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

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

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

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Sunday, August 10, 2014 4:45 am

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.

More about

More about

More about

  • Discuss

Keystone Montessori

[David Jolkovski/AFN]
Teacher Pily Pantoja helps Sarah Wang, 4, with the addition snake game at Keystone Montessori on Thursday, Sept. 4, 2014.

Keystone Montessori has come a long way since its founding in 1995. Back then it was operated out of the founder’s home before eventually moving on to rent rooms from Horizon Presbyterian Church. It was only in 2000 that they had gained a strong enough enrollment to move into the facility where they currently reside on Liberty Lane, just off Desert Foothills Parkway and across from the Ahwatukee Foothills Family YMCA.

The school services students as young as 18 years old, as part of their toddler program, and as old as ninth-graders. The current enrollment is around 320 students, who all have access to Spanish, music and arts programs in addition to the full Montessori curriculum.

“We provide an authentic Montessori education which focuses on the independence and whole development of the child, including academic as well as social and emotional growth,” said head of school Cindy Maschoff. “We want our students to become independent citizens of the world.”

The school will be taking the time to present the concept of Montessori education to the public Jan. 29 and 30. At the presentations the school will provide a clear understanding of what Montessori education looks like at each level of education. Those wanting to attend should plan on going to both meetings, with the Jan. 29 meeting going from 6-7 p.m. and the Jan. 30 meeting from 9 a.m. to 1 p.m. The meetings require attendees to RSVP, which can be done by emailing laura@keystonemontessori.com.

For more information, visit keystonemontessori.com.

• Compiled by James Gingerich.

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…