minette goldsmith

Just a quick note, most of Marana is eligible for the USDA residential mortgage financing program that enables low to moderate income buyers to qualify for 100% plus mortgage financing. Depending on the home value, buyers who qualify can get enough to cover the purchase price plus most closing costs. Rates are very competitive with conventional loans.

Alternatively there is the Pima County Industrial Development Bond program that requires a very low down payment and the interest rate is a little lower than conventional loans. In fact, the authority recently reduced their rates. Like all mortgage programs, this program needs to be reviewed carefully to see if it best suits a buyer's goals. in this case, there is the potential for a recapture tax if the property is sold within certain time frames, the home value goes up significantly and buyer's financial situation changes.

Many people are surprised by how much people can earn and still qualify for these programs.

In addition to these programs, traditional FHA, VA, and conventional loan programs may be available to buyers in the area.

Minette Goldsmith, Senior Loan Officer, Fairway Independent Mortgage Corp., Tucson, AZ NMLS # 261487

A local realtor, Leigh Ann Ganuelas of Kai Associates arranged for HGTV's House Hunters to follow a home buyer in Oro Valley and Tucson. While it took a while to convince them to come all the way to Tucson, it worked out great and you can watch the show air on 7/18/11.

Let's answer the second question first. Home prices are affordable for more people than they have been in almost 20 years. The Wells Fargo Housing Opportunity Index (HOI) indicated that 74.6% of all new and existing homes sold in the first quarter of 2011 were affordable to families earning the national median income of $64,400. In Tucson, they indicated that 85.1% of the homes were affordable and the median income was $59,000. At that time, the median home price was $133,000. Homes are so affordable because prices are down and interest rates are historically low. Since December 2008, the Fed has kept interest rates low as part of their quantitative easing to help the overall economy. The rates will continue to be low for at least a short while longer. But with all the money pumped into the economy, most analysts believe we will have inflation and interest rates will rise eventually. So now is a good time to buy if you plan to stay put for at least the next five years. Even if values decline a bit more, over the long term, owning your own home has been a good economic decision. Keep in mind that many of the people who lost their homes through a short sale or foreclosure can start buying again after 3 years and the housing debacle basically started in 2008. Add to that the baby boomers who, once they retire, may choose to move to Tucson. Demand should start to increase over the next few years, steadying or increasing home values.

How to prepare? The standard things to think about are:

•· Have a stable income - if you have just started a new job that may be ok as long as you either just got out of school or the new position is similar to a prior position you had.

•· Reasonable credit history - you can check on annualcreditreport.com for free to be sure there are no surprises on your credit report.

•· Have some money already in your bank account or investment account - to be used for either a down payment or closing costs. Even if you use a mortgage program that requires no down payment, e.g. VA or USDA loan or if the seller will cover your closing costs, e.g. Homepath or an individual seller, you should have some money put aside for emergencies when you have a house. Plus, there are costs associated with purchasing a home as part of the purchase process, e.g. property inspection, pest inspection, appraisal.

•· Documentation- you will need to show proof to document your income - paystubs, W-2, tax returns; credit history - the lender will pull your credit; assets- usually 2 consecutive bank statements, all the pages.

Additional things to be aware of:

•· Lenders will check on those bank statements for any unusual deposits, they will need documentation regarding what they relate to. In many cases the borrower must have some of their own money as part of the down payment, and they are checking to see if your money IS your money. Gifts may be allowed if you acknowledge them.

•· Lenders will check if you open any additional credit lines after you apply for a mortgage and will need explanations for the purpose of the account. They will also inquire about any recent inquiries on your credit report. Lenders want to be certain they have accounted for all your monthly debt payments.

•· Even if you have a student loan that is deferred, the potential associated monthly payment may be included in your debt ratio.

The best way to get started is to call to be pre-qualified for a mortgage. Mortgage professionals can discuss the mortgage programs you might be qualified for. We can suggest ways to improve your credit which can result in a lower interest rate. We can assist you with determining how much house you can afford and still be comfortable with the monthly payment.

Minette Goldsmith (NMLS # 261487) is a Senior Loan Officer at Fairway Independent Mortgage Corporation (NMLS Entity ID #2289) located at 5401 N. Oracle Rd., Tucson, AZ. She can be reached at 520 696-8984. www.mortgagesbyminette.com.

Fairway Independent Mortgage Corporation AZ Mortgage Banker License #0904162