The FHA 203k loan is still a popular choice for people who are looking for a home that is in need of a few repairs – because it allows you to finance in the cost of the repairs directly into the mortgage.

Here is a simple overview of the FHA 203k loan program and certainly if you have questions, contact us – we help quite a few families get into a home with this loan program.

What is the Arizona FHA 203k loan?

The FHA 203k loan is a loan that is insured by FHA and has a low, fixed rate. People get FHA 203k loans when they want to buy a home that is in need of repairs because the loan program allows them to finance the cost of improvements directly into the loan. The FHA 203k consists of the purchase price of the home plus the construction costs for the work to be performed after close.

A Simple FHA 203k Loan Example 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

Is it easier or harder to qualify for an FHA 203k loan vs. a regular FHA loan?
The requirements to qualify are the same as a traditional 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 qualified, but those are the general highlights.

Free FHA 203k Loan Quotes

If you are interested in learning more about the FHA 203k loan program, contact us today for a free FHA 203k loan quote and see just how easy it can be to renovate the house of your dreams.

The Willo home tour is a self guided tour and lets you peek into some of the best houses as well as see the tree lined streets and there are also shuttle busses as well.

There will be 13 homes on the tour and the historic firehouse at 13th and Jewel will also be available for a tour. In addition to touring the homes, there is a LOT of excitement around the Willo street fair that will have food, artisans, music and more. Its a great way to spend a Sunday.

2012 Willo Home Tour:

Date: Sunday, February 12th, 2012
Time: Tour open 10am-4pm ( pick up will call tickets starting at 9am)
Place: Willo! ( McDowell to Thomas 1st Ave to 7th Ave
Tickets: You can BUY TICKETS for $15.75 before the tour, $18.00 day of tour
Parking: Free parking at 1st Ave and Holly ( just north of Chateau )

If you don’t already live in downtown Phoenix, here is an idea – TAKE LIGHT RAIL! Just a hunch, but I think it might just make the parking situation slightly better for you and your family.

Here is a video that gives a great overview of what to expect at the Willo home tour:

The Willo home tour is a family friendly way to see plenty of homes in the historic Willo district in a fun way. Maybe that is why many people come back for the Willo home tour year after year!

In the case of Sharon Johnson-Smith, Academy Mortgage and Steve Alonso were able to get them into a new home with financing only one year after a short sale.

Have you had a short sale in the past and now want to get a mortgage? Contact Steve today to find out how.

Get a Mortgage One Year After a Short Sale

Here is a letter from a client who recently closed on a new home only one year after having a short sale.

From: Sharon Johnson-Smith
To: Steve Alonso
Sent: Friday, January 13, 2012 11:12 AM
Subject: Endorsement

Hi Steve,

Here is our endorsement – and we mean it sincerely. -Sharon and Pinkie.

—–
And they said it couldnt be done My husband and I began to have our doubts, but Steve Alonso pulled it through.

We are elated about being able to get financing on a home after only ONE year since our short sale closing.

I was particularly doubtful after talking with several other realtors who were sure that it takes 2-3 years after a short sale before any lending institution will finance a mortgage.

I had serious second thoughts about going through with purchasing our new home, after talking with a couple of mortgage brokers who saw it highly improbably we would get financing this year.

However, Steve with his This will be done, attitude, actually did it. Thank you Steve for performing what was considered an impossible feat!

Sharon Johnson-Smith, REALTOR
480-893-0600
Fax:888-400-1956
West USA Realty
sjsmith100@hotmail.com
sjsrealestate.listingbook.com

Determine your financial position first. Believe it or not, buying a home doesn’t start with a real estate agent, it starts with conversations with mortgage lenders. You must determine what kind of loan program you can qualify for and what home price you can afford. Are you going to take advantage of low VA rates as a VET or use an 203K rehab loan from FHA? Are you going to pay points or how much downpayment will you need? How does your credit look?

Determine a wish list for your home. It helps to determine what you want in a home before you start looking. You waste a lot of time looking at homes that don’t fit your needs – it can also be frustrating sorting through homes that are in your price range but don’t have what you want or need. Also, by putting together a list of things you want in your home you can help your real estate agent (once you pick one) get right to the types of homes best suited for you.

Do some snooping. With the Internet making home searches so easy, take some time to start looking around to see what’s out there. You need a real estate a lot less than you used to when it comes to looking homes for sale.

Pick a real estate agent. There are a lot of steps to buying a home and real estate agents walk people through the home buyer process all the time. You don’t want to miss something as it may end of costing you a bunch of money and time. Once you get a sense of what, where, when etc. it’s time to hook up with a real estate agent. You’ll want to get an agent to represent you with submitting purchase offers and negotiating.

Hopefully this list will help you through the early stages of looking for a home.

One of the first things to get comfortable about when it comes to a short sale is that you will not likely be able to buy a new home for at least 2 years (all mortgage programs including VA loans, FHA loans and Conventional mortgages). The 2 year guideline stands as long you keep your credit record spotless from the time your short sale is complete until you try to get a new mortgage.

With this in mind you’ll need to think about renting a home for a at least 2 years to give yourself time to meet the minimum time requirements that you’ll need to get any type of mortgage. Mortgage programs differ and there are different time requirements following a short sale that you’ll need to know about if you plan to purchase a home after your short sale. Below you’ll see a summary of some of the time requirements.

Time Requirements To Getting a New Mortgage After A Short Sale

Fannie Mae (Conventional and Freddie Mac):

• 2 years with 20% down
• 4 years with 10% down
• 7 years with 3% down

FHA:

• 3 years from short sale completion date * Per FHA – you may be able to get a FHA mortgage under 3 years under special circumstances

VA:

• The VA hasn’t specified wait time guidelines after a short sale but plan on nothing less than 2 years.

USDA Rural:

• 3 years from the completion date

Jumbo:

• 7 years from completion date

Now that you have this list you may want to think it is set in stone. What you need to remember is that if you have a good reason for what caused the short sale you may be able to get an exception to any of the time frames listed above. Best thing you can do is talk to a few loan officers to get different opinions.

Upfront Fees – don’t pay them. You shouldn’t have to pay any upfront fees to a real estate agent or to the home seller to make an offer. If you are asked to pay an up front fee to a real estate agent to make an offer on a short sale home, then you should find yourself another agent to work with to represent you.

Get your financing figured out first – if you are a VET for example and are planning on taking advantage of low VA rates, then you’ll want to let everyone know you are trying to use a VA loan, or whatever type of financing you are planning on using so everyone knows the scoop. Ahead of time, get your financial matters in order so you know exactly what you are approved for, and that you have fixed any issues that may come up in getting your loan.

Inspections – while you won’t have to pay upfront fees, you may have to pay upfront for inspections if your offer gets accepted. You may even consider having an appraiser appraise the home to determine the fair market value of the home to help give you an idea of what you would want to offer on the home. It is also a good idea to have your home inspection. Talk to an experienced short sale agent about what you should do when buying a short sale home.

Get legal advice – if you are going to buy a short sale home, make sure you get in touch with an experienced real estate attorney who is familiar with Arizona real estate law. You will also want to speak with a CPA or other tax preparer about any obligations you may have when buying a short sale.

Disclosures – Make sure you get property disclosures about the home from the home seller. They should disclose the history of the property since they have owned it.

Get an experienced real estate agent – this is important. You must work with someone who has dealt with short sales before, unless you want a headache. Ask for the number of short sale deals they have done, and some referrals. You need to do your homework. See if you can find them online and talking about themselves as someone who has experience in short sales.

Last but not least – give yourself time, be patient, and be aware that just because you are negotiating a short sale offer with the lender they may still sell the home through a trustee sale. YOu should find out from the real estate agent if they know of any trustee sale information. Has foreclosure been initiated etc.? Most of this information is public so they should be able to help you determine if there is a risk that home may be sold while you are trying to buy it.

Trees that are sick or decayed can be tricky to remove, so finding a Phoenix tree removal professional is critical to keeping your family, pets and home safe. How can you decide if your tree needs to come down or if it just needs trimming?

Look carefully at your tree for these signs. Are the leaves wilted or discolored? Are there any cracks in the truck or limbs? Are funguses or mushrooms growing near the trunk and along the roots at the base of the tree? Can you see ants or sawdust at the base of the tree indicating insect infestation? Is the tree lopsided from human damage? These are signs the tree is severely damaged and probably dying which process is irreversible.

A Phoenix tree trimming company can try to save the tree and will if it is possible. Crown trimming is needed when the tree has too many limbs and leaves to allow the light into the tree. Not only does this cause decay it blocks wind so when the monsoons come, the rain-heavy tree blocks the wind and falls.

Crown raising involves removing branches that are too low to the ground preventing people walking under or blocking the line of vision to your home.

Crown reduction refers to the trimming of the tops of the trees. This is especially necessary so utility lines are free from potential damage.

Besides trimming, the most important thing you can do to have healthy trees is to mulch. Use hardwood grinding, bark chips or pine straw, 2-4 inches deep under the drip line of your tree (wherever the sun would shine if there was no tree) but staying 5 inches away from the trunk. Mulch will keep moisture in the ground, condition the soil and protect the tree’s roots from damage.

Have more questions? Be sure to contact Tree Doctors Inc for help.

Is strategic default wrong? Does doing a strategic default mean that you just simply “walk away” from the home? Is there a right and a wrong way to strategically default on your mortgage?

Kevin Hardin is a local short sale, loan modification and bankruptcy expert in Phoenix and answers just a few of the questions about people have regarding strategic defaults in this short video.

Have more questions about strategic defaults in Arizona? Contact  the local experts on this topic by clicking on the banner below.

If you really want to know what is going on with getting a loan modification done, who better to talk to than the legal experts who are helping clients with them every day?

Kevin Hardin is the local expert I like to refer people to when it comes to answering questions about getting a loan modification done and what to expect.  In fact, I happen to know that there are at least 7 secrets about loan modifications that most people don’t know about.  Here is just an idea of one thing that I know many people I talk with have no idea about: your lender most likely doesn’t own your loan.

#1: Who really “owns” your loan?

Here is just a little more information about some of the things Hardin covers when talking about loan modifications and what to expect as you attempt to get your lender to modify your loan.

Arizona Loan Modifications: 7 Things To Know

• Who really “owns” your loan? It may not be who you think
• Your permanent loan modification isn’t permanent?
• A forbearance is not the same as a principal reduction
• Once you are underwater in your mortgage, it is virtually impossible to no longer be underwater
• Are loan modification payments current payments?
• Does a loan modification save your home?
• How long before you can become a homeowner again?

Have more questions about what is possible when it comes to loan modification here in Arizona? Be sure to contact Kevin by clicking on the banner below and learn what your options are.

In my experience, properties that are currently owned by the bank are in need of a few repairs before anyone can live in them.

Which is why I get quite a few questions about two of the most popular loan programs designed to help homeowners finance needed repairs on a new home: the Arizona FHA 203k loan program and Fannie Maes HomePath mortgage program.

One of the more common quick questions I hear when people are learning about these loan programs is:

Which is better, the HomePath momortgager the FHA 203k loan?

The simple answer to this question is it depends and before I give you a simple formula that might help you choose between the two programs, here is a quick review of each loan program.

The FHA 203k and FHA Streamline 203k Loans

The FHA 203k loan program can be grouped into two different types of loans: the FHA Streamline 203k loan program and the FHA 203k loan. The FHA 203k streamline is designed to be a limited repair program and has simpler processes and no HUD consultant required like on the full FHA 203k loan. In my experience, the FHA 203k streamline is a more popular option since many of the needed repairs for bank-owned homes can be considered cosmetic.

Highlights of the FHA 203k streamline loan include:

• It works very similar to a construction loan it allows you to purchase a home that wouldnt qualify for FHA financing due to repair work being needed
• The loan amount is equal to the purchase price of the home plus the amount needed for repairs
• FHA 203k streamline program allows for repairs ranging from $5,000 and $35,000
• Qualifying for FHA 203k loans are the same as regular FHA loans
• Repair work cannot begin until loan closes and the money to pay contractors comes from an escrow account set up when the loan closed
• FHA 203k loans require UFMIP and MIP just like regular FHA loans
• Appraisal required
• Currently available for owner-occupied properties only although I have heard rumors of an Investor 203k loan coming soon.

Fannie Mae HomePath Renovation Loan

When the housing downturn began and Fannie Mae started owning more homes than ever before, one of the things Fannie Mae did to help move the homes to new owners was to design the HomePath mortgage program.

The HomePath mortgage program has two different programs within it the HomePath loan and the HomePath Renovation loan.

For homes that are in need of repairs, the HomePath Renovation loan is the loan program that is often compared to the FHA 203k loan when weighing options.

HomePath Renovation loan highlights include:

• The property must be currently owned by Fannie Mae
• The loan amount is for both the home and the repairs required for the home
• Repairs can be up to 35% of the as-completed value, but not to exceed $35,000.
• Down payment requirements can be as low as 3%
• Fixed or adjustable rates are available
• No mortgage insurance required
• Investment properties or 2nd homes and investment properties are allowed
• No appraisal required
• Lenders can be difficult to find, not every lender is HomePath approved and many HomePath approved lenders do not offer the HomePath Renovation loans
• HomePath Renovation Loan or FHA 203k Loan?

When deciding on financing for a home that is in need of repairs, the Fannie Mae HomePath Renovation loan program and the FHA 203k loan program are what most people are going to select.

Is there an easy way to select the right loan between the two?

Yes.

Which Loan Program Is Better?

Here is a simple way to choose the right loan program between the two if you are buying the home as your primary residence:

• Is the home owned by Fannie Mae? If yes, it probably makes the most sense to get a HomePath Renovation loan.
• Is the home owned by someone other than Fannie Mae? If so, then your best option is the FHA 203k loan.
• While both the FHA 203k loan and the Fannie Mae HomePath Renovation loan programs are similar, I have found that for houses owned by Fannie Mae it usually makes more sense to go with the HomePath Renovation loan.

Which means the first question you may want to ask is:

Is this house owned by Fannie Mae?

And then you will have your answer.