Are you in search of a loan product which includes a low down payment, affordable interest rates and easy qualification?
If so, an FHA mortgage could be the right fit for your needs.
What is an FHA Mortgage?
An FHA loan is one which is guaranteed by the Federal Housing Administration (FHA).
By insuring your home loan, the FHA makes it less risky for a lender to offer you a loan, even if your credit is not ideal.
Because many first time homebuyers are still working on improving their credit scores and raising their incomes, this type of mortgage is popular among them.
But repeat homebuyers are not prohibited from taking out FHA loans. So, whether this is your first home or your next one, an FHA mortgage is worth considering.
Arizona FHA Mortgage Benefits
If you qualify for an FHA mortgage, here are the advantages you can look forward to:
- Your down payment could be as low as 3.5% depending on your credit score.
- The seller may cover your closing costs. If you must cover the closing costs, they will be capped.
- You can choose a fixed or adjustable interest rate.
- Rates for FHA loans are competitive.
- Your credit score does not need to be perfect to qualify for an FHA mortgage.
- An FHA mortgage can be used to buy, build, refinance, upgrade or repair a home. You can also consolidate your debts with an FHA mortgage.
Are You Eligible for an FHA Loan in AZ?
Do you qualify for the great benefits of an FHA mortgage? Here are the qualification criteria:
- You must have a minimum credit score of 500 in order to qualify for a 10% down payment. If your credit score is 580 or above, you can qualify for a 3.5% down payment.
- Your debt-to-income ratio should be 43-45% or better.
- You must document steady employment over the past two years.
- Your interactive voice response system (CAIVRS) report must be clear.
- You can only use an FHA loan to purchase a primary residence.
As mentioned previously, is not a requirement that you be shopping for your first home. Even as a repeat homebuyer, you can qualify for an FHA mortgage.
If you have a bankruptcy or foreclosure in your past, you can still qualify for FHA mortgage after the waiting period.
The waiting period after a bankruptcy is two years, and the waiting period after a foreclosure is three years.
If you have questions about your eligibility, we can answer them during your FHA mortgage consultation.
Apply Now for an FHA Mortgage
Desert Springs Mortgage is based in Phoenix. We work with customers throughout Arizona as well as California, Colorado, Oregon, and Washington.
If you are ready to find out if you qualify to buy a home with 3.5% down and affordable interest rates, please give us a call at (623) 432-1309 to schedule your FHA loan consultation.