Monday, March 28, 2016

Key Advantages of FHA Back to Work Program Arizona

Most people still suffered from financial issues. Even if they consulted experts or used mortgage calculator Arizona before applying for a home loan, factors like problematic market condition causes them to lose their properties to foreclosure, short sale, and bankruptcy. Luckily, FHA is offering the Back to Work Program, which allows homeowners to go back to property ownership despite their financial troubles. Here are the key benefits of this program offered to clients.

Being Able to House Again

Many people consider owning a home the American Dream. Losing a home affects a lot of people and cause them to lose faith on their finances and even their lives. With this program, they have the chance to own a home again and relive their American Dream. Owning a home also lets them have a great place to live in rather than renting or simply living with another family member.

Gives People a Chance to Renew Their Lives

Losing a home derails a person’s perspective of life. They look themselves in a different light, causing lack of confidence. On the other hand, people may also judge them due to their predicament of being homeless. This program lets them regain confidence on themselves and help others see them positively again. Not only do they have the house, they feel that their finances are back in shape. This also serves as closure for those who lost their houses and finally get a hold of the investment they once let go then move on. Many people who got another house through this program are able to maintain their properties then move on with their lives.

Options in Showing Supporting Documents

Numerous documents must be presented to prove that market problems or their own issues cause clients’ financial demise. Back to Work Program needs buyers to prove that they lost their home as triggered by financial issues. Options include bankruptcy documents and other documents are not necessary. For instance, a household can have several people generating income, which can be useful in paying FHA mortgage. However, not everyone is needed to show proof of 20 percent loss of income for this program. Not all borrowers is also required to show these documents. This allows clients to confidently apply for the program.

More Lenders Supporting this Program

The best advantage is numerous lenders supporting this program. Clients will have more opportunities to get the perfect deal that will help them save money. They are still in the process of recovering their finances. Although the deals offered for this program won’t be that friendly to their budget, they can still save money with the lenders offering this product.

FHA Back to Work Program is a great help for homeowners to own a house again. Contact your trusted lender to know if they offer this program or VA home loan guarantee to see your mortgage option.

Monday, September 21, 2015

FHA Loan Home Inspection Guide: What to Check in a Property?

FHA loan is a beneficial loan for applicants. However, it subjects applicants to various conditions before approval. One of these is home inspection. FHA loan providers will inspect the house according to several elements like the following:

Soil Condition

Properties are constructed on grounds, which means the soil must be stable enough to support the entire structure. Soil will be inspected for sink holes, slush pits, and elements that may cause instability to the property. Other soil conditions include its risk level when it comes to soil erosion and flooding.

The level of inspection may vary depending on the general soil condition and neighborhood's location. A land near bodies of water like rivers and creeks tend to have weaker soil due to nearby.

Drainage, Water, and Sewage Systems

Inspecting water drainage system is crucial as it can affect soil condition. In fact, damaged underground drainage system can loosen the soil and make it prone to flooding and soil erosion once during rainy days.

The US Department of Housing and Development also stated that every property should have sufficient potable water supply utilizing appropriate pressure. Houses must also come with safe sewage system to ensure both occupants and the neighborhood's safety. Those that obtain water supply from wells must ensure the source is far from the septic tank by at least 50 feet. Installed septic tank should comply with the standards set by Environmental Protection Agency and other authorities.

Termite Infestation

Termites are capable of destroying homes with wood as main material. An FHA-authorized and licensed pest control expert must check the house for active termite infestation. Inspectors will then assess the house for recommendations. Any termite-triggered structural damages must be repaired before an appraiser can clear the property for sale. FHA mortgage providers will look for this certification as part of the loan application process.

Structural Condition

Main property structures like walls and roofs must not show any sign of damages that cause structural instability. Walls must be free from bulging, twisting or cracks. Roofs must also be leak-free and constructed according to updated local property standards. Roof replacement may be required if it has three shingle layers to complete with the standards.

Other Hazards

Other hazards like contaminants must inspected before a property will be available for sale. The entire neighborhood and ground must be free of radioactive elements that are proven toxic to humans and animals. Properties with lead paints must be inspected for cracks and peeling. These paints must be replaced or sealed to prevent the spread of toxic materials.

Although beneficial for property owners, a house's HVAC and electrical systems must be installed as per building codes. They must also be well-maintained to ensure new property owners won't compromise their safety.

Getting an FHA loan is now easy as FHA Loan Limits Arizona have become friendlier for future property owners. Knowing these inspection guidelines not only aid people to get approved of their loans, but also ensure their properties are safe for occupancy. Experts conducting these inspections can now be found online to assist sellers and buyers.

Monday, August 10, 2015

Buyers and Sellers Today

You may have noticed that buyers and sellers are coming together on better terms and at near full asking price.

Aside from worrying about low appraisals, I'm very excited to see this level of recovery taking place. It has been a long, difficult road from the bursting of the housing bubble until now, and has been a struggle for buyers, sellers, mortgage lenders like myself, and probably you and your fellow agents, as well. I'm so happy that those days look to be behind us, and that we can work together to help more people sell their houses and more buyers get into great homes in the Phoenix area.

Now that things have improved, though, we all have a job to do, besides helping people buy and sell houses. We have to remember the problems that occurred when the market went down so sharply, so we don't get into the same kinds of problems again. The sound advice we give our buyers and sellers today could help all of us have a better tomorrow!

Monday, August 3, 2015

Allowable Seller Contributions Towards Buyers Loan Costs

Be sure to take a look at the interest rates below. Interest rates have jumped about a quarter percent (0.25%) over the past 2 weeks.

How you ever wondered how much a seller can contribute to a buyer's loan costs? I put together this simple table that will help you. After reviewing, let me know if you have any questions.

Monday, July 27, 2015

Buyer's Agent - 3 Important Steps

I have been working on a purchase transaction where the seller has a leased solar system with Solar City. The buyer's agent on the transaction is doing a great job completing the 3 important steps:
  1. Make sure you tell your mortgage lender immediately if there are leased solar panels on a property your buyers are interested in. You'll need to find out what the seller's monthly lease payments are to the solar company. The lender will have to add the monthly lease payment to the buyer's liabilities. This potentially could put their debt ratios above the threshold, so be sure to let your lender know.
  2. Make sure to put language in the purchase contract that protects your buyers. Make the home purchase contingent upon the successful lease transfer of the solar panel lease to the buyers.
  3. Make sure your clients (buyers) apply with the solar panel company as soon as they can to get the lease transfer approved and the paperwork complete. You'll need to give that to your lender right away so everything is ready for a successful close.

Monday, July 20, 2015

Borrower's Credit Report for Medical Collections

I did some research on medical collections the other day. As a lender it is the most common collection that I see on a borrower's credit report. Did you know that more than 40% of Americans have medical collections?

Finally, there's some good news for our clients with medical collections on their credit report. The change could mean borrower credit scores could go up by as much as 25 points!

If you have potential buyers who have a medical collection accounts on their report, all three credit bureaus are no longer placing so much weight on those types of accounts. The change was announced a couple of months ago, and means a higher overall score and a better chance for lenders like me to get your buyers qualified for the home they want. Finally some common sense.

The reduction of the credit score penalty for medical debt should help bolster real estate sales. We'll take any good news we can get :-)