Benefits Of An Fha Loan
- Low down payment. 3.5% down is the minimum down payment required. This is the lowest down of any major home financing option.
- Low interest rates. For such a low down payment, the interest rates on FHA loans are incredibly low. The reason is that the federal government wants to promote homeownership in a significant way and this is how to do it.
- Ok credit is good enough. While FHA loans do require at least OK credit, in the outside world of mortgage lending, merely “OK credit” scores will not get you anywhere. FHA only requires that the borrower have a certain income level and a 580+ credit score.
- FHA Loans are assumable. We think this will become a major benefit of the FHA loan within the next decade. An assumable loan is a very beneficial bonus. If you have an FHA loan for your home and want to sell it and interest rates are now sky high, the buyer can take over your mortgage and keep the super-low mortgage rate that you initially received. Since 2011, mortgage rates on FHA loans have been under 5%, so if/when mortgage rates reset higher, there will be a major advantage for borrowers holding properties with FHA financing. The only rule is that the FHA must deem the new borrower “credit worthy.” Remember, the FHA wants to do this in order to encourage home ownership.
Mortgage Insurance Is Required For An Fha Loan
Because an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of mortgage insurance premiums: Upfront mortgage insurance premium and Annual MIP is a monthly payment. The Upfront mortgage insurance premium is 1.75% of the loan amount. This premium is paid in full upfront when the borrower gets the loan or can be financed into the mortgage. The Annual MIP is paid monthly. It varies based on the length of the loan, the amount borrowed and the initial loan-to-value ratio, or LTV.
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Some Background On Fha Mortgages
Prior to FHA mortgages, buyers looking to finance a home purchase had extremely limited options. A 5-year interest-only mortgage with a balloon payment from a private bank was the only real option available for about 200 years. The way it worked was a lender would require a 50% down payment and require monthly interest payments for the 5-year term. At the end of the 5-year term, the remaining balance was due in full. Lenders did not want to take chances financing large sums of money for more than five years at a time as that was incredibly risky to their solvency.
Borrowers who couldn’t pay it off had to find another lender to give them a new mortgage at the end of the five-year term. In times of a down economy , the borrower would essentially be forced to sell the property at whatever they could get for it. In many cases, this only increased the intensity of the downturn in the economy as it concentrated and forced many real estate sales. Think 2008-2011. We saw the same thing happen.
Federal Housing Administration loans changed everything. FHA loans took us into what is now called modern home finance. The FHA allowed for a 30-year mortgage amortized to be paid off at the end of the term, with a fixed interest rate for the duration of the loan. Nothing like this had ever been tried anywhere in the world.
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Featured Communities Near Encanto Park
Considered one of America’s best public parks, residents of Midtown Phoenix love taking their dogs for walks and their families out to play at Encanto Park. If you would love to live near this amazing park, we suggest exploring the Encanto Vista neighborhood.
If you are looking for homes for sale in other Valley cities you can see all Scottsdale homes for sale and Tempe homes for sale.
Interested in a Phoenix AZ Home for Sale?
The most recent listings of Phoenix AZ Homes for Sale will appear below. We would love the opportunity to show you any of this Phoenix Real Estate. Please call us at 480-387-3990 or fill out our Contact Form and we will respond within the hour during normal hours.
We highly recommend that you Contact Us and we will create a custom search for you that will automatically alert you when new homes come up for sale in Phoenix. We can also prepare a free report for you that provides all the statistics you want to know about the Greater Phoenix Area including historical data, projections, recent sale prices, and information about Phoenix’s neighborhoods.
What Is An Fha Loan
An FHA loan is a mortgage insured by the Federal Housing Administration. FHA loans are very popular, especially with first-time home buyers because the requirements are less strict than conventional loans. Borrowers can qualify for an FHA loan with a down payment as little as 3.5% and a credit score of 580 or higher.
FHA borrowers can use their own savings to make the down payment. But other allowed sources of cash include a gift from a family member or a grant from a state or local government down-payment assistance program.
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Phoenix Az Foreclosure Homes For Sale
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Fha Loans Are Assumable
FHA loans are generally assumable, that means the loan can be transferred to a new owner when a house is sold. The new owner can take over the FHA loan without the additional cost of obtaining a new loan. This is a big advantage for both sellers and buyers and can make it easier to sell a home. Of course, the new owner must meet the eligibility criteria for an FHA loan for it to be transferred.
Also, if you use an FHA loan to buy a house, the property will have to be appraised and inspected by a HUD-approved home appraiser. FHA loans require that the house meet certain conditions and must be appraised by an FHA-approved appraiser.
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How Do You Get An Fha Loan
A lender must be approved be the Federal Housing Authority in order to help you get an FHA loan. Contact us today to speak to our lender partner.
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Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ area, we hope you will consider us. Contact us today for complimentary consultation.
New Listing Homes for Sale Phoenix East Valley
| Homes for Sale Phoenix East Valley |
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W Guadalupe Rd #2022mesa Az85201
72 Hour Home Sale!! Corner unit with balcony condominium on top floor overlooking pool, is in the prime location of Mesa just minutes from shopping, schools, freeways. Great room and dining are perfect size with wood burning fireplace. Galley style kitchen area has bar-top counter seating, stainless steel sink, lots of cabinet space and all appliances are included. Washer and Dryer located in the unit as well for convenience. Both bedrooms are spacious, master has walk in closet. Bathroom has walk in shower with separate toilet. 2nd bedroom has tub/shower as well as lots of closet space. both a/c and water heater are within 6 years new. Two parking spaces are included with one covered spot. Beautiful, maintained complex.
- 1920 W LINDNER Ave #103, Mesa, AZ 85202Pool
- OPEN SAT, 1PM TO 4PM$250,000
- 1255 N ARIZONA Ave #1154, Chandler, AZ 85225Garage
- 2201 N COMANCHE Dr #1059, Chandler, AZ 85224Contemporary
- 461 W HOLMES Ave #117, Mesa, AZ 85210Porch
- Walk-in Closet in Master Bedroom, Split Bedroom, Walk-in Closet in Bedroom
- Split Master Bedroom
- 3/4 Master Bathroom, Full Master Bathroom, Private Toilet Room
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Fha Approved Condos In Phoenix
The Greater Phoenix area condos listed below are in buildings that are approved for FHA financing. We will update this page regularly but the information is subject to change at any time. For the most up to date information about FHA approved condo buildings in Phoenix we recommend visiting the HUD website as well. We also have a if you’re looking for condos that are approved for VA financing.
Hud Homes For Sale In Mesa Arizona
Here are the NEWEST HUD Homes for Sale in Mesa Arizona from our Realtor MLS UPDATED EVERY 5 Minutes! That means EVERY home from EVERY Real Estate Company that is currently for Sale.
The listings below include ALL homes for Sale in Mesa, Mesa Condos, Mesa Foreclosures, Mesa Short Sales and Luxury homes in Mesa. You can filter your search at the top of this page by price, size, etc. Check out the popular 1-Click searches like Mesa Homes for Sale with a Pool or Horse Property for Sale in Mesa Arizona.
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Fha Home Plus Program
The FHA Home Plus program is offered anywhere in Arizona other than Maricopa and Pima Counties. Many Arizona home buyers choose the FHA Home Plus Program with down payment assistance because they are typically easier to qualify for than conventional mortgages. They have many advantages that make them attractive to Arizona first-time homebuyers.
Program Highlights:
- Down payment assistance options of 3%, 4% and 5%. You can choose what is best for you based on your loan scenario.
- Minimum FICO score is 640
- If using an FHA loan with Home Plus, the maximum loan amount depends on the FHA loan limits in your county
- Maximum income of $105,291
- Maximum debt-to-income of 50%
Foreclosures In Phoenix Az
Foreclosure homes for sale in Phoenix, AZ have a median listing home price of $440,000. There are 7 foreclosing homes for sale in Phoenix, AZ, which spend an average of 46 days on the market. Some of the hottest neighborhoods near Phoenix, AZ are Arcadia, Paradise Valley Village, Deer Valley, North Mountain, . You may also be interested in foreclosing single family homes and condo/townhomes in popular zip codes like 85086, 85032, or neighboring cities, such as Scottsdale, Mesa, Glendale, Chandler, Peoria.
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Is There A Cost To Have A Real Estate Agent Represent Me
The seller must pay the real estate professionals commission, not the buyer. This means that, as a homebuyer, there is no cost to have a real estate agent represent you. In fact, its a good idea to get your own agent in order to have someone in your corner during the negotiation process. For more information about real estate agents,
Featured Communities In North Phoenix
With close access to the AZ Loop 101, Highway 51 and Interstate 17, North Phoenix is the perfect place to live for those who commute for work in one of the several surrounding suburbs in the Valley. North Phoenix also features some of the most popular hiking trails, scenic mountain views, and several shopping centers. Popular North Phoenix single family home neighborhoods include Tatum Highlands, Trovare, and Desert Canyon.
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Hud Housing In Arizona
How many HUD homes are available for sale in Arizona? Right now, Arizona currently has 1,000s of HUD listings available.
Who qualifies for HUD housing in Arizona? How do I apply for a HUD home in Arizona? How do I buy a HUD house near me? These are all great questions. The good news is that almost all homebuyers are eligible to purchase a HUD home in AZ. The first step: Contact a public housing agency to get the ball rolling. Most homebuyers and real estate investors buy HUD listings at local auctions or online auctions. These buyers sometimes purchase the deal of a lifetime – in some cases homes for less than $60,000. Here is a quick pro tip: If you are a homebuyer, be sure to purchase the HUD home during the owner-occupant period of the auction, otherwise, investors are permitted to bid if an owner-occupant does not do so during the initial bidding process.
What You Need To Know When Buying A House With Fha Loan In Phoenix Az
Home buyers today dont often buy homes with 20% down payment. Low and no down payment mortgages remain popular with first-time buyers and repeat buyers and one of the most popular low-down payment mortgage program is the FHA loan. Read what you need to know when buying a house with FHA loan in Phoenix Arizona.
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Fha Home In 5 Program
You should consider the FHA Home In 5 program if you are buying a house in Maricopa County and need help with down payment and closing costs. This program has been very popular for the past few years because it is a great down payment assistance program.
Program Highlights:
- Assistance for down payment and/or closing costs up to 5% of the mortgage balance. 6% for qualified Veterans, active duty Military, active Reservists, and active National Guard.
- The assistance money is actually available. Many down payment assistance programs run out of funds within a short period of time.
- True down payment assistance money no strings attached. Many down payment programs come in the form of a 2nd mortgage that is paid back over time or when you sell your home. Many prevent you from refinancing.
- You do not have to be a first-time home buyer.
How to Qualify:
- Buy a house anywhere in Maricopa County, including in the City of Phoenix.
- New or existing single family homes, 2 to 4 unit homes, condos, town homes, and manufactured homes.
- Minimum FICO score is 640.
- Income from all borrowers may not exceed $105,000.
- Qualify for an Arizona FHA loan with a maximum debt-to-income ratio of 50%.
- Take an easy online homebuyer education course.
Buy A Home In Cochise County
Are you interested in buying a home in Cochise County? This is a step by step guide to all the ins and outs of the homebuying process. For more detail about FHA loans, be sure to check out our complete guide. We also have an in-depth guide to VA loans and the USDAs Rural Development home loan program.For now, lets look at the basic steps to buying a home and what youll have to look out for in Cochise County.
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Fha Mortgages In Tucson
Federal Housing Administration loans are available in Tucson and enable a significant number of home buyers in Tucson to be able to purchase a home. FHA mortgages were created during the Depression to stimulate the economy. It established a new financing structure that had never before been attempted.
Looking for real estate listings for Tucson homes for sale that are eligible for FHA mortgages? .
Member Expectations For All Affordable Housing Opportunities:
- Properties will conduct a criminal background check on all household occupants including live-in caregivers.
- Member is responsible for adhering to the Affordable Housing application process, including keeping scheduled appointments and providing documentation requested.
- All household members over 18 years of age must sign the lease.
- No person may live in the unit that is not on the lease.
- All household members and their guests must abide by the propertys community rules.
- Households must maintain HUD housing quality standards . All properties are federally funded and therefore are drug and smoke free.
If you are interested in learning more about any of these opportunities, contact your Support Coordinator or e-mail .
*These properties are federally funded and will pay for reasonable accommodations/modifications as requested when verification of need is documented by a healthcare provider.
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Phoenix Homes For Sale Summary:
Phoenix is quickly becoming one of the fastest growing metropolitan cities in the country, for a variety of reasons. From the 300+ days of sunshine with mild winters, major sports teams, some of the finest golf courses, and several popular tourist attractions, it should be no surprise that professionals and families of all ages are flocking to the Valley of the Sun. Single family home subdivisions have reacted positively to this jump in growth, and the Valley features several great homes for sale with a wide array of amenities, construction styles, and community activities. If you are looking for the perfect Phoenix home, we will help you find the house of your dreams!