David 's Blog

How do you purchase a home in Arizona using the Your Way Home Arizona loan program?

You are invited to attend the seminar explaining the "Your Way Home Arizona" on Monday, October 5th from 9:30 am - 12:30 pm. 

Reginald Givens from the Arizona Department of Housing will be presenting on the Your Way Home Arizona program. This is a great opportunity if you, your business partners or clients want to learn more about the Your Way Home Arizona Program.

Don't miss out on this opportunity to learn about new and changing information and get your questions answered.

The seminar will be held at the W.J. Bradley Mortgage Branch conference room located on 9237 East Via de Ventura, Scottsdale, AZ 85258.

Please RSVP no later than September 30th to reserve your seat. For any questions or to RSVP, please contact David Krushinsky at 623-594-7600 or email david.krushinsky@wjbraldey.com 

* Breakfast will be provided.

War - is a reciprocated, armed conflict, between two or more non-congruous entities, aimed at reorganizing a subjectively designed, geo-politically desired result.  War is an interaction in which two or more opposing forces have a "struggle of wills".  War is also a cultural entity, and its practice is not linked to any single type of political organization or society.

Over the last few months I've noticed that it's not hard to start "Wars" on Active Rain.  It's almost a good thing to be controversial, in most cases, to be known among the Active Rain community and/or help move your site rankings to the top of Google.  Plus, members are always interested in posting on topics to gain comments from their readers.  Here is my take on how to start an all out war and gain comments.

The first article I noticed that started an all out war was the post by Cathy Dick on her blog titled, "Remove my home staging signs from the home? Why?"  That prompted another article to be written by Matt Stigliano, "Can't We All Get Along? Stagers vs. Realtors vs. Sellers."  Matt's article generated 129 responses.  Some of the responses were in excess of 4 paragraphs.  Most of the people responding put as much time into their comment as they would've had they written their own blogs.  These blogs were great to read because they had so much material that prompted more discussion about a topic that is important to Realtors, running a successful Staging business and selling a home. 

Conclusion: Questioning Realtors decisions in a website forum with 159,295 members, most of which are Realtors, will result in a war.

The next article I noticed was Jeff Corbett's blog post titled, "Drug Cartels Cancerous Growth and the F*cked Mortgage Industry."  This blog inspired at least 3 other blogs that I'm aware of just on Jeff's title alone.  The post got hijacked by C Tann-Starr and TLW from club chaos and prompted people to even question why Active Rain Staff would allow such a post to be featured.  The comments are littered with videos of "use of the word F*CK", and other members dropping the F-Bomb.  There were 175 comments made on Jeff's post, including Jeff's when he said he loves this place. 

Conclusion: Using profanity in a public forum with 159,295 members, all with different backgrounds, religous beliefs, morals and cultures will result in a war.   

Just when you thought all was back to normal the Healthcare Debate begins with a post by Nestor and Katerina Gasset titled, "Health-Care Options - Real Solutions For Real Issues" four days later.  While this post relates directly to Realtors, it is highly political.  It's been my experience that you either make really good friends or arch enemies when writing political posts.  The article clearly isn't meant to be political as it states, "This post is not about being Democrat or Republican. This is not a political issue; this is an American issue" right in the content. But how can a reader be unbiased and not take a political stance on this issue since it is currently debated so much by both political parties? 

Conclusion: Posts on highly debatable political topics will result in a big war.

So what do all these post have in common and why did I take the time to write this blog???  I thought it would be fun to give credit to some terrific authors.  I personally feel that all of these blog posts were great reads and opened my eyes.  I read a post yesterday by my friend, Brian Brady, about the first time homebuyer credit and it made me see a perspective I would have never thought of.  I refrained from commenting on his post because I felt like THAT homeowner telling the experienced Realtor how to negotiate a short sale.  You know the "one" I am talking about.  I also felt it was necessary to thank all the terrific members, staff and people who make Active Rain what it is.  This site has re-energized me after only four months of blogging, commenting and reading inspiring posts like the ones above.  Thank You! 

For information on purchasing or refinancing your home loan contact The Krushinsky Team at 623-594-7600 or email david.krushinsky@wjbradley.com.

USDA Home Loans

Are you interested in purchasing a home in Arizona but don't have the available resources for a down payment? Look no further than the U.S. Department of Agriculture (USDA) Home Loan.  The USDA has a guaranteed home loan program available to help individuals and families purchase a home in Arizona located in certain qualified rural areas.

How do you qualify for a USDA loan? As with most mortgage loans, you must demonstrate your ability and willingness to repay the loan in monthly installments. Your credit history and other monthly obligations will be analyzed to determine if you have the reasonable ability to meet repayment obligations on your current debts and the new mortgage payment. Additionally, you must show that you have steady and sufficient income that is enough to meet mortgage payments, as well as discretionary income remaining each month.

Credit Eligibility

If you know you have made all past credit payments on time and have a good credit history, you are in good standing and should be a good candidate for a USDA home loan. But even if you have some "spotty" or derogatory credit, you may still be eligible for a loan. USDA mortgage guarantee home loans do not have a minimum credit score but most banks have an overlay of a 620 FICO requirement.

The mortgage loan underwriter wants to know that you are willing to repay the loan. If your credit history shows late payments or even previous bankruptcy, you can still repair your credit report.  It may take some effort but don't get discouraged.  Your first step is to find out what your credit rating is.

Most late payments should usually be at least one year in the past, and your current history must show that you have met your credit obligations on-time and diligently for at least 12 months. If you have filed for previous bankruptcy, the discharge date will usually need to be at least two years ago. Since the bankruptcy, you must show that you re-established credit and have been diligent with credit and debt payments.

Income Eligibility

The USDA home loan guarantee program is designed to help low to moderate income families. There are income restrictions depending on the area you wish to purchase a home. Your loan underwriter will look at your gross income, income from any co-applicants, as well as any other adults who plan to live in the household. If your income exceeds the maximum limit, you may still receive certain adjustments to your gross income that will help you qualify.

In order to give a loan underwriter a clear picture of your income, you will need to submit copies of at least two years of W-2 or 1099 tax filings. If you are self-employed, two years of full tax returns may be necessary to determine a good average income. If you currently work for an employer, you should provide copies of at least one months of pay stubs. You may also click here for a checklist of items you may need for the processing of your home loan.

SOME Eligible Areas in Arizona:

Metro Areas:

• Buckeye, AZ
• Anthem, AZ
• Queen Creek, AZ
• Casa Grande, AZ
• Sierra Vista, AZ
• Tucson, AZ
• Yuma City, AZ

County Areas:

• Cochise County, AZ
• Pima County, AZ
• Pinal County, AZ
• Santa Cruz County, AZ
• Yuma, County, AZ

You can click here to determine if the property your purchasing could be financed with this program.

Before you begin the search for the home of your dreams contact the David Krushinsky Team at 602-695-7575 or david.krushinsky@wjbradley.com to see if you qualify for the USDA 100% financing home loan in Arizona. 

* Because of the complexity with financing homes with swimming pools under the USDA home loan guidelines, we recommend that you avoid submitting offers on homes with swimming pools.

If you're like 8 out of 10 homeowners in Arizona that owe more than their house is worth but could benefit from refinancing your home mortgage to a lower rate then continue reading.  The first step would be to determine who actually owns your home loan.  Chances are pretty good that the mortgage servicer, the bank that sends you the payment statement, and the actual "owner" of the mortgage are two different parties.  So how do you determine who owns your loan(s)?  Click here to determine if Fannie Mae or Freddie Mac own your loan(s). 

Is your home loan owned by Fannie Mae?

If so, Fannie Mae now offers the Desktop Underwriter (DU) Refi Plus Program.  This home mortgage refinancing program will prevent unnecessary foreclosures by lowering monthly mortgage payments for millions of eligible homeowners.

What This Means For You...

Through refinancing, borrowers like you can take advantage of today's low rates and reduce their monthly payment. This will help monthly cash flow for millions of families across the nation.

Another goal of the DU Refi Plus Program is to help homeowners who live paycheck-to-paycheck, stabilize their finances. This means that Fannie Mae and other lenders will now turn riskier loans, such as Adjustable-Rate Mortgages (ARM), into more stable loans, such as Fixed-Rate Mortgages (FRM).

Easier to Qualify Than Before...

The purpose of the DU Refi Plus Program is to help the economic burden that many of us face today. One way to help with this is to offer assistance to homeowners who were previously ineligible. Under the new DU Refi Plus Program, Fannie Mae reduces eligibility restrictions and requires less documentation.

• Previously, Fannie Mae required applicants to show two current pay stubs as income verification. Under the DU Refi Plus Program, applicants can show only one current pay stub.
• On certain loans, Fannie Mae will now waive appraisals.
• Previously, Fannie Mae would not handle loans over 80% of your home's market value. Now, applicants may have a loan-to-value between 80-105% and NO MORTGAGE INSURANCE is required on the new loan.
• Fannie Mae will now accept applicants with a credit score less than 580, if their LTV is 80% or less.

DU Refi Plus Terms and Conditions

Though Fannie Mae will now help more homeowners than ever before with DU Refi Plus, there are still certain restrictions that will apply.

• Loans must be owned by Fannie Mae.
• Any existing subordinations must to be re-subordinated.
• Limited cash-out refinancing (less than 2% of loan, or $2,000).

Ineligible new loan products for the DU Refi Plus Program are:

• An Adjustable-Rate Mortgage with fixed terms less than 5 years.
• An interest-only mortgage.
• A balloon mortgage.

You may also be ineligible to participate in the DU Refi Plus program if you made a payment more than 30-days late within the past year.

If you have any questions about how to reduce your monthly mortgage payment, contact The David Krushinsky Team today at 602-695-7575 or david.krushinsky@wjbradley.com.

All good things must come to an end and the $8,000 tax credit for Phoenix first time home buyers is no exception.  The $8,000 tax credit program expires on November 30, 2009.  This means you must CLOSE ESCROW on your new home purchase no later than November 30th, 2009.   

The $8,000 tax credit does NOT need to be paid back and you do not need to wait until 2010 to claim the credit.  One can claim it on their 2008 taxes by filing an amended return after you close on your home.  Taxpayers can file Form 5405, First Time Homebuyer Credit, electronically for home purchases in 2008 to claim the first-time homebuyer credit.  The IRS began processing these returns electronically on March 30, 2009. 

If you are thinking to yourself, "November 30, 2009 is a long ways off".  Well it's NOT - just 77 days away so you need to take the following into account:

1. First, you need to actually find a home and get an offer accepted.  We see many properties in Phoenix with multiple offers on them and the average person right now has lost a "bidding war" on at least a couple of houses before their offer has finally been accepted.  On average, it isn't unreasonable for a buyer to spend a couple of months looking for a home before getting an offer accepted.
2. Once your offer is accepted, you still need to get a mortgage.  Our processing turn times right now for a typical loan average about 30 days.  New rules and regulations have added a few extra days to the process.  
3. For anyone taking advantage of the government's buy a HUD Home for only $100 Down Program, turn-around times for getting the purchase to close have been averaging at least 60 days.
4. Lastly, remember that according to the IRS, you must actually close on your home for it to be considered occupied and to qualify for the $8,000 Tax Credit.

So, if you take the 2 months of searching and add another 30 days for the mortgage, you can easily see that you need to begin NOW!

For a list of Frequently Asked Questions (FAQ's) visit www.dkhomeloans.com under "Current Home Mortgage Incentives".  Before you begin your home search please contactThe Krushinsky Teamat 602-695-7575 or david.krushinsky@wjbradley.com to get pre-approved.

Thinking About Going Green on your Phoenix Home Mortgage? VA Energy Efficient Mortgage (EEM) Program May Be The Solution

The VA Energy Efficient Mortgage Program allows a veteran, using a VA Home Loan, to upgrade their Phoenix home at the time of purchase or as a refinance, if the borrower already owns the property. The program allows the veteran to finance up to $6,000 in cost of those upgrades into their home mortgage.  This is a great program for those who want help protect the environment and save money. 

Allowable energy efficient improvements include, but are not limited to, the following items:

• Solar heating systems, including solar systems for heating water for domestic use
• Solar heating and cooling systems
• Caulking and weather-stripping
• Furnace efficiency modifications limited to replacement burners, boilers, or furnaces designed to reduce the firing rate or to achieve a reduction in the amount of fuel consumed as a result of increased combustion efficiency, devices for modifying flue openings which will increase the efficiency of the heating system, and electrical or mechanical furnace ignition systems which replace standing gas pilot lights.
• Clock thermostats
• New or additional ceiling, attic, wall and floor insulation
• Water heater insulation
• Storm windows and/or doors, including thermal windows and/or doors
• Heat pumps
• Vapor barriers

A loan for existing property or a new home may be increased by up to $6,000 for energy efficiency improvements at the option of the lender and veteran at any time up to the loan closing without VA's prior approval.  The lender will need evidence of the cost of improvements, such as a copy of the bid(s) or contract itemizing the improvements and their cost, and the lender's determination that the increase in monthly mortgage payments does not exceed the likely reduction in monthly utility costs.

Upon closing, the funds added to your loan amount for the energy efficient improvements will be held in an escrow account until your improvements are completed.  Once you notify the lender that the improvements are completed, an inspection is done to verify completion and the funds will then be released.

 For more information on VA home mortgages in Phoenix please contact The David Krushinsky Team at 602-695-7575 or david.krushinsky@wjbradley.com.  Before you begin your real estate search for properties in Phoenix you should get pre-qualified. 

When purchasing or refinancing a home in Phoenix, one of the most difficult decisions you will have to make is whether to lock in your interest rate or let it float.  For first-time homebuyers or borrowers that are less familiar with the process, here is a brief description of the terms.  "Locking" an interest rate means finalizing a rate commitment with the lender that a specific interest rate will be held for you, at a certain price, for a specified period of time.  At that time, you are guaranteed that interest rate regardless of whether the market improves or declines.  The standard time periods for interest rate locks range from 15-60 days; however certain loan products and programs may carry different options.  The alternative option is referred to as "Floating".  This simply means that you are waiting to see what daily impact the market may have on mortgage rates until you decide to lock your rate.  Borrowers typically utilize this option in an attempt to reap the rewards if there is an improvement in the market; however this also leaves the borrower vulnerable to potential downturns as well.

In a market when rates are either steadily increasing or decreasing, this decision is a little more apparent.  However, in an economy where mortgage rates and other factors driving the market are extremely volatile, the decision is much more difficult. 

It is a common misconception that when the Federal Reserve implements a rate cut that it is immediately correlated to a reduction in mortgage rates.  While the federal funds rate contributes to the movement in mortgage rates, the two are not directly related.  In fact, mortgage rates are based on mortgage backed securities or bonds and are strongly correlated with yields on the 10-Year Treasury note.  Bond sales prices are similar to that of a stock in that they fluctuate continuously through any given trading day.  Bonds are largely affected by various economic forces that influence the ever changing demand for bonds within the market.  Each week various economic reports are released that influence the movement within the bond markets.  Some of the key economic factors that have the greatest impact are unemployment percentages, inflationary fears, economic strength and the overall movement of money in and out of the markets.  Like stocks, most fluctuation is caused by consumer and investor emotions.

Typically, if the demand for bonds is high then mortgage rates will go down.  Conversely, if bond sales are down then interest rates tend to go up.  A few quick tips that highlight the probable movement in mortgage rates based upon various changes in the market are as follows:

•·         Release of Good Economic News - Increase in Mortgage Rates

•·         Release of Bad Economic News - Decrease in Mortgage Rates

•·         Increase in Stock Market - Increase in Mortgage Rates

•·         Decrease/Correction in Stock Market - Decrease in Mortgage Rates

It is not unlikely for mortgage rates to change more than once in a given day.  Unfortunately, investors are much quicker to re-price mortgage rates for the worse than they are to increase them in a positive direction for the borrowers.  

The critical elements in deciding whether to lock or float are not only understanding what causes mortgage rates to fluctuate, but also paying close attention to the key economic indicators that determine this behavior to ensure you are able to react in a timely manner.  In order to better assist my clients make an educated and informed decision, I post a daily blog entitled "FLOAT OR LOCK? Daily Phoenix Interest Rate Update and Recommendation".  Here, borrowers can find daily summarized updates of market conditions and other economic news that directly impact mortgage rates.  This article also provides a recommendation based upon the prevailing market conditions.

Please contact the Krushinsky Team at 602-695-7575 or david.krushinsky@wjbradley.com for any additional information and questions.