Buying Arizona Real Estate » HUD http://buyingarizonarealestate.com/blog Everything real estate in Arizona, let's talk! Sat, 02 Oct 2010 15:29:52 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Cash Strapped Buyers Could Get Shut Out (100% financing) http://buyingarizonarealestate.com/blog/2010/03/11/cash-strapped-buyers-could-get-shut-out-100-financing/ http://buyingarizonarealestate.com/blog/2010/03/11/cash-strapped-buyers-could-get-shut-out-100-financing/#comments Thu, 11 Mar 2010 23:56:54 +0000 Tony Pomykala http://buyingarizonarealestate.com/blog/?p=307

If you have buyers in need of 100% financing, take notice! One widely popular tool for funding is about to run out of money. Buyers that need a no down payment loan guaranteed by the USDA are running out of time to get their deal done.

USDA Rural Home Loans [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]>

Cash Strapped Buyers Could Get Shut Out

If you have buyers in need of 100% financing, take notice! One widely popular tool for funding is about to run out of money. Buyers that need a no down payment loan guaranteed by the USDA are running out of time to get their deal done.

USDA Rural Home Loans have been a phenomenal tool for helping cash strapped buyers get into homes for no down payment. Unlike many other loan programs though, the amount of funds available to fund these loans are set and capped at the beginning of the fiscal year.

Notice was delivered from Washington on March 9 that the funds are nearly exhausted, with expectations that they will run out in late April.

Unlike years past when similar notifications have been delivered, the USDA will not be issuing conditional commitments for buyers as the program awaits new appropriations from Washington. The USDA states they are “not certain when additional funding will be available.”

What does this mean for your buyers?

If your buyers need 100% financing and are not eligible for a VA loan, they have to act quickly or they will have to seek other options. Combined with tightening from HUD on FHA loans in April and potentially later this summer, cash strapped buyers may be shut out if they miss this opportunity.

If you have any questions, call me and let’s discuss them.

Sincerely,

Rebecca Roberts
Mortgage Banker
The Lending Company, Inc.
Phone: 602-791-6262
rroberts@thelendingco.com
BK0909441 NMLS#231543

Share

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

]]> http://buyingarizonarealestate.com/blog/2010/03/11/cash-strapped-buyers-could-get-shut-out-100-financing/feed/ 0 Those Who Wait Will Pay Thousands More This Spring http://buyingarizonarealestate.com/blog/2010/03/04/those-who-wait-will-pay-thousands-more-this-spring/ http://buyingarizonarealestate.com/blog/2010/03/04/those-who-wait-will-pay-thousands-more-this-spring/#comments Thu, 04 Mar 2010 16:23:24 +0000 RebeccaRoberts http://buyingarizonarealestate.com/blog/?p=292 Those Who Wait Will Pay Thousands More This Spring

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA). Coming just weeks before the April 30 [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> Those Who Wait Will Pay Thousands More This Spring

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).
Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board’s mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.

It is important to note that in order to be eligible for the lower cost up-front mortgage insurance, a lender has to order a case number from the FHA before April 5th. A case number can only be generated for loan applications where a property is involved and a fully executed purchase contract exists. Home buyers who have been pre-approved but are not under contract will not be eligible for the reduced premium effective April 5th.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these “seller concessions” can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

There is only one way to avoid being affected by all of these costly changes that lie ahead – submit all FHA mortgage applications by the last week of March.

If I can answer any questions you may have about how these changes could impact you, call me. I appreciate your business.

Sincerely,

Rebecca Roberts
The Lending Co.
602-791-6262
rroberts@thelendingco.com
equal opportunity lender
The Lending Company, Inc. of Phoenix, Arizona BK0909441 NMLS#231543

Share

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

]]> http://buyingarizonarealestate.com/blog/2010/03/04/those-who-wait-will-pay-thousands-more-this-spring/feed/ 0