Steve Belt

Current Fannie Mae/Freddie Mac underwriting guidelines are that you cannot have such a loan for 5 years from the discharge date. Those are the current guidelines, as revised somewhat recently. They may be revised again, or maybe that's what they will always be. A conventional, confirming loan is one that can be sold to either Fannie Mae or Freddie Mac.

Hard money lenders can do whatever they want. They aren't planning to sell to Fannie/Freddie.

Sellers offering seller carrybacks can do whatever they want. The seller is acting as the bank, and sets the terms that suit them.

Bottom line, while the most affordable loan programs may be closed to you for quite some time, there are alternative loan programs (with significantly higher loan costs) that will be available to you, nearly immediately. - Wed Jun 24 2009, 18:54

Laura,

That's a great question, and one I've written about several times on my blog. Right now today, the average home in the Phoenix market sells for 98% of it's asking price. For a $100,000 asking price, the average home is going to sell for $98,000. Although, if you look at foreclosures, 33% of the time, the home is selling for above the asking price. Sometimes significantly above the asking price (more than 20%).

Is there a good rule of thumb? Not at a great one. If you want a home, particularly one you are going to live in, be prepared to start with your highest and best offer. The Phoenix real estate market recently did a massive about face, and is suddenly in a pretty strong seller's market. Prices are actually trending upward. Prices are still low, however, and will probably stay low for some time.

I think it's an optimistically exciting time to consider buying a home right now. - Mon Jun 8 2009, 13:45

Hi Victoria-

Accurate data regarding the Phoenix area rental market is difficult to find. MLS has perhaps only half of the total homes for rent across the valley listed within it, at least until you get to the higher priced rentals. Craigslist has a higher percentage, however it's not a database, so it's difficult to know the status of what leased, for how much, and how long it took. Plus, there is a lot of duplication in craigslist.

All of that said, in my experience as a property manager/leasing agent over the last 5 years, the rental market right now is pretty good. Homes are renting for about their historic norms and when marketed properly are renting in around 30 days. Newer homes are still renting faster than older homes, when an area offers a choice. Condition matters greatly. Move-in ready condition being very, very important.

To get more specific with you, I'd need to know more about what type of investment you are thinking about. Feel free to contact me if you want to chat in more depth. - Mon Jun 8 2009, 13:24