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FHA Loans in Arizona

Arizona FHA Loans Explained

The FHA loan is one of the most common loan types that are given by lenders under federal law. These are also insured by the Federal Housing Administration which is a branch of the United States Department of Housing and Urban Development, HUD. At Arizona Mortgage Pros, we are qualified lenders under the Arizona FHA lenders. Our Arizona FHA loans are a perfect choice for first-time homeowners and borrowers because of the following reasons:

  • Lower credit score requirements
  • Easier to qualify for compared to other conventional loans
  • Loan limits are specific to the county
  • Lower down payment requirements of 3.5% and not 5% for conventional loans

FHA provides mortgage insurance on loans which are originated by approved Arizona lenders. In most cases, FHA ensures the single-family, 1-4 family homes, and also the multifamily homes which include manufactured ones. Basically, FHA is the biggest mortgage insurer in the world and has been insuring over 34 million properties since its inception in 1934. With an FHA loan, you will be required to provide a friendly down payment of 3.5% of the selling price. This is in contrast to other conventional loans which require a down payment of 5%. Another benefit is that there is more flexibility when computing the household and payment rations. In addition, borrowers can have a debt-to-income ratio as high as 55% and will still qualify for this loan. In some instances, the ratio can be as high as 57% but will have some compensating factors. 

Speak with an experienced FHA loan specialist immediately – (855) 501-5927

The FHA and Arizona’s First Time Home Buyers

Normally, the first time home buyers utilize the FHA (b) loan to get financing. Nevertheless, anyone can qualify for the FHA loan and is thus not restricted to first-time buyers only. Due to the many benefits, the FHA loan is the most extensively used residential loan plan in the United States. The Arizona FHA loans are easy to qualify for compared to other mortgage loans. Furthermore, there is the flexibility of the cash reserves and the fact that the debt-to-income ratios are more lenient.

Myths and Misconceptions about Arizona FHA Loans

There are several myths and misconceptions about the FHA loans in the public domain. One of these is that it is only restricted to the first time buyers only. This is not true as just anyone can qualify as long as they meet the credit, income, and asset requirements set by HUD. Actually, unlike other loans which limit to one-time use, borrowers are eligible to a second FHA loan. It is important to note that the mortgage insurance cost is normally passed along the homeowner or borrower and is mostly included in the monthly payment. All Arizona FHA lenders must comply with this stringent rule. 

The life of the loan is normally the Mortgage Insurance Premium, MPI on FHA that is levied on the FHA loan. This cannot be changed or stopped later. The only way of stopping an MPI for an FHA loan is through refinancing and converting it from FHA to a conventional and having a loan-to-value, LVT that is under 80%. It is likewise to remember that there are some mortgage loan limits which are particular to a country that lenders must comply with. The FHA loan allows for both purchase and refinances transactions. Furthermore, there are FHA streamline refinance available to borrowers who already have an active FHA loan and would want to refinance to another FHA insured mortgage to lower their current rate. For more information on FHA loans, their advantages, characteristics, requirements, and how they can benefit you, contact our Arizona mortgage specialists who will be ready to assist you.