Ted Canto

Ted Canto, Sr. Mortgage Consultant & Team Leader

Born in New York City and raised in Boston, MA. Ted served our country and is a veteran of the U.S. Army. After serving our country, he went on to obtain (2) two Bachelors Degree from Northeastern University/ Boston, MA. Ted has been married to his wife for 10 years and has 2 beautiful daughters.

Ted has held several executive marketing positions in the Gas & Oil, International Marketing and Direct Marketing industries before entering the Mortgage Industry. He is very knowledgeable and demonstrates his proficiency in Marketing. He also speaks Spanish fluently.

With 11 years in the lending industry, Ted is proficient in structuring the client’s loan to ensure that the client obtains the best financing. He has become a recognized leader in real estate education and hosts real estate seminars for his clients and the business communities in the Southwest. His attention to the details and in-depth knowledge of the loan process ensures that you are getting the best service possible.

Email: ted [at] tedcanto [dot] com
Mobile: (480) 650.8602
Office: (888) 724.7402
Fax: (480) 374.6958

Articles written by Ted

Buying Properties From Foreclosure Auctions Is Tough!

Buying Properties From Foreclosure Auctions Is Tough!

If you have been to the auction block thinking that you can and will get a deal, then you know it is no walk in the park.  In fact, you are dealing with professional buyers who purchase properties for cash only to sell them at a wholesale price or flip them into the retail market as soon as the property is off the block.  

 That is why on Tuesday, August 7th, in Phoenix, AZ there will be the opportunity to review and purchase homes at an auction designed specifically for owner occupying buyers. That’s right!  For you only!   Representatives from Freddie Mac, New Vista and REDC will be on site to help you and your agent (if you have one) to buy a home without having to compete with professional buyers and investors! 

I know what you are thinking! How the heck do I get started?  Where do I go?  “All good things come to those who wait“   

To learn more, go to: www.AUCTION.com/Phoenix 

Homebuyer’s Tax Credit Extended

Homebuyer’s Tax Credit Extended

It’s OFFICIAL!!  They finally agreed on something and were able to do something right!

The Senate and Congress has finally sent President Obama a plan to give home buyers an extra three months to qualify for up t0 $8,000 in federal tax credits. Buyers who already have executed contracts prior to April 30th will now have until Sept. 30 to complete their purchases. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The House approved the measure on Tuesday. Legislation in the Senate was approved Wednesday night by unanimous consent. Talk about pulling a rabbit out of the hat!

Now breathe and relax and make sure that your loan gets closed by Sept. 30th.  Also check to see if your Loan Officer is licensed and bonded as it will be a requirement as of July 1st.

HomePath Financing is Available at Academy Mortgage, Arizona

HomePath Financing is Available at Academy Mortgage, Arizona

If you are thinking about buying a home and FHA is not an attractive or viable option or better yet, the property does not meet FHA’s stringent requirements, you might want to think about using HomePath Financing by Fannie Mae.   For a while many lenders and brokers remained at a distance from this program due to very few investors actually approving this program.  However, Academy Mortgage is now one of those lenders. We are well known for our efficiency and detailed customer service thus making the process as painless as possible.

Here is a quick synopsis of the HomePath Mortgage:

• Minimum 3% down for primary residence, 10% down investment property
• Borrower can own up to 10 financed properties (but need 25% down if they own more than 4)
• NO APPRAISAL NEEDED
• NO MORTGAGE INSURANCE
• High balance (jumbo) and interest only products available
• Seller contributions can be 6-9% on primary residence (the larger the down payment, the larger the allowable contribution), only 2% on investment property
• This loan does price with a higher rate than your average 30 year fixed conforming loan.  If you want an equivalent rate to the going 30 year fixed, this loan would price with an additional approx 1% to 3.75% discount points.  Keep in mind, much of this can be covered by the seller and there is no mortgage insurance.  Of course one can just opt for the higher rate in lieu of the discount points.
• Same basic underwriting requirements of a conforming loan, but without the property issues (appliances missing – no problem)

HomePath Renovation Loan

This will allow for light renovations to the property that can be included into the loan.  Information about this specific product is scarce.  In general, renovation and construction type of products work like this:

• An appraisal is done “subject to” the completion of the repairs.  The value will typically be the appraised value or the cost of the house plus renovations, whichever is lower.   The down payment is based on this value (hence, most of the renovation work gets financed into the loan).
• The loan closes and the repairs are completed by a licensed contractor within a specified amount of time
•  There is more involved with these types of loans, such as: bids, inspections, draw schedules, etc. 
• The interest rate is typically higher than your general conforming 30 year fixed

With the streamlined process, we at Academy Mortgage make it easier with our Ten Day Close Guarantee, call us and ask for more details.

Home Buyer Tax Credit To Expire on June 30th

Home Buyer Tax Credit To Expire on June 30th

As you know, the Homebuyer Tax Credit is set to expire as of June 30th.  For those that were able to execute a contract at the end of April have until the end of June to qualify. 

 Be very aware of your pipelines and ensure that the lender that is underwriting your file is able to underwrite the file in a timely manner that will meet the deadline…

What should you do?

1. Ensure all documents needed or outstanding are expedited and forwarded to your lender immediately
2. Find out if the Loan Officer is lender or a broker and with what company.   Depending what and whom, this can very likely delay the loan.
3. Work conduscively with your agent, lender, title company and all other parties to the transaction
   1. DO NOT ARGUE OR GET FRUSTRATED, JUST GET WHATEVER IS REQUESTED OF YOU TO THE RESPONSIBLE PARTY!
4. Ask questions as to all stages of the transaction and notify all the parties so everyone is in sync with the process

Example:

• Has the appraisal been ordered?
• Is the lender going to submit their bank approval on the short sale on time?
• Are all the parties going to be in town in order to sign quickly?
• Have all the verifications been ordered and/or recieved?
• Has the title company ordered and forwarded the “CORRECT” information to the lender?
• Etc..

The point is, is to be on point and work diligently. 

We are closing deals within 10-15 days and this may very well be an opportunity to ensure the client or your loan to close in a timely manner.

Call us if you have any questions at 480.344.3671

USDA Home Loan Financing Is Now Available

USDA Home Loan Financing Is Now Available

Effective June 1, 2010, USDA Home Loan financing is available to homebuyers.  However there are some major changes to the program.

First: The USDA Funding Fee is no longer 2.00% (two percent)

Second: The “NEW” USDA Funding Fee is 3.50% (three and a half percent)

Third: The GUS System (Guarantee Underwriting System) is currently turned off.  This means that the homebuyer’s qualification will be strictly adhered to the USDA Guidelines.

**With GUS; the homebuyer can potentially qualify for a higher sales price

If you have any questions, please call us at 480.344.3671

FHA Guideline Changes on April 5th, 2010

FHA Guideline Changes on April 5th, 2010

And if you think things could get any tougher for an FHA borrower!

In an effort to tighten up its latest embarassment, (FHA’s balance sheet and dwindling capital reserves), the Federal Housing Authority is rolling out sweeping financial changes that can affect you or your customers. FHA borrowers will need to look better on paper and be better credit risks moving forward in 2010.

To boot, Mortgage insurance premiums are rising from 1.75% to 2.25%.

Changes Effective April 5, 2010

In its official announcement, the FHA stated it is attempting to better position itself to “manage its risk while continuing to support the nation’s housing market”.

The changes are effective with case numbers assigned starting April 5, 2010.

One of the changes that is pending further review but has yet to come to fruition – the increase of the FHA minimum downpayment.  Homebuyers in Phoenix and throughout the country will still be able to purchase a home with putting only 3.5% percent down.  However, the group did roll out a number of other changes, including:

• An increase in Upfront MIP from 1.75 percent to 2.25 percent
• Currently under review and within the comment period is the reduction in maximum seller contributions from 6 percent to 3 percent. This is expected to take place by mid-summer.
• A Congressional request to increase monthly mortgage insurance premiums (Still in discussion).

Furthermore, the FHA’s new guidelines institute a minimum FICO requirement of 580 to make the minimum 3.5% downpayment, requiring 10 percent for any applicant whose credit score falls below that level. However, many lenders are not approving a borrower with a FICO score less than 620, which has come to be known as Guideline Overlays.

FHA: Increase in Upfront Premiums for FHA Mortgage Insurance

FHA: Increase in Upfront Premiums for FHA Mortgage Insurance

FHA’s Up Front Mortgage Insurance Premium (UFMIP) for purchases and refinances in the Arizona area will increase from the current 1.75% to 2.25%.  To remain eligible for the 1.75% UFMIP Factor, case numbers must be assigned before April 5. On a $200,000 loan FHA Mortgage Loan in Maricopa County, this is an additional $1,000 cost.  Beating this deadline on a purchase will also qualify you for the First Time Home Buyer Tax Credit if eligible.

SUBJECT: Increase in Upfront Premiums for FHA Mortgage Insurance
Effective for FHA loans for which the case number is assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent. This policy change will increase premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.

The UFMIP is commonly financed into the loan, that means that on a $200,000 loan, after closing you will owe $204,500 instead of $203,500.  If you are waiting for that house to come down another $1,000 in price, maybe this increase should be considered before waiting before it is too late.

This will also affect FHA Streamline refinances also.  For those that have believed that rates would fall lower just a bit more, your best option is to get your case number pulled immediately.  This very well will be the right time for you to get off of the fence and get your application started before this takes effect.

USDA Rural Development Home Loan Program – Running out of funds

USDA Rural Development Home Loan Program – Running out of funds Update 06/01/10

USDA Has Funds Available – For more information go to : USDA Has Funds

You may or may not have heard, USDA has announced that they anticipate funding for the guarantee program will be exhausted by the end of April.   This announcement is different from the past announcements regarding exhaustion of funds, in that this time new funding is not certain.  USDA will not be issuing conditional commitments with the conditional statement “subject to appropriation of funds”. 

We have contacted our investors to inquire as to what their position is relative to this new announcement.  We are being told that guidance is forthcoming.  Upon receipt of this guidance, credit policy will issue Academy’s policy.  Until such time, we will continue to process, underwrite and close your USDA loans under current guidelines. 

The following is the official statement made by the USDA Single Family Housing Guaranteed Loan Division

May 10, 2010

Notice of Funding

This message is to notify you that program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010.

Once funding is exhausted, the Agency will not issue Conditional Commitments “subject to receipt of appropriated funds.”  This is because it is not certain when additional funding will be available. 

Limited funding may become available for disaster areas declared in 2008, or in disaster areas declared for Hurricanes Katrina and Rita.  Limited funding may also become available as prior Agency commitments are de-obligated, however, such funding will be very limited. 

Appraisals: FHA vs. Conventional

Appraisals:  FHA vs. Conventional

Once upon a time, there was a difference between an FHA appraisal compared to a Conventional appraisal.  For many years, real estate professionals, investors and motivated buyers avoided an FHA loan out of the fear that the appraisal, known for it’s vigorous inspection of the condition of the property, would complicate the transaction and therefore opening preference to a contract offer involving a conventional loan program versus accepting an offer with an FHA loan. 

To say it bluntly:  That was then, this is NOW!  In today’s lending industry, there is no difference between a conventional appraisal when compared to an FHA appraisal.  It is an industry wide fallacy that has corrupted the minds of real estate professionals and consumers alike.  

The reasons are simple!  

Large banks, known as investors, no longer look at Mortgage Backed Securities (MBS) as a free for all and infinite investment with endless opportunities.  Most investors are now wanting their MBS portfolios to have substance and strength when buying these loans from companies like Academy Mortgage, who which I work for. 

Let me make it simple.  If you were an investor, what bundle of loans would you buy? 

• A) 7 Properties consisting of 3,000 sq ft structures with 3 of them having mold detected and the other 4 perfectly fine, totaling an amount of $3MM
• B) 8 properties consisting of 2,500 sq ft homes with 2 of them having roof problems, 2 of them with termites, totaling an amount of $2.7MM
• C) 5 Properties consisting of 2,800 sq ft homes that possess no structural damage or deficiencies, totaling an amount of $2MM

It is quite obvious that you would put your money on the properties that provide the least liability (Option C), since it is likely to provide you with less headaches and thus provide you with a likely stronger rate of return on your investment. 

Get it?  Now I know what some of you might say.  Some of this is indeed totally dependent on the lender, the underwriter and what investor we as a mortgage company may sell our loans to.  

For instance, if a property has termites and the appraisal does not call on the fact that Termites exist, the underwriter will have no reason to request a Termite Report.   There are some lenders that warrant a Termite report on all of their loans regardless of type.  Then again some lenders may only be concerned with any issues that are only reported to be a concern on the appraisal.  In other words, if the appraisal doesn’t state any issues, then the file gets approved without any further inquiry as to the condition of the property.  What it comes down is that each specific lender and their investors have different but similar ways of looking at the appraisal.  That is probably the only difference that I could find between a Conventional and FHA appraisal.

Fannie Mae: You can now choose your own Title / Escrow Company

Fannie Mae: You can now choose your own Title/ Escrow Company 

Many homebuyers have encountered the typical experience when dealing with a title company.   After driving around for days and putting in countless offers, they get an offer accepted to only have the listing agent tell them and their agent that they have no choice in who they can use in regards to their title insurance and escrow company. 

Once you sign the contract you are told to open escrow by depositing an agreed amount known as an Earnest Money Deposit.  This company happens to be on the other side of town or sometimes out of state.  It is rare that someone will get an title insurance and escrow company that is close by.  Call it Murphy’s Law! 

Here comes the fun part!  You call and you get an endless stream of voicemail boxes and no human person answering your call to find out the best way for you to get to their location.  You try everything and finally get the receptionist on the phone who tells you the escrow officer is on vacation.  She goes on to tell you nothing at all other than you can leave a message.  You call your agent, who then calls the listing agent, who then tells you to keep trying to reach someone and then everyone sends emails expressing their frustration over the matter.  Now you get a response telling you that the escrow officer handling your file is in another office and will be back next Monday. 

Imagine the bad taste that leaves in your mouth, especially since you were forced to deal with these imbeciles?  Welcome to the world of REO affiliate agreements!

We the good news is this. Fannie Mae has finally decided that it would be best to allow a buyer to choose (which is your right in the first place) their own title and escrow company. 

Fannie Mae has changed their sales addendum for REO properties, allowing the buyer to now choose their own title & escrow company.  

When you see the addendum to the contract, review Section 2B, page 1, line 4.  Look for “The closing shall be held at a place so designated and approved by the Purchaser“. The truth is you have always had the right, per RESPA requirements, to choose your title and escrow company.  Thanks to some common sense, the new addendum change, it now reinforces that right.

Save yourself some grief and headaches and ask around for a dependable title insurance and escrow company that answers the phones and doesn’t try to pass on the buck to the girl that just took off on vacation.  In a world where customer service is synonymous with toilet, it is lousy to have your home buying experience be affected by a simple yet important aspect of the real estate transaction.