Phoenix FHA Loans

If you are looking to relocate to Phoenix, AZ, right now is a great time to apply for an FHA loan. The Federal Housing Administration (FHA) and US Department of Housing and Urban Development (HUD) have been helping people afford new homes for over seventy years. During that time, millions of Americans have taken advantage of the huge benefits the FHA has to offer and have made homeownership a reality. Here are just a few of the many great benefits of FHA loans:

Easy Approval

When you apply for a conventional loan, your approval will be based on strict standards. With an FHA loan, these standards are much more lenient. This means that even if you have a blemish on your credit score history, there’s a good chance you’ll still be able to qualify for a new loan.

Low Down Payment

Right now it is possible to qualify for up to 96.5% financing on new homes in Phoenix. This low down payment of 3.5% makes the upfront costs of obtaining a home much more affordable. Plus, this money can come from anywhere. If you can’t afford the down payment, you have the option of having a friend, employer or organization like American Dream Down payment Initiative (ADDI) pay the cost.

Lower Overall Cost

While it is possible to find conventional loans with low down payments, the lender will generally raise the interest rates and require private mortgage insurance (PMI) in order to make of for the risk. With an FHA loan, you are insured by the Federal Government, making PMI unnecessary. Additionally, you will get to take advantage of low interest rates, making the entire cost of the loan much lower than conventional loans.

Where to Start

When you decide to buy a new house in Phoenix with an FHA loan, a good first step is to get pre-qualified for the loan. Next, you can either start looking for houses right away or find a lender that participates in the FHA home loan program. This lender can be a savings and loans association, mortgage company or a bank.

Get Pre-qualified Today!

We have a team of FHA home specialists ready to help you get started today. Simply fill out our online 1 minute quote form and we’ll have you pre-approved instantly! The form is free, secure and has zero obligation.

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