What Home Buyers Really Want to Know Is Not What They’re Being Told

What Home Buyers Really Want to Know Is Not What They’re Being Told

I’m A Realtor®, so when advertising or news about Real Estate comes on the radio or television (or less frequently the press) I tend to critique the source. Is the information accurate or not? – and much is not. If true, is it true about the local markets? Is this information current? If I were a Buyer or Seller, would this be of interest to me?

So, like so many other dues-paying Realtors®, I ask, “What’s wrong with the current advertising campaign developed by the National Association of Realtors?” It doesn’t answer (or even address) the most obvious questions regarding what consumers are really asking; “What’s going on with real estate?”

To be fair, these ads are designed to promote real estate nationally, and real estate is so hyper-local, that there is no one correct answer.

But to say that homeownership is a good idea after the events of the last 5 years, is like telling a beach full of swimmers, that although several sharks have just swum by, swimming is good for you.

Yeah, but is it safe?

In the past this blog concentrated, nearly exclusively, on home-ownership issues as they related to persons with physical challenges and disabilities. An important, and underserved segment of our population, to be sure.  But folks with disabilities want answers to the same questions asked by the able-bodied: “After the debacle of the housing bubble burst of the last 5 years, is home-ownership still smart, and when and where should I look, and what red flags should I watch for?”

So, this blog has a new charter. Information, numbers, and analysis, to help Buyers and Sellers better understand the (and their) housing markets. Think of the sub-rosa title of the blog, now, as: Sanity Check(mate)

More to follow. Stay in touch. Tell your friends and co-workers.

The Blog is back!

It’s been a while since The Mosaic Realty Group of Scottsdale Arizona has posted on this blog, due to organizational and health related matters. For those who have followed here, and found some of the information useful, thank you for your patience. The blog will be starting back up in September 2012. Here’s hoping we can develop fruitful, useful, and valuable dialog.

Some Information About The Mosaic Realty Group

We hope that our blog, and the information and links that we have provided is useful to our readers, our subscribers,and to those just surfing by.

While many have surmised that we have developed special skills and resources to assist clients with disabilities, we also are happy to provide advanced real estate services for the able-bodied as well in the Metro Phoenix area,  be they Buyers, Sellers, or Renters.

More about us: We are Michael O’Donnell and Jennifer Longdon, working as the Mosaic Realty Group with Prudential Arizona Properties. We bring extensive experience in Real Estate and Disability Advocacy:

¨       March  2010 Jennifer and Michael received the PREA National Diversity Award for their efforts and changes to the Arizona Regional Multiple Listing Service Accessibility Features and awareness

¨       Featured in the Arizona Republic Your Home section for the changes to ARMLS accessibility awareness, search and listing criteria  http://tinyurl.com/32pshre

¨       Provided radio interview regarding the issues and requirements for addressing real estate clients with disabilities  http://tinyurl.com/y6543o4

¨       Seminar on disability and accessibility issues, including Civil Rights and Fair Housing issues, special appraisal issues, special lending issues

¨       Developing seminar on seniors and aging-in-place issues

¨       Featured in ARMLS’ WAVE e-magazine in the June edition, entitled “REALTORS Jennifer Longdon and Michael O’Donnell Inspire”  http://bit.ly/aAZiAn (pages 18 and 19)

  Jennifer Longdon:

¨       Member/Chairperson (2011 -2012) of the Phoenix Mayor’s Commission on Disability Issues

¨       Active in the Arizona Spinal Cord Injury Association and the Christopher and Dana Reeve Foundation

¨       ABIL (ArizonaBridgeto Independent Living) peer mentor

¨       Moderates online housing forum for persons with spinal cord injury. (36,000 members)

¨       Independent contractor with Maricopa County Elections Department teaching election board workers about civil right of voters with disabilities and the Help America Vote Act (HAVA)

¨       Interviewed extensively by print and electronic media on issues surrounding the challenges of persons with disabilities, living in the Phoenix Metro area

¨       Completed P.F. Chang Half Marathon in 2009 and 2010 as a wheelchair user in a standard division

¨       Guest Lecturer at theWalterCronkiteSchoolof Journalism at ASU

¨       Advised housing advocates regarding accessible housing in Ocala, FL; Chicago, IL; and Las Vegas, NV

 Michael O’Donnell:

¨       Initiated, then chaired the ARMLS MLS Accessible Features task force in 2009, bringing 31 accessibility parameters to ARMLS listing and search criteria

¨       Member of the SAAR MLS Committee

¨       Elected SAAR representative to the ARMLS MLS Committee

¨       Provided specific MLS assistance on Accessibility Features for Prudential Real Estate affiliate in Central Pennsylvania (Williamsport,PA)

¨       Provided assistance to REALTORS working with accessible housing issues in Portland, OR; Raleigh, NC, Chattanooga, TN; Boston, MA, Easton, PA; Hagerstown, MD, Springfield, VA

¨       Independent liaison to Maricopa County ADA Compliance Officers Committee

We would be happy to speak with you and share how we might assist you. There are many Real Estate agents in the Phoenix area.  Will you need to teach them about Disabilities and Accessible Housing? Or are you ready to partner today?

Call: 480-473-4900. Today.

Fannie Mae (FNMA) CommunityHome Choice

POSTING NOTE: Lending programs have undergone significant changes in amounts and qualification criteria in the last several years. Please check current status for up-to-date standards.

Community HomeChoice

 Building upon the success of Fannie Mae’s HomeChoice Initiative, Community HomeChoice is our newest tailored solution under MyCommunityMortgage.  Community HomeChoice – a single-family mortgage loan designed to meet the mortgage underwriting needs of low-to-moderate income borrowers with disabilities or those who have a family member with a disability – offers flexibility in the areas of loan-to-value ratios (LTVs), down payment sources, qualifying ratios, and the establishment of credit. 

Fannie Mae has also mainstreamed eligible sources of income and nontraditional credit requirements into all products in order to serve more people with disabilities.  (Lender Announcement 03-07)

According to the Census 2000, U.S. Census Bureau, 49.7 million people have disabilities, representing 19.3 percent of the population – or nearly one person in five.  Our commitment to increased housing opportunities for people with disabilities is reflected in our American Dream Commitment, a ten-year, $2 trillion pledge to increase homeownership rates and serve 18 million targeted American families by the year 2010.

For Persons and Organizations working with Peoplewith Disabilities

Organizations that serve people with disabilities can provide additional resources and services to help people with disabilities achieve homeownership. These organizations can also assist lenders in developing marketing and outreach strategies, and provide the following services:

• support services;
• pre- and post-purchase homeownership education counseling;
• partnering with designated lenders to help borrowers apply for a mortgage;
• grants to assist borrowers with the down payment and closing costs, access modifications, property repairs, maintenance; and
• budget management.

 Community HomeChoice DU Solution

Community HomeChoice loans can be underwritten using Fannie Mae’s Desktop Underwriting^® and Desktop Originator^®..  The loan should be entered in DU as a Fannie 97^â mortgage using the Community Lending product screens.  If the DU finding is “Approve/Eligible,” the special flexibilities of Community HomeChoice are not needed for mortgage qualification.  In addition to any other applicable Special Feature Codes, Code 325 (“single-family mortgage serving borrowers with disabilities”) should be noted.  If the DU finding is “Approve/Ineligible,” the mortgage may be delivered through DU once the lender has confirmed the information requested in the “DU Solutions” attachment to the contract terms for Community HomeChoice.  For these loans, as well as loans where the lender has manually underwritten using the Community HomeChoice terms, the lender should note Special Feature Code 222 (“Community HomeChoice”) in addition to any other applicable codes.   Nontraditional credit histories will require manual underwriting.

Eligible Lenders

Fannie Mae specifically approves lenders that offer Community HomeChoice loans.  As lenders develop their marketing strategies to reach people with disabilities, they are encouraged to work with organizations that serve people with disabilities.

 Eligible Borrowers

Eligible borrowers for Community HomeChoice are any low- or moderate-income person defined as handicapped by the Fair Housing Amendment Act.  Lenders can document that a borrower has a disability and is eligible for the Community HomeChoice product by:

• requiring the borrower to self-identify according to the definition of disability as specified above;
• determining that the borrower’s source of income is consistent with having a disability; or
• by other means the lender believes is appropriate.

 Borrower’s Income

An eligible borrower’s income may not exceed 115 percent of the area median income (AMI) where the property is located.  This income limit may exceed 115 percent in high-cost areas, per the Selling Guide. For purposes of determining income eligibility, lenders shall not consider the borrower’s “non-income” sources of support, as further described below.

An eligible borrower who has a legally appointed guardian or a Supplemental Security Income (SSI) representative payee appointee, may participate in Community HomeChoice, provided they have a 24-month history of managing the financial affairs of the borrower and intend to continue to do so for the foreseeable future. 

 Determining Income Stability and Continuance

A lender must confirm that a borrower has a history of receiving stable income from employment or other sources, and that there is reasonable expectation that the income will continue to be received in the foreseeable future, usually for three years.  A lender should make the determination of income stability and continuance for all sources of income based on the required documentation for the income source as presented in the Selling Guide.  Unless there is evidence that the income will no longer be received, the lender should assume that it will continue.

 Co-borrowers

All co-borrowers must sign the note and be underwritten.   In determining eligibility for a mortgage, the combined incomes of occupant co-borrowers may not exceed the AMI, except as described above.  When a traditional or nontraditional credit profile cannot be developed for an occupant co-borrower, up to 30 percent of the total qualifying income can be used toward the mortgage payment.  An occupant co-borrower need not be related to the disabled borrower.  A non-occupant co-borrower may be part of the transaction, provided the occupant co-borrower is a disabled person who meets the income restrictions, and the non-occupant co-borrower is a family member or legal guardian. 

 Eligible Mortgages

Fannie Mae accepts 30 years or less fixed-rate, fully amortizing, level payment mortgages, 7/1 ARMs and negotiated 10/1 ARMs. There is no minimum loan amount, and the maximum loan amount is Fannie Mae’s standard conforming loan limit.  Refinancing and limited cash out transactions are available consistent with Selling Guide.

 Eligible Properties

Owner-occupied single-family detached houses, townhouses, condominiums, cooperatives, planned unit developments (PUDs), and two-family properties are eligible properties.  Property inspection reports are no longer a lender requirement.

 Borrowers purchasing properties requiring rehabilitation and/or access modifications are eligible for a Fannie Mae Home Style^â Renovations product using the Community HomeChoice underwriting guidelines described below, except that the maximum loan-to-value ratio for a combined purchase-rehabilitation mortgage is

97 percent of (1) the sum of the purchase price and the cost of improvements, or (2) the estimated as-completed value of the property, whichever is less.

Loan-to-Value Ratios

For purchase transactions, the maximum loan-to-value ratio is 97 percent based on the lesser of the sales price or appraised value.  The cost of the work to be completed and financed by the mortgage may not exceed

50 percent of the property’s appraised value after completion, provided the appraised value of the property fully supports the total acquisition plus rehabilitation costs.

 Combined Loan-to-Value Ratios

Subordinated financing is typically used to supplement a borrower’s contribution to the down payment and closing costs.  When this results in a combined loan-to-value (CLTV) over 97 percent, the subordinate financing must have grant-like terms, and the CLTV ratio may not exceed 105 percent.

Subordinate financing can be used for accessibility modifications.  The maximum CLTV is 120 percent.  For CLTVs in excess of 105 percent, the borrower’s obligation under the subordinate financing must be forgivable over time.

 

Qualifying Ratios

The maximum single qualifying underwriting ratio is 45 percent for the total expense-to-income ratio, except in the following situations:

• The maximum ratio is 43 percent, when there is a temporary interest rate buydown.
• The maximum ratio is 50 percent when the borrower is qualified using a budget-based worksheet as specified in the Community HomeChoice underwriting.
• The maximum ratio is 33 percent for the housing expense-to-income ratio, and 38 percent for the total obligations-to-income ratio when there are co-borrowers, and at least one of the co-borrowers is not occupying the property.

 

In qualifying a borrower, lenders should give special consideration to income from sources other than wages and salaries ─ including public disability benefits (such as SSI and Social Security Disability Insurance ), private disability benefits, state supplemental income payments, Temporary Assistance to Needy Families (TANF), income from special-needs trusts, and Section 8 homeownership vouchers.  Any nontaxable benefit income may be “grossed up” by a factor that reflects the tax savings to the borrower.  Non-income sources of support that are specifically committed to the mortgage payment (such as Medicaid waiver funds that cover room and board for a live-in aide) shall also be included in the borrower’s income.

 If a non-occupant co-borrower (family member or legal guardian only) is a party to the transaction, his or her income and expenses are included in the calculation of debt-to-income ratio, but excluded from the budget-based qualifying process (described below).  The maximum qualifying ratios for occupant co-borrowers is

50 percent, while the maximum combined qualifying ratios for occupant and non-occupant co-borrowers are 33/38 percent.

Budget-Based Qualification Method

When using a single qualifying ratio of 50 percent, the borrower must also be qualified using a budget-based worksheet that evaluates the borrower’s current income, including non-income sources of support, and actual living expenses.  The budget worksheet must demonstrate that the borrower’s income and non-income sources of support are adequate to meet the borrower’s expenses, including the proposed mortgage obligation.  The lender or home-buyer education provider may assist the borrower in completing the budget-based worksheet, which must be approved by the lender.

 Non-income sources of support may include transportation and meal vouchers, social services and other non-cash support from a government or nonprofit agency that meet the disability-related needs of the borrower, allowances for property maintenance and repairs, as well as Medicaid waiver funds that cover room and board for a live-in aide.

 Down Payment

The borrower’s minimum down payment is three percent – based on the lesser of the sales price or appraised value – and the borrower must contribute at least $500 from his or her own funds.  The balance of a borrower’s down payment may come form gifts, grants, or grant-like subordinate financing.  Fannie Mae’s standard requirements for documenting gifts apply.

 Closing Costs

The borrower’s closing costs may be funded in accordance with the requirements for Fannie Mae’s Community Home Buyer’s Program ä mortgages.

Cash Reserves

For a ratio over 41, borrowers are required to have one-month mortgage payment (principal, interest, taxes, and insurance, or PITI) in reserve after closing.  For a ratio over 45, two months’ mortgage payments are required. These reserve funds may come from the borrowers own funds or may be gifted.  The funds can come from a nonprofit organization or a family member. The reserves may be held by the borrower in a verified savings or checking account, or may be maintained in a segregated account held by the nonprofit organization, or by a family member.

 Subordinate Financing

Subordinate financing programs and mortgage documents must comply with Fannie Mae terms for Community Seconds^® as stated in the Selling Guide.

 Buydowns

Temporary interest rate buydowns not to exceed one-half of one percent for the first three years of the mortgage is permitted.

 Homebuyer Education

Only first-time borrowers must participate in a home-buyer education program. Such education shall consist of face-to-face, individual tutoring or classroom-style workshops, making reasonable accommodations to meet the borrower’s specific disability need.

Home Counselor Online

Home Counselor Online is a Fannie Mae Web-based tool, which links the housing counseling process with the loan process and lenders.  The comprehensive counseling management tool helps counselors determine a borrower’s financial readiness for homeownership using the Affordability Analyzer; assess borrower’s eligibility for a variety of loan products; build nontraditional credit histories, and more. 

 Early Delinquency Counseling

Borrowers must sign an authorization form agreeing to participate in an early delinquency counseling program in the event of default. 

Mortgage Insurance

Individual loan mortgage insurance coverage is required for all mortgages as follows:

• LTV is 90.01% – 97.00%:    35%
• LTV is 85.01% – 90.00%:    30%
• LTV is 80.01% – 85.00%:    25%

 

For More Information

To learn more about Fannie Mae or CommunityHomeChoice mortgages, visit our business-to-business Web site, http://www.efanniemae.com.  You also can contact your local Fannie Mae Partnership Office listed at

http://www.fanniemae.com/partnershipoffices.

 Or contact one of our regional offices:

Southeastern                  Midwestern                Southwestern                  Western                Northeastern

(404) 398-6000              (312) 368-6200          (972) 773-HOME           (626) 396-5100      (215) 575-1400

Fannie Mae (TTY): 1-877-TTY-HEAR

 

The National Council on Independent Living

When Jennifer Longdon and Michael O’Donnell began developing the necessary tools, data base and resources to assist clients with physical disabilities, their first stop was the Community Integration Unit of the Arizona Bridge to Independent Living (ABIL).

Likewise, an individual new to a disability will find these national, state and local agencies have the resources to manage the individual and family members through the transition, while those more experienced in their disability will find that the knowledge and experience base is invaluable.

Mission: As a membership organization, NCIL advances independent living and the rights of people with disabilities through consumer-driven advocacy.

Vision: NCIL envisions a world in which people with disabilities are valued equally and participate fully.

The National Council on Independent Living is the longest-running national cross-disability, grassroots organization run by and for people with disabilities. Founded in 1982, NCIL represents thousands of organizations and individuals including: Centers for Independent Living(CILs), Statewide Independent Living Councils (SILCs), individuals with disabilities, and other organizations that advocate for the human and civil rights of people with disabilities throughout the United States.

An outcome of the national Disability Rights and Independent Living Movements, NCIL was founded to embody the values of disability culture and Independent Living philosophy, which creates a new social paradigm and emphasizes that people with disabilities are the best experts on their own needs, that they have crucial and valuable perspective to contribute to society, and are deserving of equal opportunity to decide how to live, work, and take part in their communities. 

Since its inception, NCIL has carried out its mission by assisting member CILs and SILCs in building their capacity to promote social change, eliminate disability-based discrimination, and create opportunities for people with disabilities to participate in the legislative process to affect change. NCIL promotes a national advocacy agenda set by its membership and provides input and testimony on national disability policy.

Whether new to a disability, a family member of one who has gone through this life transition, or you simply have an interest in being a resource to the 43 million Americans with a disability, follow the link below for more information:

http://www.ncil.org/resources.html

Link to State Housing Finance Agencies

People with disabilities share the same home ownership aspirations as the able-bodied population. These citizens are looking to share the same economic and social benefits associated with stable owner-occupied communities.

The reality, however, is that a disproportionate percent of those with disabilities find themselves in low-income, and below poverty line circumstances and thus find increased financial barriers to home ownership.

States have Housing Finance Agencies  (HFAs) which can assist to putting together resources for the prospective low income home buyer. Below is a link to the National Council of State Housing Agencies, which provides state-by-state links to the HFAs.

http://www.ncsha.org/housing-help

Investigate your particular state for resources availbale through your state Housing Finance Agency.

Frequently Asked Questions about Accessibility and Home Modification

Often people meet the need for a modified home setting without preparation as a consequence of accident, stroke, disease, trauma, or cumulative effects of aging. The existing living environment is no longer suitable, and the resident doesn’t know where to turn for answers.

Can you recommend contractors who will give an estimate on home modifications?

There is a National Directory of Home Modifications and Repair Programs in the on-line library at http://www.homemods.org It contains information on qualified contractors/ remodelers

For example, in Florida, there is a company called PRIME, Inc. (Professional Resources In Management Education), an international healthcare educational corporation, which has a Continuing Education Certificate Program in Environmental Access for Contractors. They would have a network of their certified contractors. They may be reached at cmanage@aol.com .

Many local Housing and Community Development Departments and Area Agencies on Aging have lists of certified contractors or have a home modification and repair program

The National Association of Home Builders has a section on their web site that helps consumers find the suitable remodeler. The section includes information on the entire process of remodeling, including important decisions consumers should make before remodeling, how to find a remodeler, how to live with the newly remodeled home, and finally a link to a list of remodelers in your neighborhood. To visit the section, go to www.nahb.org/consumers/remodeling/choose.htm

Is there funding in the form of grants available for renovating homes to be wheelchair accessible?

Assistive Technology Funding and Systems Change Project United Cerebral Palsy Associations (UCPA) at Washington D. C. (800) 872-5827- UCPA provides funding information on equipping homes with technical support to promote independent living. For more information, call the UCPA.

Dept. of Veterans Affairs (DVA) (800) 827-1000- Disabled veterans are qualified for certain home modification benefits. Contact a service officer to determine the modifications paid for by the DVA. Call your local VA or the main office for information

Internal Revenue Service (IRS) (800) 829-1040 – The IRS allows people with disabilities to claim as a deduction the cost of some home modifications.

National Council on Independent Living Center (703) 525-3406 (V) (703) 524-3407 (TDD) – Provides information on how to get funding and referral services in your area.

Are there loans available for room addition to accommodate frail elders / handicapped relatives?

One possible source of help would be the local FannieMae office. For more information, visit their web site at http://www.fanniemae.com. FannieMae also has 3 programs that might be helpful; the HomeChoice program, Home Keeper program, and the Home Equity Conversion Mortgage. More information is on the web site at http://www.efanniemae.com

Bank of America has Home Modification Loans for Homeowners under their Access Loans category. The program includes fixed interest rates and low minimum loan amounts. To apply for an Access Loan call (available only in the states listed):
California, Illinois: 1-800-843-2632, Texas, New Mexico: 1-800-900-9000 TDD 1-800-833-2632.

This short list is just a start. If you have further questions, or would like assistance in the metro Phoenix area, contact the Mosaic Realty Group, who specialize in assisting persons with physical challenges.  The group can be contacted through their website: www.themosaicrealtygroup.com, or via phone at Prudential Arizona Properties at 480-473-4900.

AARP Foreclosure Prevention Program Helps Arizona Seniors

If you’re a senior, you have not necessarily been spared the problems with Foreclosure that have affected so many American homeowners. But if you’re a senior you may have some recourse thanks to an AARP (American Association of Retired People) program.

For more information about this program visit: www.aarp.org/home-garden/housing/info . The information below is excerpted from the AARP site.

Dee Rains keeps a bulletin board above her desk covered with thank-you notes from the Arizonans whose homes she has helped to save.

The happy missives keep Rains, a HUD-certified counselor for the nonprofit Administration of Resources and Choices inPhoenix, from getting emotionally drained by the more numerous unhappy endings. Of the many homeowners she helps try to arrange lower loan payments, about one in four succeed.

 The moral support she provides is just as critical as her experience. “For most people, it is just knowing that they aren’t in the process all by themselves,” she said.

About two-thirds of her clients are referred from the AARP Foundation’s federally funded Foreclosure Prevention Program, which operates in Arizonaand Nevada. Now in its second year, the program refers financially strapped older homeowners to HUD-certified counselors who can help them renegotiate loan payments and stay in their homes.

 Since 2010, the program has provided information and referrals to 50,000 older homeowners in Arizonaand Nevada, said Robin Bowman, AARP Foundation program specialist. Nevada leads the nation in foreclosures, followed by Arizona, according to RealtyTrac. In April, one in every 205Arizona properties had a foreclosure filing.

 One of the notes above Rains’ desk is from Peggy Schmidt of Gilbert, whose 7-year-old adopted son will not have to leave the only real home he has ever known, thanks to Rains. Schmidt is a single, 63-year-old senior executive assistant to a dean atArizonaStateUniversity. She got behind on her mortgage when state budget cuts forced her to take 12 days of unpaid furlough.

For more than a year, she tried to get her home loan payment reduced. “Every time I’d call, I’d get a different person,” she said.

Finally, she was informed that she made too much money for one home modification program. After reading about the foreclosure prevention program in an article in the AARP Bulletin, Schmidt contacted Rains, who revised the application. Eventually, Schmidt’s payment was reduced by $282 a month — enough to make it feasible.

 Another note on Rains’ bulletin board is from Robert and Debra Hesler, of Phoenix, a couple in their mid-50s. Both have medical problems that prevent them from working, and they live on less than $1,000 a month. Rains helped them avoid foreclosure on the home they’ve lived in since 1992 by getting their payments cut by more than half, from $772 to $346.

“If you really want to stay in your home, fight for it,” Debra said. The couple recommends getting help.

“WithoutDee’s help, it wouldn’t have happened,” Robert said. “We needed an advocate.”

Seniors looking for help? Contact The Mosaic Realty Group at 480-473-4900, or find us at www.themosaicrealtygroup.com .

FHA: Neighborhood Gold Program for Downpayment Assistance

Neighborhood Gold Down Payment Assistance
…………………………………………………………………….

The Neighborhood Gold Down Payment Assistance program allows homebuyers to purchase a home with no down payment and no closing costs by providing the money necessary to purchase without repayment. This program is not limited to first time homebuyers. The Neighborhood Gold program may be used by any homebuyer that qualifies for a FHA loan.

You may receive from 3% up to 10% towards your down payment and closing costs dependant on the amount of participation of the seller.

An added benefit of the Neighborhood Gold Down Payment assistance program is that for the first year you will receive free Involuntary Unemployment Mortgage Program providing coverage in the event they lose their job as a result of strike, lockout, individual or mass layoffs, or loss of income due to business failure or bankruptcy. This insurance will make you monthly payment of up to $1,500 for up to 12 months.

The program is a 501 (c) (3) nonprofit program, which issues cash grants to homebuyers at the closing of their loan. The only requirement of the program is the participation of the seller and the homebuyer to qualify for a FHA loan.

In order to use the Neighborhood Gold Down Payment Assistance Program, you must be prepared prior to making an offer on a property. Since the program requires the participation of the seller, it must be negotiated before finalizing your purchase offer.

There is 1% fee (not to exceed $1,000) for the use of this program. This fee maybe paid by the seller of deducted from the cash grant and again, must be negotiated in the initial transaction.

FHA Loan Qualifying Summary
…………………………………………………………………….

FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA loan requirement guidelines for loan qualification are the most flexible of all mortgage loans that require less than 5% down payment.

Basic FHA loan requirements.

• Two Years of steady employment, preferably with same employer.

• Last two years Income should be the same or increasing.

• Credit report should typically have fewer than two thirty day late payments in last two years with a minimum credit score of 620 or higher or in some cases no credit score at all.

• If a bankruptcy was declared, it must be at least two years old, with perfect credit since discharge.

• A foreclosure must be at least three years old, with perfect credit since.

• Your new mortgage payment should be approximately 30% of your gross (before taxes) income.

These are some of the most basic of FHA loan requirements for qualifying for a FHA loan. 

Contact your lender to see if this program is suitable for you.

 

Housing Links for Disabled Veterans

As we began our odyssey several years ago to provide specialized Real Estate services to people with disabilities, the Mosaic Realty Group of Prudential  Arizona Properties was reminded that addressing issues of disability comes in three’s.

Three basic areas to be addressed are Housing (our thing), Transportation, and Employment.

And the user groups of these services are, essentially, threefold:  Seniors, Veterans, and people with traumatic injury/disease.

The following links are provided as a means to explore options for near-term or long-term housing needs for Disabled Veterans. (other issues and links have been provided in other posts in this blog)

HOUSING

www.HomesForOurTroops.org
We are Homes for Our Troops, a national non-profit, non-partisan 501(c)(3) organization founded in 2004. We are strongly committed to helping those who have selflessly given to our country and have returned home with serious disabilities and injuries since September 11, 2001. It is our duty and our honor to assist severely injured Servicemen and Servicewomen and their immediate families by raising donations of money, building materials and professional labor and to coordinate the process of building a home that provides maximum freedom of movement and the ability to live more independently.

 

www.vethomesfoundation.org
Review for services for Long Term Care, one of the most demanding services. Veterans homes exist to help America’s living heroes through this difficult passage with dignity and at a greatly reduced cost. This is a great resource for families of veterans in need of assistance.

Hope these links help. Thanks again for your service to all of us.