February 24th, 2013 Perhaps you’ve not heard of Arizona Gives Day but hopefully you hear much more about it soon and help spread the word. The premise behind Arizona Gives Day is to support any Arizona non-profit organization during a one day fundraising drive through one online source. Nearly all of the money donated will reach your specified non-profits with only 2.9% of the money going to cover expenses (including credit card transaction fees) and an additional 2% which is retained by the Alliance of Arizona Nonprofits and Arizona Grantmakers Forum to operate the statewide initiative. Below is a brief summation of how it works directly from the Arizona Gives Day website:
Arizona Gives Day is a day for Arizonans to come together to make donations to as many nonprofits as possible in 24 hours. On March 20, 2013, from 12:00 am to 11:59 pm, supporters of Arizona nonprofits will go online, connect with causes they care about, and make tax-deductible donations. Supporters will search for participating nonprofits and simply click to donate. The donation stays local and helps our nonprofit community provide much needed services in the state of Arizona.
February 19th, 2013 The World Golf Championships Accenture Match Play Championship returns to Marana this week and with it the golfing world’s attention shifts to Southern Arizona. This fantastic event has been a great benefit to the local economy and with the help of the Tucson Conquistadores also continues to contribute substantially to local area charities. Practice rounds started yesterday and continue through today with the first elimination rounds scheduled to start tomorrow. The weather forecast looks a little shaky for tomorrow at last check, but hopefully the sunshine breaks through and the Tucson region gets broadcast in all its glory. Certainly this is a great showcase event that hopefully continues to call Tucson its home for some time to come. We highly encourage golf fans in particular to get out there and support this fantastic event! For more information you can follow this link to find out the exact schedule, pairings, and ticket prices.
UPDATE: With the snow falling today the first round matches have been postponed until tomorrow, weather permitting of course. Look on the Accenture website for the latest details.
February 18th, 2013 It’s been a little while since we’ve posted an interest rate update. For the most part the news is still outstanding although rates have crept up just a little bit. According to Freddie Mac’s official press release this past week (Feb. 14th) the 30-year fixed-rate mortgage averaged 3.53% with an average 0.8 points. That number was unchanged from the week prior (but slightly up from a few weeks back) and lower than a year ago when the rates averaged 3.87%. A 15-year fixed-rate mortgage averaged 2.77% with an average 0.8 points, which is down from 3.16% a year ago.
In other mortgage related news, the USDA program which offers 0% down financing for rural areas is set to have its boundaries change at the end of March. This would make areas such as Sahuarita, Green Valley, Vail & Gladden Farms ineligible unless Congress acts to keep the boundaries unchanged. We’ll monitor the situation and see what happens, but this program is certainly a benefit to the housing market’s recovery so we hope it doesn’t get taken away from these areas. Thankfully other options are out there which make it easier for those with little money to put as down payment find a home, most notably VA loans, FHA (3.5% down) and the Pima Tucson Homebuyer’s Solution Program which offers up to 4% for down payment assistance/closing costs to qualified buyers.
On the other end of the financing spectrum is news that jumbo loans (normally defined as loans over $417,000) are once again becoming increasingly obtainable. For quite some time these loans were nearly impossible to get as lenders tightened their belts and underwriting standards grew exceptionally restrictive. Now jumbo loans can be had for as little as 10% down and some institutions will even allow qualified buyers to not put cash down but rather pledge their qualified investments. This typically is between 20-40% of the purchase price which would be pledged and allowed to still earn a return through its investment vehicle, making it attractive for buyers who can often outperform the interest rate on the loan and avoid capital gains taxes that would result from pulling this money from the investment.
Again, please contact Team Woodall if you have any questions and we’ll point you in the right direction.
February 16th, 2013 One function of the National Association of REALTORS that very infrequently gets attention is the work the organization does to protect the interests of homeowners nationwide with lawmakers in Washington DC. Though limiting the mortgage interest deduction (MID) has been a topic of conversation recently, there has yet to be a proposal introduced into Congress specifically targeting this area of homeownership. Nevertheless, the National Association of REALTORS has continued to let Congress know that any such proposal to limit the MID would be vigilantly opposed. This past year as the “Fiscal Cliff” loomed there were several proposals on the table which were tied to the legislation introduced and directly affected homeowners.
NAR continues to protect the ability of American families to own a home and its members were vocal in their support of several key tax measures of critical importance to homeowners. Among the measures extended by the “Fiscal Cliff” legislation as published in the January/February NAR REALTOR magazine were:
- Mortgage cancellation relief is extended for another year – Households that have mortgage debt forgiven by a lender in 2013 as a result of a modification, short sale, or foreclosure will not have to pay tax on the amount forgiven.
- Mortgage insurance premiums remain deductible – Tax filers making less than $110,000 who pay for mortgage insurance can deduct the cost of their premiums on their 2012 and 2013 tax returns.
- 15-year straight-line cost recovery on leasehold improvements is extended – For qualified leasehold improvements on commercial properties, 15-year depreciation is extended through 2013 and made retroactive to cover 2012.
- Energy efficiency tax credit remains in force – The 10% tax credit, up to $500, for homeowners who make energy efficient improvements to an existing home is extended through 2013 and made retroactive to cover 2012.
February 12th, 2013 Pima Tucson Homebuyer’s Solution Program just may be the answer for buyer’s wanting to purchase a home in the Tucson area and needing down payment assistance. This program offers eligible candidates a 4% grant that may be used towards a down payment or closing costs. This grant does not have to be repaid unless there is an act of fraud involved and unlike previous assistance programs this one is available to non-first time homebuyers too. Another notable fact of this program is that it may only be used with government loans such as FHA, VA, or USDA loans for homes purchased in Pima County.
Utilizing funds from the Community Investment Corporation, this down payment assistance can be a huge benefit to many Tucson area buyers. Full program details are available from a participating lender who can also discuss the rates which are available at that time too. The loan process begins after a lender has qualified the candidate and in order to reserve funds in the program an agreed upon purchase contract must exist. The program fees which must be paid at closing and can’t be financed are just $460. Lenders may take a 1% origination fee, but no discount fees may be charged. Other charges by a lender that are reasonable and customary with other loans may also be incurred.
Loan Highlights
- 4% grant based on the note amount which can be used for the down payment of closing costs
- Eligible buyers must purchase a home in Pima County, occupy the home within 60 days, and be using government financing (FHA, VA, USDA)
- None of the money must be repaid and there is no recapture tax
- Previous homebuyers are eligible (this is NOT a first time homebuyer program)
- New or existing primary residential homes (1-2 unit), condos, or townhomes are eligible (no manufactured homes, mobile homes, second/seasonal homes allowed)
- Household income limit of $65,500 a year (household size does not matter)
- Program’s minimum credit score of 640 (mid score must be 640 or above)
- Program’s maximum debt-to-income ratio is 45%
- Homebuyer education courses are required for all borrowers (anyone on note)
Contact us today for more information and we can put you in touch with a participating lender who can provide full details and get you pre-qualified.
February 10th, 2013 The latest housing statistics were released by the Tucson MLS for the month of January 2013. Overall the Tucson real estate market held pretty steady and reflected a somewhat slower time of the year as the first part of January typically isn’t very active after the holiday period. Below are some of the highlights for January 2013 residential sales:
- January’s average sales price was $182,378 which was a miniscule decrease of 0.35% from December’s average sales price of $183,011.
- Median sales price declined by $2,500, a 1.69% decrease to $145,000.
- Total active listings increased by 0.22% from December to reach 4,459.
- Total under contract rose significantly to 2,415 in January, up from 2,022 in December which represents a 19.44% increase.
- Total unit sales decreased by 6.16% to 884 from the previous month.
- Average days on market increased by 2 days to 57 in January
February 8th, 2013 It’s been a long time coming, but new construction builders are finally entering the marketplace again as consumer demand for housing increases. In fact, according to the National Association of Home Builders, national housing starts at the end of 2012 soared 12.1 percent to an annual rate of 954,000. This figure represents the highest it has been since June 2008. The increase included a rise in single family home starts and also a much larger increase in multi-family housing products.
The lethargic new home sales over the last few years means builders were refraining from new construction and the result is extremely small new home inventory levels. The rise in consumer demand will help fuel the job markets across the country as displaced construction workers will get back to work. Permits for home building, a future indicator of housing starts, also increased at the end of 2012, another positive sign of steady growth ahead.
Locally this trend is definitely seen around town and certainly within Oro Valley we’ve seen builders jump back into the market with both feet. For instance, Meritage Homes has had tremendous success with its product at the Vistoso Town Center at Rancho Vistoso & Moore Roads. Lennar is just rolling out its product at that location too, while both those builders have made inquiries into additional land for development in the area. Richmond American also has launched product at the Torreno subdivision in Rancho Vistoso recently, while Maracay Homes just finalized a purchase of land on the Southeast corner of Tangerine & La Cholla. This is good news for the housing market and general economy as well.
February 7th, 2013  Long Realty ‘s first “Why I Love Arizona” Photo Contest was held last year and the response was so phenomenal that it’s back again this year!! This contest is open to everyone, so Enter Your Arizona Photo For A Chance to Win the Grand Prize of $1,926 which celebrates the year Long Realty was established. This year not only is one person going to win the grand prize again, but there are now 10 individual categories in which a winner will be chosen too.
Arizona is a great place to live. The beauty of the desert, the warmth of the winter and so much more. Long Realty is proud to make Arizona our home and is proud to have served our communities for over 87 years. We love being here and now you have an opportunity to show your Arizona pride too (and possibly win some cash and other great prizes) through our “Why I Love Arizona” online photo contest. Another great reason to enter today is that for each photo submitted Long Realty Company will donate $1 to the Long Realty Cares Foundation which has raised over $2,000,000 for local charities in the past 10 years.
Submit your best Arizona photo now, just click here to get started. Photos need to be submitted by February 22, 2013. Pick a category when you submit your photo for a chance to win great category prizes. Categories this year include Wildlife, Weather, Scenic Landscapes, Sunsets, and People. Some of the prizes available to category winner include a Nexus 7 tablet, Kindle Fire, four UA Football tickets, gift certificates to restaurants, and more!
Ten photos per category will then be selected by a judging panel to be eligible for online voting, which starts March 11 and ends March 29. The photo with the most votes in a category wins that category’s prize, and the one photo with the most overall votes wins $1,926. Click here to see some of the photos submitted so far!
For a look at the contest rules please click here.
February 6th, 2013 For Arizona homeowners it’s that time of year again when you should be receiving your Notice of Value from the Pima County Assessor’s office in the mail. Most homeowners don’t do more than take a quick glance at this document, but it’s often worth taking the time to look it over more thoroughly. The county does make errors on its assessments which can range from an improper valuation, to the wrong square footage for a home, or even the wrong property classification. All of these errors can have property owners paying more than they should in taxes. If you happen to own a luxury home or vacant lot it’s also even more important to review this information as the higher the dollar amount of your property, the more likely you could see some savings with an appeal of the value. There are some firms in town that specialize in appealing taxes which can save some owners thousands of dollars a year in property taxes.
Even brand new homes have been improperly assessed by stating incorrect square footages which may have been derived from an optional room not selected in your floor plan that others in the neighborhood did add. The class of property also makes a difference in the tax rate applied for your property taxes. For instance, primary residences are taxed at a lower rate than those residences which are investment or rental properties, so make sure yours is classified correctly. If you’ve received your Notice of Value already pull it out of the file and take another look to ensure its accuracy. If you notice hasn’t yet arrived then be sure not to simply toss it aside and give it the proper attention it deserves, it might just save you some hard earned money.
February 4th, 2013 Pretty much every buyer shopping for homes has run across a yard sign or MLS entry that mentions a particular home being a HomePath property or available for HomePath Financing. What exactly does this mean for buyers though? HomePath is simply Fannie Mae’s program through which it resells properties it has foreclosed on. These properties don’t have to use HomePath Financing and can be bought with cash or any type of loan product. However, HomePath Financing is another option for buyers and they should at least be aware of its general guidelines to see if it might be a good fit for their needs. The following is a great summary of the HomePath program’s positives and negatives as put together by local Sunstreet Mortgage Advisor, Steve Van De Beuken:
Pluses
-Just 3% down payment! Buyers who intend to live in the HomePath properties can buy them with as little as 3% down. This is a huge advantage for buyers that have not set aside a large down payment
-15% down for investors! Flippers and other investors are very active in today’s market and many of them like to keep their cash in their pocket. Buying a non-HomePath property as an investment requires at least a 20% down payment.
-No appraisal required! This can save a buyer time and money. We can also be more flexible regarding the condition of a property.
-No Mortgage Insurance! This is a huge win. VA loans are the only other type of financing available that does not require mortgage insurance with less than a 20% down payment.
Minuses
-Higher interest rates. While a down payment of only 3% is allowable, it is expensive. Mortgage interest rates for a HomePath loan with only 3% down can be 2% to 2.5% higher than non-HomePath interest rates. Even buying with a 5% down payment produces an interest rate that is roughly 0.75% above non-HomePath interest rates. In most cases this wipes out the advantage of not paying mortgage insurance.
-Longer underwriting turn around times- The loan process should not be any longer than a normal transaction. Underwriting may take longer but then there is no wait for the appraisal. In a normal transaction the buyers take the first week to deliver their documentation which coincides with the time it takes to do an appraisal. The potential exists for a slightly longer loan process
Thanks to Steve for this great recap of the HomePath program and be sure to contact Steve if you have any additional questions as to whether this program is the right fit for you.
Sunstreet Mortgage
Steve Van De Beuken
Mortgage Advisor
2840 E. Skyline Dr., Suite 230
Tucson, AZ 85718
Office: 520.547.4149
Cell: 520.235.6862
Email: stevevdb@sunstreetmortgage.com
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