Fha Loan Requirements in Arizona

These are the standard requirements for an FHA loan. When you apply, if approved, you will receive a checklist of requirements known as “loan terms,” which describes what you must provide in order for the loan to be completed. You may have been through a financial crisis in the past, like . B bankruptcy, seizure or short sale. FHA mortgages are still a viable option. As a reminder, you don`t have to be a first-time buyer to qualify for an FHA loan with down payment assistance in Arizona. Depending on your personal situation (foreclosure, short selling, etc.), the waiting time is different. However, FHA loans are known to offer shorter wait times than traditional loans. Down payment – The standard down payment requirements for an FHA loan are 3.5% of the purchase price. So for a $200,000 loan, the down payment should be $7,000. If your credit score is below 580, you may need to wager up to 10% to qualify. What are the options for refinancing an FHA loan? The FHA offers two different programs to refinance an FHA loan.

This includes FHA Streamline refinancing, which allows you to slightly reduce your interest rate and mortgage payment (and doesn`t need a credit check, income documents, or a new valuation). The other option to refinance an existing FHA loan is FHA withdrawal refinancing, which allows you to withdraw money from the equity in your home. When buyers begin the pre-qualification process, they often hear their loan agent reject statements like this. “In your case, a conventional loan would be better because you have a large down payment” OR. “In your case, an FHA loan is best for you because your credit scores are in the mid-600s.” Many buyers want to understand the difference between a conventional loan and an FHA loan. What is the advantage of one program over the other? Moving – If you`re moving more than 100 miles away for employment-related reasons, you can buy another home with an FHA loan without having to sell your existing home. A common FHA loan scenario in Arizona is to buy a home with a down payment amount of 3.5% (even if you use down payment assistance) and a fixed interest rate with a 30-year loan term. In this scenario, the initial mortgage insurance premium is 1.75% of the base loan amount. It is almost always paid into the loan. The annual premium, which is deducted monthly, is 0.85%. FHA requires you to pay the annual premium over the life of the loan.

Many are surprised to learn that when comparing interest rates on conventional FTAs, FHA interest rates are lower than those on traditional loans in comparable scenarios. In the past, FTA interest rates were generally higher than traditional interest rates. Wall Street investors have changed that in recent years. They demand a higher return on conventional loans because of the seemingly increased risk exposure that Fannie Mae and Freddie Mac find themselves in. Let`s look at some comparisons of conventional VS FHA loans. Are FHA loans only for first-time home buyers? No, FHA loans are not limited to first-time home buyers. If you`ve ever owned a home, you can still get an FHA loan. However, you can only have an FHA loan and they are only available for primary residences.

Borrowers have always been attracted to FHA loans due to the low down payment requirement of 3.5%. For the buyer who doesn`t have down payment money, but can afford the monthly MIP, this loan is suitable. Conventional loans with comparatively lower interest rates require a 5% down payment. That`s just another 1.5% drop from competitor FHA and could save borrowers a lot of money in the long run. Home buyers in Arizona who need a small down payment or have poor credit scores may be able to buy a home with an Arizona FHA loan. There are many FHA lenders in Arizona that offer FHA loans, but not all of them participate in all available FHA loan options. How long after a bankruptcy can you get an FHA loan? The FHA rules state that you must wait at least 2 years after filing for chapter 7 bankruptcy. For a chapter 13, all you have to do is wait until you`ve successfully made payments for 12 months.

In addition, you must provide written authorization from the court trustee. Also remember that the watch does not start with the deposit, but as soon as the bankruptcy has been exempted. Are all FHA lenders the same? Not all lenders that offer FHA loans are created equal. They don`t offer all FHA programs and their prices and fees may also vary. Most importantly, the people who help you process and sign your loan have a huge impact on your FHA lending experience. The FHA sets maximum credit limits for each county each year. The current maximum credit limit for all Arizona counties can be found here. Yes, you can receive a gift that allows you to pay your deposit and closing costs as long as no refund is provided. In other words, the person who gives you the money gives it to you and doesn`t lend it to you. .