Ever Heard Of The HARP Program? is a post from: Gilbert Arizona Mortgage

If you are in the unfortunate situation where you owe more on your home than your home is worth, you may be wondering what options you have to lower your mortgage payment. If this is the case with you, have you heard of a program called HARP?

HARP stands for the Home Affordable Refinance Program. Several years ago, the federal government started the HARP program to help homeowners refinance their home mortgage if they were in the position of owing more than their home was worth.

While this program is a great program for some mortgage holders if you fall into several categories you will have to look at other alternatives to refinance your mortgage. Unfortunately, if you have a VA loan and were looking ot take advantage of the streamline low VA rates program, or a FHA mortgage you will not be able to use the HARP program to refinance your home mortgage.

But if you have a conventional mortgage (a Fannie Mae or Freddie Mac mortgage) and you are updside down, you can look at the HARP as a possible answer to refinancing. Below are some of the main basic requirements of the HARP program to help you determine whether you should try to qualify for this program.

You must have been ontime with your most recent mortgage payment – or also known as you must be current with your mortgage payment.
You can’t have missed or been more than 30 days late with your mortgage payment over the last 12 months.
You must be in a better, more stable financial situation like lowering your monthly payment or converting a more risky adjustable rate mortgage or an interest only mortgage into a fixed rate mortgage.
You must have no equity in your home and not have your mortgage balance be more than 125% of the value of your home.
You must have sufficient income and proof of the financial means to repay your new mortgage payment

With these simple requirements in mind, you may or may not think that you can qualify for HARP. The best advice is the call a mortgage lender to find out. You can call your current mortgage company first and then call a few other companies to see what kind of answers you get. You ought to call several companies anyway to give you a range of offers to compare. At the very least, you’ll know where you stand with a refinance if you are upsidedown.

Buy Your Dream Home Stress Free With These Tips is a post from: Gilbert Arizona Mortgage

Whether you’re a first time home buyer or have real estate experience, purchasing a home can be overwhelming. There are many homes available on the market, and even more things that trip up the home buying process. Thankfully, there are plenty of things you can do to make buying a home a little easier. Here are a few suggestions.

When leasing real estate you need to be aware that professionally managed real estate companies and individual homeowners generally come under the same rules, but many individuals may not know that. If you rent from an individual, make sure they are aware that they have to keep your deposit in a separate account that would not be touched if they filed bankruptcy or lost a lawsuit.

Build a strict set of goals when selling or buying your real estate. This will help you to establish boundaries in not only monetary terms, but also in other areas such as locations or features. It will also help you setup due dates for success. In the end, this will enable you and the other party to “get on the same page.”

If one likes fishing, boating, swimming, or any other activity involving the water they should consider buying real estate that is bordered by a lake. The right property could even come with its own boat launch and dock one can use at their will. Real estate around water can ensure one always has something to do.

To get the best value when buying real estate you should start by looking for older homes. In many areas the pricing for the size home is lower than newly built homes and if you have to do repairs or redecorating to make the house more modern you can still save thousands of dollars.

When buying a home in the fall, remember to use closing as an opportunity to save even more money. You want to make sure not to turn the seller off by suggesting a price that is significantly lower than they want. However, you can save additional money through something called seller concessions; seller concessions are when the seller agrees to cover some of your closing costs. These are usually around two to nine percent of the purchase price.

As the government is subsidizing your home purchase, buying a home not only provides housing to you and your family, but it has tax advantages too. All of the property taxes and mortgage interest you pay on the property can be deducted from your gross income, which may significantly reduce your taxable income.

As you prepare to buy a home, try to pay down any large debts that you have. Lenders want to know that your monthly housing costs are not going to be higher than 33 percent of your gross income. Your total debt payments each month should stay below 38 percent. Do not incur any new debt for at least half a year before buying a home.

When you’re looking for a new home, there’s a lot to take in. You’re making a decision that will effect your life in a major way, and it’s not one to take lightly. As you look for your new home, keep the tips from this article in mind. They’ll help make your experience a little less stressful.

Five potential financial pitfalls on your path to home ownership is a post from: Gilbert Arizona Mortgage

Although changing jobs may impede your time frame for closing, it doesn’t have to stop the process altogether, especially if the change will eventually help your financial situation. When shopping for Chandler homes, make sure to keep your loan officer and Realtor informed. The new job will have to be confirmed by the bank and that alone will cost you some time. If you are changing jobs and it’s still within the same type of work you were previously doing, it will not affect the process as much as changing the whole line of work or changing the actual pay structure might affect the process.

Secondly, don’t co-sign for anyone. You don’t want to change your credit rating. If you are currently approved, try not to change your financial affairs.

Thirdly, don’t buy any major items. Wait until it’s your home and the papers have been signed and the keys are yours before you go and buy furniture or appliances, or a new car. These things can affect your ability to qualify for the mortgage, so wait.

Fourth, don’t move your money around. Right now you need the money to stay where it is. Changing banks or opening or closing your bank accounts, will delay the substantiation process. If you are going to receive a large financial gift or transfer a large amount of money into your account, make sure to make copies of all the documentation.

Fifth, it’s almost always better to leave the money in the bank rather than paying off loans at this time. If you need to pay off some debt, let the loan officer help you decide which ones to pay off and which to leave alone so you don’t complicate the loan process.

Gilbert Arizona FHA 203k Loans: Getting Popular is a post from: Gilbert Arizona Mortgage

Gilbert Arizona FHA 203k Program Highlights

The FHA 203k mortgage loan here in Gilbert, Arizona has become popular with the recession in the housing market. When a property is owned by the financial institution, chances are that the property may be in need of a little work and the FHA 203k mortgage loan is a great option. Some of the frequently asked questions we see about the FHA 203k mortgage loan include:

What exactly is an FHA 203k loan?

The FHA 203k loan is a rehabilitation loan that works much like a development loan. The buyer of the home is able to purchase a home that is in need of repairs and is able to finance the repair work in the mortgage to repair items in the house. The FHA 203k mortgage program consists of the purchase price of the home plus the construction costs for the work to be performed after close.

A Possible Example of an FHA 203k Scenario:

$100,000 purchase price of home
$20,000 Repairs Needed (see a list of the most common FHA 203k repairs)
$120,000 Total Loan Amount

Gilbert AZ FHA 203k Loans: How Much Do You Write The Sales Contract For?
The offer is the purchase price of the residence only. You don’t need to include the cost of repairs anywhere in the sales contract or offer. In the above example, the purchase price on the sales agreement or offer would be $100,000.

Gilbert FHA 203k loans: Easier To Qualify For vs Regular FHA Loans?
Getting an FHA 203k loan is roughly the same as getting a regular FHA loan. What does it take to qualify for an FHA loan? Generally speaking, a credit score above 620, a good job and a down payment of 3.5%. Of course there are more details to being approved, but those are the general highlights.

How do I find a contractor in Gilbert to do the repairs?
It is really useful that you work with a general contractor that can perform all whatever repair work is needed. Your loan officer can easily help recommend one they ought to know at least one good contractor. It is also valuable that the contractor be seasoned in FHA guidelines so that they can include any FHA required items in their contract.

When Does Renting A House Make Sense? is a post from: Gilbert Arizona Mortgage

Not everyone should be buying a home at this time. Pretty interesting advice from a mortgage person – but hey – I think it is time to call a spade a spade.

Just about everyone in the mortgage and real estate industry that I have come across, including myself, has pitched the idea that now is one of the best times in history to buy a home – like historically low interest rates – especially low va rates and incredible home prices. But, I’m going to clear the air so to speak and present some reasons why home buying might not be such a great idea or even possible at this point in time.

• Uncertainty with your job – if you are in danger of losing your job, of you don’t have the confidence in your job being around in a few years, now might not be a good time to put your name on the bottom line of a mortgage.

  Not sure if you are going to stay in the same location for less than 5 years – Are you facing a transfer soon? If so, you may want to just rent until you’re sure of where you are going to be in the future. Maybe you are thinking about getting married and start a family – getting a home that is too small or not in the right location could be a mistake.

• Calling the landlord – If you are not mechanically inclined home ownership may not be for you. This is especially true if you are thinking about buying a resale home. Homes require maintenance, and if you don’t have the prowess to do it you will have to hire someone to do it for you. This could get expensive and could be an unseen budget breaker. It might be a tough party conversation to suggest that you lost your home because you couldn’t fix the toilet. At least with a rented place you can call the landlord.
• Poor Credit – Not that I need to mention this, but gone are the days of getting a mortgage on poor or marginal credit. In today’s 2011 lending environment you will need to have decent credit scores – this is even the case for the more historically lenient government loans such as VA loans and FHA loans. If you are scores are low, do the work to get your scores up – then try to qualify if you want to become a homeowner.

On the flip side of all of these is that if you aren’t in any of these categories – buying a home now might be one of the best financial decisions you can make. Depending on the home you decide to buy you could actually get a lower mortgage payment than the rent payment you are making. Go figure!

USDA Loans in Gilbert, Arizona is a post from: Gilbert Arizona Mortgage

Did you know that getting a USDA Loan is actually possible in Gilbert? It is – if you know the right areas that qualify for the USDA loan program.  The USDA loan program is popular with people all over Arizona because of the 100% financing options as well as the no mortgage insurance required.

Here, Steve Ortiz from Academy Mortgage talks more about the USDA Loan program in Arizona and some important things that people should know.

Five Reasons To Apply for Arizona Refinance Via the Streamline Program is a post from: Gilbert Arizona Mortgage

Ever thought about endeavoring to apply for an Arizona refinance? A lot of people have gone further than just answering yes, and have now in fact started to do so. Relatively few people actually take the time to think it through properly. Most believe that it’s a lot more difficult than it is really, so they never get started. Others are put off by how much work they think it will take. Still other folks have too much inertia to get up and take action.

Hang on a moment, now! Are these explanations really valid? Could they be persuasive? Was any consideration given to the reasons for? Did both the Pro and the Con side get taken into account? The downsides were covered, but did the positives get a fair shake?

Possibly that should be reconsidered. Let’s just consider 5 various reasons in favor of taking steps to applying for an Arizona refinance through the streamline program and work these into the decision process.

First of all, this version of the Arizona Refinance does not require an appraisal. You have a valid point when you observe that so many of us are upside down in our equity. I readily concede that’s a very good point. However we need to also look at this, the FHA Streamline Refinance lets us get that new loan and get into some of these crazy low interest rates. In addition there is the reason that this also saves you about $450 for not having to buy that silly appraisal.

Second, when applying for this Arizona Refinance you do need to show a source of income, but not an amount you actually earn. The reason that is true is that if the amount you earn now is different that it was when you got your original FHA Loan, its not part of the qualifying process. Among the results of this is that even if you are unemployed, as long as you can prove you are earning unemployment, you will qualify. This makes qualifying for the FHA Streamline Refinance easier.

Third, there is less work, less processing, less underwriting, less costs and a whole lot less stress. Plus youve already qualified for the FHA FHA Loane. So as long as you have maintained a decent credit profile and still have a source of income your original qualifying carries over into your new Arizona Refinance!

Fourth, were able to get discounts for this Arizona Refinance from Title, Escrow, the Lenders and even on our processing. And for larger loan amounts, there may be an option for us to cover all the closing costs.

And finally, you get to skip a payment. After you do the Arizona Refinance, your first payment will be due on the 1st of the month that is at least 30 days in the future.

Consider each of those reasons each in its turn, and look at how they have an impact on you. All five reasons are persuasive points why you really should apply for an Arizona refinance through the streamline program.

Halt for just a minute and consider all that. Do you not think that that perhaps, just perhaps, you should apply for an Arizona refinance through the streamline program?

Uncover the way to apply for the Arizona refinance streamline program by visiting this Academy Mortgage site at az-refinance.com.

Fannie Mae and Freddie Mac Hot Topics in Finance Discussion is a post from: Gilbert Arizona Mortgage

Fannie Mae and Freddie Mac are the “black holes” in the financial overhaul bill in Congress, according to CNBC. Robert Pozen, Chairman of MFS Investment Management says that both GSEs need to be addressed at some point.

“They were too political volatile to handle and are not in the bill,” said Pozen who is a former vice chairman of Fidelity Investments. “But we need to get to them. Fannie reported an $8 billion loss in the first quarter but the costs to them for the loans in the footnote of the report, were over $100 billion. The $8 billion may turn out to be just a drop in the bucket.”

Pozen also said that the housing market, being far too weak at this time, takes priority right now. Because of this it is too difficult to deal with Fannie Mae and Freddie.

“It will probably take a year or two (for a housing recovery) before they can be dealt with,” Pozen added.

Pozen also noted that he is critical of a certain segment of the financial regulation bill. He says that it could have adverse effects on economic markets.

“There’s a sleeper in that there that’s worrisome,” Pozen said. “It’s the Securities Exchange Commission’s rule having authority over conflict of interests. What does that mean? I don’t like to see them with broad authority and without any perimeters. Are the going to tell hedge fund manager what they can make? I hope not. The markets won’t like that.”

Fannie Mae and Freddie Mac have come under fire several times this year with calls for new regulation. They are the two largest government-backed mortgage providers in the nation. The House of Representatives recently submitted the GSE Bailout Elimination and Taxpayer Protection Act to start winding down Freddie Mac and Fannie Mae, either by having them stabilize as private companies or to phase them out altogether.

Morrison Ranch Community Proposal for Elliot Groves Addition is a post from: Gilbert Arizona Mortgage

Morrison Ranch, a subdivision in Gilbert off of Elliot and Recker roads is looking to add more homes, according to the Arizona Republic. This proposal is meeting some opposition from residents who would rather see the land used for commercial property to bring in businesses.

The proposal is to rezone 157 acres in the Morrison Ranch community. The zoning change proposition went before the Planning Commission on Wednesday July 10. It includes around 9 acres of community commercial zoning in hopes to make room for more single-family housing.

The commercial land would have been large enough for a drugstore and a few smaller shops, developer Scott Morrison said.

The proposed addition, Elliot Groves at Morrison Ranch, would include about 500 lots, housing around 1,500 new residents. Seven current residents of various Morrison Ranch neighborhoods expressed displeasure at the loss of the commercial property:

“In this area you have probably more than a thousand homes, and they all need a convenience use like this,” resident Adam Baugh said. “The town would be doing itself a disservice by approving the elimination of this commercial. You’re going to be eliminating the tax base, especially in a time when you most need to preserve it.”

Additionally, town planners submitted a report to the Planning Commission expressing concern that the loss of commercial land would reduce the urban sustainability in Morrison Ranch and surrounding areas.

Morrison argued that an excess of such commercial property and too much commercial zoning would result in Recker Rd housing a bunch of empty corners. He also noted that there has not yet been any developer interest in the commercial lot in the proposal.

“Nobody was interested in that corner in 2006, when there was a lot of stupid money running around,” Morrison said. “My very real concern is if we keep all of the commercial corners at the size we have them today, that we will be talking about empty lots with weeds and saying, ‘I guess we bit off more than we can chew.’ “

Morrison said that part of the problem is the lack of freeway access on Recker, a road that already has no connections to the two major freeways of the area: the San Tan and Superstition. There is already ample commercial development on Power Rd (a road that does have freeway access) about a mile east and two south of the proposed community. There is also another 8 acres of commercial zoning at the SW corner of Elliot and Recker.

Due to an error, the Planning Commission will not address the proposal until their August 4th meeting, and it will likely be approved as long as it isn’t pulled from the consent calendar.

Help Your Kids Open A Roth IRA To Buy A Home In The Future is a post from: Gilbert Arizona Mortgage

Times sure have changed since I was a kid. When I was growing up, playing “Pong” on TV was a big hit as well as going to the pizza shop to stand in line to get my turn at PacMan.

Now, today, kids are texting and playing all sorts of games on their mobile phones. Kids can get anywhere they want through their phone – fantasy games, action games, surf to exotic places etc. But one thing that all kids that I know of need is money. I know my kids always seem to need money for this or that. Besides the everyday living stuff they also need money for the future – for college, for retirement, or for buying a home.

One great way to get money to your kids for the future is help them open a Roth IRA account. In order to do this, your kid must work and make real taxable money from their employer. If they do this, you can help them open an IRA account by giving them up to the amount that they earned during the tax year if that amount doesn’t exceed the yearly allowable contribution limit. If you need more clarity about this please talk to your financial adviser or tax preparer as I’m not either and what I say should not be taken as expert advice and guidance.

The advantages of helping your kid(s) start a retirement account are numerous – I’m only going to cover a few obvious ones.

One of the primary benefits of having a retirement account is that in many cases is the individual account owner can withdraw money from the account for the purposes of buying a home. The benefits are even better for those account holders who are first time home buyers. Under certain conditions money withdrawn from an IRA can be used without penalty.

The second benefit that I’ll point out is pretty obvious, but it merits some discussion. This benefit is directly related to the basics of saving money over time. Let’s say that you wanted to give your kid $5,000. You could start contributing let’s say when they turn 16 and get their job. You could give them $1,000 every year for 5 years. A pretty painless way to give them money. But over time if that is the only money that is ever contributed to that account it could grow to nearly $250,000 if it had an annual rate of return of 8% by the time your kid retired. Not a bad way to give an “inheritance”.

There you have it – two suggestions for how to give your kids money that will actually do them some good in the long run.