If there is one thing the media has made us aware of throughout the course of this morgage meltdown, its just how creative(and crazy) lenders were with the financing options.  As the credit from the banks tightened so did the lending options available for buyers.

While most of the exotic loans of the past are gone their are still many financing options available.  Below is a list of options and what it takes to qualify for the loan.

Conventional Loan: A conventional loan is a lender agreement that’s not guaranteed or insured by the federal government. At one point in our history, conventional loans were the only mortgage loans available and they were all made by local lenders such as banks, savings and loans, and credit unions. They kept and serviced these loans in their own portfolio until they were either paid in full or foreclosed on.

A Conventional loan typically requires a large down payment that may not be required when financing through the government, however it does offer more flexibility because you are working directly with a bank.

FHA: FHA loan is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration. The loan may be issued by federally qualified lenders.  FHA primarily serves people who cannot afford a conventional down payment or otherwise do not qualify for PMI.

Required Documentation For FHA Loans

• A two year history of employment in the same field is required
• If you are a recent college graduate, your last two years of schooling can be used if you are currently working in your field of study
• Credit Scores normally need to be above 620 for Conventional financing-580 for FHA and VA looks at a case by case basis
• If no credit history exists-you may use cell phone bill, cable bill, previous rental history, etc. to establish a “pattern” of good credit payments
• Proper ID as defined by the Patriot Act (State Driver’s License or Birth Certificate along with a copy of your Social Security card required)
• Debt Ratios should be below 36/46

VA:  A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs. The VA loan allows veterans 100% financing without private mortgage insurance or 20% second mortgage. A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA and is allowed to be financed. In a purchase, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less. Since there is no monthly PMI more of the mortgage payment goes directly towards qualifying for the loan amount, allowing for larger loans with the same payment.

The VA does not make home loans, they insure them.  We are VA approved and can help you with your VA loan request. Some VA benefits include:
- No downpayment is required in most cases
- Borrow up to 100% of purchase price
- Lower closing costs
- Mortgage is assumable
- No Private Mortgage Insurance (PMI)
- No penalties if you prepay the loan
- You may be eligible for waiver of VA funding fee
- VA support during temporary financial difficulties

GRH: A Guaranteed Rural Housing loan is a federal assistance mortgage loan in the United States insured by the RHS.

Some key features include:
-  No PMI. That’s right, no private mortgage insurance.  Like VA, this program has a Guaranteed fee that can be financed into the loan the same way VA loans have a Funding fee.
- 6% seller help/contribution is allowed
- No minimum contribution from your own funds.  FHA has a 3% requirement.  There are also no cash reserves required, as is the case with your typical conventional loan.
- This program only offers a fixed rate option for primary 1 unit residences.  Current maximum loan amount is $417,000.

requirements for loan:

• 1-unit primary residences, including single-family dwellings, condominiums, planned unit developments (PUDs) and eligible manufactured homes.
• Non-farm
• Leasehold and rehabilitated properties
• Property must meet the rural designation as defined by RHS

Good Neighbor Next Door Loan: Good Neighbor next door program is made available by HUD so law enforcement and Teachers may purchase a Hud home at half price.  If the police officer or Teacher uses fha financing for this purchase he/she will only need a downpayment of $100 and can finance the closing costs into the loan.

Interest Only and Adjustable Rate loans are still available but given the current market situation they are not used often.

There are some major changes that participants and attendees of the parade should be aware of. To cut down on parade costs, the distance the parade travels has been cut in half. The parade will now start out on Guadalupe road and run to Hackmore Street. Because of the shorter distance money will be saved on police monitoring, road blocks and trash containers. Also paved school district lots will be used to stage parade participants instead of the dirt that was used previously. This will cut down on costly dust mitigation.

The Gilbert Town Council voted last night 7-0 to put the parade back on due to the new funding received by the parade committee. The next hurdle is getting word out that the parade is still on. So tell your friends and enter your business to be in the parade for only 250$ this Nov 14th!

The construction of an LDS Temple, considered the most sacred place on earth to the LDS community, has a history of dramatically increasing the value of homes in the surrounding area.  The newest Temple in the U.S. was opened in Idaho last August.  After the announcement of the temple property values immediately surrounding the temple doubled overnight.  Developers call increase in property value the “Temple Effect”.   Mormon Temples are relatively rare, and because they are considered sacred, many LDS members like to live in the shadows of these buildings.

If the Temple is built with the 180 foot steeple intact it will become Gilbert’s tallest standing building.   The building would exceed current city limits on the heights of buildings, and will have to go before the Gilbert Town council before it can begin construction.  It is unlikely however that the building will encounter much resistance when considering the positive effects on the community and town.   A key committee gave the project a green light earlier this week.  Once the town hall votes to approve the construction the church plans to begin construction within a year.

When the Gilbert Promotional Corp. lost most of its private funding for the parade due to the downturn in the economy, they turned to public funding and the help of the Gilbert Town Council.  The council turned down the groups request for public funding in a 5-2 vote Tuesday night.  ”It was a tough decision for everyone all around,” said George Pettit, town manager.

As a sponsor and participant in the parade since 1994 Remax Alliance Group is saddened by the news of the cancellation.  We enjoyed the opportunity to give back to the community and celebrate the tradition that the parade represented.  However, we look forward to the return of the parade in the future and the prosperity that its return will represent.

If there is a silver lining it is that the Council did vote to fund the Gilbert Days Rodeo.  The Rodeo is a 3 day event attended by up to 5,000 spectators.  For more information on what activities will be available during the Gilbert Days Celebration view the calendar here.

Councilmember Jenn Daniels, who was elected in May and opposed an increase during her campaign, was the lone councilmember to speak out against tax hikes.

Bringing enthusiasm and new ideas to the Council, first place winner, Jenn Daniels, shared with us that “I am very excited to get to work.  There is much to be done in our community and I’m ready to roll up my sleeves and serve the great people of Gilbert.”  

Gilbert Town Council is comprised of  the Mayor and six Council members, each voted to a four year term.  The three freshman members of the Council join long time Gilbert advocates, Councilmen Steve Urie, Les Presmyk,  Linda Abbott, Dave Crozier.

As long time Gilbert community members, all of us at the Reeves Team are eager to see the new Council members take their place and the new leadership they bring.  Their combined ideas and skill sets, while very unique to each member, will hopefully prove to be beneficial to the growth of Gilbert.

More election results are available on line, as well. 

From all of us on The Reeves Team, Congratulations to all!