USDA Arizona Mortgage Eligibility Changes October 1, 2014

Prospective home buyers should get pre-approved for a USDA home loan soon. Buyers need to have a complete application approved by their lender and sent (and maybe approved) to their respective state’s USDA office by end of business on September 30, 2014.

Two major changes are on the horizon for USDA mortgage loans in Arizona (and the United States):

1.)   Property eligibility is changing effective October 1, 2014.  This will impact several areas which were previously eligible in the Arizona market - notably the city of Maricopa becomes ineligible.  You can learn more about areas impacted here:  Future USDA (Arizona) Ineligible Property Map - (click here) - effective October 1, 2014

from USDA:
Barring Congressional action, USDA will begin using 2010 Census data to determine eligible rural areas for Rural Development housing programs on October 1, 2014.  Changes to eligible areas can be viewed by selecting the applicable program listed under future Eligible Areas at http://eligibility.sc.egov.usda.gov.  NOTE:  Complete applications received prior to October 1, 2014, will continue to use the existing eligible rural area definitions based on 2000 Census data.

2.)  New fee structure will be effective October 1, 2014.  The annual fee structure for both purchase and refinance loans will increase to 0.5% of the unpaid principal balance, up from 0.4% currently in place.  

**Effective for all loans with Conditional Commitments issued on/after October 1, 2014**

A new fee structure will be effective October 1, 2014.  The annual guarantee fee structure for both purchase and refinance loans is increasing to 0.5 percent of the unpaid principal balance.  There will be no change (2%) to the upfront guarantee fee structure.  Because the new fee structure applies based on the issuance of the Conditional Commitment, underwriting turnaround times for the local USDA offices must be taken into consideration.  As an example, one of the local offices in AZ is currently underwriting loans received 10 days ago, which means that loans would need to be submitted to that local office for a Conditional Commitment by mid-September in order to be eligible under the current annual guarantee fee. Unfortunately, we cannot verify turn times for each of the local offices, and we expect that these turn times will increase as we get closer to the implementation date of the new fee structure, so please keep in mind that your loan may need to be re-qualified at the higher annual guarantee fee if a Conditional Commitment is not obtained prior to October 1^st.

Please feel free to contact Craig Turley at 480 385 1422 for further guidance in relation to the upcoming USDA changes.

Craig Turley is a mortgage and finance consultant.  He has 20 years professional business, finance, and management experience as an entrepreneur and corporate executive.  Craig is a 1993 graduate of the University of Arizona with a degree in Business Administration, emphasis finance. 

Fannie Mae offers incentive for Home Path Properties in Arizona and California

If you or someone you know may be looking to get pre qualified for a new home loan in Arizona or California - please feel free to contact me for a no cost, pressure free review of your home buying potential.   You may reach me at Craig Turley or 480 385 1422.


Great incentive for Fannie Mae foreclosed properties.  Certain terms and restrictions apply.

(source Fannie Mae)

Fannie Mae Announces Homebuyer Incentive up to 3.5 Percent Closing Cost Assistance on HomePath Properties in the FirstLook Period

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that homebuyers may receive up to 3.5 percent in closing cost assistance when they purchase a HomePath® property in 27 states during the FirstLookTM period. During the FirstLook period, owner-occupant or public entity buyers are able to submit offers on HomePath properties, giving them the opportunity to purchase homes without competition from investors. Fannie Mae recently announced the extension of the FirstLook period from fifteen days to twenty days. 

“This incentive will provide more opportunities for families to find a property to call home,” said Jay Ryan, Vice President of REO Sales.  “Our goal is to sell as many HomePath properties as possible to owner-occupants who will stabilize neighborhoods and help the housing recovery.” 

To be eligible for the incentive, the initial offer must be submitted between February 14, 2014 and March 31, 2014, and close on or before May 31, 2014. The incentive will offer qualified buyers up to 3.5 percent of the final sales price to pay closing costs. In many cases, buyers could use these savings to buy down their interest rate through upfront points, resulting in additional savings over time. Buyers can work with the lender of their choice to determine if this is an option. 

Prospective buyers can search for properties and easily identify how many days remain on a property’s FirstLook period by visiting www.HomePath.com. Each qualifying property will be identified by the sales incentive icon. HomePath properties offer buyers a wide selection of options, including single-family homes, condominiums, and town houses. For more details on the program, visit www.HomePath.com. 

Until Next Time,

Craig Turley

California Home Prices Soaring

According to the California Association of Realtors (C.A.R), median home prices topped $400,000 in April for the first time in five years due to the high demand and tight inventories.

This makes for a very competitive purchase market, producing multiple bids - many over list price.  Consult  a Realtor in your area for expert advice or ask me for a professional referral.

It also allows homeowner who have been unable to refinance their existing home mortgage the past five years an opportunity to review their existing equity position.  Of course, many underwater homeowners were assisted with a loan through the HARP (learn more here) program.  However, many mortgages were ineligible for a variety of reasons.  So, now may be a great time to take advantage of a refinance if your mortgage note rate is over 4%.

Please feel free to contact Craig at Southwest Direct Mortgage, LLC with any mortgage questions in Arizona or California.  Craig has over 20 years of finance industry experience as a mortgage banker and entrepreneur.  

Craig Turley

NMLS 80917

480-385-1422

Source:  Mortgage Daily News