FHA Jumbo Loan in Arizona: A Good Option

FHA Jumbo Loan in Arizona: A Good Option

There is more than one person right now who is frustrated with how difficult it can be to get financing for jumbo loans in today’s market.

Some lenders are doing them but have high down payment requirements and/or pristine credit score requirements – and the truth is that many lenders are not even doing jumbo loans at all.

But there is a program that may make sense to look more into if you are in the market for jumbo financing – the FHA jumbo loan program.

  • Get It While You Can
  • Who Is It For?
  • Some Highlights

Get It While You Can

It is somewhat new – and it is even possible that it won’t be around very long.  The FHA jumbo loan program is that it was part of the legislation passed which was created by HUD. It is actually at risk of going away at any time.

Who Is It For?

But while it is available, the FHA jumbo loan program is great for people who are in the market for jumbo financing — the rates are low and depending on where you live in the country, FHA will allow you to finance up to $729,000 with just 3.5% down.

So for all of those houses that only a few years ago were $1m + and are now $500k? They might be a perfect candidate for FHA jumbo loans.

Some Highlights

FHA Jumbo Loan Guidelines (The Highlights):

  • Up to $729,000 financed. (based on the county loan limits published by HUD)
  • 660 FICO score required
  • 3.5% down payment
  • 30 year fixed rates around 5%

Heck, there are even lenders who can get your FHA jumbo loan closed in ten days.

Before It’s Too Late

So if you are one of those people who have been frustrated by the process of getting “regular” jumbo loan financing, you might want to ask your loan officer about the FHA jumbo loan financing options and whether or not it is right for your situation.

Before it is too late and the program goes away!

FHA Flip Rule Video

Here is a video about the FHA flip rule – hat tip to Mark Madsen at MyFHAMortgageBlog for letting me know about it.

Thinking about real estate investing? The FHA flip rules are something that you can’t afford to ignore.

First-Time Homebuyers: Opportunities in 2010

For those of you who are looking to purchase your first home in 2010…with a little extra work, you could find yourself with $15,000 in down payment assistance. Newtown Community Development Corporation (CDC) is a nonprofit corporation begun in the 90s to address concerns about housing, neighborhood preservation and sustainable development. The vision of CDC is to increase affordable housing and support homebuyers through innovative programs.

Today I want to hone in on the down payment assistance CDC has to offer. It is called an Individual Development Account. Essentially, eligible homebuyers can receive $15,000 toward the purchase of a home, matching up to $3 for each $1 saved by the participants.

Now…the key with this program, as with any assistance program, is to read the fine print. To know if you should even consider applying, you must know the specific requirements of the program.

So, with that said…here are the guidelines:

•You must be a first-time homebuyer! (Remember, this means that you haven’t owned a home in the past 3 years)

•You must earn 80% or less of the HUD Area Median Income (1 person family: $36,900; 2 person: $42,150; 3 person: $47,450; 4 person: $52,700; 5 person:$56,900; 6 person:$61,150)

•As a part of the program, you must complete an approved homebuyer education and counseling program.

•Funds may only be used toward down payment or closing costs on a primary residence. (So…this means funds can’t be used for remodeling or for an investment home.)

•Your debt-to-income ratio cannot go above 43%. (This means that the total payment on the mortgage…principal, interest, taxes and insurance and home owners association fees…cannot exceed 43% of your total income)

•The funds are not a grant, but a forgivable loan. You must live in the home for 5 years. If you live in the home less than 5 years, the repayment will be prorated.

•The assistance money can be used for any property in Maricopa County.

•Your mortgage must come from a participating financial institution.

•There is a $435 administration fee, a $35 enrollment fee and a $400 closing fee.

•In order to receive matched funds, you must open an IDA savings account with a participating bank, make regular monthly deposits of $20 for a minimum of 10 months and you must open escrow on a home purchase within five years of enrolling in this program.

Since its inception, the IDA Program has provided more than $1.8 million in IDA match funds to first time homebuyers. There is, however, one issue! This money runs out fast! According to a Newtown representative I spoke with on the phone recently, in 2009 the money didn’t actually get released until about April and completely dried up by August. If you want these funds, you have to be on the ball! This means you apply for the program now , begin saving now , get pre-qualified now, find a realtor asap and be ready to put in offers come next April when the money is hot off the press. This program is for the diligent, for the planner, for the go-getter!! And if that is what you are, I have no doubt that you will be the recipient of these funds in 2010.

This site is for informational purposes only. It is not sponsored or in any way affiliated with the government. If you are in need of a mortgage loan, consult with a licensed mortgage professional. All fair housing and equal housing opportunity laws apply when applying for a mortgage or buying a home. Copyright 2012.