Recently I’ve had a few borrowers who have just graduated from college and are trying to buy their first home or refinance their current mortgage. Unfortunately their debt-to-income ratio (DTI) is too high due to numerous student loans. Years ago when I graduated from college, there were loan consolidation programs available -- However, in April 2008, Sallie Mae announced that they will … [Read more...]
How To Buy A House In Arizona With No Money Down
Is it still possible to buy a house with no money down in Arizona? Yes. There are several non-profit programs out there that allow for some type of assistance for people who want to buy a house. These programs started in the mid-1990's and are still around today -- and it is one of the only ways currently to buy a home with no out of pocket money required! Nehemiah is one of the largest … [Read more...]
The Ten Step FHA 203(k) Application Process
In my experience, there is no exact application process for any loan! Each person seems to have different timelines and each time someone buys a home it is a little different. But, in general the application process for an FHA 203(k) loan looks like this ten-step process and involves these key players: The Borrower The Realtor The Mortgage Lender The Contractor The Consultant The … [Read more...]
The FHA 203(k) Program – How It Is Different From a “Regular” Mortgage
The FHA 203(k) program is different than most other home mortgage financing options in that the 203(k) loan accounts for the value that the house is *going to be worth* once repairs are done. There are 3 eligible situations where an FHA 203(k) mortgage can be done: To purchase a house on a plot of land and rehabilitate it (the most common) To purchase a house on another site, move it onto a … [Read more...]
FHA is becoming a popular Arizona Mortgage option
Most people already know that FHA is short for Federal Housing Administration – it is all over the news in recent months. And as you may also know – FHA doesn’t actually lend anyone money, they only insure loans that are underwritten to certain criteria. Some of the most common questions that I hear regarding FHA programs include: What is FHA mortgage insurance and how does it work? Why … [Read more...]
What is PMI and do you need it?
If you are buying a home chances are the topic of PMI has come up, and you’ve wondered what it is. PMI stands for Private Mortgage Insurance, and is an extra fee built into your monthly mortgage payment designed to protect lenders against foreclosure costs. The protection is provided by third-party PMI companies, which work in a way that is similar to other types of insurance companies. PMI … [Read more...]
Buying A Home In Arizona: What Can You Afford?
Throughout Arizona, the current market cycle is "buyer friendly" -- meaning that there are more sellers than there are buyers. This is great news if you are in the market for a home! Many first time homebuyers are unsure of "exactly how much home they can afford". There are few things as frustrating as finding a home that’s just perfect, only to find out you can’t afford it. How do you … [Read more...]