An Arizona FHA home loan is a great low down payment option for many home-buyers. FHA’s also has competitive interest rates and flexible underwriting. In other words, buyers with less than perfect credit may find it easier to qualify for an FHA loan than other mortgage types.
Phone: 602.435.2149
Email: Team@JeremyHouse.com
Arizona FHA Home Loan
FHA mortgages provide home-buyers with a great interest rate and low down payment home loan option. The FHA loan program dates back to the 1930’s. Today, FHA still opens doors to home-ownership and provides excellent refinance opportunities for many consumers. This section of our site is designed to explain more about the following:
- FHA Home Loan benefits
- FHA mortgage options
- FAQ’s for FHA
- FHA qualification
- History of the FHA loan program
An Arizona FHA loan can help you acheive your dream of homeownership. Knowing how to apply, how to qualify and fully understanding FHA’s benefits is helpful for every buyer.
Phone: 602.435.2149
Email: Team@JeremyHouse.com
FHA home loan Benefits
FHA is known for helping home-buyers purchase a home with only 3.5% down. In fact, that is the first thing many of our clients state as a known FHA mortgage benefit. While that is one of FHA’s great benefits, there are several more. For example:
- Low Down Payment (3.5%)
- Flexible Debt to Income Ratios
- Flexible Credit Guidelines
- Competitive Interest Rate
- Co–Borrowers Allowed to Help Qualify
- No Pre–Payment Penalty
FHA Loan FAQ’s
2020 FHA maximum loan limit amounts vary based on area. Find out what your maximum FHA loan limit is here.
FHA requires a minimum 3.5% down payment for a home purchase.
Yes, FHA loans actually have 2 forms of mortgage insurance. One form is typically financed into the loan amount while the other is paid monthly.
Yes, FHA allows a seller to pay for your closings costs up to a pre-determined limit. Learn more here.
Yes, FHA allows borrower’s to use gift funds for both down payment and for paying closing costs.
Types of FHA Home Loans
FHA loans help with much more than just financing a home purchase. In fact, FHA mortgage options include purchase, rate and term refinance, cash out refinance, FHA streamline refinance and FHA 203k (a renovation loan).
Purchase Loan
FHA requires only 3.5% down on a home purchase which makes it a great option for buyers looking to put a small amount down. Additionally, Arizona FHA loans allow more flexibility with regard to credit rules and debt to income. FHA mortgages are used to finance both re-sale purchases and newly built homes (“new builds”).
FHA Refinance Loan (non Cash Out)
Non cash out FHA refinances come in 2 types. Both help a homeowner adjust the rate and / or term on their current home loan without taking cash out.
- FHA streamline refinance
- Full credit qualifying rate and term refinance
The FHA Streamline is a great option. It allows homeowners to refinance and lower their rate on an existing FHA loan. However, the real benefit is no appraisal and no income/asset verification is required! This option truly is a “streamlined” refinance product which helps reduce interest rate. Homeowner must already have an Arizona FHA loan in order to use the FHA Streamline option.
A Fully credit qualifying rate and term refinance is similar to a streamline. Both loans help reduce the interest rate of an FHA existing loan. However, unlike a streamline homeowners can refinance into an FHA loan regardless of the loan type they have now. Also, this type of loan allows homeowners to reduce their loan term (ex: refinance from a 30 year to a 15 year term loan).
A 3rd variety called a fully credit qualifying streamline refinance also makes a great option. Like a regular streamline, it does not require an appraisal. However, borrowers must document income and assets. Fully credit qualifying FHA streamlines are used for refinancing a current FHA without pulling any cash out and when:
- new borrower is being added or removed from old FHA loan
- new payment increases due to new loan term (ex: refi from 30 year to 15 year)
Cash Out FHA Refinance
An FHA Cash out Refinance1 is another great option for FHA borrowers. This loan gives homeowner’s access to equity in their home when refinancing. You will receive a lump sum of cash that you can use however you like. Common uses for this cash include other purchases, investments, debt consolidation, home improvements and more.
FHA 203k (Renovation Loan)
FHA 203k loans allow FHA borrowers to finance the cost of repairs, upgrades and/or renovations for a property into their FHA home loan. Using the “future value” of a property helps make room for additional financing and funds for renovating a property. Borrowers use this loan to address desired upgrades and improvements as well as handling appraiser required repairs that do not fit into a standard FHA escrow hold-back program.
Phone: 602.435.2149
Email: Team@JeremyHouse.com
FHA Loan Qualification Steps
Mortgage loan qualification is what starts the homebuying process. You’ll provide information on your credit, income, assets and debts so we can give you an estimate of the size of a loan you can afford. There’s never a charge to get qualified with us. The process is typically simple and quick. Our team often completes the qualification within 24 hours. You’ll save time by only looking at houses within your price range, and sellers are likely to prefer your offer over a buyer who is not qualified, giving you negotiating power. Obtaining qualification offers several benefits to prospective home-buyers. Here are the 4 simple steps to FHA loan qualification:
- Discuss Goals with Lender
Some skip this step and go straight to step 2 (Loan App). However, this first step helps your lender know how to best structure your new loan pre-approval based on your goals, wants and needs.
- Complete Home Loan Application
Loan applications take 10 mins on average. They can be done online or on the phone with a HOUSE Team Loan Officer.
- Supply Supporting Documents
Your HOUSE Team Loan Officer sends you a list of documents needed (ex: pay-stubs, bank statements etc…). These documents help verify all pertinent information AND allow us to tell sellers you are fully pre-qualified (big PLUS for you).
- Loan Officer Reviews Documents
Once your loan officer completes their review of your application, credit and documents your pre-qual is complete!
Phone: 602.435.2149
Email: Team@JeremyHouse.com
That’s it! FHA loan pre-qualification is fast and painless. The HOUSE Team will take you through the process answering any and all questions you have along the way.
History of the FHA Home Loan Program
The acronym “FHA” stands for the Federal Housing Administration. In 1934, the housing market in the United States was falling apart. Mortgages required 50% down and were often due in full in just 3 to 5 years. Consequently, only 4 out of 10 people owned homes. As a result, Congress created the FHA in 1934 to provide and insure mortgages.
Due to the FHA home loan program, millions of Americans have become homeowners. As a result, home-ownership in the United States has reached an all time high. Furthermore, FHA continues to evolve and adapt to ensure that Americans have access to mortgage products that provide them with the opportunity to own their own home.