May 13th, 2020 2:58 PM by Nathan Rufty
Are you ready to purchase a home in Wickenburg Arizona, FHA loans can provide you the means to get into a house much less expensively than a regular loan can, and they're especially beneficial to you if you're of modest means.
However, in order to ensure that you have a pretty good understand about FHA purchase home loan program in Wickenburg Arizona please read on.
It's imperative that you have an FHA experienced loan officer if you're looking to purchase a home with this type of mortgage, because there are some processes you'll need to go through in order to have the process go smoothly. If you don't do this, it could cost you both time and money you can ill afford.
Having an FHA experienced loan officer can help you navigate the process, he or she can make things easier, and set things up so that the process itself is much easier.
FHA home purchase benefits:
Lower minimum down payment
The down payment for an FHA loan is just 3.5%, as compared to at least 20% for conventional loan, and you can have a family member, charitable organization, or even your employer pay that amount. If you go for a conventional loan, you'll usually need to prove you have the down payment amount yourself.
Same interest rates as conventional loans (most of the time)
Usually, FHA loans have similar interest rates as conventional loans, but this will also depend on your credit score. There is an FHA 203K (rehab loan) that would usually result in a higher interest rate due to more risk if the lender is loaning money to rehab the property too. It will be much less than getting a construction loan though.
Sometimes okay even with weak credit
FHA loans will often be approved even for those who have had credit problems, whereas conventional loans will be much more difficult to get. What's more important with the loan is your income. Even if you have enough income, you've been at your job for a while, and your job is pretty secure, you might still face problems getting a conventional loan where FHA might be an easier loan to qualify for.
Higher ratio of mortgage payment income
With conventional mortgages, you can only have Housing Expense ratios of 28% of your monthly income, and 36% ratios of monthly debt to income to qualify. FHA loans allow a ratio of 29% and 41% respectively.
No prepayment penalty
Fortunately, there are no prepayment penalties if you pay your loan off early with an FHA loan.
Closing costs can be included in FHA loans (up to 6% of the purchase price)
Closing costs can also be included in these loans, as long as you qualify for the higher amount of closing costs.
For more information about FHA purchase home loan program in Wickenburg Arizona call Nathan Rufty at (623) 850-1210.