The most recent news in the last 2 weeks in Phoenix now finds Buyers pitted against each other, and against the savvy local investors, in a bidding war for properties in Phoenix.

Real Estate has dropped so low in Phoenix in some areas, that the $125k to $175k price range is now actually deluged with multiple offers.

Realtors are beginning to ask, "Is this the end of the downturn?" as they are losing out to other competing Realtors down the street and having to become aggressive again in their advice to, and bids on behalf of their clients.

Keep your eyes open and ears tuned in for the "psychological turn" that's coming soon.  Phoenix has always grown, and as the purchasing picks up, values will once again rise quickly off the bottom.

Thanks to FHA and $0 Down Ameridream Down Payment Gift Assistance, owner occupants can still enjoy the 0 down benefits of a great 30 year fixed, low rate guaranteed by FHA.

If you're interested in not missing the bottom, consider preparing quickly with your finance options, so you'll be prepared when you see the first Arizona Republic Headlines soon say, "PRICES RISING FOR FIRST TIME IN 2 YEARS".

Andrew Schmidt, Nations Home Funding BK0905991

ACSchmidt4@aol.com 602.371.8600

A free Seminar is taking place at Phoenix City Hall on Saturday, May 10th, 2008 from 9 AM to 1 PM. 

Resources Available to Help Homeowners Facing Foreclosure

• Morning panel with Q&A
• Individual Counseling Sessions in Spanish and English
• Informational exhibits and take-away materials

Credit and housing counselors, loan servicers, and lenders will be available for brief individual consultations throughout the day on a first-come, first-served basis. Please bring your loan documents and other financial information with you to the workshop.

Free Event. No charge for admission. Free parking at Third Avenue and Washington Street parking garage. Activities for children.

Register at fhlbsf.com

Registration begins at 8:30 a.m.
Workshop and counseling 9 a.m. – 1 p.m.

Phoenix City Hall
200 W. Washington St.
Phoenix, AZ 85003

Special Guest, Congressman Ed Pastor

Zero Down Loans (Yes, $0 Down) are still happening in the Phoenix area for owner occupied purchases, up to $365,000 sales price.

Due to the repeated requests for information on this topic, I will provide a Re-Print of the March's FHA 0 Down Ameridream Article.

Next week we will follow up with an article on How to Receive $20,000 Per Year- Through FHA Puchase- To Pay For Your New Mortgage

Here's the Re-Print of Last Month's Article

March 7, 2008

I want to update you on TODAY'S MAJOR ARIZONA MARKET CHANGE with FHA owner occupied purchases.  It will affect our economy and home values almost immediately.

                          AS OF TODAY:

                          $356,500 max purchase price

                          Max loan size- $346,250

                          Maricopa County                                

This news is revolutionary, and will begin turning the Phoenix market around with the supply and demand imbalances as FHA now allows first-time AND non-first time home buyers to purchase about 70% of the available Phoenix market's inventory of homes with HIGH QUALITY, LOW RISK FHA loan terms.

      5 Facts about FHA Loans to remember:

    1)  The COST PER THOUSAND with ZERO DOWN FHA is about $7.25 per $1,000.

    2)  ZERO DOWN ALLOWED!

    3)  FHA still allows DPA, or Down Payment Assistance, which means that AmeriDream and other DPA organizations are still ALLOWING ALL DOWN PAYMENT AND CLOSING COSTS TO BE PAID BY THEM, AND CONTRIBUTED BY THE SELLER OF THE HOME.

    4)  This means that ALL EARNEST MONIES CAN BE RETURNED TO BORROWER AT CLOSING.

    5)  NO CREDIT SCORE REQUIREMENT BY FHA- Low scores not a reason to be denied qualification.

    (HUD approval and credit approval required.)

Andrew Schmidt, Nations Home Funding, Inc. ACSchmidt4@aol.com        BK0905991

FHA is continuing to be the front-runner in low-down purchase loans in the country, with Phoenix picking up its share of users of the friendly product.

With ZERO DOWN loans up to $355,407 in Maricopa County, through the Ameridream program and other DPAs, or down payment assistance programs, 70% of the homes that sell in Phoenix fit into the favorable FHA guidelines and limits.

If you are looking at purchasing a home, do not forget to remember (did that make sense?) the FHA 'Old Friend that still works through market changes and conventional loan turmoil.

One other tip to remember is that you can purchase 2 plex, 3 plex or 4 plex with FHA with most of your payment being paid by other tenants, and even receive some CASH FLOW for your personal residence!

I hope you consider FHA when purchasing your next home.  Blessings to you and if I can be of help, do call me.

Andrew Schmidt Nations Home Funding BK0905991 602.371.8600 ACSchmidt4@aol.com

The news from Lake Woebegone is not very tumultuous.  Fixed rates near 5.875% and the Libor trending to the low 2% range, just about where it was before our last Real Estate Boom in 2003.

If you are considering a Real Estate purchase, do compare Fixed vs. the Libor, since a $200-$500 monthly cash flow difference can mean a lot more in principle reduction, and quicker payoff for your real estate.

My apology for a not-so-exciting weekly report, but I personally am enjoying the soon 4.5% rate I will be enjoying on my own mortgage.

I want to update you on TODAY'S MAJOR ARIZONA MARKET CHANGE with FHA owner occupied purchases.  It will affect our economy and home values almost immediately.

                          AS OF TODAY:

                          $356,500 max purchase price

                          Max loan size- $346,250

                          Maricopa County                                

This news is revolutionary, and will begin turning the Phoenix market around with the supply and demand imbalances as FHA now allows first-time AND non-first time home buyers to purchase about 70% of the available Phoenix market's inventory of homes with HIGH QUALITY, LOW RISK FHA loan terms.

      5 Facts about FHA Loans to remember:

    1)  The COST PER THOUSAND with ZERO DOWN FHA is about $7.25 per $1,000.

    2)  ZERO DOWN ALLOWED!

    3)  FHA still allows DPA, or Down Payment Assistance, which means that AmeriDream and other DPA organizations are still ALLOWING ALL DOWN PAYMENT AND CLOSING COSTS TO BE PAID BY THEM, AND CONTRIBUTED BY THE SELLER OF THE HOME.

    4)  This means that ALL EARNEST MONIES CAN BE RETURNED TO BORROWER AT CLOSING.

    5)  NO CREDIT SCORE REQUIREMENT BY FHA- Low scores not a reason to be denied qualification.

    (HUD approval and credit approval required.)

Andrew Schmidt, Nations Home Funding, Inc. ACSchmidt4@aol.com        BK0905991

Not to over-quote John Mauldin, but when the Kiplinger Letter and John both agree about rates, it's time to focus on the Real Estate Purchase climate in earnest.

"(The Fed is) going to bring rates down, and I think it likely they will go below 2%. They may stay there longer than we now think if I am right about a protracted and slow Muddle Through recovery. I would not be surprised if I am writing about deflation by the end of the year."

For the complete Fed notes and Economic forecast, email Andrew at ACSchmidt4@aol.com 

Meanwhile, contact Lyle Plocher about properties that currently can cash flow and double retirement income and asset valuations based on the Rule of 72.  Properties that are prime candidates for self-directed IRA rollovers or 401k alternatives for W2 Employees, 1099 or Self-Employed Business Owners.  Your inquiry will be confidential and informative.

Andrew Schmidt- Nations Home Funding, Inc. BK0905991

The Fed's Minutes can be read at: http://www.federalreserve.gov/monetarypolicy/files/fomcminutes20080130.pdf. )

To quote again from Economist John Mauldin, "The minutes from the January Fed meeting are quite frankly bearish. In just one paragraph on the housing market, they used the words "fell," "plunged," "dropped," "moved down," "declined," and "restrained."

Reading these minutes, you get the distinct feeling that this is a Fed that is very concerned about the immediate future of the economy. You can take it to the bank that there will be more rate cuts. A 2% Fed funds rate by this summer would not surprise me.

The possibility that house prices could decline more steeply than anticipated, further reducing households' wealth and access to credit, was perceived as a significant risk to the central outlook for economic growth and employment."

Thanks, John, for another honest forecast into how the Fed will respond to the national quagmire brought on by the real estate market changes.

Fortunately, it presents a much needed, different purchase climate with some rates tied to the 3% and dropping Fed, and the values that top-rated Phoenix/Mesa MSA offers for the long term in growth.

Yours for long-term success, Andrew Schmidt

Nations Home Funding BK0905991 ACSchmidt4@aol.com

The recent news about purchasing real estate at 20-30% under market values has created quite a stir in the Phoenix market lately.

The popularity of real estate in 2005 was higher than now, yet the reverse is true of the investment return when compared with today.

With the right homework being done, and professional guidance to avoid pitfalls, much equity is being garnered into Arizonans' peronal retirement portfolios for their golden years.

Continued success during the next 12-24 months as this exciting market allows affordability to return, pulling us up from the bootstraps while allowing our much needed rebound!

Andrew Schmidt

ACSchmidt4@aol.com

Nations Home Funding BK0905991

This week's economic and mortgage analysis is aided by excerpt's of John Mauldin's statistic-laden Weekly E-Letter.

The 3-pronged attack on the economy comes from the following forces on the U.S. Economy A) new jobs B) the credit crisis and C) retail service business.

The jobs report put out by the Bureau of Labor Statistics can be misleading both when the economy is coming out of a recession and when it is going into one. It tends to underestimate the number of jobs as the economy is recovering and overestimate the number when the economy is slowing down. That's because the data is basically trend-following... continuing claims are up by 10%, which based on the past would suggest we are in a recession.

Credit Crisis Getting Worse - Good Effect on Rates

Goldman Sachs CFO David Viniar warned yesterday that some key mortgage bond insurers could collapse. Viniar, speaking at a CSFB conference, said credit markets are trading as if we are in a "worst recession"; and there is a "total disconnect between the equities market and the credit market." (The Bill King Report)

Notice that the graph of the last year shows a fairly stable index. This index represents roughly 70% of the economy. It is retail stores, restaurants, and all manner of services. This suggests that business expectations are being drastically reduced.

What this means for us on Main Street is that more pain in the markets has yet to be uncovered, reducing the cost of money, both short and long term rates.  

Excellent news for anyone looking to take advantage of leveraged assets, such as real estate.

Andrew Schmidt- Nations Home Funding, Inc.

ACSchmidt4@aol.com

BK0905991