First-Time Homebuyer
A first-time homebuyer is defined as someone who has not owned a home in the past three years. This definition applies to FHA, VA, USDA and Conventional financing.

VA Loan
VA loans are ideal for Veteran home buyers since it does not require a down payment for standard loan amounts ($417,000 and below), but you must be a qualifying Veteran of the United States Military. An upfront VA Funding Fee is required for most loans, but this fee can generally be included in the loan amount. VA will allow multiple loans for a single borrower so long as the borrower has sufficient entitlement. A portion of the borrower’s available entitlement is deducted for any open VA loan or defaulted loan. Lack of sufficient entitlement does not disqualify the veteran, but will instead require a down payment.

USDA Loans
USDSA loans allow buyers with a lower-than-average income to buy homes in qualified rural areas with no money down. USDA does require an upfront fee, which can be included in the loan amount. USDA will also require a monthly guarantee fee, which is similar to mortgage insurance on conventional financing. This monthly amount is included in your monthly payment. USDA will not lend to borrowers owning other real estate except in the case of a qualifying relocation

FHA Loan
FHA programs allow for lower down payments when compared to standard conventional financing. FHA also allows an immediate family member to gift the buyer their down payment and closing cost funds. Arizona also offers grants to home buyers who want to utilize the FHA program. FHA does require an upfront fee which is included in the loan amount as well as a monthly mortgage insurance fee that is included in the monthly payment. FHA in most instances will limit any person to 1 loan open at a time.

Relocating Buyer – The Relocation Mortgage Program
FHA & USDA will consider extending their eligibility guidelines if the borrower is relocating and re-establishing residency in another area that is outside a reasonable commuting distance from the current principal residence. CNN considers reasonable commuting distance to be 100 miles or more. Example would be from Phoenix/Metro area to Prescott.

Conforming Loans
Conforming loans, also sometimes called Conventional Loans are loans that area secured by either Fannie Mae (A.K.A. Federal National Mortgage Association) or Freddie Mac (A.K.A. Federal Home Loan Mortgage Corporation) which are the two largest mortgage companies in the USA. These programs offer a board array of down payment options from as little to 3% down as well as offer financing for second homes and investment properties in addition to owner occupied home loans. A monthly mortgage insurance premium is required on all conforming loans when the Loan-To-Value ratio is greater than 80.0%. However, unlike some other programs, the mortgage insurance can be removed when the loan reaches certain milestones. A person can obtain as many as 10 conforming loans at one time.

Reverse Mortgages
Designed to help homeowners 62-years and older, this loan allows you to use the equity in your home to supplement your retirement income. The available proceeds can be used to pay off your current mortgage, thereby eliminating your monthly mortgage payment; provide a monthly income for a certain time period, or for as long as you live in your home; or, to set up a Line of Credit for future use, as you wish, with the amount available increasing at a rate guaranteed by the US government – all without paying taxes on the proceeds received (it is a return of your equity). It is a fairly complex financial planning tool, so be sure to work with someone who thoroughly understands the product and can answer all your questions. CNN Mortgage can help.

Investment Buyer
Non-owner occupied
Fannie or Freddie Mac only loans
Reserve Requirements
Financing with a maximum of only 80%
Investors can finance up to 10 properties in Arizona with CNN Mortgage. Most banks have a limit of four properties that a single investor can finance, but not at CNN Mortgage. At CNN Mortgage we believe that well qualified investors will be instrumental in catapulting Arizona out of the housing crisis.

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