Imagine putting just 3.5% down on a new home. Whether you are shopping for your first home in Phoenix or you are a repeat homebuyer, and FHA loan can minimize your down payment while providing you with other exciting benefits.
An FHA loan is a government-insured loan which is backed by the Federal Housing Administration (FHA). By insuring your loan, the FHA makes it less risky to fund. This is conducive to a range of competitive benefits which are ideal for first time home buyers and other applicants.
Your down payment may be only 3.5% with a qualifying credit score.
Low or no closing costs are another competitive feature of FHA loans in Phoenix and the surrounding area.
You can choose a fixed or adjustable mortgage rate depending on your needs and goals.
Lenders are willing to consider applicants with less-than-ideal credit scores for FHA mortgages. Even if your credit score does not qualify you for a 3.5% down payment, your down payment should you be found eligible for an FHA loan should be just 10%.
Interest rates for FHA loans usually are lower than those for their conventional counterparts.
If you already have a mortgage, an FHA refinance could bring down your interest rate and allow you to enjoy other advantages. You can also apply for an FHA loan for purposes of home upgrades or repairs, construction of a new home, or debt consolidation.
You may now be excited about FHA loans, but you qualify? The basic requirements are quite flexible:
You will need a credit score of 500-579 to qualify for an FHA loan with a 10% down payment. If your credit score is 580 or above, you will qualify for a down payment of only 3.5%.
Your debt-to-income ratio should range between 43% to 45% at the maximum.
You can only apply for an FHA mortgage for your primary residence.
In order to be eligible for FHA financing, you must have documentation which proves you have been employed for the past two years without gaps.
Your credit alert interactive voice response system (CAIVRS) report must come up clear.
There is a common misperception that FHA loans are only available to people who are purchasing their first homes. This is not true. Repeat homebuyers are welcome to apply and may be found eligible for FHA financing. Other factors which will not stand in your way are foreclosures or bankruptcies, assuming that the minimum required wait time has passed.
Not sure whether you are eligible for an FHA mortgage in Arizona? The fastest and easiest way to find out and to get answers to your questions is by scheduling a consultation. Please give us a call today at (480) 470-1080 if you are ready to find out whether you can purchase a home with a 3.5% down payment and all the other benefits of FHA financing.
Barrett Financial Group LLC is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.