FHA Home Loans for First-Time Arizona Home Buyers
First-time buyers often struggle to find a loan they can afford. There are several reasons for this. One of the easiest ways to build a great credit score is by making payments on something like a mortgage. However, the Federal government wants to incentivize people to purchase their first house. FHA home loans help Arizona buyers who do not have the best credit find and move into their starter home. We help by explaining the loans to our customers and finding the best terms on their behalf. Working with Arizona Mortgage Man means you will always work directly with our loan officer. Learn more about how FHA home loans work below.
How FHA Home Loans Work
FHA loans are insured by the Federal Housing Administration (FHA). They require lower down payments and lower credit scores than other loan types. Clients with credit scores as low as 580 can purchase a house with as little as 3.5% down under these terms. Keep in mind that FHA loans require insurance premiums on the buyer’s part, which helps protect the lender in foreclosure. Another benefit of FHA loans is their flexibility. For example, homebuyers with credit scores as low as 500 can still capitalize on the program with a higher down payment of 10%.
Contact Us Today for an FHA Home Loan
Arizona Mortgage Man can help determine your eligibility for an FHA home loan during your free consultation. Because it is a government program, there are several requirements and hoops to jump through. For example, borrows must have steady employment, be lawful residents, and pay at least 3.5% down. However, a family member can gift the down payment. There are complicated requirements, but our lending officer will explain them clearly and use your financial history and statements to determine whether you qualify.