With the ‘Great Recession’ behind us, knowing when it’s time to buy again is key - Ahwatukee Foothills News: Real Estate

With the ‘Great Recession’ behind us, knowing when it’s time to buy again is key

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Posted: Sunday, August 10, 2014 4:45 am | Updated: 9:22 pm, Sun Oct 5, 2014.

It seems as if almost everyone you meet has experienced the negative effects of the “Great Recession.” If you or someone you know has had a derogatory credit event, check this cheat sheet, to help you determine when you can buy again. Lenders have loosened the requirements and restrictions surrounding a negative credit event. It may be time to buy before interest rates rise in 2015.

Loan type

Conventional

Max Loan Amount: $417,000

Occupancy and Minimum Down Payment: Primary Residence — 5 percent (w/660 FICO); Second Home — 10 percent; Investor — 20 percent.

Allowed Seller Contributions: Primary Residence — 6 percent; Second Home. — 6 percent; Investor — 2 percent.

Mortgage Insurance: Monthly or Single up front premium.

Maximum Debt to Income ratio: 45 percent (up to 50 percent with strong compensating factors).

Credit Score: Primary Residence — 660 FICO (with 5 percent down); Second Home — 660 FICO; Investor — 620 FICO.

Guidelines:

• Any amount can be gifted (if not an investment).

• 90-day flip is OK with a strong appraisal.

• Minimum down payment contingent on credit.

• Up to 10 financed properties (restrictions apply).

HomePath

(Fannie Mae REO)

Max Loan Amount: $417,000

Occupancy and Minimum Down Payment: Primary Residence — 5 percent; Second Home — 10 percent; Investor — 15 percent.

Allowed Seller Contributions; Primary Residence — 6 percent; Second Home — 6 percent; Investor — 2 percent.

Mortgage Insurance: None

Maximum Debt to Income ratio: 45 percent (up to 50 percent with strong compensating factors).

Credit Score: 660 FICO

Guidelines:

• Property must be HomePath eligible (Fannie Mae REO).

• No PMI and no appraisal.

• Down payment can be fully gifted except for investments.

FHA

Max Loan Amount: $217,050

Occupancy and Minimum Down Payment: 3.5 percent.

Allowed Seller Contributions: Up to 6 percent.

Mortgage Insurance: 1.75 percent upfront; 1.35 percent yearly

Maximum Debt to Income ratio: 55 percent.

Credit Score: 620 FICO

Guidelines:

• Co-signer allowed to strengthen loan.

• 90-day flip allowed with two appraisals and home inspection.

• Home improvements allowed for 203K loan.

VA

Max Loan Amount: $417,000

Occupancy and Minimum Down Payment: 0 percent.

Allowed Seller Contributions: Up to 4 percent.

Mortgage Insurance: first use 2.15 percent upfront; Subsequent use 3.3 percent up front.

Maximum Debt to Income ratio: 45 percent (up to 55 percent with residual income).

Credit Score: 620 FICO

Guidelines:

• No minimum cash investment required.

• Limited closing costs.

• Flexible credit solutions.

USDA

Max Loan Amount: $417,000

Occupancy and Minimum Down Payment: 0 percent.

Allowed Seller Contributions: Up to 4 percent.

Mortgage Insurance: Guarantee Fee; 2 percent up front and .3 percent yearly.

Maximum Debt to Income ratio: 41 percent (higher with strong compensating factors).

Credit Score: 640 FICO

Guidelines:

• Program is currently funded.

• Upfront guarantee fee can be financed.

• Maximum income limit of 115 percent of area median income.

These are basic guidelines of a specific lender. Other lenders’ policies or requirements may be different.

• Ahwatukee resident Stacey Lykins, MBA, is a Realtor with Ahwatukee-based West USA. Reach her at (602) 616-9971, S.Lykins@LykinsProperties.com or www.LykinsProperties.com.

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Kyrene Akimel A-al Middle School

David Jolkovski/AFN
Kyrene Akimel A-al Middle school Principal Mike Deignan poses with students in front of the school sign that is advertising their "A" rating.

Kyrene Akimel A-al Middle School has been part of the Ahwatukee area since 1992, offering each of its Rattlers an enjoyable schooling experience from the morning bell to the ending bell.

According to its website, the name of the school is from the Akimel O’odham language and it means, “Children of the River.”

Principal Mike Deignan said the school offers sport activities and a learning lab before school starts, which provides students time before school to seek extra help with work completion or tutoring.

“That keeps our students involved with a lot of things, between the sports and the learning lab,” Deignan said.

For more information, visit www.kyrene.org/aki.

• Compiled by Daniel Ochoa.

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