Home Loans California & Arizona

Now is a great time to purchase a new home in Tucson AZ. However, purchasing a new home needs care. There are sloppy ways and smart ways to purchase a new home. I would like to share with you 3 things I think home buyers can use to make their next home purchase more secure.



Remember your home is your home and not an investment.

The main reason why you are purchasing a home is because you need somewhere to live. That must be your top priority. You need to make sure that your home meets your needs and the needs of your family.

Looking long-term will help you make sure the mortgage payment you choose will meet your long-term financial terms. As the bust has shown us, increased mortgage payments have caused many to lose their homes. You need to make sure the payment you have now will be good for you long-term. 

Some people jumped at teaser financing that promised low rates now with balloon payments later. People jumped at them thinking they could always refinance later. Well, when the bust dropped the value of homes 30-40% people found out they could not refinance.

Approach the house you will purchase as your home and not an investment. However, one of the great things, a side benefit if you will, is the home can be a great investment. It just cannot be your primary concern. Home ownership will give you great tax benefits as well as building your equity for the future. These are great! Just do not purchase a home because it might be a good investment above choosing a home that will meet your needs long-term.

Home Warranties are an awesome idea and worth the low cost.

There are different levels of warranties from the basic up to top-notch plans that cover everything. You can start with the basic plan and then add items that make sense for your home. Some other optional coverage options that you can add would be for central A/C, pool/spa, roof leak protection, etc.

When you own a home the proverbial buck stops at your desk. As a renter you always had someone else to handle the repairs (and the expenses of repairs.) As an owner it is all up to you. And the simple can get very expensive very fast.

Not all home warranty companies are created equal so make sure you choose a reputable company.

Inspections with repair costs will protect your purchase.

Home inspections are part of the purchase fo a new home. As a buyer you have the right to perform inspections and the seller is required by law to make to house available for those inspections. There are 2 main inspections that are used right from the beginning: general inspection and pest control inspection. However, there are other inspections you can choose based on your needs and the results of the general inspection.

If the general inspection hints at any potential problems then you need to protect yourself by ordering a specialist to come examine the noted issue. Some typical follow-up inspection would be roof inspection, plumbing issues, or electrical issues. I would recommend another good test to obtain which is a manometer test. This test will measure how level the foundation is and will expose if there are potential problems with the slab.

Take the inspections one step further and get repair estimates. This way you will know what you might be facing for repairs or know what to ask the seller to repair. Having repair estimates will make the conversation between the buyer and seller easier.

Home ownership is part of the great American dream and a dream that I am committed to. If you are ready to realize your dream call Nathan Rufty at (623) 850-1210 to get started with your home purchase process in Tucson AZ.

Posted by Nathan Rufty on November 20th, 2019 2:45 PM
helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.??VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.
Although the initial savings of minimal down payments are the best perk to Tucson AZ VA loans, they come with other upsides. VA loan borrowers usually get lower interest rates. This is due to the Department of Veterans Affairs guarantee on each loan. VA-approved lenders are then more likely to knock off a few percentage points on interest rates. Furthermore, there is no penalty for prepaying and no private mortgage insurance. All of these advantages help military homeowners save bundles of money each month.


Benefits of Tucson AZ VA home loans

  • Purchase Loans Help you purchase a home at a competitive interest rate often without requiring a downpayment or private mortgage insurance. Cash Out Refinance loans allow you to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements. 
  • Interest Rate Reduction Refinance Loan (IRRRL): Also called the Streamline Refinance Loan can help you obtain a lower interest rate by refinancing your existing VA loan. 
  • Native American Direct Loan (NADL) Program: Helps eligible Native American Veterans finance the purchase, construction, or improvement of homes on Federal Trust Land, or reduce the interest rate on a VA loan. 
  • Adapted Housing Grants: Help Veterans with a permanent and total service-connected disability purchase or build an adapted home or to modify an existing home to account for their disability. 
  • Other Resources: Many states offer resources to Veterans, including property tax reductions to certain Veterans. 

Tucson AZ VA home loans Eligibility Requirements

  • Your length of service or service commitment, duty status and character of service determine your eligibility for specific home loan benefits.
  • Purchase Loans and Cash-Out Refinance: VA-guaranteed loans are available for homes for your occupancy or a spouse and/or dependent (for active duty service members). To be eligible, you must have satisfactory credit, sufficient income to meet the expected monthly obligations, and a valid Certificate of Eligibility (COE). 
  • Interest Rate Reduction Refinance Loan (IRRRL): The IRRRL is a "VA to VA" loan, meaning it can only be done if you have an existing VA guaranteed loan on the property. The IRRRL is generally performed to lower the interest and reduce the monthly payment on the existing VA guaranteed loan. 
  • Native American Direct Loan (NADL) Program: The NADL program helps Native American Veterans purchase, construct, improve, or re-finance a home on Native American trust lands. Your tribal organization must participate in the VA direct loan program. You must have a valid Certificate of Eligibility (COE). 
  • Adapted Housing Grants: VA helps Veterans with certain total and permanent disabilities related to your military service obtain suitable housing with either a Specially Adapted Housing (SAH) or Special Housing Adaptation (SHA) grant. 

If you are ready for your next VA Home loan in Tucson Arizona, please call Nathan Rufty at (623) 850-1210
Posted by Nathan Rufty on November 13th, 2019 12:42 PM
The Tucson AZ FHA Home Loan Program is becoming the most popular way to finance the purchase of homes. It has always been popular but have become more so in the last couple of years because of the problems in the housing market.

Conventional loans are becoming harder to get and the down payment required is 20% or more. Another problem with conventional loans is that credit has tightened and you need higher credit scores. This is why the FHA Home Loan Program looks so attractive to current homebuyers in Tucson AZ.


Here are some of the advantages of a FHA Home Loan in Tucson AZ:

1. Easier to Qualify

FHA does not directly lend money to the homebuyer, what they do is insured the mortgage. This will give lenders the incentive to give better loan terms and make it easier for you to get qualified.

2. You Do Not Have To Have Great Credit

In today's housing market you need to have pretty darn credit to qualify for a conventional loan. You can qualify for a FHA Home Loan with less than perfect credit scores. If you have had a bankruptcy in the past you have a better chance of getting a mortgage with the FHA Home Loan Program than a conventional loan.

3. Low Down Payment

This is probably is the best advantage to a FHA Loan Financing. You only need a 3.5% down payment versus 20% or more for conventional loans. You really do not have the have the down payment, it can come from a family member, employer, or charitable organization. Conventional loans do not allow this.

There is an exception to the 3.5% down payment. Currently you only need $100 for a down payment if you buy a HUD foreclosed home. You can get more information on The HUD $100 Down Payment Incentive by clicking on the links at the bottom of this article.

4. Cost Less To Have A FHA Loan

FHA Home Loan Mortgage has very competitive interest rates because they are insured by the Federal government. You need to compare their rates with rates of conventional loans.

5. What If You Can Not Paid Your Loan?

6. FHA loans can be used not only to purchase existing single family homes but also new construction homes, 1-4 family homes, and manufactured homes. It is very hard to get financing for manufactured homes with conventional financing.

FHA has been around a long time, since 1934. They have programs available to you that will help you save your home if you happen to run into hard times. And there are a lot of hard times going around in today's economical times. They can help you to avoid foreclosure.

Remember, FHA does not provide direct lending nor does it set the interest rates on the loans. You need to shop around with different FHA approved lenders for the best terms and rates. The FHA Home Loan Program may be your best and only chance to get your dream home!

Are you ready to learn more about FHA Home loans in Tucson AZ? Call Nathan Rufty at (623) 850-1210.
Posted by Nathan Rufty on November 6th, 2019 11:22 AM
Phoenix AZ’s economy has experienced its ups and downs over the last few decades. Population decline and the national housing crisis have driven prices and mortgage rates down, making it homeownership more attainable in the state. Some cities are even paying people to move there.

Additionally, both the federal and Phoenix AZ state governments have created mortgage programs specifically for first-time homebuyers. When paired with grants and tax credits, these can make homeownership both cheaper and more accessible. 

Before you buy a home, you might want to consider enlisting the help of a financial advisor. An advisor can help you understand how a mortgage will impact your financial picture, and help you choose the best loan option for you.



Federal First-Time Homebuyer Programs

Before we break down the loan programs for Phoenix AZ residents, we’ll first go over several national home buying programs offered through the federal government. You want to consider all your options when searching for a mortgage, so make sure to look at both federal and state programs.

FHA Home Loans Phoenix AZ

This is the go-to program for many Phoenix AZ residents, especially first-time home buyers and those who have a credit history that’s ... let’s say shaky. The Federal Housing Administration guarantees a portion of FHA home loans, which frees lenders to broaden their acceptance standards. With FHA backing, borrowers can qualify for loans with as little as 3.5% down.

FHA loans do have an upfront and ongoing additional cost built in: mortgage insurance premiums. This protects the lender’s stake in the loan if you default.

VA loan Phoenix AZ

The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. VA loans are especially generous, often requiring no down payment or mortgage insurance. But like a lot of military operations, the approval track is built for accuracy, not speed.

While the VA has only a few requirements for things like debt and sufficient income, VA lenders may add their own "overlays," or additional requirements.

USDA loan Phoenix AZ

This one may surprise you. The U.S. Department of Agriculture has a home buyers assistance program. And no, you don’t have to live on a farm. The program targets rural areas and allows 100% financing by offering lenders mortgage guarantees. There are income limitations, which vary by region.

ADOH highlights and eligibility requirements

Arizona’s Home Plus mortgage program is specifically designed to help people become homeowners. Over 90% of participants in the Home Plus program are first-time home buyers, though owning real estate now or in the past doesn’t necessarily disqualify you, Dirk Swift, the program administrator, said in an email.

Highlights
  • Down payment and closing cost assistance.
  • Reduced mortgage insurance premiums.

Eligibility
  • Property must be located in Arizona and not exceed purchase price limit.
  • Borrower must occupy the home as a primary residence.
  • Borrower must meet income and credit score requirements.
  • Home buyer education course required.
  • Some mortgage types not available in certain counties.

Are you ready to purchase your first home? Please call Nathan Rufty your first time home buyer expert in Phoenix AZ at (623) 850-1210.

Posted by Nathan Rufty on October 31st, 2019 9:36 AM

3% Down Payment Mortgage for First-Time Homebuyers in Phoenix AZ

For years, the Federal Housing Administration was the king of the low-down-payment mortgage mountain. Now, Fannie Mae and Freddie Mac, the government-sponsored enterprises that provide capital to the mortgage market, are designing loan products for hopeful home buyers with skinny savings accounts.



With Fannie Mae’s HomeReady and Freddie Mac’s Home Possible, a 3% down payment — or what lenders refer to as 97% loan-to-value, or LTV — is available on so-called conventional loans. Conventional loans are the loan products most often issued by lenders.

Many Phoenix AZ homebuyers have a hard time juggling everyday expenses while saving for a down payment or closing costs. Rent, utilities, car payments, student loans, and credit cards, not to mention groceries, can sometimes drain your bank account as quickly as money is deposited.

Considering all of that, it's no surprise that saving for a home is one of the biggest hurdles to actually buying a home. But that doesn't have to be your experience. Today's buyers have mortgage options that require down payments well below 20% of the home's purchase price. In many cases you can buy a home with just 3% down.

There are also buyer assistance programs in Phoenix AZ that may help cover your down payment and possibly closing costs. Funding from those programs often can be combined with financial gifts from your family and friends to reduce your out-of-pocket costs to buy a home.

VA Loans - Veterans Affairs
These loans are insured by the U.S. Department of Veterans Affairs for certain veterans, service members, spouses and other eligible beneficiaries.

They don’t require a down payment or mortgage insurance but do charge a one-time funding fee of 0.5% to 3.3%, depending on the type of loan, the size of the down payment and the nature of your military service.

USDA Loans - U.S. Department of Agriculture
The U.S. Department of Agriculture insures home loans for low- to moderate-income homebuyers in eligible rural areas.

Like VA loans, there is no down payment for a USDA loan. But there is an upfront fee of 1% and an ongoing annual fee of 0.35%, both of which apply to purchases and refinances.

FHA Loans - Federal Housing Administration
Insured by the U.S. Department of Housing and Urban Development (HUD), borrowers can get an FHA loan with a down payment as low as 3.5%.

Additional fees include an upfront mortgage insurance premium of 1.75% and an annual mortgage insurance premium of 0.45% to 1.05%, depending on the type, size and length of the loan and the size of the down payment.

Conventional loans
Some mortgage lenders offer small down payment mortgages — as little as 3% down payment — to borrowers who qualify.

These loans, however, aren’t insured by a government agency, so the lender will require private mortgage insurance (PMI). The cost of PMI varies but is often between 0.5% and 1% of the loan amount. You can typically request to have your PMI dropped once you have at least 20% equity in the home.

So if you are ready to purchase a home in Phoenix AZ with only 3% down payment, please contact Nathan Rufty at (623) 850-1210.
Posted by Nathan Rufty on October 23rd, 2019 2:43 PM

Archives:

Categories:

My Favorite Blogs:

Sites That Link to This Blog: