The New Arizona FHA Mortgage Loan Refinance Option For Home Owners Who Owe More Than Their Home Is Worth..

You heard it here first.. renewed Hope for Home Owners..

David Stevens of HUD just announced that the Obama Administration is putting together an FHA Refinance program that will allow for a homeowner who is upside down on their home (sounds like all of us in Arizona, doesn’t it) to refinance into an Arizona FHA Mortgage Loan.

They anticipate the FHA Refinance program to be available within the next few months.

Arizona FHA Refinance Options for Underwater Homeowners – Encouraging Responsible Refinances

• Home owners with current financing OTHER than FHA are eligible
• It’s mandatory that part of the principal be written off by the existing lender
• The new loan cannot be more than 97.75% of the home’s value
• Combined mortgage debt must be written down to at least 115% of the current value of the home
• Monthly mortgage payments must be reduced to no more than 31% of household income
• Must have a credit score of 500 (that shouldn’t be too tough)

Here is the press release for the new Short Refinance.  HUD FHA Refinance for Underwater Home Owners

Leave your thoughts below..

Apply online for an Arizona FHA Loan and get pre-qualified today. Or click the Get Started tab above, to get started today!

Obama’s Health Care Not So Healthy For AZ FHA Mortgage Rates

Arizona FHA Mortgage Loan interest rates have climbed heavily over the last 2 days.  Basically, there is much less demand for U.S. Debt which was triggered by the massive Obama Health Care Bill.  According to bond traders, ObamaCare is a budget buster and will have a heavily negative impact on AZ FHA Mortgage Loan interest rates.  The health care bill will add significantly to the deficit over the coming years, thus making U.S. Debt much less attractive to foreign investors.

However; Obama will announce initiatives today to assist more troubled homeowners stay in their homes.  It is expected to be an FHA backed program and use TARP funds.  More spending, but in the right direction for a change.

Leave your thoughts below..

Apply online for an Arizona FHA Loan and get pre-qualified today. Or click the Get Started tab above, to get started today!

In 7 Days The Hottest AZ FHA Mortgage Loan Deal Will Expire..

There are two reasons why getting under contract and locking your AZ FHA Mortgage Loan by March 31st, 2010 will save you money and assure you are getting the hottest Arizona FHA Mortgage Loan that has ever been available.

Reason #1 -

Granted, this may be a bit on the speculative end but lets look at the facts.

The Feds have been buying Mortgage Backed Securities at a CRAZY pace.  The plan has been that the Feds would buy Mortgage Backed Securities through the end of March 2010 in an effort to ARTIFICIALLY KEEP INTEREST RATES LOW.  The Feds were to buy 1.25 Trillion in MBS and as of now have bought 1.236 Trillion.

Right now the end of March is about 168 hours away..

With the First Time Home Buyer Tax Credit expiring, the USDA running out of funds in April and the exit of the Feds buying Mortgage Backed Securities; what will happen to AZ FHA Mortgage Interest Rates?

Most Industry Professionals believe we will see them rise.

SOLUTION:  Get a contract on a property and Lock your Arizona FHA Mortgage Loan TODAY!

Reason #2 -

Based on cold hard fact, no speculation at all.  On April 2nd, 2010 HUD will increase the Up Front Mortgage Insurance Premium from 1.75% to 2.25%.  On a $200,000 AZ FHA Mortgage Loan that is an additional cost of $1,500.

Can you avoid that extra $1,500 Fee to HUD?

Yes, but you must move quickly.  The solution is the same as above; write up a contract on a property and have your AZ FHA Mortgage Loan Originator order the FHA CASE NUMBER before April 2nd.  This way, even if you close in May, you will still get in under the lower UFMIP amount.

I’d love to hear your thoughts and comments on these two items.  Given the economic condition of the country, do you think the Feds will EXTEND their purchases of the Mortgage Backed Securities?

Leave your thoughts below..

Apply online for an Arizona FHA Loan and get pre-qualified today. Or click the Get Started tab above, to get started today!

The federally insured mortgage program provided by HUD normally referred to as FHA has been around for a long time. When I first got into the mortgage business FHA was by and far the number one mortgage program. At the time there were no stated income programs, no option ARM programs, there was no 100% financing, it was a very vanilla time. Conventional mortgages, those offered through FannieMae and FreddieMac just were not big, they were used primarily for move up buyers who had at least 20 percent to put down on a home.

Then around 2002 FHA disappeared off the face of the mortgage world, FHA went from representing nearly 60% of all mortgage origination to 3%, nearly nothing.
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