Flagstaff is no Longer considered a Distressed Market
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Flagstaff is no longer considered a distressed market by the PMI companies.

What does this mean for the consumer? Not much for most buyers but for some it can make the difference between you qualifying for a mortgage or not. For those that do not have 20% for a downpayment your options were typically limitied to FHA, USDA and possibly Homepath, unless you had a 700+ credit score and a low debt to income ratio. FHA was a very viable option for many, however for a lot of married couples the only way you can qualify is to use only one of the couples income and credit. FHA will automatically pull the credit and income of both parties in a marriage making a mortgage difficult if not impossible for couples where one person is self-employed, has poor credit, etc. Another more and more common scenario will be for those people that did a short sale on an FHA mortgage. If you did a short sale on an FHA mortgage you will not be able to obtain a new FHA mortgage for 3 years.

Now that Flagstaff is not a Distressed market it is much easier to qualify for a Conventional Mortgage with Private Mortgage Insurance. If you purchase with less than 20% down and a conventional mortgage you will have Private Mortgage Insurance. The change in classifying Flagstaff as a non-distressed market makes the qualification requirements for Private Mortgage Insurance much less stringent as well it lowering the PMI rate. With the non-distressed market tag on Flagstaff, consumers in either situation described above can qualify for a Conventional Mortgage, add the PMI and have a very similar mortgage to what the FHA mortgage would have been.

Mortgages are getting easier to obtain. Even if you have completed a short sale buying may not be out of the question.

Contact me or Jeremy Magness at Academy Mortgage Office: 928-226-6908 Cell: 928-310-4206 to see what we can do to help!

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