Moon Valley sits in north Phoenix below Lookout Mountain and the North Mountain preserve, built largely between the 1960s and the 1980s around the Moon Valley Country Club. Big lots by Phoenix standards, mature trees that the newer parts of the Valley simply do not have, and a housing stock with genuine character.
That age is the thing to plan around. A self-employed buyer here has the usual income analysis plus a property that is forty to sixty years old, and the second item generates more surprises than people expect.
What an appraiser and an underwriter look at on older housing
A lender's concern with an older home is not age, it is whether the property is safe, sound and structurally secure, and whether anything materially affects value or habitability. Items that routinely come up on housing from this era:
Roof condition and remaining life. An appraiser noting a roof at the end of its life frequently triggers a repair condition before closing. On a flat or low-slope roof, which this era of Phoenix architecture has plenty of, this is common.
Electrical panels and capacity. Certain panel brands and types from mid-century construction draw attention from inspectors and insurers. This is more often an insurance availability issue than a loan denial, but an insurance problem becomes a loan problem fast, because the loan requires coverage.
Original plumbing materials. Depending on what is in the walls and under the slab, this ranges from a non-issue to a significant expense. Worth knowing before you own it.
Evaporative coolers and aging HVAC. Functional systems are what matter; an appraiser wants adequate heating and cooling present and working.
Pools. Common in this area and in this era, and an empty or non-functional pool is a condition item a lender will want addressed.
Permitted versus unpermitted additions. Fifty years gives a lot of time for an enclosed patio, a converted garage or an added room that never saw a permit. An appraiser may exclude unpermitted square footage from the value, which can shrink your loan amount, and it can create title and insurance complications. Ask the listing agent directly and check with the city if the answer is vague.
Lead-based paint and asbestos-containing materials are possible in construction of this age. Disclosure requirements apply on pre-1978 housing.
None of this makes Moon Valley a hard place to finance. It makes it a place to get a thorough inspection and order the appraisal early, because repair conditions take calendar time and calendar time is the thing a closing date does not have spare.
If the condition is significant, there is a product for it
A house that needs real work can be financed with the repairs included in the loan through a renovation program, which funds the purchase and the improvements together and sizes the loan on the completed value. These have more moving parts than a standard purchase: contractor approval, bids, draw schedules and inspections.
For a self-employed borrower, note the interaction: a renovation loan plus a non-standard income file is two complications in one transaction. It is doable, and it needs to be planned rather than discovered.
How your income gets rebuilt
Two years of filed returns, analyzed on Fannie Mae Form 1084 or Freddie Mac Form 91.
- Schedule C: net profit from line 31, plus depreciation, depletion and business use of home added back, minus non-recurring income, divided by 24.
- 1120S and K-1: W-2 wage counts; K-1 ordinary income counts where distributions are documented and the entity has liquidity.
- 1065 and K-1: same, with guaranteed payments included.
- Schedule E: rental net with allowable add-backs, minus full PITIA.
Each dollar of aggressive deduction costs roughly four to five dollars of buying power, and a declining second year generally becomes your qualifying income rather than the average. See Business Owner Write-Offs and Your Mortgage.
Moon Valley's price range means many of these files are conventional rather than jumbo, which is good news: conventional financing is the cheapest money available and the documentation is well-trodden. Take it where the returns support it.
When they do not:
Bank statement. Twelve or twenty four months of deposits with an expense factor applied, transfers stripped out. See How Bank Statement Income Is Calculated.
Profit and loss or verification programs. See P&L and WVOE Loans.
Asset depletion or no-ratio, where assets rather than income carry the file.
Two more local notes
Association status varies. Parts of Moon Valley have an association and parts do not, and the country club membership is a separate matter from any association obligation. Confirm for the address, and confirm whether any club membership is mandatory, because a mandatory one is a monthly obligation in your ratio. See HOA and Club Dues.
Lot sizes and mature landscaping are part of the appeal and part of the carrying cost. Large mature trees in Phoenix need water and occasional expensive attention. Worth factoring into your real monthly number rather than just the mortgage payment.
Before you write in Moon Valley
- Get a thorough inspection, with the roof, electrical, plumbing and HVAC specifically examined.
- Price insurance early, including asking about the electrical panel.
- Ask whether additions were permitted, and verify rather than taking an answer on faith.
- Order the appraisal early so repair conditions do not collide with your closing date.
- Confirm association status and whether any club membership is mandatory.
- Have your lender run both agency and bank statement analyses to see which approval is stronger.
- Get fully underwritten, not pre-qualified.
Why bring this file to us
- We read the documents ourselves, rather than handing them to a processor and waiting.
- Broker model. An unusual file needs multiple investors, not one bank's shelf.
- The full toolkit, agency and jumbo through bank statement, asset depletion, DSCR and no-ratio non-QM.
- You talk to the principal. Ricky Khamis is President of EPiQ Lending, NMLS #173141, lending in Arizona since 1999 and a 2025 Presidents Club Winner at CMG Home Loans. Direct line: (480) 999-9842.
EPiQ Lending is NMLS #1936984, at 7975 N. Hayden Road, Suite A-101 in Scottsdale. Verify all of it before you trust any of it: Ricky's EPiQ Lending profile, the Scottsdale branch, and the license itself at NMLS Consumer Access. Hold every lender to that standard, including us.
Send me the file before you write an offer, and I will tell you what it actually supports.
Equal Housing Opportunity. This is general information, not a commitment to lend or an offer to extend credit. Program guidelines, eligibility requirements and documentation standards vary by investor and change over time. Rates, terms and program guidelines change and depend on credit approval, property appraisal and other qualifying factors. Not all applicants will qualify. Non-QM financing carries different pricing and terms than agency financing. Consult your tax advisor regarding your own situation.
Looking at a specific home? Send me the address and I will run the numbers: rickykhamis.com/analyze
