You can buy a new home in Arizona with a past short sale, foreclosure or deed-in-lieu of foreclosure with Fannie Mae’s updated guidelines.  FNMA has recently changed its guidelines in regards to short sales and foreclosures effective July 1st 2010, to help those who fall into this category.

In an effort to help those who may have lost their home due to short sale or foreclosure FNMA is easing some of its guidelines to help people seeking to buy a new home in Arizona with a past Short Sale, Foreclosure or Deed in Lieu of Foreclosure.

Below is a chart published by FNMA detailing the time period from when one can be eligible after having a short sale or foreclosure of deed in lieu of foreclosure.  Those with extenuating circumstances will have a shortened time period but must be able to show proof of financial hardship.  This hardship will need to be documented and proved.  If you walked away from your home just because you were upside down will not qualify you for a financial hardship.  Things that may be allowed are, death, divorce, loss of job or medical reasons.

                                            Foreclosure Short Sale Deed in Lieu of foreclosure Arizona                                                                                                                                                                                                                                        

Here are a few parts of Fannie Mae’s annoucement:                                                                                                                                                              :

The terms “short sale” and “preforeclosure sale” are both referenced in this Announcement and have the same meaning – the sale of a property in lieu of a foreclosure, resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer.

Fannie Mae is changing the required waiting period for a borrower to be eligible for a mortgage loan after a preforeclosure event. The waiting period commences on the completion date of the preforeclosure event, and may vary based on the maximum allowable LTV, CLTV, and HCLTV ratios (referred to herein as LTV ratios) and occupancy of the property.

Preforeclosure Event Current Waiting Period Requirements New Waiting Period Requirements
Deed-in-Lieu of Foreclosure 4 years
Additional requirements apply after 4
years up to 7 years  
2 years – 80% maximum LTV ratios4 years – 90% maximum LTV ratios7 years – LTV ratios per Fannie Mae’s eligibility matrix 
Preforeclosure Sale 2 years  
Short Sale No policy currently exists specific to short sales
Exceptions to Waiting Period for
Extenuating Circumstances
Preforeclosure Event Current Waiting Period Requirements New Waiting Period Requirements
Deed-in-Lieu of Foreclosure 2 years Additional requirements apply after 2 years up to 7 years 2 years – 90% maximum LTV ratios
Preforeclosure Sale No exceptions are permitted to the 2-year waiting period
Short Sale No policy currently exists specific to short sales


One thing to note: You can buy a new home in Arizona with past short sale, foreclosure or deed in lieu of foreclosure with a higher LTV if you wait a longer period of time or if you have an extenuating circumstance.

FHA currently extends a 3 year period for foreclosures and deed in lieu of foreclosures in Arizona to be able to qualify for a home.  FHA short sales offer a one year waiting period if you were current on your mortgage at the time of short sale however borrowers who pursued a short sale of their principal residence simply to take advantage of declining market conditions and purchase a similar or superior property within a reasonable commuting distance at a reduced price will not be eligible for a new FHA-insured mortgage (for three years)

For the full press release from FNMA on buying a home In Arizona with a past short sale, foreclosure or deed in lieu of foreclosure click HERE.  As a qualified mortgage specialist we assist clients with past foreclosures & short sales in Arizona.  For more information please call or email me.


A stated income  loan in Arizona is a loan where the mortgage lender verifies employment and assets, but not the income that is received. Instead, an income is simply stated on the formal 1003 application Stated income on the application must be realistic for the employment type. Stated income mortgage loans are ideal for those whose employment and assets are verifiable, but whose income is not verifiable due to write offs and other expenses from being self-employed. Joe Hansen with VIP Mortgage can help you get the stated income loan that you need.

Stated income mortgage loans are available currently as an adjustable rate mortgage loan. Because the mortgage lender qualifies the borrower only off employment and assets with a stated income mortgage loan, the qualifying guidelines are stricter and the interest rate is also somewhat higher than it would be for a regular full doc mortgage loan. Stated income loans currently require as much as 40% down and as high as 24 months mortgage payment reserves.

Key Points

  • Both employment (Via 3rd party CPA & Advertisements e.g. – website, newspaper, yellow pages, and assets are verified for a stated income mortgage loan.
  • Income is not verified for a stated income mortgage loan–it is simply stated on the formal 1003 application. Employment is verified.
  • Stated income mortgage loans have more stringent qualifying guidelines and higher interest rates than regular mortgage loans.
  • Stated income mortgage loans have higher down payments than regular conventional or FHA loans


  • Stated income mortgage loans give people who might not otherwise be able to qualify for a mortgage the ability to purchase or refinance at a competitive interest rate when they usually would not be able to qualify at all due to debt to income restrictions.
  • There are a variety of stated income mortgage loans available in today’s market, including both fixed rate stated income mortgages and adjustable rate stated income mortgages.  However, most banks that do offer stated income loans are requiring and adjustable rate mortgage.


  • Because mortgage lenders qualify borrowers for stated income mortgage loans off only employment and assets, they typically have higher interest rates and monthly payments than regular mortgage loans. 
  • Higher down payments are also required
  • Like all specialized mortgage types, there are fewer stated income mortgage loan programs available than regular loan programs and only a few banks currently offer this product in Arizona

As a stated mortgage loan specialist in Arizona I can help you obtain a loan for your home.  You can contact me at 480-239-7766 or email me at  You can also fill out an application at my website:

HUD $100 Down Payment in Arizona

The $100 down payment is for owner occupied homes(Any person who purchases a HUD home as their primary residence for at least 12 months after closing and who has not purchased a home from HUD as an owner occupant in the past twenty-four months) purchasing a HUD Home with FHA financing. This incentive is also available to owner occupant purchasers who obtain an FHA Home Repair loan. FHA Loans are a great opportunity for first time home buyers looking for a low down payment on a HUD Home.

First Time Home Buyer Page

First Time home Buyer in Arizona. – Being a first time home buyer in Arizona can be a difficult experience with a lot of uncertainties.  However, if you work with a lender that will walk you through the home buying process and understand the market here in Arizona it can make your home purchase a great experience. As a qualified mortgage specialist in Arizona I look forward to helping you with your home buying experience.  Here are a few tips on how to buy a home the first time in Arizona the right way:

Pre-qualify: Making sure that you qualify for a mortgage will allow you to find out where you stand financially.  Some buyers that I work with think they qualify for a mortgage when they don’t and others will think they can’t qualify when they indeed do.  Here is what information the Bank will want when we pre-qualify you to become a first time home buyer in Arizona:

  • Full Name, Address, Social Security Number & Date of Birth.
  • Your address for the past 2 years.
  • Income history for the past 2 years including how you are paid e.g. salary, hourly, commission, bonus income, retirement, disability etc.  Current Income.
  • Assets.  This will include any checking and savings accounts, CD’s, IRA’s, 401k etc.
  • Credit History – A credit report will need to be pulled to determine your eligibility.

Loan Programs:

Once you have pulled your credit you will need to determine what loan program is best for you.  The following are a list of some of the programs we offer to home buyers here in AZ:

  • Conventional Loans– usually for those with higher credit, 2nd homes, investment properties with a down payment ranging from 5-20% down.
  • FHA Loans– Used often for first time home buyers, those with little credit or more challenging credit but also used by those with good credit searching for a lower down payment of 3.5%
  • VA Loans – For qualified veterans that have VA entitlement.  A 100% loan.
  • USDA Loans – Another 100% loan based on the property location as well as specific guidelines in regards to income caps.  Please contact me for more details
  • HUD Home Loans– FHA loan available with $100 down for qualified borrowers and as little as 20% down for investors. 
  • Stated Income Loans – For borrowers who wish not to show income earnings. Restrictions apply please contact me for more details.
  • Construction Loans – For home buyers looking to build their own home.

Once you have been pre-qualified you will be ready to make an offer with your real estate agent on the home that you desire.  Your real estate agent will be the one to work with you in this process and we will provide the qualification letter to submit any offers.

Contract Accepted… What Next?

Once your contract has been accepted here in Arizona we here at VIP Mortgage will then start the loan approval process.  We will submit all your information that we gathered at the beginning of the pre-approval process to the bank along with the title report, insurance and we will order the appraisal and submit that to the bank as well.  The underwriter at the bank will verify all the information and approve the loan once all the necessary paperwork has been received. 

Closing – Fund & Record

From this point the closing documents will be ordered, prepared by the bank and sent to the title company where you will then be scheduled to sign the paperwork.  The title company will then return the paperwork to the bank for final review and the loan will Fund.  Funding a loan means that the Bank has had all its requirements satisfied and they have ordered a wire of the money to be sent to the title company.  Once the wire is received by the title company they will then record the deed with the county and the keys will be available for you and the home is yours.  You will now be a first time home owner in Arizona.

First Time Home Buyer Questions & Answers – provided by HUD

Why should I buy, instead of rent?

  • A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having something that’s all yours – a home where your own personal style will tell the world who you are.

Can I become a home buyer even if I have I’ve had bad credit?

  • Bad credit does not disqualify you for a mortgage in all cases.  However, there are times that you will need to clean up or repair some of your credit prior to buying a home.  Bankruptcy also does not disqualify you from buying a home but you may have to wait in some cases please refer to this link on loans when you have had a recent/current bankruptcy

Should I use a real estate broker? How do I find one?

  •  Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you’ll want to know about a neighborhood you may be considering…the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you’ll want to see. With immediate access to homes as soon as they’re put on the market, the broker can save you hours of wasted driving-around time. When it’s time to make an offer on a home, the broker can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don’t have to pay the broker anything! The payment comes from the home seller – not from the buyer.

In addition to the mortgage payment, what other costs do I need to consider?

  •  Well, of course you’ll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You’ll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your broker will be able to help you anticipate these costs.
  • Answer: You’re right – there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs, including the Veteran’s Administration’s programs and the Department of Agriculture’s programs. Most people have heard of FHA mortgages. FHA doesn’t actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan. Talk to your real estate broker about the various kinds of loans, before you begin shopping for a mortgage.
  1. I know there are lots of types of mortgages – how do I know which one is best for me?

Foreclosed in Phoenix

 Foreclosed in Phoenix AZ. We are quickly approaching the era of the pre-foreclosed borrower.  We have probably all bumped into a person that has had a foreclosure but the probability running into someone coming off foreclosure is on an upward swing.

 Conventional, FHA & VA all have their guidelines on borrowers with foreclosures but since most of the business I run into these days is FHA.  I would like to go over a few problems one may run into.

FHA requires 3 years from the time the borrower has foreclosed on their home before they are eligible to buy another home.  Their can be extenuating circumstances but don’t count on an underwriting buying 95% of those well thought out stories of why you were foreclosed upon.  You may be okay if the main wage earner passed away or if the home was taken over through a divorce but otherwise you are probably out of luck.

 Keep in mind that FHA requires a 3 year period prior to the application being taken.  Loan officers need to understand that they can’t be pre-approving clients with a full-blown application and a contract in hand just waiting for that 3 year mark to pass before you can fund.  However, FHA does not specify that the borrower can’t go out and put get a contract in place before the 3 year mark.  This would require the loan officer to be a little savvy by being able to look at the borrowers’ credit profile and pre-approving them without actually doing an application.

 If your home was foreclosed on in Phoenix AZ  in the past 3 years it’ best to get your house in order now.  Having re-established credit is essential and setting up a game plan will make sure you are ready when that 3 year time period is up.  Fill out a quick application to see if you need help with financing after a foreclosure. At VIP Mortgage we can help you with your home financing.


It’s believed  by many that once you enter a bankruptcy that you must wait years before applying for a mortgage.  However, in a chapter 13 bankruptcy you can become eligible for a mortgage in just 12 months.

FHA & VA guidelines allow for mortgage financing to purchase or refinance your current home after a satisfactory 12 month payment history.  The key is to make those payments satisfactory.  If even one payment is a day late it could cause the bank to deny you financing.

Other challenges that may arise in qualifying is getting your credit cleaned up and even re-established after you have filed the bankruptcy.  I recommend to my clients to work on cleaning up their credit and to also get set up with new credit to help raise their current credit scores.

The details of a chapter 13 bankruptcy can be different in every case but my team and I have helped hundreds of people get the financing they need or set them up in the right direction for future success.

100% USDA Loans in Arizona

January 26, 2010

Currently there are only a few loan programs that offer 100% financing.  The best avenue is a VA Guaranteed Loan but if you are not a qualifying veteran there is another option which is the USDA Rural Development loan program.

The USDA Rural Development loan program has some advantages and disadvantages compared to going the route of an FHA mortgage or Conventional mortgage program. 

  • No Down Payment – Truly a 100% home loan
  • No Expensive Monthly Mortgage Insurance – Keeps your monthly payment low
  • No Cash Reserve Requirement
  • No Minimum Credit History Requirement
  • USDA 100% Financing is a top choice among First Time Home Buyers
  • No Limitation to the purchase price
  • May finance up to 102% of the appraised value
  • Down Payment Assistance from non profits is acceptable
  • Repairs may be financed up to 100% of the “as is” value
  • No limits to the concessions the seller can make – seller paid closing costs
  • Rates are typically lower than FHA Home Loans or Conventional Mortgages

Some of the disadvantages of going with a USDA loan are as followed:

  • No Existing manufactured homes
  • Home location is restricted to specific Rural areas
  • Homes with pools may not finance the value of the pool
  • Higher upfront mortgage insurance
  • Income restrictions specific to county and occupancy size

Overall the USDA loan is a great program  and an option that should not be ignored. 

Steps to USDA Financing:

  • Make sure you meet the guideline restrictions for the county you wish to live in.  specially income restrictions.
  • Find out if the area you want to live is in approved for USDA Financing
  • Speak with a mortgage professional to decide if your credit, income and work history are sufficient for qualifying.

For further questions on USDA housing contact me at any time.