An FHA loan in Arizona offers homebuyers a low 3.5% down payment option to finance their primary residence. Are you looking to buy your home and need an option for less than perfect credit as well as a low down payment? You have come to the right place!
FHA Mortgage Benefits
- Minimal Down Payment: FHA requires just 3.5% down which is why so many Americans choose this type of home loan when buying their primary residence.
- Higher debt to income ratio: With higher allowable debt to income ratios, FHA home loans often allow buyers to qualify more easily than Conventional mortgages.
- Relaxed credit guidelines: Less than perfect credit is okay when it comes to using an FHA loan. In fact, the allowable minimum credit score is 580 which is lower than most other mortgage options.
- Competitive interest rates: FHA loans provide very competitive low interest rates for borrowers regardless of credit score. Federal Government insuring FHA loans provides lenders the ability to provide more competitive rates.
- Co-borrowers allowed to help qualify: An FHA loan allows a co-borrower that is not occupying the house to help you qualify if needed. This can help buyers achieve home ownership when qualifying on their own is difficult.
- No pre–payment penalty: There is no prepayment penalty on this type of home loan. Therefore, borrowers can refinance at anytime without worrying about a penalty.
- Allows for down payment assistance: FHA loans in Arizona allow for various down payment assistance programs and grants to cover all of either your down payment and/or closing costs.
Phone: 602.435.2149
Email: Team@JeremyHouse.com
Arizona FHA Home Loan Guidelines
FHA home loans offer flexible underwriting guidelines. Typically, they are easier to qualify for than many other mortgage types. Here are just some of the standard rules associated wit FHA financing:
- Primary Residence: An Arizona FHA Loan is used to finance your primary residence.
- FHA allowed for many different property types: Buyers use this type of loan to finance single family homes, townhomes, condos (Learn more) and manufactured homes.
- Maximum Loan Amount Currently, the maximum FHA loan limit in Maricopa County is $530,150. Learn more about maximum FHA loan limits in other counties.
- Low down payment required: FHA allows for a low down payment of 3.5%. Credit scores below 580 require a larger 10% down payment.
- Available Loan Terms: An Arizona FHA mortgage comes in long term fixed such as 30 and 15 year terms. Additionally, these loans offer Adjustable Rate Mortgage term options as well.
- Mortgage insurance: Mortgage insurance is required on all FHA home loans. There are 2 forms of mortgage insurance. Firstly, these loans have a monthly mortgage insurance payment. Secondly, FHA loans have an upfront mortgage insurance premium which gets financed into the loan amount at closing.
- Minimum property requirements: In order to protect buyers using an FHA loan, FHA requires property meet specific minimum property requirement standards.
- Max Debt to Income Ratio: While the maximum debt to income ratio allowed on FHA is commonly 56.99%, each loan is subject to individual review and may have a lower maximum debt to income limit. Contact Housed Home Loans for more.
- Min Credit Score: FHA allows for buyers to have credit scores in the 500 range. However, approval is determined based on the overall file and not just credit score. Credit scores below 580 require a 10% down payment.
- Seller can pay your Closing Costs: FHA loans allow the seller to pay for your closing costs. In fact, a seller may pay up to 6% of the purchase price toward a buyer’s closing costs.
- Down payment allowed from various sources: Buyers down payment may come from many different sources including:
- Gift funds
- Down payment assistance programs
- Employer assistance
- Borrower’s own funds
Phone: 602.435.2149
Email: Team@JeremyHouse.com
How to apply for an FHA Loan in Arizona
Housed Home Loans will guide you through the FHA home loan pre-approval and loan process. Getting started is easy and requires no cost. Firstly, just complete a short loan application.
Typically pre-qualification takes as little as 24 hours. Each individuals scenario differs. Our team helps you understand your options and what supporting documents you need to complete pre-qualification.
FHA Home Loan Resources
- MULTIPLE FHA LOANS FOR ONE BORROWER
- FHA APPRAISAL GUIDELINES
- FHA ALTERNATIVE CREDIT OPTIONS
- FHA POOL REQUIREMENTS
- FHA LOAN GIFT RULES
Why choose Housed Home Loans as your Arizona FHA Mortgage Lender?
- Low FHA mortgage rates
- We close VA loans quickly and on time
- The HOUSE Team is a phone call or an email away 7 days a week
Phone: 602.435.2149
Email: Team@JeremyHouse.com