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.

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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.