100% FHA Financing Still Alive & Kicking

Things are currently changing at a record pace within the mortgage industry. Loan guidelines, programs, and parameters are changing on a weekly basis. Some of the changes have been for the better here in Arizona, but many have been more restrictive to the first time home buyer and real estate investor. I am happy to inform you as of this very moment (8/11/08) 100% financing is still alive and well for borrowers who qualify.

FHA purchases are designed to have a 3% down payment. For years there have been institutions that will “assist” borrowers who need help with the 3% down. The function of these institutions is referred to as Down Payment Assistance or DPA. The most prominent DPA entities (i.e. Ameridream and Nehemiah) will take a 3% gift from the seller and grant it to the buyer to constitute your down payment. The Federal government made ovations to eliminate the DPA programs as of October 2008. Fortunately, enough petition signatures were gathered over the past few weeks to extend the existence of current DPAs indefinitely.

The combination of Down Payment Assistance with negotiated seller contributions (for closing costs & prepaids) creates a platform for home ownership without any money due at the closing table. This is most likely not the best program for everyone looking to buy, but it does give another option to own a home without need a large sum of money to qualify. The USDA Rural Housing program is the other 100% program currently available.


JIM CUNNINGHAM
Nova Home Loans
8800 E Raintree Drive #180
Scottsdale, AZ 85260
480 614-6413
602 434-8261 cell
jim@novahomeloans.com
http://activerain.com/jcunningham

100% Financing in Anthem, Buckeye, & Queen Creek

If you are a buyer still looking to buy your first home (or) if you are a realtor who has a handful of First Time Homebuyers who don't have down payments - Listen To This.

When it comes to affordable housing programs, (HUD) the US Department of Housing and Urban Development gets the majority of Arizona's attention. Well, let me introduce you to HUD's distant cousin RHS. If have you have never heard anyone refer to the (RHS) Rural Housing Service, you are not alone. The RHS operates under the (USDA) U.S. Department of Agriculture, and they actively promote affordable housing programs for Rural areas.

These "Rural" areas in which this program is offered may surprise you. Anthem, Buckeye, Queen Creek, Casa Grande, Whitman, Wickenburg, Tramonto, and basically 95% of the State of Arizona outside of Maricopa County all have Rural zoned houses ready for 100% financing. This program has some limitations but let me give you some highlights...

•· Loan will cover up to 102% of appraised value (not just the sales price)
•· No minimum credit score
•· No down payment needed
•· Finance all closing costs
•· Full doc only
•· 30 year fixed (roughly 6%)

There are obviously more details to this program but no huge curveballs. Please contact me and I can send you more details on this program. The realtors I am working with on this program are already getting more business because of it.

LETS ALL CLOSE MORE DEALS!!

Jim

JIM CUNNINGHAM
Community First Financial, LLC
7575 E Redfield Rd Suite 235
Scottsdale, AZ 85260
480-305-8900 ext 305 - office
480-907-2435 - fax
602-434-8261 - cell
jcunningham@communityfirstfinancial.com
http://www.communityfirstfinancial.com/
http://www.jimcunninghamcff.blogspot.com/
http://activerain.com/jcunningham

Jim's Mortgage Newsletter May 08

Jim’s Soapbox

(Arizona Real Estate Newsletter - May 08)

My wife Madalyn often says to me “…when one doors closes, another door is opened”. I have found that is a great way to describe today’s Real Estate market here in Metro Phoenix.

A common media-driven perception today is that the Phoenix housing market is far more risky than it has ever been before. I find that to be a funny concept for the media to promote, because in really isn’t accurate. Actually, the risky time to buy real estate in Phoenix was that period of time between the unnatural value boom, and the inevitable drop off. Metro Phoenix had a very stable (appreciating) market for 10+ years leading into the boom, and we have almost returned to the point where property value would have appreciated to without the peak and valley of ’05 to ‘07.

I am not going to argue that everything is roses & rainbows within the housing market right now. However, I would like you to take notice that there are so many other ways to take advantage of Arizona Real Estate, that regardless of the condition of our current market, it always the perfect time to do something.

I would like to share some Real Estate projects and concepts that are booming today. The housing market is not lousy, it is simply different.

· Rehabs
· First Time Purchase
· Investment Purchase
· Home Equity Lines of Credit

Notice that I am not suggesting in any of these concepts that you sell any of your property. You should never sell real estate in a down market unless you really have to. I believe we are almost to the end of the depreciating portion of the cycle – hold on to your property.

REHABS

“Rehab” is a buzz term in our industry for any renovation you plan on doing to an existing home. If you want to add a new bedroom, expand your bathroom, build a guest house, or enclose your patio – you are basically talking about a rehab project.

Today is a great time to renovate your home. Compared to 18 months ago, rehabs are much cheaper per square foot and they get finished in a fraction of the time. In 2006, it could take up to 60 days to get the concrete delivered – not to mention the delays in framing due to the lumber shortage. I am not in the construction industry (I am a lender), but I can attest that projects that took 9 months to complete in 2006, now take about 2 months. The summertime is also a great time to rehab your house in metro Phoenix, because the delays from rain & humid weather are pretty hard to come by.

There are several ways to finance your Rehab project depending how big your project is. Sometimes drawing on a new (or existing) Home Equity Line of Credit is the best way to go for short term money. Also, “one-time” construction loans are a popular option for large scale projects. Either way, you can call me with questions because there are special programs for Rehabs to keep your closing costs to a minimum.

Here is the name of a Rehab Specialist I trust, and have worked with for several years. His name is Marten Niner. His cell phone is (602) 739-7073 & his email address is justintimecontracors@yahoo.com. Martin can both help you with the design of your project and give estimates. He is a good first step in this process.

There are many other great Rehab companies here in Phoenix, just be sure to ask for references before you commit.

PURCHASE YOUR FIRST HOME

In case you haven’t followed the housing trend this year I have great news,… it is a buyer’s market!! The next 6 months, preceding the election, could mark the low tide of property values in Maricopa County. I could not think of a better time to buy than when property is at its lowest. Buy low and Sell high are still pretty good words to live by! Take advantage of distressed property prices and have the seller pay for 100% of your closing costs. The last 8 purchases I financed had the seller paying every penny of the closing costs.

Also, 100% financing is still around. I have FHA programs with Down Payment Assistance (i.e.Nehemiah and Ameridream) that let you purchase with only $500 out of pocket. I have the 102% Rural Housing program if you would like to purchase a home in Anthem, Queen Creek or Buckeye (for $0 out of pocket). If you are not sure if you qualify, call me & I can let you know the next day.

INVESTMENT PURCHASES

Again, in case you haven’t followed the housing trend this year I have great news,…IT IS A BUYER’S MARKET!! This is probably the best time to get an investment property since the summer of 2001! A common complaint that I hear today is the inability to do 100% financing on investment homes. Well, that statement is very true; you are going to need 10% - 20% down to buy an investment property. However, you can actually purchase a home that has a positive “cash flow” now. You can find a pre-foreclosure property with $50K in equity the day you buy it. (You won’t be able to get to that 50K equity out right away, but you could leverage it to your favor in about 366 days J).

I also have a great Hard Money Lender that will allow you to purchase an investment property (that requires a rehab) and they will lend you 90% of the whole project (including the cost of the rehab). So, for 10% down you can buy a Fixer Upper, and finance the repairs all at the same time. I quoted them out last week, and they were charging only 8.875% and 1.5 points. That is a smoking deal!

HELOCs

Even though a lot of banks have run away from selling this type of product, there are still a few banks that do them very well. The advantage of the Home Equity Line of Credit has been two fold. There is the advantage of the low rate and the flexibility to use it. Today the Prime rate is 5% & I have HELOCs with rate as low as Prime -1%. That means you can borrow at a net rate of 4%. I am confident that 4% interest rate beats most credit cards, furniture loans, pool loans, fixed 2nd mortgages, and car loans. It is the most powerful debt consolidation tool available. next to inheritance

The ability to leverage a HELOC to 100% to the value of your home has basically disappeared, but 85% is still available. If you have $10,000 in revolving debt and Equity in your home you should think about consolidating.

I am looking towards a great summer both socially and professionally. If you have any questions on this material, or just want to say “Howdy”, feel free to give me a call or an email. The line about inheritance was a joke – I am trying to keep you on your toes.

All Best!!
Jim

JIM CUNNINGHAM
Community First Financial, LLC
7575 E Redfield Rd Suite 235
Scottsdale, AZ 85260
480-305-8900 ext 305 - office
480-907-2435 - fax
602-434-8261 - cell
jcunningham@communityfirstfinancial.com
www.communityfirstfinancial.com
www.jimcunninghamcff.blogspot.com
http://activerain.com/jcunningham

100% Financing still available

100% Financing Still Available

If you are a buyer still looking to buy your first home (or) if you are a realtor who has a handful of First Time Homebuyers who don’t have down payments – Listen To This.

When it comes to affordable housing programs, (HUD) the US Department of Housing and Urban Development gets the majority of Arizona’s attention. Well, let me introduce you to HUD’s distant cousin RHS. If have you have never heard anyone refer to the (RHS) Rural Housing Service, you are not alone. The RHS operates under the (USDA) U.S. Department of Agriculture, and they actively promote affordable housing programs for Rural areas.

These “Rural” areas in which this program is offered may surprise you. Anthem, Buckeye, Queen Creek, Casa Grande, Whitman, Wickenburg, Tramonto, and basically 95% of the State of Arizona outside of Maricopa County all have Rural zoned houses ready for 100% financing. This program has some limitations but let me give you some highlights…

• Loan will cover up to 102% of appraised value (not just the sales price)
• No minimum credit score
• No down payment needed
• Finance all closing costs
• Full doc only
• 30 year fixed (roughly 6%)

There are obviously more details to this program but no huge curveballs. Please contact me and I can send you more details on this program. The realtors I am working with on this program are already getting more business because of it.

LETS ALL CLOSE MORE DEALS!!

JIM CUNNINGHAM
Community First Financial, LLC
7575 E Redfield Rd Suite 235
Scottsdale, AZ 85260
480-305-8900 ext 305 - office
480-907-2435 - fax
602-434-8261 - cell
jcunningham@communityfirstfinancial.com
www.communityfirstfinancial.com
www.jimcunninghamcff.blogspot.com
http://activerain.com/jcunningham