The new Good Faith Estimates have created a lot of paperwork and training, but I am happy to see the Government finally step in and make the Lenders Honor their word. Before the new law, a client could get a Good Faith Estimate at 4.5% and no cost and be charged 6% and $10,000 at closing. The Lender would not have to honor the Good Faith they put out and the Client had no recourse. Now, the Good Faith Estimate is Binding!

I would like to see some future changes in the Good Faith Estimate to make it more user friendly. The Total Payment including taxes and insurance should be on the form. It is confusing to the client to have only the principle and interest and mortgage insurace on the form. The costs are not correct if the seller is paying the owners title policy and transfer tax. The client is given a higher cost with these fiqures than they will have to pay.

If you have any questions about the New Good Faith Estimate Please feel free to call me at 928-527-7974.

There is a bill before Congress that would re-instate the AmeriDream Program. It is H.R. 600 and would allow AmeriDream to make a gift for the down payment on FHA loans. This program would use no tax dollars and would open home ownership up to thousands of buyers. Please call or write your congressman today to support the bill.

Great News! As part of the stimulus package FHA as increased their loan limits until December 31, 2009. The new Arizona limits for single family units are below:

Coconino County - $450,000

Navajo Counlty - $308,750

Yavapi County - $390,000

Gila County - $325,000

Apache County - $281,250

Maricopa County - $346,250

Mohave County - $322,500

Pima County - $316,250

Pinal County - $346,250

All other Counties - $217,050

FHA allows a minimum down payment of 3.5%. FHA also allows 100% Gift Fund for the down payment from a family member.

For more information please call Lynne Dewar at (928) 814-6362

Time is running out to take advantage of the temporary higher FHA loan limits. Effective January 1, 2009 the FHA loan limits in Coconino County, AZ will drop from $450,000 to $333,500. The last day to lock in an FHA loan with the higher limits is November 28th and the last day to close is December 15th.

In addition, the downpayment for an FHA loan will be increasing from 3% to 3.5% effective January 1, 2009. For a $300,000 sales price this will mean an additional $1,500 down.

To take advantage of the $7,500 first time buyer tax credits you still have until June 30, 2009 to close.

For futher information please call Lynne Dewar at (800) 552-1188.

FICO Scores are becoming even more important with the recent guideline changes. There are several steps you can take to increase your FICO Score.

First you need to pull a copy of your credit report from Annual CreditReport.com.  You can get a free credit report once a year. You can then buy a copy of your credit score from Equifax.com. The FICO Scores run from 350 to 850, The higher the number the better. Your target score should be at least 720.

Check your credit report thourghly. You need to look for errors, misinformation, and negative information.  If you see anything that is not correct you need to file a dispute with the three credit reporting bureaus.

Next you need to make a list of everything you owe, interest rates, and minimum payments. Then priortize your debt.  The order you should pay your debt is; mortagage, real estate taxes, credit cards and medical bills.

If you have higher interest rates you can negotiate with your creditors for a lower interest rate. If you pay less interest then more of your money goes to reduce the principle each month.

Your FICO Score is lowered if you owe more than 30% of the limit of you credit card. Pay down the cards that have the highest balances with the lowest limits first.

Pay everything on time, even if you can only make the minimum payment. The ability to pay your debt on time is the most crucial component of your credit history.

Don't open and close alot of accounts. The more accounts you open the riskier you look and the lower your score. Closed accounts only stay on your report for 10 years so you are gettng rid of good credit.

Don't share credit except with your spouse. Co-signing means you will pay if they do not. It also will lower your score if they pay late.

If you need more information on raising your FICO Score please contact Lynne Dewar at (800) 552-1188

Fannie Mae has announced that they have gone to a new FICO based plan for all loans. The Higher your FICO Score the Lower your Rate. For example, on a $250,000 30 year, fixed rate mortgage the interest rate would be 5.75% if you FICO is 760 or  higher.  This would be a payment of $1,459. If your FICO is 680 to 759 then your rate would be 5.875% and you payment would be $1,479. If your FICO is 660 to 679 your rate would be 6.625% and your payment would be $1,601. If you FICO is 640 to 659 then your rate would be 7.125% and your payment would be $1,684. Finally if you FICO is 620 to 63 your rate would be 7.625% and your payment would be $1,769.

 The higher the FICO Score the larger the savings. A score of 760 or better saves you $310 per month or $3,720 per year. We are able to help you clean up your credit and improve your FICO Score in one week with our Rapid ReScore Program

Call Lynne Dewar at (800) 552-1188 for a free consultation.

We have a new foundation system for manufactured home that meets FHA requirements.  It is called the Xi2 System.  It is a concrete foundation system and can be installed in any type of soil.  The total cost of the system is between $2,700 and $3,500 and that includes the Engineers Certification.  The engineer will go out the first time to determine if the system in place meets FHA guidelines and then he will go back out to certify the work if it is needed.  The $2,700 to $3,500 included both visits if needed.  This is about Half the cost of the Suresafe Foundation System.  The Xi2 System meets frost requirements and can be installed in one day.  It beats Anchors 5 to 1.  The Xi2 System is endorsed by the Manufactured Home Builders Asssociation.

If you have a listing that does not have a foundation and your buyers want to go FHA this is the way to go.  The contractor will bill escrow and collect the funds at closing.  This can open up many more qualified Buyers for your listings.

Call Lynne Dewar at (800) 552-1188 for more information.

There is a new program available to help First Time Buyers get into their first home.  It is a 1% down loan program.  The Buyer puts down 1% and the AZ FHR Program gives them a 2% gift to make a 3% down payment.

This program can be used with Manufactured Homes or stick build homes.  The AZ FHR Program will also give a 5% second loan for closing costs.  The maximum loan amount is $342,000.  You can use the program with single family, condos. or 1-2 unit properties.  It is for Primary Residences only. No investor or second homes.

If the program is used on a Manufactuted Home you must have a permanent foundation, no hauled water and you need an engineer certification.

There may be income limits based on the county you are purchasing in.

Call Lynne Dewar at (800) 552-1188 for more details.

There are many benefits of Home Ownership.  Some of the most benefical are listed below.

1. Homeowners accumulate wealth faster than renters.

2. The median net worth for homeowners was $184,400 in 2004 compared to only $4,000 for Renters.

3. Homeownership provides Tax Benefits - Mortgage interest and Property taxes are full Deductilbe for Income Tax purposes

4. Stable Housing Costs - As a Homeowner you no longer have to worry about Increasing Rents

5. Pride of Ownership - Home Ownership gives you and your Family a sense of Stability and Security

6. Capital Gain Exclusion - Up to $250,000 if you are single or $500,000 for a married couple if you have lived in your home for 2 out of the past 5 years.

Home prices are more affordable than they have been in the last two years. If you are still renting now is a GREAT time to purchase instead. There are many First Time Buyer Programs availabe to help you get into a home.  You can get into a home with 100% Financing and have the seller pay the closing costs. That mean you can buy with Zero Down and Zero Closing Costs.

Please call Lynne Dewar at (800) 552-1188 to open the door for Home Ownership!

One of the good side effects of property values declining is the opportunity of lower property taxes. If you feel that the "Full Cash Value" of your property is greater than the full market value you have two methods of appeal: Administrative or Judicial.  You may appeal the "Full Cash Value" to the County Assessor where your property is located.  The first step of the Administrative Process is to file a petition with the County Assessor.  You must file your appeal within 60 days after the Notice of Value card was mailed to you.  The second step is to request a meeting with the County Assessor's office or submit written evidence that supports your appeal.  If you reach an agreement, no futher appeal is permitted.  If you do not agree with the asessor's decision you move to step three.  You may file a petition with the Board of Equalization for that county.  The petition must be filed within twenty five days of the date the assessor's decision was mailed to you.  If  you are not satisfied with the Board of Equalization's decision then you go to step four.  You may appeal to the Tax Court.  You must file your appeal no later than 60 days after the Board of Equalization decision was mailed to you.

You may also file a petition directly with the Tax Court at any time after receiving the Notice of Value, provided you do not file an administrative appeal.  You must file it no later than December 15. This is the Judicial Process.

Please feel free to call me at (800) 552-1188 for any questions.

Lynne Dewar

Sr. Mortgage Consultant