Let’s face it, buying a home requires some sort of down payment unless you are fortunate enough to be eligible for a VA loan or a USDA loan. The VA loan and the USDA loan are the only true no down payment 100% financing programs around in 2012. So if you don’t want to buy a home in a rural area with a USDA mortgage and you aren’t eligible for a VA loan then you’ll be stuck with coming with at least 3.5% or more for a down payment.

So, with knowing that you’ll need a down payment next comes the topic of where or how to come up with it if you don’t already have it in the bank.

1. Your Family – if you are going to go the least amount down one of the best options for down payment assistance may be your family. FHA loans allow for all of your down payment to come from a family member. This is unlike conventional financing which requires you to have 5% of the sales price as your own funds before you can get help from your family member. If you plan on working with a family member for your down payment make sure you speak to your loan officer first before any money is exchanged.

2. Your 401K – you may think that your 401K is off limits until you retire – if this is you – then think again. Most retirement plans have some sort of provision that allows you to borrow from it for the purposes of buying a house. Borrowing from your 401K can be a great place to get money and the repayment of the money only goes back to you which means all that you borrow stays with you.

3. Your Coffee Cup – ok this isn’t that funny – more on a serious note – where is your disposable income going? What are you spending your money on? This can be a serious gut check. Starbucks and the Escalade are nice lifestyle choices, but they can get in the way of home ownership. If you look around, you can find ways to save significant amounts of money that will add up over time. Can you make coffee at home or do you have to buy it on the run? Chances are – home is a good answer more times than not.

4. Your Local Government – Just about every local government in the US has some sort of down payment assistance program that provides funds for low to moderate income families. Down payment money in many of these programs comes in the form of a forgivable loan or grant that requires you to live in the home for a specified period of time like 5 years or more.

Plus 1 – just like your local government, your employer may have a home purchase program that may be worth your time checking into. Municipalities and government agencies often have some type of down payment and or first time home buyer programs that provide some sort of financial assistance for buying a home. Checking with your HR department may be one of the best things you could do for yourself if you are looking to purchase a home.

Hopefully if you follow some of these methods you could get into home ownership quicker than you were thinking. If you want to see where you stand with qualifying, please fill out the form below.

But, on the other hand, it is safe to think you wouldn’t expect to have the current owner leave behind their furniture, artwork, clothing, and other household items as they move out. Who goes to an open house and imagines the current owner’s TV and their furniture – no you imagine your own stuff.

Now why is this important to talk about as you are starting the home buying process? All of this is important to make sure that your real estate agent spells out what comes included with a given house and what does not. If there is something that you want left behind you need to negotiate for it.

An area in home buying that often can get murky is kitchen appliances. Does the current owner have plans on taking their refrigerator for example? Another example, are the washer and dryer going to remain in with house when you buy the house and the previous owner leaves?

You should be able to count on your real estate agent to help you figure out what stays with the home and what doesn’t, but you should make sure you ask questions. Ultimately, as we just mentioned, if you have a question, or if you want something make sure you talk to your agent about it so that you can negotiate for it in the sales contract.

A general guideline for what items stay and what goes could be summarized by what is bolted down stays like: outdoor decks, cabinets, and dish washers and what is not “bolted” down goes like furniture, maybe washer and dryer, and refrigerator.

Lastly, if it isn’t clear by now, hopefully this will make it clear – if you want something – make sure you ask for it.

This is especially good news for homeowners in hard hit areas like Arizona and California (and all other states in the US) where it has been taking 4-6 months or more to get an answer on a short sale request.

The goal of the new updated guidelines for short sale approval times is to get a homeowner (and home buyers) an answer within 30 days. The change in guidelines is in direct response to real estate agent and mortgage industry professionals primary complaint about the short sale process in that it takes a long time to get an an answer on a sales contract request.

Long turn around times result in a lot of home buyer dropout as well as foreclosures. With quicker response times, we should see some improved neighborhood stabilization as well as better maintained properties which will lead to a stronger housing market overall.

To see if you qualify to buy a short sale or to sell your home in Arizona please complete the form below.

This confidence overlooks one important element of home buying: the upfront cost of buying a home. No matter how you finance your mortgage, there’s no question that purchase a new house will require a down payment in addition to various other peripheral costs. These costs all add up quickly and usually cannot be deferred. As such, a prospective buyer needs to closely consider the initial expenses before going forward with a purchase. If the expenses are manageable, the purchase and the moving process can proceed. If not, no mortgage plan should obscure the fact that a given house may be out of your price range – or, simply, that now may not be the best time to move.

So what are the main upfront costs associated with buying a new house? Let’s take a quick look:

-Down payment. A new owner will typically be required to pay a down payment towards the purchase of their home. This payment varies in amount but usually represents 5%-20% of the total sale price. Since there are few homes being sold for 5% down since the housing bubble, we can probably assume a payment that falls more in the 10% to 15% range.

-Closing costs. If used in the transaction, real estate agents will be sure to take a cut of the sale price. In most cases, this cut falls somewhere in the vicinity of 5%.

-Moving expenses. Determining the cost of physically moving from one home to another can be difficult, especially considering that distance and weight stand to vary tremendously based on individual circumstances. But, for someone moving 10 miles and requiring the transport of 10,000 pounds, moving calculators estimate that costs will fall in the range of $5,000. Of course, one could save considerably by renting their own storage containers and doing all the work themselves.

-Upgrades and remolding. This final category is a true wild card, as your costs here could fall anywhere from $0 to several hundred thousand dollars. Some people will want to completely redo the kitchen when moving into a home – a highly expensive proposition – while others will simply seek to plant some flowers and paint some walls. Make sure that you have an idea of your plans and the associated costs while planning your moving budget.

So, assuming that you won’t spend any money on that last category, we can make a general estimate of the upfront costs.

If you’re buying a $200,000 home…

-Down payment: $20,000-$30,000 (average of $25,000)

-Closing costs: $10,000

-Moving expenses: $5,000

-Remodeling: $0

Total upfront costs: $40,000

While this is an extremely rough analysis, it nevertheless goes to show that a home’s upfront costs can be very considerable. If you’re planning a move sometime in the near future, don’t forget to keep these expenses in mind and only pursue a home that comes with upfront costs that you can afford.

In the old days of buying a home – Arizona included – you had to prove to the banker that you could afford the home and that you weren’t too much of a risk for them. Today, in 2012 much is like those old days – it is up to you to prove that you are not too much of a credit and income risk for the bank to give you a mortgage. The days of no income loans or stated income loans over.

Below is a basic list of items you’ll need – Arizona included – to qualify to buy a home.

• Last 2 pays stubs to cover a 30 day period and that needs to indicate your year to date earnings.
• Last year’s W-2 – that is your 2011 W-2 or W-2′s (if you have multiple employers.
• Last 2 months of bank statements (both checking and savings) – the key here is every page needs to be sent even the blank ones.
• Last monthly or quarterly statement for any retirement accounts you may have that you need to use for cash for your home purchase.
• Last monthly or quarterly statement for any mutual fund or money market fund account you have that you need to use for cash for your home purchase.
• Credit report – the lenders you talk with will want to pull your credit. As long as you let them pull your credit within 14 days or so of each other you won’t bother your credit scores by having more than one company get your credit report. You’ll want to get your report first in the event that you have some issues on it that you weren’t expecting that you need to correct.

Other items that you may have to supply:

• Divorce decree
• Marriage settlement statement
• Bankruptcy discharge paperwork
• Permission from the Chapter 13 trustee giving you permission to buy a house
• SSI award letters
• Pension award letters
• VA certificate of eligibility

If you want to see if you qualify for a home in 2012, please fill out the form below – especially if you are in Arizona, Connecticut, Idaho, and California.

If you have gone through a short sale or a foreclosure in the Phoenix area, or anywhere in the state of Arizona, there is a loan – a true second chance mortgage program – available from Starboard Financial that offers a second chance at home ownership.

Second Chance Mortgage Program Requirements

• You must have sufficient income – you must have a debt to income ratio of less than 50% – meaning your overall monthly debt compared to your provable monthly income must be less than 50%.
• You must have money for down payment – in order to get this mortgage program you must have 25% down payment. If you have less than this but have some compelling reasons you may qualify so it is worth checking out the program.
• FICO score – not applicable – there are no minimum FICO score problems as with most loan programs.
• Detailed letter of explanation – you need to explain your current situation and what happened that led you to your current situation.
• Income documentation – you will need to provide your last two years of W-2′s, last 2 years of 1040 tax returns (full signed copies), and your two most recent pay stubs.

Starboard Financial offers this loan program and if you have questions about it, please contact Dale Stouffer at Get Second Chance Loan Arizona. If you have recovered from your situation and want to own a home before the standard wait periods after short sale, foreclosure, or bankruptcy as specified by FHA/VA/Fannie Mae/Freddie Mac it is worth checking out this true second chance loan program in Arizona. Use the form below to see if this second chance loan is for you.

As you face the decision to either go with a short sale, foreclosure or bankruptcy or you aer recovering a lot of what’s possible after the fact is based on how you handle things as you go through it.

The good news is that you can take advantage of low FHA rates immediately after a short sale if you didn’t miss any mortgage payments and have kept your credit accounts up to date. But, that’s where the buck stops: there’s no taking advantage of other loan programs like VA loan or conventional mortgages following a short sale or other financial problems for several years.

See below for a summary of your options for life after a short sale, foreclosure, or a bankruptcy.

Short sale with FHA Loan

• No waiting period if you were not in default
• 3 year wait if in default at the closing
• Reduced wait if you re-established good credit and can show extenuating circumstances

Short Sale With Fannie Mae Loan

• 2 year wait if you put 20 % down
• 4 year wait if you put down between 10% to 20% down
• 7 year wait if you put less than 10% down
• 2 year wait if you can show extenuating circumstances and put more than 10% down

Short Sale with Freddie Mac Loan

• 4 year wait before being able to get a loan
• 2 year wait if you can show extenuating circumstances

Foreclosure with an FHA Loan

• 3 year wait before being able to get a loan
• Reduced wait if you can show extenuating circumstances and re-establishes good credit

Foreclosure with a Fannie Mae Loan

• 7 year wait from the completed foreclosure sale date
• 3 year wait if you can show extenuating circumstances. Additional underwriting requirements apply for 4 years after a 3 year waiting period.
• 7 year wait for a 2nd home, cash out re-financing, or an investment property

Foreclosure with a Freddie Mac Loan

• 5 year wait from the completed foreclosure sale date
• 3 year wait if you can show extenuating circumstances

If you are trying to decide what is best between completing a short sale or going through a foreclosure in regards to purchasing another property in the future it may all just boil down to the waiting time you are willing to endure. If you have questions about your home buying status specifically in Arizona – please fill out the form below and we’ll get in touch with you shortly.

FHA Streamline Refinance Requirements – 2012

• You must have an existing FHA mortgage to use the streamline refinance program;
• your mortgage payment must be current;
• you can have a 30 day late if you have made 3 consecutive on-time payments;
• the result of the mortgage refinance must lower your mortgage payment (lower interest rate); and
• you cannot use the Streamline program to get cash back or cash out.

Notice we didn’t suggest that you need paystubs, a verification of employment, an appraisal, or that you even had to get a credit report? That’s right, because the FHA streamline refi program in its truest form doesn’t require them. These requirements we listed above are from the HUD – FHA website BUT they are subject to FHA specific lender guidelines too. If you feel like you meet these requirements and you have an older FHA loan with higher than current market interest rates then you should check with an FHA lender to see if you qualify. To talk to a loan officer about this program please complete the form below.

In an effort to attract more eligible borrowers who could benefit from the Home Affordable Refinance Program, the Federal Housing Finance Agency (FHFA) recently announced changes to the HARP Program.

The HARP refinance options are designed to assist Fannie Mae home borrowers who have demonstrated  acceptable payment history on their existing Fannie Mae mortgage loan, but may not have been able to refinance to obtain a lower payment because they are underwater.

Another purpose of HARP is to help homeowners to move their mortgage from a less stable loan program to a more stable loan program. For example – from an adjustable rate mortgage to a fixed rate mortgage.

The First HARP Refinance Modification – Loan To Value

Fannie Mae is removing the maximum LTV ratio limit for Refi Plus mortgage loans secured by fixed-rate mortgages with terms up to 30 years. This includes loans with terms of 15 years, which were previously restricted to a maximum LTV ratio of 105%. There continue to be no limits on the CLTV or HCLTV ratios.

• The maximum LTV ratio limits for all occupancy and property types are:
• no maximum for fixed-rate mortgages with terms up to 30 years,
• 105% for fixed-rate loans with terms greater than 30 years up to 40 years, and
• 105% for ARMs with initial fixed periods greater than or equal to five years and terms up to 40 years (as permitted by the ARM plan).

HARP Refinance Effective Date

You must apply for the new program after Dec 1, 2011.

New Underwriting Requirements for the HARP Refi Extension

To make the HARP program available to more US homeowners the program underwriting requirements have been expanded to include:

• Mortgage payment history requirements: you cannot have had any mortgage delinquencies on your existing mortgage in the most recent six month period, and no more than one 30-day delinquency in months 7 – 12.

• Requalification requirements for large payment increases: A new policy is being introduced that requires the borrower to be requalified for the new loan if there is a large payment increase. The following requirements must be met when the principal and interest payment increases by more than 20% of the current contractually obligated payment under the note:- minimum FICO credit score of 620;
  - maximum DTI ratio of 45%;
  - verification of income sources; and
  - verification of assets to close if the you arerequired to bring funds to closing.

Removal of bankruptcy and foreclosure policy: Fannie Mae is removing the requirement that the borrower (on the new loan) meet the standard waiting period and re-establishment of credit criteria in the Selling Guide following a bankruptcy or foreclosure. The requirement that the original loan must have met the bankruptcy and foreclosure policies in effect at the time the loan was originated is also being removed.

Borrower benefit requirement: To be eligible for Refi Plus and DU Refi Plus, the borrower must receive a benefit in the form of either a reduced monthly mortgage payment (principal and interest) or a more stable product, such as a move to a fixed-rate mortgage from an ARM. Fannie Mae is updating the borrower benefit criteria to also include a reduction in the interest rate or a reduction in the loan amortization term as eligible borrower benefits.

With this said, the Internet is a big place and there are a ton of retail consumer centric websites to visit for starting the process. Below is a summary of some of the major websites to check out as well as a few gems that might not be as well know but offer excellent information and help.

First of all, HUD.gov is a great resource to learn all about government mortgage programs like VA loans, FHA loans, and USDA mortgage programs. These programs alone serve a lot of home buyers in the US because they are not so tight on credit history and they have lower down payment requirements while still offering competitive interest rates.

LowVARates.com. LowVARates.com is a website dedicated to serving the nation’s Vet’s. VA loans offer a great loan program for those who are eligible. You can get mortgage information and you can get actually financing help no matter where you live in the US.

Zillow.com. Zillow is a huge repository of homes for sale all over the US. You can reach loan officers and real estate agents as well as get property information for just about every address in the US. You can also get home value estimates from Zillow, but be careful as these estimates should be taken with a grain of salt. It is very difficult to really determine the value of a home if you don’t physically visit it.

Bestplaces.net. Bert Sperling’s best places website has an exhaustive amount of information including census data, health reports, property value trends, crime stats, etc.

Realtor.org and Realtor.com. Both of these websites are operated by the National Association of Realtors. You can get regional and industry wide information from here for just about any topic you want. You can also get home listing information based on state, zip, and or city, as well as mortgage rates and mortgage calculators.