Good News!

Rates are still very good. Depending on fees and points, the national average for a 30 year fixed mortgage is 6.06%. This is down from 6.16% compared to the same time last year!

What's Hot?

FHA Loans:  These loans still allow borrowers to come to the table with as little as 3% of the purchase price towards buying a home. The maximum loan amount under this program is $450,000 for Coconino County and $390,000 for Yavapai County for single family residences.

VA Loans:  These loans allow for an active or inactive member of the military to qualify for as little as 0% downpayment depending on the borrower's eligibility status. The maximum loan amount is $450,000 for Coconino County and $417,000 for Yavapai County.

Becoming Difficult:

Stated Income Loans:  These loans do not require the lender to verify the borrower's income. Although these loans are still available, significant guideline changes have occured restricting maximum loan amounts, increasing amounts of downpayment and requiring  higher credit scores.

Vacant Land Loans:  Most vacant land loans are now only available for lots with the intention of building a primary residence. Although there are some programs available for vacation home and investment lots, it has become much more difficult to obtain these loans.

Jumbo Loans:  A Jumbo Loan is any mortgage with a loan amount greater than the conforming limit. In Yavapai County, the conforming limit is $417,000 and Coconino County is $450,000. The main problem with Jumbo Loans right now is the fact that there are no investors on the secondary market that are purchasing these loans. This causes hesitation among banks to provide this type of financing. Usually, banks that are still providing Jumbo Loans are keeping them in their own portfolio. By doing this, it creates a higher risk to the banks and they pass this on to the consumer in the form of higher interest rates. Conforming loans are not as affected by this because there is a secondary market for these loans in Fannie Mae and Freddie Mac. Jumbo loans are still available to the consumer, however, they are more restrictive than they have been in a long time.