Home Loans Arizona - California - Nevada - Utah

Phoenix AZ’s economy has experienced its ups and downs over the last few decades. Population decline and the national housing crisis have driven prices and mortgage rates down, making it homeownership more attainable in the state. Some cities are even paying people to move there.

Additionally, both the federal and Phoenix AZ state governments have created mortgage programs specifically for first-time homebuyers. When paired with grants and tax credits, these can make homeownership both cheaper and more accessible. 

Before you buy a home, you might want to consider enlisting the help of a financial advisor. An advisor can help you understand how a mortgage will impact your financial picture, and help you choose the best loan option for you.



Federal First-Time Homebuyer Programs

Before we break down the loan programs for Phoenix AZ residents, we’ll first go over several national home buying programs offered through the federal government. You want to consider all your options when searching for a mortgage, so make sure to look at both federal and state programs.

FHA Home Loans Phoenix AZ

This is the go-to program for many Phoenix AZ residents, especially first-time home buyers and those who have a credit history that’s ... let’s say shaky. The Federal Housing Administration guarantees a portion of FHA home loans, which frees lenders to broaden their acceptance standards. With FHA backing, borrowers can qualify for loans with as little as 3.5% down.

FHA loans do have an upfront and ongoing additional cost built in: mortgage insurance premiums. This protects the lender’s stake in the loan if you default.

VA loan Phoenix AZ

The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. VA loans are especially generous, often requiring no down payment or mortgage insurance. But like a lot of military operations, the approval track is built for accuracy, not speed.

While the VA has only a few requirements for things like debt and sufficient income, VA lenders may add their own "overlays," or additional requirements.

USDA loan Phoenix AZ

This one may surprise you. The U.S. Department of Agriculture has a home buyers assistance program. And no, you don’t have to live on a farm. The program targets rural areas and allows 100% financing by offering lenders mortgage guarantees. There are income limitations, which vary by region.

ADOH highlights and eligibility requirements

Arizona’s Home Plus mortgage program is specifically designed to help people become homeowners. Over 90% of participants in the Home Plus program are first-time home buyers, though owning real estate now or in the past doesn’t necessarily disqualify you, Dirk Swift, the program administrator, said in an email.

Highlights

• Down payment and closing cost assistance.
• Reduced mortgage insurance premiums.

Eligibility

• Property must be located in Arizona and not exceed purchase price limit.
• Borrower must occupy the home as a primary residence.
• Borrower must meet income and credit score requirements.
• Home buyer education course required.
• Some mortgage types not available in certain counties.

Are you ready to purchase your first home? Please call Nathan Rufty your first time home buyer expert in Phoenix AZ at (623) 850-1210.