Jeff Pickering

The New Temporary FHA Loan Limits in Maricopa County are:

One family $346,250

Two family $443,250

Three Family $535,800

Four Family $665,850

For info on increases in other Arizona counties Click on the link below.

https://entp.hud.gov/idapp/html/hicostlook.cfm

We will be providing additional information as soon as the details become available to us. The next announcements are scheduled for March 4^th.

Rates and Programs Subject to Change, Call For Current Rates *

"Just leave me a Loan"®

Thank You,

Jeff A Pickering
The Pickering Group
Phone (623)551-9360
Email: jeff@pickeringgroup.com
Website: www.pickeringgroup.com

I am pleased to announce that we have been granted "Proficient Lender Status" with our Mortgage Insurance Company. This is a great recognition to have as lender to be acknowledged by our MI business partner. The ability to insure mortgage loans in declining markets is another tool to help you meet your buyers needs.

We are now eligible to deliver loans with mortgage insurance ("MI") applications in declining markets for loans with a FICO score of 660 and a loan-to-value ratio between 90.01% - 95% (Excluding the state of Florida). DU AUS Approved Eligible

Purchase and rate and term refinances transactions single family 95% to 417,000.00 - 660 FICO MAX DTI 41/55

Condominiums 90% FICO 660 MAX DTI 41% - Project must be 100% completed NO Phasing

Second Homes to 90% FICO 700 MAX DTI 41%

Additional restrictions:

No investment properties

No cash out refinances

No properties in the state of Florida

All transactions must meet the Anti Flipping rule

Buyers purchasing a new o/o home and retaining current property as a rental/ second home must qualify with both payments and have 6 months reserves on all properties

California: The maximum insured percentage of all certified loans in any given month may not exceed 34% in the state of California. All MI certificate will be issued from corporate to manage availability of MI in that state.

"Just leave me a Loan"


Thank You,
Jeff A Pickering
The Pickering Group
Phone (623)551-9360
Email: jeff@pickeringgroup.com
Website: www.pickeringgroup.com

HBM What's in it for the HR Director/Employer

1. Relocation just became easier: You have the advantage with the Home Buyers Scouting Report®.

a. An employee interviewing with your firm can utilize the HBSR® to learn about the local housing market, search for properties matching their search criteria and receive high quality, timely response to all of their real estate and financing needs.

2. High quality internal marketing opportunity.

a. Your logo and contact information placed on every screen the buyer (employee) views.

3. Employee benefits = commitment and retention:

a. Work with your HBM® Preferred Lender to hold informational buyer seminars for employees. Cover topics such as: 1st time home buying, investment buying, refinancing options, benefits of having a mortgage pre‐approval, understanding credit scores and more.

b. "Employees who are homeowners have more loyalty and dependability within their place of employment."

4. There are numerous real estate sites available, but the Home Buyers Scouting Report® is the only Single Destination Website:

a. Put the homebuyer in control of their home search process with a private, password secured website.

b. Provides buyers with 24/7 online access to all the available listings from area real estate companies.

c. Offers maps, directions, satellite imagery and comprehensive neighborhood information.

d. Personal notebook to save and track favorite properties.

e. Quick Alert^TM emails will notify the buyer of new properties listed matching their search criteria or changes to properties they are tracking.

f. Direct online access to the HBM® Preferred Lender for each buyer's financing needs.

g. The Home Buyers Scouting Report® is provided directly to the homebuyer by HBM II, a licensed real estate brokerage services company, absolutely FREE.

Thank You,
Jeff A Pickering & Sherry Pickering
The Pickering Group
Phone (623)551-9360
Email: jeff@pickeringgroup.com
Website: www.pickeringgroup.com

Most of us think of an IRA as a place to invest in mutual funds, stocks and bonds. However, you may have heard that investment real estate may also be purchased in an IRA. The rumors are true- you can, but with a few complications and drawbacks that are likely the primary reasons this strategy has not gained widespread use. Nonetheless, IRA real estate investing may prove beneficial to your particular situation, so it's definitely worth a conversation with your financial planner and CPA.

One obstacle is that IRA real estate investing must occur through a self-directed IRA and is generally not available with the vast majority of major wirehouses and other recognizable name brands in the investing world. However, if you logon to Google and enter "Real Estate IRA" or "Self-Directed IRA" you'll see there is no shortage of suitors who will be glad to help you transfer your existing IRA funds to a self-directed IRA.

The second complication is the need for nontraditional sources of mortgage financing. Larger banks and mortgage companies typically will not lend on real estate held in an IRA because title to the property is held by the IRA trustee rather than the IRA owner. You'll need to look for a niche lender that offers this type of financing, which will most often be a smaller local bank or credit union.

Finally, you'll also need to partake in an analysis of whether the pros and cons of IRA real estate investing make sense for your personal situation. This should definitely entail discussions with your financial planner and CPA, but for starters here are some of the considerations you should look at:

Pros:

• Better Diversification- if most of your investments are tied up in the stock market then this is a terrific solution for diverting some of your money into real estate to give you a more balanced portfolio.
• Active Investment- for those of you who are more inclined to managing your own investments, buying real estate is the best solution available for an IRA.
• Deferred taxes. Speak with your CPA about how this will affect you, but in general you will be able to defer taxes on all income and capital gains.
• Use of leverage- There aren't many IRA investments you can leverage to potentially increase returns, but this is one of them.

Cons:

• Less favorable mortgage terms- Expect a minimum required down payment of 30% to 40% and an interest rate that exceeds the standard rates for investment properties by 0.25% to 0.5%.
• Tax disadvantages- believe it or not, the tax deferral strategy could backfire. With a traditional IRA account, you'll have to pay the taxes someday. If income taxes in the future are higher than they are today then you'd be better off paying the taxes today. Also, the sale of property may generate unfavorable consequences- NON-IRA long-term capital gains are currently taxed federally at just 15%, but all IRA gains will eventually be taxed as ordinary income.
• Profits are inaccessible- while taxes on all gains and income are deferred, all profits must be kept within the IRA until age 59 ½ to avoid penalties.

In a nutshell, the drawbacks of IRA real estate investing wash away many of the benefits. Keep in mind that purchasing real estate outside of an IRA still makes for a very tax advantaged investment with depreciation deductions and 1031 exchanges available.

The IRA real estate investment seems to be most appropriate for middle aged and older investors whose primary net worth is held in an IRA. If you are 50 years old and you have $500,000 in an IRA but little else in outside investments, it's likely that the only capital you have available to purchase investment real estate is that in your IRA. Rather than keeping all of your investment exposure in the stock market and rather than paying a penalty to liquidate a portion of your IRA to buy real estate, using your retirement savings to purchase real estate within your IRA gives you the opportunity for greater portfolio diversification without patently unfavorable tax consequences.

If you have available investment capital both within and outside of your IRA then it's debatable as to whether making the purchase within the IRA makes sense. In all cases, meet with a financial planner and CPA to dig into the details of how this decision will affect your long-term financial situation.