FHA Mortgages are a great option for people looking to buy a home in Phoenix!

Top Five Benefits of an FHA Mortgage in Phoenix AZ

1. FHA Mortgages Have Low Fixed Rates – In the past, if you needed a mortgage with a low down payment or if you had bad credit, it is likely that you would have obtained a subprime mortgage with a high variable interest rate. But FHA loans offer low, fixed mortgage rates and help you stay in your home.
2. FHA Mortgages Help You Qualify if You Have Had Bad Credit – Truth be told, FHA has no minimum credit score requirement, but most FHA lenders in Phoenix now require that you have a 620 score or higher. Also, you also won’t be automatically disqualified if you have a foreclosure, bankruptcy, or short sale in your past.
3. FHA Mortgages Have Flexible Qualifying Criteria – FHA guidelines offer greater flexibility for evaluating borrowers. For example, FHA has a higher debt-to-income ratio tolerance than conventional mortgages, allow for gift programs, and allow for non-occupant co-signers.
4. Low Down Payment Requirement – FHA currently only requires a 3.5% down payment making it easier to qualify.
5. The Seller of the Home You Are Buying Can Pay Your Closing Costs – FHA currently allows the seller to contribute up to 6% of the purchase price toward closing costs.

FHA loans have been around for over 75 years. However, there are common misconceptions that exist about them. You may have heard that FHA mortgages in Arizona take too long or that they require too much paperwork. This is not true. But, many misconceptions about FHA mortgages in Phoenix still exist.

Applying for an FHA mortgage to buy a house in Phoenix is easy. You’ll save a good deal of time if you have:

1. your social security numbers for everybody applying for the mortgage;
2. a list of the addresses where you have lived for the last 2 years;
3. the name and number of your employer(s) for the past 2 years;
4. copies of your checking and savings account statements for the past 2 months;
5. and your last two recent paycheck stubs detailing your earnings.

We have had the opportunity to help numerous home buyers with their Phoenix AZ FHA mortgage. If you have questions and would like to find out more information, contact us today.

Steve Lines – 480-344-3662

Corbin Olsen – 480-580-1400

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