Archive for the ‘Hot Arizona Investments’ Category

Phoenix Investment Property chart shows a slow but steady increase in the price per square foot for homes sold at Phoenix Trustees Sales. Arizona Homeowners are able to resell their properties to new Phoenix homebuyers. If it holds for the rest of December it will be the first time since June the price has been over $100 per square foot. The NUMBER of properties sold is basically on the same schedule as the last couple of months and down somewhat from December of last year, but is this the sign of recovery?! The charts are a measurement of ordinary Arizona single family homes throughout the entire metropolitan Phoenix area. On December 23rd 2010 a Phoenix Foreclosed Homes Freeze will be put into effect through the new year (January 3rd 2011). Not all Arizona homeowners will be affected but it should drive up the pricing during those 2 weeks according to statistics.



Phoenix Investment Property – Arizona Foreclosed Home Sales – Laveen Foreclosures – Tolleson Short Sale Homes – Investor Owned Properties – Lender Owned Price Per Square Foot Sales Laveen and Tolleson – Laveen and Tolleson Bank Owned Homes Hot List

Attention Phoenix and Scottsdale Investors

Short sale homes and REO investment property flipping 
is becoming more and more accepted by the government and major
lending institutions.  This is evidenced, among other things,
by Freddie Mac’s recent bulletins, updated credit policies by
major lenders allowing for C buyer financing (FHA buyers), and revised title bulletins
stating that the C purchase price does not need to be revealed
to the A lender as long as certain disclosures are made. 

Last Friday the FHA rescinded its 90 anti-flipping rule and will,
for a period of 1 year, allow FHA buyers to obtain loans
on investor owned properties that have been recently purchased by Phoenix investors
who intend to flip them for a profit.

This “green light” by FHA means that if you’ve been on the
sidelines of investment property flipping, you need to educate yourself
as soon as possible, because Real Estate investors will be coming on
strong in 2010 given this latest anti-flipping news. The Valley real etate market still has many potential Phoenix Investment Properties below current market price. The year 2010 will be marked as the year of the Savy R E Investor.

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner.  To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

  • All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction of the phoenix investment property
  • In cases in which the sales price of the investment property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the specific conditions are met, which include the requirement of a 2nd appraisal and property inspection.


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Guidelines of 203K FHA Streamline Repair Loan

We all know that the Arizona real estate market has more Bank Owned Homes available for sale than ever before. The inventory of lender owned, REO and pending auction homes has grown to a level where it can no longer be ignored by homebuyers. Unfortunately, most of these homes are not within financeable boundaries or at least in livable condition. That’s where the 203K FHA streamline repair loan comes in to the aid of the homebuyer. Phoenix homebuyers can use the 203K FHA streamline loan and finance further repair costs of their property right into their home purchase. There are some basic things that you as the homebuyer of that distressed property need to know to fully utilize this 203K FHA streamline loan to purchase that perfect Greater Phoenix investment property:

The purchase:

The FHA 203K loan is available for the purchase of a property and takes into the account the purchase price and then add in the cost of repairs necessary to create a new loan balance. The repairs of your Arizona home would be completed after close of escrow.

Facts and Notes:

The maximum repair amount on the FHA 203K Streamline is $35,000 and there is no minimum or mandatory amount. A phoenix homebuyer can use $5K for that new roof of his Phoenix investment property or use the whole $35K and do more along the lines of a full home remodel. The other catch is that the buyer must use a licensed professional to conduct the remodel process of the home and then it must pass inspection.

Eligible home improvements:

  • · Repair or replace that worn roof of the home
  • · Repair gutters
  • · Place a new HVAC unit for the hot summer days
  • · Fix the plumbing or convert from galvanized to copper piping in your new home
  • · Upgrade your electrical to code
  • · Put in that stone, wood or fresh carpet on the interior of the home
  • · Do some custom painting
  • · Upgrade those appliances from the 70s to nice new Stainless Steel
  • · Build an awning or a patio for shade
  • · Do some landscaping
  • · Repair the cracks in your driveway
  • · Switch out the windows to new Dual Pane Low E windows
  • · Upgrade interior doors to 6 or 8 panel
  • · Great opportunity to upgrade with Eco Friendly ideas in your new Phoenix home

Remember that this is only offered to owner-occupant homebuyers. No investors. Also, you may not amend or change the bones (structure) of the home. Only cosmetic repairs are allowable under the FHA 203K Streamline repair loan. We at RealVision Group can offer a slightly different FHA 203K program that allows for structural repairs, but that requires architects, contractors and becomes an elongated process which is less desirable for homebuyers.

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Phoenix Jumbo Loans and mortgage rates

Jumbo Purchase with 10% Down Payment 

  • 90% of Purchase Price
  • Loan amounts to $625,000
  • 740+ Fico
  • Primary Home Only
  • 40% Debt to Income Ratio
  • 80% to $1.5 million
  • 75% to $2.0 million
  • Condos and Second home start at 80%
  • Need CASH OUT on your Jumbo?  75% to $2.0 million  

*All Phoenix loans require:

  • Full documentation of income
  • Full tax returns required if other real estate is owned
  • Assets must be verified
  • Automated underwriting approval required
  • Rates subject to change
  • Credit score requirements on all loans

Our nation has suffered some severe home value declines over the past 3 years, the investment property market has been tough…finally some good news. U.S home values have shown signs of recovery and growth in May for the first time in a long 3 year stretch.

Many indicators are showing that the Phoenix housing market is improving. Pending home sales, a forward-looking indicator based on signed contracts, rose in June for the fifth straight month. And in April, pending home sales had their biggest monthly jump since October 2001. Existing home sales rose 3.6% in June and 2.4% in May, with some homes receiving multiple offers. And the most recent Standard & Poor’s/Case-Shiller 20-city housing price index shows a month-to-month increase of 0.5% in housing prices in May. It is the first monthly gain since July 2006. This has led some industry experts to anticipate that the decline in housing prices will soon bottom out if not there already. The time to purchase an Arizona Income Property is now.

Our nation has suffered some severe home value declines over the past 3 years, the Phoenix investment property market has been tough…finally some good news. U.S home values have shown signs of recovery and growth in May for the first time in a long 3 year stretch.

Foreclosure homes in Arizona are anticipated to see a spike in the next month, which will mark the bottom and last push by banking institutions and Assets companies to release their Toxic assests.  And with recent efforts of the government, confidence is moving higher and we are beginning to see signs of recovery in other areas as well.

The economy is in no way out of the woods yet, but when new investment potential homes in Metro Phoenix are selling at prices unheard of in years (10 to 30% of contemporary market values) why not invest your money in one of the most proven ways to accumulate wealth…owning Real Estate.

Where prices of Phoenix homes are heading from here….well Phoenix home sellers and owners are hoping up of course ; ) but no one can foresee the future. However, with the low price of homes in the Phoenix current market, coupled with government intervention for loan modification for existing homeowners, $8,000 tax credits for Phoenix first time home buyers and historically low interest rates, the Phoenix homebuyers have began to come out of the woodwork and shop around. More Arizona homeowners are showing signs of wanting to remain in their homes and have modified their loans, cutting out the short sale, foreclosure and distressed inventory will bring begin a slow up rise of the phoenix market values.

On Monday, July 27, the Commerce Department reported new home sales jumped 11% in June to a seasonally adjusted annual rate of 384,000 from an upwardly revised rate of 346,000 in May. It was the largest monthly increase in more than 8 years. Economists had expected a sales pace of 360,000 units.

The Standard & Poor’s / Case-Shiller 20-city housing price index dropped 17.1% from May 2008 to May 2009. However, there was a 0.5% increase in housing prices in May compared to the previous month. It was the first rise in the monthly index since July 2006.

The consumer confidence index fell to 46.6 in July from 49.3 in June. Economists had expected a slight decrease to 49. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

Orders for durable goods — items expected to last three or more years — fell 2.5% in June, the first decrease in three months. Economists had anticipated orders for durable goods would fall 0.6%. However, excluding automobiles and aircraft, durable goods actually rose a robust 1.1%, a much better performance than the flat reading economists had expected.

Initial claims for unemployment benefits rose by 25,000 to 584,000 in the week ending July 25. The figure was higher than the 575,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week ending July 18 decreased by 54,000 to 6.197 million, the lowest level since April.

The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — decreased at an annual rate of 1% in the second quarter of 2009. This follows a 6.4% decline in the first quarter of 2009. Economists had expected a slightly larger 1.5% decrease.

The U.S economy seems to be making a rough and very slight inch towards a recovery. This means upward pressure on the Phoenix Real Estate market prices. The time to buy a Phoenix investment property could not be timed better. Inventory of newer Phoenix Homes is still flourishing and the banks are beginning to lend more frequently to buyers and investors.

The feds are trying once more to resuscitate the mortgage market. But history shows reviving this patient won’t be easy with all those bank owned REO and pending foreclosure homes.

The Federal Reserve said Tuesday morning it would spend $600 billion in coming quarters to buy the bonds and mortgage-backed securities issued or guaranteed by Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500). The move, the Fed said, aims “to reduce the cost and increase the availability of credit for the purchase of homes, which in turn should support housing markets and foster improved conditions in financial markets more generally.”  This means to us real estate investors that the fed is making a push to free up money for the average home buyer. Think the market is not ready to invest in. Think again, once the money becomes available, the current rock bottom real estate market in Phoenix will revive and prices will shoot up. Like we have mentioned before ” don’t be afraid to be one of the first in line pick up some of this prime Phoenix Arizona investment property before prices adjust”

The market reacted positively to the announcement, with the spreads between the yields on agency bonds and similar-duration Treasury securities narrowing. Lower spreads translate to lower mortgage rates, which bring down the cost of buying houses. So, once the money is availabe to the public, the price of real estate in Arizona and nation will begin to see a more stabilizing trend, Arizona pre-foreclosures, bank owned REO and government owned homes (Arizona HUD homes) will decline. That generally leads to more home sales – a top priority for officials who want to slow the decline in house prices that is soaking financial-sector balance sheets with losses.

Are you ready to invest in the Arizona Real Estate market?

Home Sales In Phoenix from July — September of 2008

Thinking about Phoenix investment property?! Here are some compiled statistics.

Greater Phoenix Home Sales July through September 2008

Phoenix Home Sales Update

Phoenix Home Sales Update