Phoenix AZ Homes and Condos

FHA Loan Policy Changes impact loan acquisition costs by reducing the maximum amount of buyer closing costs a seller can pay on behalf of the buyers from 6% to 3% of the total sales price. At the same time FHA is increasing the up-front Mortgage Insurance Premium from 1.75% to 2.25% of the loan amount to be paid at close of escrow or rolled into the new home loan.  If approved, FHA will also consider increasing the annual MIP payment. Details to follow upon approval of their recommendation.

FHA is qualifying buyers based upon their FICO score to the extent that those with a FICO score below 580 are eligible for a 90% LTV loan with the minimum down payment increased from 3.5% to 10%. Read the new FHA Loan Policy for more details.

These policy changes show the U.S. government is no longer willing to make what they perceive to be higher risk loans at very favorable loan terms. With the rampant loan defaults and huge amount of government deficit spending, loan interest rates will eventually rise.

Those buyers waiting for the opportune time to buy have already missed their chance. The Phoenix real estate market bottomed out in March/April 2009 and average prices of Chandler, Gilbert, Mesa, Scottsdale and Phoenix homes have gone up since.

If you continue to wait, you may be priced out of the market as higher loan costs and mortgage interest rates rise. Buy now to lock in a fixed rate loan that are historically very low levels and to take advantage of the First Time and Repeat Home Buyer tax credit (Up to $8000 and $6500, respectively) by contracting by April 30 and closing by June 30.  This primer at  explains New Home and Existing Home tax credits and how you can take advantage of them. Hurry before they expire. Call Sam Elam for assistance with your next home purchase.

For assistance with the purchase of one of our homes in Chandler, Phoenix, Scottsdale, Gilbert, Mesa or Tempe contact:

Sam Elam, Associate Broker, Prudential Arizona Properties, (480) 213-1799 or SamElam3@gmail.com

Additional buyer resource information and MLS access visit: Phoenix homes for sale – Phoenix real estate & investments

Sam Elam - Associate Broker specializing in Chandler, Gilbert, Mesa and Phoenix real estate and homes for sale AZ.