new FHA loan will only have a couple of days of interest to pay and depending on the size of your loan, this strategy alone could save you hundreds of dollars.

If you have an FHA loan right now, have made at least 6 payments, have a middle credit score of at least 640, have been on time with your payments for the last 12 months and if your loan is in AZ then contact us today to see about lowering your monthly payments and reducing your interest rate.

Return of USDA Loan Guarantees is a post from: Phoenix Arizona Mortgage

Recently  USDA Loans in Arizona have continued to be funded based on the ability to obtain a Conditional Commitment Letter from the local Rural Development Office.  However, not all lenders have been willing to continue funding USDA Loans off of a Conditional Commitment Letter causing many home buyers to have to wait. What are USDA Loans? A USDA Guaranteed Loan is a Government insured 100% purchase loan. These loans are only offered in rural areas and serviced by direct lenders that meet federal guidelines.  

Over the past several months, when a USDA Loan has been funded the USDA Loan application had to go through a Manual Underwrite which eliminated many of the available underwriting waivers and made it more difficult to obtain the USDA Loan approval.

It has been announced that beginning September 8th, approved USDA lenders will be able to use the Government Underwriting System and will no longer be required to manually underwrite USDA Loans.

What this means to the prospective USDA Loan home buyer:

1. Underwriting will now by automated. The underwriting of a loan is the process by which the lender determines whether the loan is a good investment of capital. The process involves a simultaneous analysis of the creditworthiness of the borrower and the economic value of the property as an income-producing investment. If the borrower is creditworthy and the property has sufficient value under existing market conditions, the lender can enter into the loan with reasonable confidence that the investment will be a good one.

2. Credit and Debt Ratio waivers will be available. However, you must have a credit history that indicates a reasonable willingness to meet obligations as they become due.

3. It will be less restrictive for borderline applicants and easier to get an approval

4.Funding will return for banks that earlier refused to fund USDA Loans

If you think your property is able to qualify for a USDA loan please don’t hesitate to contact me to find out more today! Whether you live in Phoenix or any of the surrounding cities, I am the the person who can help you get your loan closed (in as little as ten days!) no matter how challenging the situation.

What Determines Mortgage Rates is a post from: Phoenix Arizona Mortgage

Mortgage rates are largely decided by the Secondary Market, not simply set by lenders.

The secondary market is comprised of investors who purchase the loans made by banks, brokers, lenders, etc. and then either hold them for their earnings, or bundle them and sell them to other investors. When the secondary market sells the bundles of mortgages, there are end investors who are willing to pay a certain price for those loans. That market price of those Mortgage Backed Securities (MBS) is what impacts mortgage rates.

Typically, investors are willing to accept a lower return on mortgage backed securities because of their relative safety compared to other investments. In contrast, other investments are considered more of a gamble, specifically stocks which are based on earnings and profit vs real property.  The movement between the two investment vehicles often dictates mortgage rates.

Rates are expected to go up when the economy is growing or is expected to grow, because then stocks will likely become the more favored investment. When investors buy more stocks, they purchase fewer MBS, which drives the price down. When the price of the MBS is lower, the yield increases. Since mortgage rates are based on the yield of the 30 Year MBS, you would expect rates to increase in this environment.

Rates are expected to go down when the economy appears to be slowing or is doing poorly, investors typically move their money out of the stock market and into the safety of the MBS. This drives the price of these investments higher, which results in a lower yield. Since mortgage rates are based on the yield of the 30 Year MBS, you would expect rates to decrease in this environment.

Understanding how rates move is not as important as having a loan officer that is equipped with the technology and professional services to track and stay watchful of the exact moment rates make a move for the better or worse.

Top 3 Tips For Successful Jumbo Loan Search is a post from: Phoenix Arizona Mortgage

Regardless of which task you may be facing, having good, sound suggestions will help you. To truly get it done, having a guide, tips and hints a summary of steps needed, will help profoundly. 3 super strategies set forth in this article can assist you to complete your task.  Follow these tips and you will likely get a lot better results.

While getting approved for a jumbo loan may have been different a short while ago, you’ll find it’s important that you do things the right way. If you don’t, the consequences might end up being disastrous. You could end up paying more than necessary, or maybe even be denied. Stick to these three tips to have exceptional results.

1. You must have good credit and be able to document your income and assets

You must have a good credit score and then document your earnings and assets as it helps prevent being denied that loan for the costlier house. Failing to do this may well change the price bracket you must shop in. So please don’t make the error of overlooking this mandatory step!

2. You should also have  a vital down payment

About as essential as having a good credit rating whenever working with getting approved for a jumbo loan is, it’s also wise to have a a substantial advance payment. I am telling you, it’s not a thing to disregard. It can help to make the money process smoother, and that is something everybody engaged in looking for a jumbo loan needs.

3. Find an expert with regards to jumbo loans not merely someone in a answering services company!

Last but not least, when looking to create a jumbo loan you need to remember and find an expert when it comes to jumbo loans — not just someone in a call center. This can encourage getting the best possible mortgage, which is an indispensable component of looking for a jumbo loan. If you do not, you will regret it later — and I think we are able to agree that this won’t be a good thing!

As I mentioned from the outset,  in regards to getting approved to get a jumbo loan could different than a few years ago,  you desperately want to make certain you never make mistakes which will end up costing you more than necessary, or maybe being denied. What you need is to get the property or investment you wish, and you can do this by following the solutions given.

Discover some ways to look into an Arizona jumbo loan to finance your house by calling me  at Academy Mortgage or reading more at the web site at http://jumbo-loans.org/.

Benefits of Using a VA Loan to Buy A Home is a post from: Phoenix Arizona Mortgage

Saving money to buy a home takes time and discipline, especially during these difficult economic times in 2010. Couple saving money with ever changing loan program guidelines and you get a home buying recipe that requires patience, attention to detail, and hard work. For some people it takes a lifetime of saving every last penny in order to accumulate enough money for a down payment to purchase a home. Luckily, if you are eligible, you may not have to wait a whole lifetime to save money for a down payment by getting a veteran loan from the VA.

VA home loans are one of the only true 100% financing mortgages available in 2010. The other 100% financing mortgage is the USDA mortgage. If you are
eligible for a VA mortgage then you will want to know some of the following benefits of the loan that make it a very attractive home loan program.

Top Benefits of a VA Loan

• Lower Interest Rates – Although interest rates change from day to day, in general VA mortgage rates are often lower than conventional mortgage rates due to the fact that the US government insures these loans against loss in the case of default. This lowers the risk of these loans which means that they can have lower interest rates.

• No Down Payment – VA loans can be made up to 100% of the home’s market value or sales price. What this means is that if you qualify, you can buy a home with no money down. As we previously pointed out, VA home loans are one of the very few loan programs that are 100% mortgage financing programs in existence in 2010.

• No Prepayment Penalty – Some mortgage programs in exchange for lower interest rates, or lower closing costs charge a prepayment penalty which means if you pay your mortgage off early or pay down more than a pre determined amount during a given period of time you will be faced with having to pay a penalty. VA loans do not have prepayment penalties. You are free to pay down your mortgage as fast as you want.

• No Mortgage Insurance – This benefit is rather attractive as it can mean a savings of $100-$200/mo right off the bat when comparing the same loan amount but in a Fannie Mae, Freddie Mac, or FHA loan program. Because the US government federally insures these loans, PMI (private mortgage insurance) is not required. This will either allow you to qualify for a little larger home, or it will allow you to pay less for a smaller home.

• No Closing Costs Out of Pocket – If you are buying a home and you can negotiate with the seller to pay your allowable closing costs it is possible to buy a home with little to no money out of your pocket. This is a significant benefit of being eligible for a VA mortgage.

• VA Loans Are Assumable – What this means is that you can transfer your VA loan to someone else as long as they qualify. Where this might come into play is if interest rates go up. You can offer your loan’s interest rate as a reason to purchase your home.

These are a few of the benefits of a VA loan program that make this mortgage very attractive to eligible borrowers. To see if you qualify for this program you will need to speak to a loan officer who specializes in VA home loans as not every loan officer works with this loan program.