Christine Loschiavo, www.HomeSweetAzHome.com

If you are looking to buy in Arizona here are some programs that may help you into a new home. Figuring out the best loan for your situation can be confusing. A competent Mortgage Lender will take the time to explain each program to you when you meet with them. But, a bit of information in hand will go a long way in helping you to understand the choices. Three of the loan programs and on Assistance program, that may be right for you are described here.

FHA Financing This is a popular loan program for buyers who have a small amount saved for a down payment. The loan requires only 3.5% of the home purchase price for a down payment. There is no FICO score minimum requirement. Buyers can ask the seller to pay up to 6% of the purchase price toward closing costs.

Advantage FHA Loan Program If you have so/so credit and a sad FICO score, the Advantage FHA Loan Program may be the loan to help you buy your dream home. This loan does not have a FICO score requirement for loans up to $417,000. Manufactured housing is also eligible for this loan. This loan is only available in three states, with Arizona being one of them. Your maximum debt to income ratio can be no more than 43%. You should not have any late payments or derogatory credit within the past 12 months. Zinger alert! The program requires you to complete a Homebuyer Education Course.

USDA Loans The USDA sponsors the little-known Rural Housing Loan Programs. These loans offer 100% financing (no down payment) for eligible properties. The properties have to be located in rural areas. Buty you would be surprised at what is considered rural. These loans are 30 year fixed rate only.

Your Way Home AZ This program became availabe in July 2009 for AZ residents. The AZ Department of Housing (ADOH) will offer 22 percent in purchase assistance to qualified homebuyers purchasing an eligible foreclosed home int the state. ADOH provides help in the form of a deferred second mortgage loan for purchase assistance. There are specific criteria regarding thi program. Ask your mortgage broker if you are a match for this program.

There are other loans available that a great mortgage broker an explain to you. If you don't know a great broker, ask me, I can refer you to a few.

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1. How much house can you afford? (and still have money left over to order out for pizza once in a while). A good lender will help you figure this out based on the information you give them.

2. Not all Lenders offer the same rates and deals. Shop around. Ask me about bank lenders vs. mortgage brokers. Then get preapproved for a mortgage.

3. Great News! You do not have to pay your Realtor ANYTHING!! No kidding! The Seller pays their Realtor AND the Buyer's Realtor.

4. Start looking at homes only after you have done the two items above. I will research homes for you based on what you tell me you want in a home. I will help you to note positives and negatives of each property.

5. Know what kinds of properties you are looking at. Short Sales, Bank Owned, Preforeclosure, REO's, Straight Sales are all out there right now. Ask me to explain what each type of house means to you, your strategy and your timeframe.

6. How to make an acceptable offer. I will give you the information on comparable properties that tells you what similar homes have sold for recently. We will discuss your options together and make an educated offer.

7. You have to have money available to go with your offer. This Earnest Money is usually a personal check that we submit to the Seller to show you are serious about your offer. A general rule is the Earnest Money is 1% of the house price.

8. There are TWO negotiation periods on most houses. The first period is when you are trying to agree on the price and conditions of the sale. The second period comes after you have a Home Inspection and are trying to get the seller to make repairs.

9. You CAN get out of the deal. If you can't get a mortgage, if the house doesn't appraise, if the house has serious flaws the Home Inspector finds, if, if, if... Ask me about this.

10. You will need money for an appraisal, down payment, and closing costs. Have all of this figured out way before the closing date approaches.

As your Realtor, I will help you with every step of the process in getting into your new home. Let's get started!

Calling All Apartment Dwellers

Very rarely do all factors converge to make an ideal situation for buying a home. But, it has happened this month. The top three factors that make it the best time to buy your first home are:

1. The Federal Government is offering YOU $8000 to Buy a Home in 2009.

No kidding! First Time home buyers (of those of you who have not owned a home in 3 or more years) qualify. It is a $8000 or 10% of the value of the home in the form of a Tax Credit. This is NOT a tax deduction. A Tax Credit is claimed on your tax return and reduces your tax liability. If you have more credit than you owe in taxes, you will receive a Refund Check. How cool is that? Just stay in the house for three years and you never have to pay back a dime.

2. Interest Rates are at an amazing 4.875% for a 30 year fixed rate loan. Rates haven’t been this low in years. This means your monthly payment will be less than you would think. Good Deal!

3. Arizona Home Prices are incredibly low right now. Between the rash of foreclosures and short sales along with bank owned properties, the chances of you finding a house at a bargain price on a wonderful home are great. If you are willing to look in outlying areas, the number of properties to chose from quadruples.

First time home buyers have never had so many reasons to buy. If you’ve been thinking about buying but have been waiting to see what the market would do, it’s time to act. Any of these three factors may change this year, but the change may not be in favor of the new homebuyer.

This Professionally upgraded and decorated home is conveniently located at Dobson and Warner, one mile from the 101. This 2 bed/2bath home boasts a gourmet kitchen replete with granite counters, stylish lighting, stainless appliances and refinished cabinetry. The greatroom is graced with a vaulted ceiling, fireplace and custom tile. A private patio is perfect for a morning retreat. This home is perfect for young professionals or owners who wish to lock and go. Contact: Christine Loschiavo @ 480.628.0496 to schedule a tour.

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Paul and Sharon of Chandler, Arizona, were in a tight spot. Paul, an engineer, had been laid off from his job at a Semi-conductor plant in May. Sharon, a stay-at-home mother of three, thought she was used to the ups and downs of the job market in his field. They were in the habit of saving as much as they could for these periods when Paul was looking for work. But, this lay off had come at a very difficult point.

They had purchased their ‘dream home' eighteen months ago, in a newly constructed planned community. They had decided to use a huge chunk of their savings towards the down payment and the upgrades they really wanted. Paul had been sure his job was stable for a few years. They didn't think it was going to be a big risk to put their savings towards the house. The lay-off caught the family off guard.

By October, they had missed three mortgage payments. They received a notice from the bank that they were going to be foreclosed upon. As Sharon explains, "We were just panic stricken. We knew we were behind but Paul was interviewing. He was going to get a job very soon. We didn't want to lose the house. The kids like the school and we have made friends here".

The received a call from a "Mortgage Rescue" company. The caller, Brad, told Sharon that his company would be able to help her to keep their home. Brad said they had helped many homeowners in the area and would be able to arrange for Paul and Sharon to work things out with the mortgage company. Sharon recalls, "I was very excited. I asked him for references, even. He gave me two names. This guy was really nice and so helpful. He said his company was helping lots of people in Chandler".

As Brad explained the program, his company would lend Paul and Sharon money to make the back-payments on their mortgage. They would then make the monthly payments to his company that included the original mortgage payment plus a payment on the new loan (at 21% interest). Sharon and Paul would sign a deed transferring the property to the rescue company, temporarily, so that the rescue company could work with the mortgage company to save the home from foreclosure. Brad told her that once Paul secured a job and they had regular income, they would pay off the new loan and the deed would be transferred back. Sharon was thrilled that she had possibly found a way out of the mess they were in.

Paul, however, was skeptical. He did not like the idea of a new loan or the requirement to sign over the deed to the house. He did some internet investigating. His search led him to the county District Attorney's office which had information about this fraudulent method of operation. The plan which Brad had outlined to Sharon was a scheme designed to take their home and steal any equity they may have had.

When this scheme plays out, the homeowner signs over the deed to their home which gives the rescue company ownership. The former homeowner has to pay back the rescue company for "bailing' them out. This is always at an exorbitant interest rate. The homeowner ends up renting their former home. If the homeowner fails to make rent payments on time, the rescue company evicts the former owner. All rights and equity in the home are lost and go to the rescue company. Often times the rescue company does not pay the mortgage at all, but keeps all of the money paid to them.

Paul and Sharon decided not to accept Brad's offer of help. They have chosen to go through the foreclosure proceedings and are now looking for an apartment. Bad luck, but it could have been worse for them had taken Brad's claims at face value. They may have not only lost their home but also the money paid to the fraudulent company.

Be Careful. These Rescue Rip-Offs are designed to take your home and steal any equity you have built up. Look for these Red Flags:

· The Rescue Company wants you to sign over the Deed of your home so it can work with your mortgage company to "save" your home from foreclosure.

· The Rescue Company tells you to sign a Deed transferring your home to them and promises that once you have caught up with the past due mortgage payments your home will be transferred back to you.

· You are required to pay a Service Fee to locate a lender or buyer for your home.

For more information: www.homesweetazhome.com