Financing in Scottsdale>Question Details

Sullylynn, Home Buyer in Scottsdale, AZ

FHA loans in Scottsdale and Paradise Valley, Arizona?

Asked by Sullylynn, Scottsdale, AZ Sat Jan 16, 2010

I have been getting advice to check out FHA loans. I am a buyer looking to purchase a home in Maricopa County, Arizona ( Scottsdale, or ParadiseValley). We cant afford the 20% most banks are requiring for the size of the loan which is around 700K. I have excellent credit and no debt. I understand there is something called a funding fee associated with this loan. I last heard that the funding fee is 1 3/4 % which is taken from the balance of the loan after your down payment. Then this amount is added to the total borrowed amount and spread over the term of the loan. Does FHA loan up to 700,000 in this area?

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Roswell Moore,’s answer
Hi Sullylynn,

As you've read below, the FHA loan program does not exceed $346,500 here in Maricopa County, leaving you "short to close" on your $700,000 purchase. We do have loans, for homes in your price range, that exceed the 80% loan-to-value (LTV) limit that most banks place on their loans. Another huge plus is that there is no mortgage insurance, which is very nice.

As you know by your pending purchase, now is an excellent time to be buying a home in your price-range. The lending environment for Jumbo loans, however, is not as rich as it once was with lending guidelines becoming more stringent, requiring a bit of creative structuring in order to qualify clients for their loans.

That said, I work for a Mortgage Bank whose corporate headquarters is located here in Scottsdale, about a mile south of Paradise Valley. Feel free to call me directly or drop by if I may be of further service to you.

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
imortgage
480-422-5095 direct

4800 N Scottsdale Rd, Suite 1000
Scottsdale, AZ 85251

Roswell.Moore@cox.net | http://www.ezAZloan.com
Web Reference: http://www.ezAZloan.com
0 votes Thank Flag Link Mon Jan 18, 2010
Rudy,

You probably didn't know but VA will up to $1 million with the buyer putting 25% down on the difference of $1 million and $417,000. For Example: $900,000 - $417,000 x 25% = $120,750 is the down payment.
Web Reference: http://www.tedcanto.com
0 votes Thank Flag Link Sun Jan 17, 2010
Hi, Sullylynn

VA only goes up to 417,000 nationwide. As you already heard FHA is also not an option. Unless seller is willing to come down signifcantly on their price, you'll have to look for something else. By the way, do you even know this home is worth that much? Has your realtor done a CMA (Comprehensive Market Analysis)?
0 votes Thank Flag Link Sat Jan 16, 2010
Dear Sullylyn:

Yes the FHA and VA loans are available for low down. 3.5% for FHA and 0% for VA (if you are a veteran). There is a cap on the FHA loan, so if your desired home price is in the $700,000 range this would not be an option.

Also keep in mind the Federal Tax credit for existing homebuyers at $6,500.

If you are looking at less expensive homes also, the FHA would be a good option. Also there is free grant money in Arizona for less expensive bank owned properties.

Don't rule out a foreclosure property. This is a great time to buy. As you probably know, the $8,000 tax credit has been re-instated for first timers or those that have not owned in three years. There is now a $6,500 Tax credit for existing homeowners. Additionally if you do purchase a foreclosure property, free grant money (up to 22% of the purchase price) is available if you live in the home for periods of 5, 10, or 15 years. This makes inexpensive homes already, even more affordable. The free grant money is available through the state of Arizona. See the link for "Free Grant Money" at: http://www.arizonahomesland.com/forbuyersorrenters.php.

If I can answer any more questions or show you some homes or land, feel free to give me a call. I would be pleased to help you.

Regards, Jeff

Jeff Masich, Realtor®
Arizona Homes and Land
480-556-0940
JeffMasich@ArizonaHomesLand.com
HomeSmart Real Estate
Web Reference: http://ArizonaHomesLand.com
0 votes Thank Flag Link Sat Jan 16, 2010
HI Sully,

20% down at my company. However, if any of the borrowers are a Veteran, there is a possibility to go into the jumbo realm. There are variables that have to be explored and that is if any of you are a veteran,

Good Luck!
Web Reference: http://www.tedcanto.com
0 votes Thank Flag Link Sat Jan 16, 2010
The max for Maricopa County FHA Loans is $346,250 as of 2009.I have not heard of any changes for the maximum loan amount for 2010. The down payment is 3.5%, but this may be changing along with other things on the table. There are upfront costs of 1.75% of the loan amount is added to the cost of the loan. A mortgage broker could explain more of the details to you.
I would highly recommend contacting a mortgage broker to help you. If you need any recommendations just let me know.
0 votes Thank Flag Link Sat Jan 16, 2010
Hi Lynn,
I would actually advise you to talk with someone in the Mortgage Industry to answer your questions about funding. They would be the experts in that area. May I suggest a mortgage broker that would have access to many different types of funding programs. I recommend:

Rick Giordano, Marquee Mortgage, LLC
Cell - 602 228 4017
Fax - 623 551 5578
Email - rpgiordano@q.com

Good Luck! Barbara
0 votes Thank Flag Link Sat Jan 16, 2010
You will not be able to finance with FHA. FHA only goes up to $346,250 in Maricopa County. You will need to have 25% down. Feel free to contact me for additional Loan information my office is in Scottsdale and I would be glad to help you.
0 votes Thank Flag Link Sat Jan 16, 2010
The best place I can send you is to my very good friend Alice Held who is the top agent in the area - contact her at http://www.Come2AZ.com You'll be glad you did. Alice is not only knowledgeable but she is one of the most professional and ethical agents I have ever met. She has been the top area agent in your area for a very long time and is still going strong. In fact, we were both at a CyberStar Summit in, actually, Scottsdale a few days ago. You'll be glad you reached out to her - she's a fabulous lady.
0 votes Thank Flag Link Sat Jan 16, 2010
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