I think that you have some wonderful opportunities in Tucson ... the market offers some wonderful properties at affordable prices, interest rates are very low, and there is a wonderful crop of REALTORS in town. One of the most exciting developments in recent months is a special program through HUD ... You can buy a HUD home with FHA financing with a $100 down payment ... and HUD will contribute $1,000 toward your closing costs at settlement.

FHA down payment is 3.5% ... that is $3,500 on a $100,000 home. If you are buying a HUD home with a full price offer on an FHA insurable property, your down payment is only $100! Talk to an agent who knows about HUD homes ... there is more information at the link below.

Good luck!! Have fun buying a home in Tucson.


Relevant link:

Who Sells HUD Homes? Tips to Select a Real Estate Agent

Dear Luvmypets,

As a mortgage consultant let me address the idea of your personal purchasing power only, leaving the real estate questions to the many pros on this site. You may be familiar with the term "PITI" when people refer to their mortgages--this stands for Principle & Interest (your actual loan payment), Taxes (real estate), and Insurance (homeowners). I would recommend you look at the amount of purchasing power you have in your monthly budget by using loan factors as a starting point.

A 30-year fully amortized loan (the most common) at a 6.0% interest rate will cost you $5.99/month for every $1,000 financed. At 5.5% interest, the "loan factor" is $5.68 per $1,000 and at 6.5% the factor is $6.32. So, if you finance $200,000 at 6.0% you know your P/I monthly payment is $1,198 to which you would add the monthly cost of property taxes and homeowners insurance (varies). With this knowledge you can now really start to assess on your own what you are comfortable investing in your home as well as looking at how much purchasing power is reduced by such things as Homeowners Association dues, car payments, etc.

Illustration: I'm going to "round up" my 6.0% loan factor to $6/month for ease of calculating my expenses. I like two homes equally and each would be financed with a $200,000 loan--which I now know will cost me $1,200/month in Principle and Interest payments. House A has a $30/month association fee whereas House B has a $60/month HOA fee. Since these take money away from what I can spend on the mortgage, House B's $30/month extra HOA fees will cost me $5,000 in total purchasing power ($60-30 HOA = $30 difference; $30/$6.00 loan factor = (5 x $1,000) lost purchasing power. Conversely, I'm wondering how much more house I can afford if I can reduce my monthly car payment by $100/month. If I take my $100 monthly car payment savings and divide by the loan factor of $6.00, I see that doing so will give me $16,667 more total purchasing power when buying a house ($100/6.00 = $16,667).

Hope this gives you some additional knowledge and comfort level in helping you determine which home to purchase. Best wishes!

I recommend starting with an experienced Realtor, as they are connected with all of the professionals that are part of a successful real estate transaction.

A Realtor is also familiar with the loan programs available and can refer you to a lender who would best serve your needs. For example, FHA LOans require a 3.5% downpayment, but in certain areas there are USDA loans available with no downpayment.

For more First Time Home Buyer Information: http://www.insidetucsonrealestate.com/first_time_buyers.html

Calculators that compare loan programs and a list of local, recommended lenders: http://insidetucsonrealestate.com/calculators

Meet Our Pets: http://insidetucsonrealestate.com/parrots.html

Catherine & I would be delighted to help you.

Rob

I recommend starting with an experienced Realtor, as they are connected with all of the professionals that are part of a successful real estate transaction.

A Realtor is also familiar with the loan programs available and can refer you to a lender who would best serve your needs. For example, FHA LOans require a 3.5% downpayment, but in certain areas there are USDA loans available with no downpayment.

For more First Time Home Buyer Information: http://www.insidetucsonrealestate.com/first_time_buyers.html

Calculators that compare loan programs and a list of local, recommended lenders: http://insidetucsonrealestate.com/calculators

Meet Our Pets: http://insidetucsonrealestate.com/parrots.html

Catherine & I would be delighted to help you.

Rob

Luvmypets,

The Tucson Association of Realtors is hosting an Ice Cream Social for Homebuyers on June 20th. LIke Vera's post below, there will be several idustry professionals represented and workshops on the very questions you are asking. You can contact TAR directly at 520-382-8776. You should try to hit one of these larger home fairs with multiple participants.

Although I do not know the inventory levels of homes in the style you are looking, there are other loan programs you may want to investigate: USDA offers no down payment loans for areas outside of the metropolitan area (Sahuarita, Marana, Star Valley etc). http://WWW.YourWayHomeAZ.com is a site maintained by the AZ Department of Housing and outlines the plan for their down payment assistance program from which you could get up to 22% towards the purchase a foreclosed home. Of course there are restrictions and requirements.

Given you username, you may find a Condo or Townhome is not condusive to your pets.....just a thought.

I agree that selecting the professionals you will work with is critical. I recomend you ask for resumes and talk to a couple in each field. Once you find someone you feel comfortable with, they will help you select the rest of your team.

There are a lot of great professionals in Tucson, and for reasons already mentioned, you are looking at a tremendous opportunity. Have fun and keep us posted on your progress (through Trulia, of course!)

I have a perfect place for you to meet an talk to professionals , find out answers to many of your questions as a first time home buyer. There is a free seminar being held on June 25 at 6pm in Marana at the Continental Ranch rec. center. There will be loan officers, title company a CPA to answer questions an help with tax credits ($8000.oo)as well as pre qualify you for a home loan. Come check us out call me for more details what do you have to loose?
Vera Wallace
Long Realty
520 918 5730

Hi Luvmypets,
My advice to you, as a Realtor, is to find an experienced agent with home you are comfortable and who has a few good lenders with whom they work. It's also helpful to find an agent who has a great team of other resources in place too-- escrow agent, home inspectors, termite inspectors, home warranty company--these resources will insure a smooth real estate transaction.
The good news is that it sounds like you're a first time homebuyer and you may qualify for the awesome $8,000 federal tax credit program. You can watch the video ( and meet me) on the link below for more information.

Let's get started!

Best,

Denise McCreary
Tierra Antigua Realty
denise@buymytucsonhomes.com
520-256-6731

One way to find things out is to call a lender. In fact more then one. I would not give them your social security number at this point. Just explain your thinking. I feel the more your talk and ask the more you will learn.
There is down payment assistance available if you qualify as far as family size and fam
ily income. Hud homes for sale in the Tucson area can be found at http://www.mcbreo.com . They are also listed on the MLS. However, many of the will not qualify for a FHA loan.
A good real estate agent can assist you as well in many ways. Do not be afraid to talk with at least two of them. Many agents have done many sales using FHA loans. Not all condo complexes are approved for an FHA loan.
Please call or email should you need a few names of good lenders I have worked with.
Rich Lecinski
Long Realty Company
520-834-4663
http://rlecinski.longrealty.com

I disagree with the other posters on where to start first: finding a good real estate agent can be a valuable resource! Rather than "flying blind" and trying to find all these resources on your own, a real estate agent can refer you to lenders who are familiar with FHA and will give you great customer service. One of the things I emphasize in my business is education. All of my clients receive a homebuyer education session long before we ever look at a home so they know how to shop for a loan, what expenses to be prepared for and how the transaction will work from start to finish (and this is totally free, no obligation). I do this with every client, regardless of whether they have never bought a house before or have bought and sold many, because most real estate agents never took the time to do this with them. I work with many first-time homebuyers, and most of my business is FHA buyers, so I am very familiar with the rules and requirements. I am not trying to "sell" you anything, luvmypets, but I think that we may be a great fit for each other (I have over 10 pets in my house!). Check out my website to learn a little more about the process, about me, read what my clients have to say about me, and if you decide you'd like some help, feel free to call or email me. I would really look forward to hearing from you.

If it's not me, I recommend visiting open houses to meet agents first. Try asking them some general questions to gauge their response. Do they seem knowledgeable? Helpful? Friendly? Professional? Ask them how they work with buyers: do you meet in the office or other profession setting first, are you required to get pre-approved first, or do they just want to go out and look at houses (careful! this last group may have priorities in the wrong place). Ask if they have any referrals or resources for you to get more information, such as the name and number of a lender. If you feel comfortable with them, check out their website to learn more about them or ask them for a referral or two. Make sure you are 100% comfortable before you sign anything with anyone. And most importantly, when shopping for a loan, you should NOT have to pay a fee to apply. Some lenders have started doing this; there are enough good lenders that do not charge this way that there is no reason to throw away good money for that!

Sincerely,
Mary
Cell: (520) 549-8769 or Toll-Free (800) 279-2211 x1661
MDiaz@longrealty.com
Visit my website at http://www.maryediaz.com

Mary E. Diaz, GRI, CNE, AHDC, REALTOR®
Associate Broker
Master of Real Estate Society
Historic Real Estate Program, National Trust for Historic Preservation
Long Realty Company

The best place to start is by collecting information as you are with this post. Use the internet to preview property of interest, attend open houses, and become informaed of the local RE market.

Prior to beginning a formal seach with a real estate professional, we recommend that you review your personal budget and confer with several loan specialists in an effort to become pre-approved for financing.

When doing this always remember to request a "good faith estimate." It is a written account of the programs and rates that are quoted to you by the agent.

Good luck with your search.

Speak with a couple of lenders who are experienced with FHA loans to find out what the borrowing process is like and what you can afford. Then speak with some experienced Realtors who work with first time home buyers. Ask for a copy of the "Buyer's Advisory", which has a lot of information and lists links to helpful sites where you can find more. Make sure you find out about the new federal tax credit of up to $8,000. for first home buyers.

Then go to TARMLS.com and look at properties in the areas you're interested in. This is the centralized website for the Tucson Association of Realtors. You can search by price, location, unit size, etc. There are a lot of townhome and condo communities in the Tucson area. You can do some of this yourself, but a good Realtor can help you do it more quickly and efficiently, plus tell you about the types of developments, rules, fees, etc. Find a Realtor that you feel comfortable working with and get out there looking ASAP. The tax credit is only good through November and interest rates are likely to rise substantially in the very near future.

Get going, and good luck.

HowardRoth@remax.net

Visit HUD's website and call them regarding any questions that you may have- they are very helpful. Interview buyer's agents in your area. Meet them at their office in a professional setting and explore your options. Also interview with a mortgage consultant as well. You will need to know what your options are and what is the most comfortable as far as your financing. Sometimes this gets rushed into the process of shopping and you don't want that. Do you due diligence before hand...it will save you time. Have a great time- buying a home is exciting and be prepared for many ups and downs, but at the end of the day you will know it when you see it and your new home with be a great! Best of Luck-

Thanks,
Sarah

It can be overwhelming to jump into this deep ocean without a raft! My advice is to speak to a few lenders first and get an idea of what THEY think your budget is. You can always buy something less expensive, but at least you'll avoid the frustration of looking at homes that aren't within reach right now. Find out what type of funds you need to put down, and whether that is in your budget. Once you have the financing together, and you know your budget for buying a home, then start off at either http://www.realtor.com (the National Association of Realtors website open to the public). It's fully searchable once you put in your parameters and you'll start getting a good sense of what your buying power is.

Good luck!! Don't hesitate to ask us if you have additional questions!

Luvmypets,

One should take a few steps;
Try to educate yourself first. Visit few Open Houses in your preferred part of town - this will give you an idea of what is for sale and at what price. Talk to a lender or two - this will give you an idea of what you can afford.
Go to internet, type something like: Real Estate in Tucson - you are going to get around 600 websites advertising homes for sale. Look at one or two - it will give you more idea of what is for sale.
Once you get your "feet wet" talk to an agent or two - this will introduce you to a real buying process.
There is some free government published literature available on subject of buying - I can send you some if you contact me.
If you would to my monthly Blog http://www.DestinationTucson.biz scroll to the bottom and click on icon
Thinking of Buying? - you will find there some information and number of useful links.

Good Luck
George from Tucson
Ps: I can recommend a lender or two to talk to. When you are ready, do not try to do it by yourself - get an agent that you trust!.