Difficult Real Estate Questions Answered

Written by Posted On Wednesday, 15 January 2014 15:30

I have a 30 year FHA loan and have recently heard that Mortgage Insurance Premiums are terminated at five years from the origination  of the loan “and” when a loan-to-value ratio of 78% has been reached. Is this true?

Q: I have a 30 year FHA loan and have recently heard that Mortgage Insurance Premiums are terminated at five years from the origination  of the loan “and” when a loan-to-value ratio of 78% has been reached. Is this true?

A: There have been some changes recently in regards to FHA loans and mortgage insurance premiums. The correct answer depends on when your loan was originally given. To get the correct answer for your situation, you would need to contact your mortgage customer service. They can look to see when your loan originated and will answer based on your loan situation.

Does our escrow deposit get refunded?

Q: We had a contract on a house. We had agreed on price but when we inspected the house three days later noticed that it had roof problems and other problems. We told the agent on the fourth day of the contract after adding up all costs to fix house that we decided against it. She is not returning our calls do we need to actually sign anything stating we do not want the house. She had asked us to send a 1,000 deposit the same day the contract came back from the bank the check has cleared. We are actively looking for another is the 1,000 in an escrow account to use on another home we find or does it get refunded.

A:  If you used the standard Arizona residential Purchase Contract, you would be entitled to conduct a thorough home inspection. If you found items that you disapproved with the property, you would be entitled to provide written notice of the item(s) you disapproved and elect to immediately cancel the Purchase Contract. Your inspection and written notice of disapproval and election to cancel the Purchase Contract must be completed within the Inspection Period specified in the Purchase Contract, which is usually a 10-day period after final acceptance.

If the agent will not return your call, we suggest that you immediately contact that agent’s broker for assistance.

We also suggest that you put your Notice of Disapproval and Election to Cancel the Sale in writing and submit it to your escrow company/escrow agent now. Instruct the escrow company/agent in writing to immediately release the earnest money to you. That would put you on record as following the provisions of the Purchase Contract and require the escrow agent to act according to the Purchase Contract. Also, according to the Purchase Contract, the escrow agent would be instructed to provide copies of your election to cancel the Purchase Contract to all parties, including each real estate agent and the property owner.

Lastly, you are advised to seek legal assistance if your agent and broker do not act to protect your interests in this matter.

Can we get a free market analysis of our home with a VA loan?

Q:  Here is my situation and question, we have a VA home loan.  We are wanting to sell the house, but like everyone else we are upside down.  We cannot short sale or we will lose our VA loan benefits forever.  We are wondering if it was possible to get a free market analysis of our home in order to see if it was worth putting the house on the market?  Please let me know what is available to us and/or our options in this situation, thank you.

A:  After HUD/VA approves a short sale and accepts only a portion of the outstanding loan as final payment, the VA will not grant further loan eligibility under its program until or unless the remaining balance of the original loan is repaid.

The good news is, depending upon your unique circumstances, a conventional or FHA mortgage loan may be available once one’s good credit record and/or employment history is restored, which on average may require only a two to three year period.

How long do I have to be working to apply for a loan?

Q: I recently moved from Chicago to Tucson. I would like to know how long I have to be working to apply for a loan. I have a down payment. My mom is moving to Tucson in a few months to live with me. May I use her income to purchase home or should I wait? I also had a bankruptcy discharged in 2010. Please let me know what are the proper steps to take or what do I need to do to get on track to purchasing a home here in Tucson.

A: Your total job history is only one of the many items reviewed when applying for a loan.  For example, if you have been in school prior, we use that as history.  Every person’s situation is unique and the loan application and underwriting is based on individual situations.  Your best next step is to go online at and fill out an application, or contact a Mortgage Consultants .  They will go through your individual situation and based on that, will be able to tell you what you need to do in order to qualify to purchase.

What happens when a home is priced very low?

Q: When a house for sale at a very low price do they have to follow through or can they say its a miss print and up the price?

A: If there was an obvious error in the advertised price for a home, the home owner will be able to correct the pricing error during the typical negotiation period between the homeowner and a potential buyer.

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