Pinetop White Mountain Blog

Good Saturday Afternoon Everyone!

You are correct if you are thinking it has been a long time since I posted here.  I have been busier than a Cat on a Hot Roof!  That is a good thing but it has limited my time to do my regular posting here in the High Country Blog.

I wanted to address some questions I am sure many of you may be having about financing in today's marketplace.  After two days in a Finance Class I have some information for you that you may find useful.  This could be of interest to either Buyers or Sellers.

First of all, to all you Veterans out there, it is time once again to dig out the ol'  DD214 and dust it off, because VA Loans are Back!  If you haven't even thought about your VA Benefits in a long time but are thinking about buying a new Primary Residence, you definitely need to consider a VA Loan.  Right now that is the only loan option out there with a Zero down payment requirement.  The limits are quite high these days too.  So even if you used your VA at one time and that note is not completely paid off, a partial benefit may be all you need to achieve your Real Estate Goals.  

For those of you who are not Vets, the new FHA is a good option.  You do need to contribute a minimum of 3% to the cost of the loan but even at that, that is pretty good.  In Navajo County the limit for an FHA Loan is $308,750.  If you have additional to put down, you could purchase a higher priced home than this.  The home must be a Primary Residence but it is a great option, one we haven't seen in quite a few years. 

For those who need down payment assistance, the only money left for that is through County Bonds.  There are no more Federally Backed Down payment Assistance programs.  In Navajo County of Arizona you can still contact NACOG about the possibility of Down Payment Assistance.  I am not sure about Apache County.

For Second Home Buyers, you need to start saving your money for Down-payment.  There are no more Non-conforming Loans available for Second Home Buyers.  You will probably need 20% down.  It is possible you might get a loan for less than that but you will have to pay higher interest rates and possibly have the additional cost of Private Mortgage Insurance.  You really need to talk to your preferred lender for this information.  

An option for Second Home Buyers is to ask if the Seller on the home you want to buy will consider a Seller Carry-back for a few years.  This would enable you to get in to the home now while prices are low, but it is likely to have a balloon payment due within three to ten years.  So prepare now for that refi in a few years.  Who knows what will happen to loan programs between now and then.  Just know that Sellers will rarely carry the note for more than a few years so a Refi. down the road is inevitable. 

So, there you have the Saturday afternoon lament.  Lending is tight right now and even existing program guidelines change almost daily.  However, there are options and despite all the negative news and press, remember, we went through this in the 80's and the bailout back then worked out just fine.  In the end, the government actually made money on the deal.  So don't let all the negative politically targeted press keep you from doing what you want to do.  These things do work themselves out, you just have to keep the faith that all will be well. 

Have a wonderful weekend.

Sandra & Bruce Paulow, REALTORS