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FHA Loans in AZ
Aspiring homeowners who may not qualify for a standard Conventional loan may find an FHA loan in Arizona as a viable loan option, especially first time home buyers. FHA loans offer lower minimum down payments, flexible income requirements, and fair credit expectations. We recommend you contact us for more details if you have questions about applying for an FHA loan.
Qualifying for an FHA Loan in Arizona
You must meet some minimum requirements to qualify for an FHA loan if you are a new home buyer or refinancing. Your FICO must be 580 or better. This does not mean people with a FICO of 500-579 cannot buy a home, but it will be much smoother if you meet the minimum requirements. If you are uncertain about your situation or have been hitting a wall trying to get your loan done you should call us immediately.
Mortgage rates vary along with underwriting policies depending on the lender that you choose, so it’s imperative that you have a trusted source helping you navigate the lender pool. Our team works with a variety of lenders, all of whom are trusted partners of ours. You have the right to shop rates and choose the lender that is right for you. We help streamline the comparison process and keep things simple for you and your family.
FHA Mortgage Insurance Premiums
With FHA loans, you will be required to pay for upfront and annual mortgage insurance premiums regardless of what you put down on the loan. This is to protect lenders from losses on mortgage defaults. The amount of MIP interest changes based on the down payment amount and mortgage term length. In other words, the larger down payment you put down on the loan, and depending on the length of your mortgage term, the lower your MIP could be. We can provide specific numbers if you contact our team.
How to get out of MIP
Though no one likes additional fees, it’s important to remember that an FHA loan is the best option for some people and acts as a stepping stone to get into homeownership. The good news is that it doesn’t have to last forever. You can improve your credit score and build equity in your home by paying down the loan. Eventually, you will be able to refinance out of the FHA loan into a more favorable mortgage loan.
Difference between FHA Loans and Conventional Loans
There are several differences, but we’ll review the most distinct ones here. First, FHA loans are insured by the government and are typically used by low to moderate-income earners who are buying their first home.
3rd party insurers back conventional loans, and because of this, they typically carry with them PMI (private mortgage insurance). You can read more on that through conventional loans in Arizona.
Credit score
Generally speaking, FHA requires a 580 FICO while a conventional loan requires a 620. However, this depends mainly on the lender because each lender is different, and things could change at the drop of a hat.
Debt to Income Ratio
With conventional loans, lenders typically want you to have a low DTI (debt to income ratio). This is aligned with the higher FICO score requirements. If you guessed that FHA loans are more forgiving with DTI, you guessed correctly! Like a conventional loan, FHA loans in Arizona come with less restrictive DTI.
How do I know if it’s right for me?
When it comes to making the best home-buying decision for you and your family you cannot go wrong with consulting an expert. We could go on and on about the benefits, risks, rules and regulations of each loan option but the truth is you won’t know which one to decide on until you’ve had a specialist analyze your unique situation. Being a multi-state FHA loan lender, leading most of the southwest and pacific northwest, we have seen virtually every situation there is to see.
FHA Loan Requirements
The only FHA loan requirements you need to focus at this stage of the mortgage loan process is what is your credit score at, Do you have a down payment secured and ready to go, and do you understand the details surrounding mortgage insurance. Everything else will be discussed once you are ready to move forward with purchasing a home.
Things like finding an FHA approved lender, what the exact down payment dollar amount needs to be, details of the MIP, or what the minimum credit score needs to be, will all be addressed during your consultation with our team.
Feel free to use the contact form or call us same-day Mon-Fri 8a-5p.
As a 1st time home owner, I definitely recommend Summit Lending. Craig and Linda, as they walked with me throughout the whole home buying process, nowhere in the process I felt lost or out of the loop. I appreciate their hard work and dedication to help me purchase my home!
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Flexible FHA Loan Options
Buying and refinancing your dream home could be an extremely long and rigorous process, but it doesn’t have to be. By applying online for your FHA loans in Arizona with Summit Lending Solutions LLC today, you can save yourself a lot of time and effort. No sweat. No stress. No hassle- the testimonies of those that make us the first and only point of contact for their FHA loans.
FAQs
In applying for FHA loans in Arizona, you will need to present some documents providing key information about your finances. There are multiple forms that you’ll need to send and our team will send you a complete list of documents needed. Schedule a free consultation at Summit Lending Solutions LLC to find out more.
To apply for FHA loans in Arizona, all you need to do is schedule a free consultation with Summit Lending Solutions LLC. Apply online with ease and let our experts walk you through the process from start to finish.
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