Down Payment for An Arizona FHA Buyer

Phoenix Arizona FHA Down Payment

In the aftermath of the wild Real Estate and Mortgage ride of the mid 2000’s the low down payment mortgage options a Phoenix area home-buyer has  access to have dwindled.  However, shortly after the mid 2000 carnival FHA financing rose in popularity in part due to the fact that an FHA mortgage requires very little money down.  Home-buyers across the state of Arizona (and the nation for that matter) leveraged FHA financing to help them achieve their home buying goals.

One of the biggest advantages FHA financing offers a home-buyer looking to purchase a Phoenix area home is a low down payment requirement.  As of today, HUD (the entity that regulates FHA) requires that a buyer only put 3.5% down.  This low down payment requirement has allowed millions of homeowners to pursue the America dream.

Conventional Home Loan VS. FHA Home Loan

While there are down payments as low as 3% down available from lenders in the Arizona marketplace (no, you did not misread that) the advantage that FHA still offers in the face of Conventional financing offering a slightly lower down payment is that FHA is MUCH less sensitive when it comes to credit score.  An Arizona home buyer must have an outstanding credit profile in order to qualify for a 3% down mortgage.  A Phoenix area loan applicant can still qualify for an FHA mortgage with only 3.5% down with a credit score as low as 600!  Read more about FHA mortgage options with a score down to 600.

Arizona Buyer Can Get Down Payment From Various Places

FHA, on top of requiring only 3.5% down also allows a Phoenix area FHA buyer to pull together down payment funds from sources other than their own resources/asset accounts.  The following sources are acceptable per FHA guidelines:

1. Borrowers own asset accounts
2. Gift funds from a family member or interested party  -Learn more about FHA gifts
3. Funds from borrowers retirement account
4. Funds from the sale of another home
5. Equity from another property the borrower owns
6. Liquidated funds from a stock/bond/mutual/brokerage account

Each of the options above requires a different process to properly document down payment funds per FHA guidelines.  As your Phoenix Arizona FHA Mortgage Lender I will help you walk through each of the required steps depending on your individual situation.

If you are interested in seeing how an FHA mortgage can help you purchase your next home call or email me today.  You can also APPLY NOW.

By Jeremy House

 

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