FHA Mortgage Arizona

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.

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 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

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, FHA allows 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 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 Refinance is another great option for FHA borrowers. This loan gives homeowner’s access to equity in their home when refinancing. Often, an FHA cash out refinance helps to consolidate debts, generate funds for home improvement, fund a down payment for another big purchase 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.

FHA Loan FAQ’s

What is the maximum FHA Loan limit?

2020 FHA maximum loan limit amounts vary based on area. Find out what your maximum FHA loan limit is here.

How much money do I have to put down on an FHA loan when buying a house?

FHA requires a minimum 3.5% down payment for a home purchase.

Do FHA loans require mortgage insurance?

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.

Do FHA loans allow a seller to pay for my closing costs?

Yes, FHA allows a seller to pay for your closings costs up to a pre-determined limit. Learn more here.

Are gift funds allowed for down payment on an FHA loan?

Yes, FHA allows borrower’s to use gift funds for both down payment and for paying closing costs.

FHA Loan Pre-Qualification Steps

Mortgage Pre-Qualification takes 24 hours or less with the HOUSE Team. Obtaining pre-qualification offers several benefits to prospective home-buyers. Here are the 4 simple steps to FHA loan pre-qualification:

  1. 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.

    Mortgage Prequalification Step 1

  2. 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.

  3. 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).

  4. Loan Officer Reviews Documents

    Once your loan officer completes their review of your application, credit and documents your pre-qual is complete!
    VA and FHA Loan pre-approval lender review

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.