I have had more than one person ask me lately if I thought that the 8000 tax credit would get extended.

My answer?

Maybe!

There is at least one bill that is alive and well that would not only extend the 8000 tax credit but also expand it to include all home buyers and increase the 8000 to 15,000.

Sound too good to be true?

Hey, one thing I have learned is that when you involve Washington... anything could happen.

Hmmm.

Well...

If you are really looking for that "Justin McHood" guy:

Find Justin McHood on justinmchood.com.

Find Justin McHood on Facebook.

Find Justin McHood on Twitter.

Find Justin McHood on LinkedIn.

Find Justin McHood on Zillow.

Find Justin McHood on PhoenixArizonaRealEstateHomes.com.

Or -- just call me!

480.374.0303.

-- Justin

 

Can you use the 8000 tax credit as a down payment for your home? Not yet. But that may change soon. Yesterday, Secretary of Housing and Urban Development Shaun Donovan gave a prepared speech at the National Association of Realtors Real Estate Summit. He said something that was probably beyond interesting when he mentioned that FHA was currently working on a proposal that may involve people being able to use the 8000 tax credit as a down payment. An excerpt from that speech regarding FHA's position on the 8000 tax credit being used as a down payment:

And we are taking action to further help the housing market recover. I'm excited to announce here at NAR that FHA's policy on the "monetization" of the first-time homebuyer tax credit will soon be published. I know that you've been waiting anxiously to hear FHA's position on the matter. We, like you, believe that this new tax credit is not only a tremendous opportunity for first-time homebuyers, but also an enormous benefit for communities struggling to deal with an oversupply of housing. According to estimates by the National Association of Home Builders, this new tax credit will stimulate 160,000 home sales across the nation - 101,000 of which will be first time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first time buyer purchased their home. We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly.

Learn more about the 8000 tax credit being used as a down payment and what may possibly be around the corner for people who want to buy a house!

While rates are low, many people are checking with us to see if it makes any sense to refinance and what exactly the most popular Arizona refinance options are.  Here are just a few of the popular refinance options right now with people.

Making Home Affordable

The making home affordable plan is also known as the Obama Refinance and is popluar with people who have good credit, have been making their payments and are currently barely upside down on their mortgage.

 

FHA Streamline Refinance

The FHA streamline refinance is designed to allow people who are currently in an FHA loan to take advantage of lower interest rates when they are available -- without having to completely requalify for a new loan. No income, no asset, no credit score required (note: some lenders are requiring a credit score, but we are not at this time). By far the most popular refinance program if you are currently in a Arizona FHA loan.

 

VA Streamline Refinance

The VA streamline refinance program is a close cousin to the FHA streamline - no income, no asset, no credit score -- and no appraisal.  This is by far the best refinance program for veterans who are currently in an Arizona VA loan.

 

Arizona Loan Modification

Of course, for those people who are unable to refinance for whatever reason, there currently are many lenders who are willing to help people modify their current loan to make their home affordable. 

Are you interested in any of these options? Let us know. We can help you with any of them.

Scottsdale Mortgage Rates April 10 2009

One of the more popular loan programs for investors is the new Fannie Mae HomeStyle renovation loan. The HomeStyle renovation loan allows people to purchase a home that is in need of a "few repairs" and finance the cost of repairs.

Oh, and did you hear? President Obama said that it was time to refinance.

Arizona Credit Counseling We receive quite a few questions about credit counseling including:

1. What is Arizona Credit Counseling and how does it work?
2. Is credit counseling the best choice for debt relief or should I consider other alternatives?

Arizona Credit Counseling: Things to Know

Although many Arizona credit counseling organizations claim non-profit status, Credit counseling programs work in a very similar manner as a collection agency. Credit Counselors work on behalf of the creditors who pay them a fee (usually somewhere between 12-15% of the amount they collect for the creditors).

In addition to being paid by the creditors, they also usually charge a monthly fee that usually ranges from $15-$40. Arizona credit counseling organizations typically work with prearranged figures with creditors to reduce your interest rate and minimum payments.

The average minimum reduction is 8%. It is not unheard of to have some creditors that will not go below a 20% interest rate and other creditors who may completely refuse to participate in these programs. Most of the time when you enroll in a credit counseling organization, most (or all!) of your credit cards will be cancelled and you will need to pay 100% of the full debt amount, including interest!

What percent of people who start Consumer Credit Counseling programs do not complete them? We don’t know for sure, but we are aware of plenty of poeple who begin the programs and then drop out. Considering Arizona Credit Counseling? If you are considering enrolling in credit counseling, be sure to research your other options.

Many times, the people that I speak with have bad credit and are wondering if they can get a mortgage even though they have bad credit.

The short answer to the question of "can I get a mortgage with bad credit?" is "no".

But...

There is good news.

You can -- with a little effort -- actually work to repair bad credit. You can do it yourself or you can actually hire a company to help you fix your credit. If you hire a company to help you fix your credit, will it help more than if you do it yourself? Maybe. Maybe not -- it mostly depends on how good the company you hire is.

One thing is certain though -- if you currently have bad credit and you want to buy a home, you are out of luck at getting a mortgage. Many lenders are requiring at least a 620 credit score for any kind of loan, so you want to be sure that your credit score is at least that high when shopping for a mortgage.

So if you don't currently have at least a 620 mid credit score, plan on doing a little bit of work before you can get a mortgage - and you can do the work yourself or hire someone who specializes in credit repair to help you.

While I am thinking about this stuff, you can also save yourself a bunch of money on your car insurance by getting  free cheap car insurance quotes online too.

Arizona Mortgage Rates for April 9 2009

We are starting to see a lot of fence-sitters move on either purchasing a home or refinancing their existing home. Lenders turn times are slightly longer than normal - and some lenders are on way-longer-than-normal turn times because they haven't staffed up for the "refi boom" that is happening.

Are you still on the fence wondering if now is a good time to refinance? It is a good time to at least think about getting off the fence.

With more homes owned by banks here in Arizona, the Arizona FHA 203k loan program is becoming popular with people who want to buy one of these homes that might be in need of a few repairs.

The FHA 203k streamline loan program has been around for years - but many people didn't know it because there hasn't really been that many properties that were sold that were in need of repairs.

Some of the most popular repairs that the FHA 203k streamline is used for include:

• Remodeled kitchen
• Remodeled bathroom
• Fixing termite damage
• New exterior work (stucco)
• Replacement of plumbing fixtures
• New flooring
• New roofing
• Installation of new smoke detectors
• Major landscape improvements
• Energy conservation improvements such as new windows and new insulated door

If you have more questions about the FHA 203k streamline program and are wondering who to ask - be sure to contact an Arizona loan officer today.

No.

Ok, wait. If I just ended this post there, what good would that be? The truth is that there are still options out there for Arizona bad credit mortgage options, you just have to know where to look.

It is true that for pretty much any loan program that you have heard of in the news (FHA, VA, USDA, HomePath, etc.) you will need to have a 620 mid credit score or higher. But what you might not hear about in the news is that if you currently have below a 620 mid credit score, there are programs available that you can fix your credit and let you get into the loan program that you are looking for.

Is FHA the new subprime? Kind of. It used to be that people with less than perfect credit could get into a home easy - all they had to do was sign up for a crazy adjustable rate mortgage with a prepay penalty and they were in. I think you know how that story ended.

Now, with the subprime mortgage market all but gone, your options really are government insured loan programs such as the FHA, VA, or USDA loan programs.