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REAL ESTATE
AHWATUKEE FOOTHILLS NEWS | FEBRUARY 21, 2018
Ahwatukee homes sold 85044 $195,000 $202,000 $210,000 $224,900 $238,000 $245,900 $267,000 $275,000 $290,000 $305,000 $305,000 $325,500 $329,000 $370,000 $502,620 $551,000
12174 S. SHOSHONI DRIVE 12004 S. CROW COURT 12620 S. CHEROKEE ST. 4702 E. CHEYENNE DRIVE 12601 S. COCONINO COURT 11833 S. MAGIC STONE DRIVE 4231 E. ZIA ST. 4532 E. CAPISTRANO AVE. 4629 E. WINSTON DRIVE 5140 E. KERESAN ST. 3949 E. NAMBE ST. 4022 E. AGAVE ROAD 14601 S. 35th PLACE 4035 E. CAPISTRANO AVE. 4430 E. JOJOBA ROAD 3320 E. ROCKY SLOPE DRIVE
85045 $234,900 $256,500 $364,900 $398,000
1705 W. WILDWOOD DRIVE 131 W. MOUNTAIN SAGE DRIVE 2802 W. WINDSONG DRIVE 15840 S. 18th LANE
16621 S. 27th LANE 145 W NIGHTHAWK WAY 16248 S. 14th DRIVE
85048 $156,500 $161,000 $179,900 $255,000 $255,000 $275,000 $283,300 $299,000 $305,000 $363,000 $365,000 $422,000 $570,000 $894,900
3236 E. CHANDLER BLVD. 16013 S. DESERT FOOTHILLS PKWY. 16013 S. DESERT FOOTHILLS PKWY. 1121 E. HIDDENVIEW DRIVE 16250 S. 44th ST. 4112 E. SILVERWOOD DRIVE 2125 E. BRIARWOOD TERRACE 15209 S. 28th ST. 3834 E. TANGLEWOOD DRIVE 15414 S. 21st PLACE 16668 S. 14th ST. 14408 S. 12th ST. 14203 S. 12th PLACE 16416 S. 23RD WAY
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f you are trying to decide between an FHA and a conventional loan, the nation’s leading real estate website has some tips on weighing the difference. Realtor.com notes that while the majority of home buyers might assume they should get a conventional home loan, about 40 percent end up with FHA loans, which are insured by the Federal Housing Administration. To help buyers decide whether an FHA or conventional loan is better, here’s how Realtor.com has broken it down, including their distinct advantages to home buyers and what borrowers need to qualify – although those qualifications can vary among lenders. Conventional loan requirements: minimum down payment, 5 to 20 percent; minimum credit score, 620; maximum debt-toincome ratio, 43 percent. Conventional lenders look for borrowers who have well-established credit scores, solid assets, and steady income, said Todd Sheinin, mortgage lender and chief operating officer at New America Financial. As such, these loans have higher barriers to entry than the FHA-backed options. “You’d better have your A-game on,” Real-
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$698,400
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tor.com advised. Typically, you need at least a 620 credit score and ideally a 20 percent down payment, although you can put down as little as 5 percent if you so wish – just know that on any down payment under 20 percent, you’ll have to pay private mortgage insurance, an extra monthly fee meant to mitigate the risk to the lender that you might default on your loan. PMI ranges from about 0.3 percent to 1.15 percent of your home loan. Most conventional loans also require a maximum 43 percent debt-to-income ratio, which compares how much money you owe (on student loans, credit cards, car loans, and a home loan) with income. So, for instance, if your household takehome income amounts to $5,000 per month, that would mean you should spend no more than $2,150 per month on your mortgage and other debts. Conventional loans don’t require mortgage insurance, as long as you put down at least 20 percent. They also can cover higher loan amounts than FHA loans, which are restricted to county limits. Conventional loans, on average, are processed faster than FHA loans. FHA loan requirements: minimum down payment, 3.5 percent; minimum credit
score, 580; maximum debt-to-income ratio, 50 percent. “FHA loans are great for first-time buyers or people without sterling credit or much money. Created by the Federal Housing Administration, these loans are insured by this government agency, so that guarantees that lenders won’t lose their money if borrowers default on their mortgage,” Realtor. com said, adding: “In short, it allows lenders to take on riskier borrowers, while also helping hopeful home buyers in less-than-ideal circumstances achieve the dream of homeownership.” To qualify for an FHA loan, you need at least a 3.5 percent down payment and a credit score of 580, said Tim Lucas, editor at MyMortgageInsider.com. Applicants with lower credit scores (e.g., 500) may not be out of the running entirely, but must cough up a larger down payment of at least 10 percent. These loans also have looser debt-to-income requirements of up to 50 percent. So, if your monthly income is $5,000, your payments for your mortgage and other debts should not exceed $2,500. FHA loans may be a boon to home buyers (particularly first-timers) who might not qualify for a loan otherwise, but they do have a few disadvantages.
They’re usually capped at $417,000 (in certain high-cost areas, the limit is $625,000) – meaning you may have limited buying power. Also, because the federal government insures these loans, you have to pay an upfront mortgage insurance premium (currently, the fee is about 1.75 percent) and annual mortgage insurance (typically 0.85 percent of the borrowed loan amount), which remains throughout the life of the loan (or until you can refinance the loan into a conventional mortgage). FHA loans have lower down payment requirements (3.5 percent) than conventional loans (typically 5 percent to 20 percent), and FHA loans have lower credit score requirements (as low as 580 for qualified borrowers). They also have less stringent DTI requirements (50 percent or less) than conventional loans. Generally, if you have the means and qualifications to afford a conventional loan, this is the one to opt for, since it has fewer restrictions (and is faster to get), the site advised, adding: “However, if you’re a less-than-ideal home buyer with a mediocre credit score, down payment, or income, then an FHA loan may be the best – or only – avenue open to you. Check with your lender to know where you stand.
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CANYON RESERVE
LAKEWOOD ESTATES
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$869,900
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3408 E Ashurst Drive
$649,900
3,218sqft, 4 bedroom, 3.5 bathroom. Spectacular waterfront property nestled beautifully in the highly sought community of Lakewood Estates.
RICHMOND HEIGHTS
SALE PENDING!
14403 S Canyon Drive
$849,900
3,439sqft, 4 bedroom, 3 bathroom. Beautiful uniquely designed and recently upgraded custom single level home on over-sized hillside lot in the gated community of Canyon Reserve. WHISTLING ROCK
421 E Mountain Sage Drive
$835,000
3,880sqft, 5 bedroom, 4 bathroom. Incredible completely upgraded TW Lewis semi-custom in the mountainous gated community of Whistling Rock.
BONNY HOLLAND Ahwatukee Resident and Realtor since 1995
NEW LISTING
13628 S 32nd Place
$1,150,000
4,929sqft, 5 bedroom, 6.5 bathroom. Elegant Santa Barbara Custom estate on over-sized 1.06 acre private, quiet hillside lot in the exquisite community of Ahwatukee Custom Estates.
602.369.1085
Bonny@LeadingLuxuryExperts.com
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Breaking down the differences between FHA, conventional loans AFN News Staff
$399,300 $418,000 $421,000
REAL ESTATE
FEBRUARY 21, 2018 | AHWATUKEE FOOTHILLS NEWS
NEW LISTING
3162 E Desert Broom Way
$569,900
3,266sqft, 4 bedroom, 2.5 bathroom Stunning remodeled TW Lewis semi-custom single level in the highyl sought community of Mountain Park Ranch.
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FEATURED LISTING
407 E Desert Wind Drive
$739,900
3,417sqft, 4 bedroom, 3.5 bathroom. Stunning single level TW Lewis semi-custom home on corner lot in the secluded gated community of Whistling Rock.