How long do I have to wait after a foreclosure? Common question for Real Estate agents in Kingman Arizona.

2015 FHA Guidelines

• Bankruptcy – If you had a prior Chapter 7 bankruptcy, you can qualify for a FHA insured mortgage loan after a two year waiting period after your bankruptcy discharge date as long as you have not had any late payments after your bankruptcy discharge and have re-established credit.  For those who had a Chapter 13 Bankruptcy, you can qualify for a FHA insured mortgage loan one year into the Chapter 13 Bankruptcy re-payment plan with the Chapter 13 Bankruptcy Trustee approval.
• Foreclosure - If you had a prior foreclosure, you can qualify for a FHA insured mortgage loan after a three year waiting period from the recorded date of the foreclosure that is reflected on the county records.
• Short Sale / Deed in Lieu – FHA will treat a deed in lieu of foreclosure the same as a standard foreclosure so the three year waiting period after a deed in lieu of foreclosure will apply from the recorded date of the deed of your property that is reflected on the recorder of deeds office.
• Minimum credit scores required to qualify for FHA Loan:   Minimum down payment required for a FHA Loan is 3.5% down payment.  To qualify for a 3.5% down payment, you need a credit score of 580 FICO.  If you have a credit score under 580 FICO, you need a 10% down payment.  The lowest credit score you can have to qualify for a FHA insured mortgage loan is 500 FICO.
• Sheriff’s Sale:  There is a three year waiting period after the date of the sheriff’s sale of your property to qualify for a FHA Loan.

2015 VA  Mortgage Lending Guidelines

• Bankruptcy Ch 7 - There is a mandatory two year waiting period to qualify for a VA Loan after the discharge date of a Chapter 7 Bankruptcy as long as you have no late payments after the discharge date of the Chapter 7 Bankruptcy and have re-established credit.
• Bankruptcy Ch 13 - If you are in a Chapter 13 re-payment plan, you can qualify for a VA Loan one year into the Chapter 13 Bankruptcy as long as you have been timely on your payments for the past 12 months and have the approval of the Chapter 13 Bankruptcy Trustee.  If you have just got your Chapter 13 Bankruptcy discharged, there is no waiting period after a Chapter 13 Bankruptcy discharge date.
• Foreclosure - If you have had a foreclosure, there is a mandatory two year waiting period from the recorded date of the foreclosure to qualify for a VA Loan.
• Short Sale / Deed in Lieu - You can qualify for a VA Loan after a two year waiting period after a deed in lieu of foreclosure and/or short sale.

2015 USDA Mortgage Lending Guidelines

• Bankruptcy - If you had a Chapter 7 Bankruptcy, you can qualify for a USDA Loan after a three year waiting period from the date of your discharge date of your Chapter 7 Bankruptcy.
• Foreclosure - The waiting period to qualify for a USDA Loan after a foreclosure is three years from the recorded date of the foreclosure.
• Short Sale / Deed in Lieu of Foreclosure – There is a three year waiting period to qualify for a USDA Loan after a short sale and/or deed in lieu of foreclosure if your credit scores are lower than 640 FICO.  You might be able to qualify for a USDA Loan if your credit scores are 640 FICO or higher if your credit scores are over 640 FICO.

2015 Conventional Mortgage Lending Guidelines

• Bankruptcy – There is a mandatory four year waiting period after Chapter 7 bankruptcy to qualify for a conventional loan under Fannie Mae mortgage lending guidelines.  There is a two year mandatory waiting period to qualify for a conventional loan after a Chapter 13 Bankruptcy discharge to qualify for a conventional mortgage loan.
• Foreclosure - If you had a prior foreclosure, there is a mandatory 7 year waiting period to qualify for a conventional mortgage loan.
• Short Sale / Deed in Lieu of Foreclosure –  FANNIE MAE has updated the conventional mortgage lending guidelines on July 29, 2014 where if you had a mortgage as part of your bankruptcy, the recorded date of the foreclosure is waived and the waiting period starts from the date of the discharge date of the bankruptcy.
• NEW FANNIE MAE GUIDELINES AS OF AUGUST 16, 2014:  Effective as of August 16, 2014, New Fannie Mae Guidelines state that there is a four year waiting period after a deed in lieu of foreclosure or short sale to qualify for a conventional loan with 5% down payment.  The 2 year waiting period after a short sale or deed in lieu of foreclosure with 20% down payment is no longer in effect.

Who the mineral rights on my land? A common question in Kingman Arizona Real Estate

Selling Kingman Arizona Real Estate is always interesting. On one of the disclosure statements when you are selling your land there is a question of who owns the mineral rights. Most of the time you assume that you own the mineral rights that are associated with your land. I am always asked about who owns my mineral rights on land we are selling or buying. Most people would be shocked that they don't even own the minerals that are under their own house and theoretically the ones that own the mineral rights can come in and insist on taking them.

The most likely answer is the BNSF Railroad and it all goes back to the building of the transcontinental railway sometime around 1864. The railroad came through Kingman in approximately 1881 and this is when Kingman was established.

The massive amount of capital investment (over $100,000,000 in 1860 dollars) needed to build the railroad was obtained by selling government guaranteed bonds (granted per mile of completed track) and railroad company bonds and stock to interested private investors. The land grants, financial incentives and bonds would hopefully cover most of the massive initial capital investment needed to build the railroad. The bonds would be paid back by the sale of government granted land and prospective passenger and freight income. It was far from a given that the railroads to the thinly settled west would make enough money to repay for their construction and operation for a long time. In addition to the railroad land grants which the railroads sold at low cost to help pay back their government backed bonds (all were repaid) the 37th United States Congress (1861-1863) passed the Homestead Acts which were several United States federal laws that sold an applicant 160 acres of unclaimed government owned land, typically called a "homestead", at low cost when the applicant did some prescribed work on it. There was now a strong and relatively low cost incentive for the settlement of the west which many thousands took advantage of. The railroads started new population growth and potential population growth induced many other railroads to be built and connected to the transcontinental railroad to serve communities and states off the original main track.

The Government in order to help fund the private railroad deeded land to the railroad and issued government guaranteed bonds. After many surveys to determine a route they gave a 400-foot right of way corridor (along with additional lands needed for all sidings, stations, rail yards, maintenance stations,) etc. on which to build the railroad were made by the Congress. Extensive land grants of alternate sections (one section is one square mile) of government-owned lands along the tracks for 10 miles on both sides of the track — 6,400 acres per mile of track — were also granted to be used and/or sold by the companies. Grants were not allowed or given in cities or at rivers or on non-government property. While some of this land had potentially exploitable minerals, was good farm or forest land, and quite valuable, much of it was essentially valueless desert. Railroad-allocated land not sold in three years was to be sold at the prevailing government price for homesteads: $1.25 per 1 acre if there were any buyers.

However when the railroad sold the land to help fund the coast to coast expansion they retained (did not transfer the mineral rights) 

A few years ago Warren Buffet through Berkshire Hathaway purchased the BNSF railroad for 12 billion dollars. They then transferred all real holdings to Chase holdings. Since this point it is now very difficult to purchase mineral rights from the railroad.

A few large subdivisions in town where you do own the mineral rights is Stagecoach Trails near Yucca which is primarily 40 acre parcels. Brooks and Clark Realty was able to purchase the mineral rights with the land and now mineral rights are transferred unless held by the previous owner in specific language on the deed.

Impressive 2014 Job Gains  Concerns about the pace of global economic growth caused bond yields around the world to decline this week. The US economic data released this week had little impact. Mortgage rates ended at the lowest levels in over a year. The US labor market finished an impressive 2014 on a high note. The economy added 252K jobs in December, which was a little more than expected, and upward revisions to prior months added another 50K. For 2014, a total of 2.9 million jobs were added, the most since 1999. The Unemployment Rate fell from 5.8% to 5.6%, the lowest since June 2008.  Despite the labor market strength, though, the level of wage growth in 2014 was a little disappointing. Wages were just 1.7% higher than one year ago. Fed officials hope to see annual wage growth of 3% to 4%, which would be in line with past economic recoveries. The Federal Housing Administration (FHA) announced this week that beginning around the end of this month it will reduce by 0.50% the annual mortgage insurance premium (MIP) it charges on new loans. Since MIP is calculated like an interest charge, the reduction will feel to some home buyers like mortgage rates suddenly fell by 0.50%. This change will make home ownership more affordable for many people, especially first-time buyers. Next week, the JOLTS report, measuring job openings and labor turnover rates, will be released on Tuesday. Retail Sales, which account for roughly 70% of economic activity, will come out on Wednesday. The Producer Price Index (PPI), which focuses on the increase in prices of "intermediate" goods, is scheduled for Thursday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will be released on Friday. CPI looks at the price change for finished goods. Industrial Production, Philly Fed, and Consumer Sentiment will round out a busy week. In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday.