Chris & Shannan's Real Estate Insights!

Jan. 31, 2019

Do You Know How Much Your Home Has Increased in Value?

Do You Know How Much Your Home Has Increased in Value?

Do You Know How Much Your Home Has Increased in Value? | MyKCM

Last year we saw headlines about a possible housing market bubble, and many wondered if Americans still felt confident about the value of their homes. Recently, the 2018 Houzz & Home Study revealed:

Homeowners with mortgages have seen their home equity more than double since 2011, increasing to a record-setting $8.3 trillion in 2017.”

The average homeowner gained $16,200 in home equity between Q2 2017 and Q2 2018 according to the latest release of CoreLogic’s Home Equity Report.

Since 2011 home values have increased significantly throughout the country, with prices rising by 5.1% in 2018 alone. When surveyed, homeowners revealed the top four reasons why they felt their homes had increased in value.

  1. Desirable Location
  2. Improved National Economy
  3. Improved Local Economy
  4. Low Home Inventory in My Area

As we can see, not only does the data show that the homes have appreciated, but homeowners also believe they know why. Many have taken advantage of the opportunity to use their newly found equity to sell their current house and move up to their dream home!

2019 will be a good year for the homeowners that still want to take advantage of their home equity! CoreLogicforecasts that home prices will increase by 4.8% by the end of the year.

Bottom Line

If you are a homeowner who would like to find out your current home value, let’s get together to discuss the hidden opportunities in your home!

Jan. 17, 2019

WISH - Down Payment Assistance Program

WISH Guidelines 2018

WISH is a down payment assistance program for homebuyers at or

below 78% of the median income. The amount of the assistance can be up to three times the

amount of the homebuyer’s contribution up to $15,000.

 

Attendance at FHR’s Homebuyer Education Class and

meeting with a housing counselor is required

 

The program requires a minimum of 45 days to close after all information has been

received by FHR, therefore contracts should be written for 45-60 day closings. Due to high

volume of requests, FHR may request a closing be extended

 

Fee of $800 to FHR that can be paid at closing using the assistance

 

2018 Income Limits (78% of Median Income)

1 Person $33,150 2 Persons $37,830 3 Persons $42,588

4 Persons $47,268 5 Persons $51,090 6 Persons $54,834

 

Assistance

 The homebuyer is required to contribute at least $2,000 (can be gifted, not seller)

 The assistance is in the form of a 5-year forgivable silent second lien. Member Bank is lien holder

 FHR conducts pre-approval and works with the Member Bank who provides the funds

 Funds are limited

Homebuyer

 Homebuyer education and counseling is required for applicants. Homebuyer Education class must be completed

prior to purchase contract date. Call FHR to schedule class and counseling

 The homebuyer must be a first-time homebuyer as defined by FHLB (has not owned within 3 years)

 The homebuyer’s liquid assets may not be more than $10,000 after contribution to home purchase

 The homebuyer must have one month’s of PITI in reserves (this is in addition to client contribution)

Loan

 The interest rate on the loan must reflect “par”, market rate

 The housing ratio maximum is 35%. The debt ratio maximum is 45%

 The lender may charge a 1% origination and lender fees may not exceed $1,000 (underwriting, processing, admin,

application etc./not credit report, appraisal, tax service or flood)

 Credit scores are not considered, as long as the remaining program parameters are met

Lenders are responsible for obtaining approval for this program with investors. Approval information is located at

http://www.fhlbsf.com/community/grant/wish.aspx#5.

 

 

Property

 The home must be owner-occupied or vacant

 The assisted homebuyer must occupy the home as their primary residence

 A home inspection (with inspector of choice) is required and paid by borrower. FHR will review for habitability

 The property must be located in Pima County including the City of Tucson

 The Contract Purchase Price/Sales Price must not exceed the appraised value of the property

 Manufactured homes acceptable

 

Lender Packet

 Purchase contract with all addendums

 1008, 1003, Loan Estimate, Closing Disclosure

 

How to Apply

 Enroll in FHR homebuyer education class prior to signing purchase contract. Call 318-0993 to schedule

 Make an appointment for income eligibility and counseling (bring documents shown below)

Homebuyer Documents Required

☼ Most recent concurrent pay stubs (4 for every other week or semi-monthly and 8 if paid weekly) for everyone

in the household 18 and over, even if they are not going to be on the loan.

☼ Proof of Income for any other income in the household which may include child support (judgment or print out

from courts), social security award letters, unemployment, workman’s comp, etc.)

☼ 1 months most recent statements for all asset accounts – checking, savings, 401(K), pensions, investments, stocks,

bonds, life insurance with cash value prior to death, lump-sum receipts or settlements.

☼ Picture ID for everyone living in the home who is 18 yrs old and over.

☼ Birth Certificates for all household members under 18. If you do not have Birth Certificates you can order them

thru the office of Vital Records at the Health Department in your County

☼ Social Security Cards for everyone in the household. If you do not have a social security card you must apply

for one at the Social Security Office.

☼ Income Tax Returns for the most recent year including W-2(s), 1099’s, 1098,s etc.

Self-employed borrowers are required to bring the most recent 2 years of returns and 1099. If

unavailable, call the IRS for Transcripts at 1-800-829-1040. It takes 3 to 4 weeks to get them by

mail or if you have a fax machine they will fax them to you. Let the IRS know that you are

purchasing a home and you need these transcripts ASAP for the loan to process.

☼ Credit Report. Obtain a copy of your FICO/tri-merged credit report from your lender. (FHR can obtain one for you for

$15.00 per person).

☼ Additional documentation may be required.

Jan. 17, 2019

Family Housing Resources has Down Payment Assistance Money!

Down Payment Assistance

FHR homebuyer assistance programs are designed to educate and counsel

low to moderate income homebuyers with the purchase of an affordable home

 

ASSISTANCE AVAILABLE- 3.5% of purchase price

Homes may be located anywhere in Pima County and the City of Tucson

Attendance at FHR’s Homebuyer Education Class is required PRIOR

to signing a purchase contract

 

The purchase contract (or addendum) must contain the language:

“Sale contingent upon City of Tucson/Pima County environmental clearance”

 

Assistance is only available to households whose incomes are

at or below the following limits

*Low-Income = 2018 Maximum Household Income Limits (80% of Median Income)

1 Person $33,950 3 Persons $43,650 5 Persons $52,400 7 Persons $60,150

2 Persons $38,800 4 Persons $48,500 6 Persons $56,300 8 Persons $64,050

 

Purchase Price Limits: Existing $160,000 New $228,000

 

Application Process

 Attend FHR Homebuyer Education Class. Call 318-0993 to sign-up. Schedule may be viewed at

www.familyhousingresources.com.

 Make an appointment with an FHR Housing Counselor for eligibility review prior to signing a purchase

contract

 Lender to forward 1008, 1003, Loan Estimate, credit report and purchase contract as soon as purchase

contract is signed

 See instructions for home inspection on next pages

 FHR requires a minimum of 30 days to process the assistance AFTER all information has been received

 Contact FHR if you need any accommodations due to a disability

 Funds are limited

Funding provided by the Department of Housing and Urban Development

through contracts with the City of Tucson and Pima County. (12/11/18)

 

Down Payment Assistance Program Guidelines

 Homebuyers and their spouses/partners must attend FHR’s Homebuyer Education Class

 Income used to determine eligibility for the assistance is household income. This income

includes the income of all adults who will live in the newly acquired home

 The homebuyer is required to contribute at least $1,000 (verified from their own funds)

Funds used to pay appraisal, inspections, credit report and termite inspection may be used

 The homebuyers liquid assets may not exceed $10,000 after contribution to their home

purchase

 The homebuyer must have at least one month’s mortgage payment as reserves at closing

 The homebuyer must not owe any amounts to the City of Tucson for Section 8 or Public

Housing

 Housing ratio minimum 18% maximum 31% (up to 35% considered with compensating

factors); Debt ratio maximum 45%

 The interest rate on the loan must reflect “par”, market rate

 Loan fee limits may include 1% origination and up to $1,000 in lender fees

 Lien on the assistance is forgivable in 5 years. If home purchased is sold or transferred

during first 5 years, DPA principal amount loaned plus 2% simple interest is due

 No cash back can be received by the buyer at closing even if closing costs or deposits

were estimated incorrectly

 The liens will remain in second position. Subordinations require approval by the lien

holder (City or County)

 The assistance may have restrictions with using another layer of down payment assistance.

Homebuyer Solutions program may not be combined.

 The home to be purchased must be owner-occupied or vacant

 The assisted homebuyer must occupy the home as their primary residence

 The purchase price must not be higher than the appraised value

 The borrower must arrange for a home inspection to be done by one of the inspection

companies listed on the next page. The borrower is responsible for the cost of the

inspection. The home to be purchased must meet standards identified by HUD and Local

Code. Items identified by the inspector as not meeting these standards must be repaired

prior to closing and provision of homebuyer assistance

 The purchase contract (or addendum) must contain the language “Sale contingent upon

City of Tucson/Pima County environmental clearance”.

 Lenders are responsible for obtaining investor approval of the down payment assistance

early on in the processing in order to prevent delay at closing

 Manufactured homes acceptable

 Other terms and conditions may apply

 

HOME INSPECTION REQUIREMENTS

The homebuyer is required to obtain an inspection from the following list of home inspection

companies. The homebuyer is responsible for the cost. These inspectors have been certified

by the City/County to complete a Housing Quality Standard (HQS) inspection in addition to the

regular home inspection. The HQS inspection is required by the funding source. The

property must “PASS” all criteria of the HQS inspection in order to be eligible for down

payment assistance. A Re-inspection will be required if the property does not “PASS”

 

Inspection Companies

Inside Out - April Gillespie 520-721-9575 office@insideoutaz.com

$250 ASHI with HUD HQS report ($75 Re-Inspection)

$ .10 sq ft per square foot over 1200 square feet

Peak Home Inspections, LLC - Carl Lewis 520-403-0689 1inspect@cox.net

$245 ASHI with HUD HQS report ($100 Re-Inspection)

$ .10 sq ft per square foot over 1200 square feet

1st AZ Home Inspections, LLC – Larry Ross 520-780-0340 1stazhomeinspection@gmail.com

$250 ASHI with HUD HQS report ($50 Re-Inspection)

$.10 sq ft per square foot over 1200 square feet

 

Eligibility Documents

Documents needed to determine eligibility of Down Payment Assistance

☼ Most recent and concurrent pay stubs (4 pay stubs if paid every other week or semimonthly

and 8 pay stubs if paid weekly) for everyone in the household 18 and over, even if

they are not going to be on the loan.

☼ Proof of Income for any other income in the household which may include child support (judgment

or print out from courts), social security award letters, unemployment, workman’s comp, etc.)

☼ 1 months most recent statements for all accounts – checking, savings, 401(K), pensions,

investments, stocks, bonds, life insurance with cash value prior to death, lump-sum receipts or

settlements.

☼ Picture Id for everyone living in the home who is 18 yrs old and over.

☼ Birth Certificates for all household members under 18. If you do not have Birth Certificates you

can order them thru the office of Vital Records at the Health Department in your County

☼ Social Security Cards for everyone in the household. If you do not have a social security card you

must apply for one at the Social Security Office.

☼ Income Tax Returns for the most recent year including W-2(s),1099’s,1098,s etc..

Self-employed borrowers are required to bring the most recent 2 years of returns and 1099. If not

available, call the IRS for Transcripts at 1-800-829-1040.

☼ Credit Report. Obtain a copy of your credit report from your lender or bring a recent one you have

received. (FHR can obtain one for you for $15.00 per person)

☼ Household Budget. Obtain a budget form from FHR to list your current income and expenses.

First list your current expenses as a renter, then list what will change as a homeowner

Dec. 26, 2018

FHA Increases Loan limits!

FHA Increases Loan limits! Effective for all case numbers assigned on or after 1/1/2019!

Nationwide Mortgage Limits 

Low-cost Area The FHA national low-cost area mortgage limits, which are set at 65 percent of the national conforming limit of $484,350 for a one-unit property, are, by property unit number, as follows:

 

• One-unit: $314,827 
• Two-unit: $403,125 
• Three-unit: $487,250
• Four-unit: $605,525

 

Keep in mind this is on loan amounts only which means the actual purchase price is higher. As an example, for a single family residence the purchase price would be $326,245.59 using before the minimum of 3.5% down!

Dec. 19, 2018

WISH - Down Payment Assistance Program

Family Housing Resources continues to provide housing counseling, education and down payment assistance to low income homebuyers

 

THE WISH program CAN match a Homebuyers contribution by three up to $15,000 

 

The HOME program offers 3.5% of the purchase price to cover the down payment

CALL CHRIS OR SHANNAN FOR MORE DETAILS!

 

Dec. 14, 2018

4 Reasons to Sell Your House This Winter

4 Reasons to Sell Your House This Winter 

4 Reasons to Sell Your House This Winter [INFOGRAPHIC] | MyKCM

Some Highlights:

  • Buyer demand continues to outpace the supply of homes for sale which means that buyers are often competing with one another for the few listings that are available!
  • Housing inventory is still under the 6-month supply needed to sustain a normal housing market.
  • Perhaps the time has come for you and your family to move on and start living the life you desire.
Dec. 14, 2018

Tucson Community Events

Events

 

Zoo Lights at Reid Park Zoo

Through 12/23, 6pm-8pm

Reid Park Zoo

ZOOlights at Reid Park Zoo is guaranteed to put you in the winter spirit with jingle bells, twinkling lights, falling show, lighted animal sculptures, visits with Santa, and live entertainment. $6-$10

more info   map

 

Winterhaven Festival of Lights

Through 12/26, 6pm-10pm

Winterhaven

Walk through every evening, or see the lights on the move with hayride tours, bus trolley or a pedal-powered group bike ride. 

more info   map 

 

Season of Light Planetarium Shows

Through 01/06, times vary

Flandrau Science Center & Planetarium

The annual family favorites "Season of Light" and "Holiday Laser Show" at Flandrau Science Center weave together the astronomy of the Winter Solstice with the history of light festivals across times and cultures.

more info   map

 

Desert Nights Downtown Lights

Thu. 12/13 - Sun. 12/16, All Night

Downtown Tucson

Downtown Tucson is transformed into a mesmerizing wonderland with thousands of white lights strung on top of buildings and wrapped around trees with many decorated storefronts.

more info   map

 

True Concord Voices & Orchestra: Christmas Lessons and Carols by Candlelight

Thu. 12/13 - Sun. 12/16, 6pm-8pm

Christ the King Episcopal Church & various locations

True Concord Voices & Orchestra, southern Arizona's GRAMMY-nominated chamber chorus and orchestra, will present the 14th Annual Lessons & Carols by Candlelight. 

more info   map

 

Holiday Nights A Million Lights!

Fri. 12/14 & Sat. 12/15, 5:30pm-8:30pm

Tohono Chul

Celebrate the holidays surrounded by a million twinkling lights and glowing luminarias at Tohono Chul. Stroll around the lighted gardens and enjoy complimentary cookies and hot cocoa. $3-$16

more info   map

 

Mercado Holiday Bazaar

Fri. 12/14 - Sun. 12/16, 10am-end varies

Mercado San Agustín

Mercado San Agustin and Annex host the beloved Mercado Holiday Bazaar featuring 60+ makers, artists, and collectors. A family-friendly outdoor holiday shopping event.

more info   map

 

The Music Man

Fri. 12/14 - Sun. 12/16, times vary

Arizona Theatre Company

Arizona Theatre Company presents "The Music Man," music & lyrics by Meredith Willson, directed by David Ivers. The irresistible musical tribute to the power of make-believe marches onto the ATC stages - and into your heart - with trumpets blaring.

more info   tickets   map

 

Christmas Tree Ornaments in the Garden

Sat. 12/15, 9am-12pm

Mission Garden

Learn to make Christmas tree ornaments from garden products like dried devil's claw pods (reindeer) and painted dipper gourds.

more info   map

 

Messiah - Tucson Symphony Orchestra Holiday Special

Sat. 12/15 & Sun. 12/16, times vary

Catalina Foothills High School Music Hall

Get into the holiday spirit with Handel's pulse-pounding, earth-shaking Messiah - one of choral literature's most important and popular works.

more info   map  

 

A Southwest Nutcracker

Sat. 12/15 & Sun. 12/16, times vary

Tucson Music Hall

Tucson Regional Ballet's presentation of the classic Nutcracker ballet is set in the 1880s and tells the story of Maria and her journey with the nutcracker through historical Tucson and the Southwest.

more info   map

 

Holiday Express with Santa at Historic Train Depot

Sat. 12/15 & Sun. 12/16, 10am

The Southern Arizona Transportation Museum

Write letters to the North Pole, listen to a reading of the Polar Express, take a photo with Santa in front of Locomotive 1673, enjoy holiday music and more

more info   map

 

Arizona Repertory Singers: Carols of Triumphant Joy

Sun. 12/16, 4pm

Christ Church United Methodist

The Arizona Repertory Singers present a holiday tribute, "Carols of Triumphant Joy."  Concerts will include brand new choral music by Thomas Juneau, Fahad Siadot, and Jonathan Dove's thrilling "Seek him that maketh the seven stars."  

more info   map

 

Tucson Boys Chorus Holiday Concert

Sun. 12/16, 2pm & 6pm

UA School of Music Crowder Hall

Accompanied by a small orchestral ensemble, the choristers will perform music of the season including Christmas carols, sacred songs and Hanukkah selections. $8-$20

more info   map

                     

Posted in Community Events
Dec. 14, 2018

Leveraging VA Entitlement

The new VA no down payment loan limit in most counties is $484,350 for 2019. In the highest cost areas of the country, it’s $726,525 with no down payment.

 

A veteran with full entitlement can get more VA loan by using a down payment that is equal to 25% of the difference between the sales price and the county loan limit for VA loans. For example, in most counties, a veteran who wants to buy a home for $500,000, would have to put down $3,912.50 ($500,000- $484,350 x .25%). For a high cost area where a veteran wants to buy a $800,000 home, the down payment would be $18,368.75 ($800,000 - $726,525 x .25%)

Dec. 13, 2018

Where Are Interest Rates Headed in 2019?

Where Are Interest Rates Headed in 2019?

Where Are Interest Rates Headed in 2019? | MyKCM

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily throughout 2019.

Where Are Interest Rates Headed in 2019? | MyKCM

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly. But don’t let the prediction that rates will increase stop you from purchasing your dream home this year!

Let’s take a look at a historical view of interest rates over the last 45 years.

Where Are Interest Rates Headed in 2019? | MyKCM

Bottom Line

Be thankful that you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.

Dec. 13, 2018

Don’t Get Caught in the Rental Trap in 2019

Don't Get Caught in the Rental Trap in 2019 | MyKCM

Every year around this time, we take time to reflect and plan for next year. If you are renting your current home but have dreams of homeownership, your plan for the new year may include buying, and you wouldn’t be alone!

According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying in the next 5 years, with 38% planning to buy in the next 2 years!

When those same renters were asked why they disliked renting, 52% said that rising rental costs were their top reason, and 42% of renters believe that their rent will rise every year. The full results of the survey can be seen below:

Don't Get Caught in the Rental Trap in 2019 | MyKCM

It’s no wonder that rising rental costs came in as the top answer! The median asking rent price has risen steadily over the last 30 years, as you can see below!

Don't Get Caught in the Rental Trap in 2019 | MyKCM

There is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. With nearly half of renters (48%) surveyed already spending more than that, and with their rents likely to rise again… why are they renting?

When asked why they haven’t purchased a home yet, not having enough saved for a down payment (44%) came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”

If the majority of those who believe they haven’t saved a large enough down payment believe that they need 20% down to buy, that means a large number of renters may be able to buy now!

Bottom Line

If you are one of the many renters who is fed up with rising rents but may be confused about what is required to buy in today’s market, let’s get together to help you on your path to homeownership.