Home Loans California & Arizona

3 down payment surprise az
For prospective homeowners is Surprise, Arizona, the idea of saving up for a 20% down payment which is usually tens of thousands of dollars can often be paralyzing. As a result, small or no down payment mortgages are extremely attractive.

But as usual, taking a shortcut financially can come back to bite you. Mortgage loans that have a low-minimum down payment usually require extra fees or insurance to make it worth the lender’s while.

To determine whether a small down payment mortgage is right for you, it’s important that you know what you’re getting yourself into and how much it can cost you in the end.

Small down payment mortgages are attractive primarily because they allow people to buy a home sooner than if they had to put a full 20% down.

This can be appealing for personal reasons since owning a house often makes it feel more like home. And it can occasionally be attractive for financial reasons, potentially saving you money compared with renting, particularly if you stay in the house for an extended period of time.


Additionally, there are several home loan programs that offer small or no down payment mortgages to those who qualify:

Veterans Affairs (VA) loans Surprise AZ
These loans are insured by the U.S. Department of Veterans Affairs for certain veterans, service members, spouses and other eligible beneficiaries.

They don’t require a down payment or mortgage insurance but do charge a one-time funding fee of 0.5% to 3.3%, depending on the type of loan, the size of the down payment and the nature of your military service.

U.S. Department of Agriculture (USDA) loans Surprise AZ
The U.S. Department of Agriculture insures home loans for low- to moderate-income homebuyers in eligible rural areas.

Like VA loans, there is no down payment for a USDA loan. But there is an upfront fee of 1% and an ongoing annual fee of 0.35%, both of which apply to purchases and refinances.

Federal Housing Administration (FHA) loans Surprise AZ
Insured by the U.S. Department of Housing and Urban Development (HUD), borrowers can get an FHA loan with a down payment as low as 3.5%.

Additional fees include an upfront mortgage insurance premium of 1.75% and an annual mortgage insurance premium of 0.45% to 1.05%, depending on the type, size and length of the loan and the size of the down payment.

Conventional loans Surprise AZ
Some mortgage lenders offer small down payment mortgages — as little as 3% down payment — to borrowers who qualify.

These loans, however, aren’t insured by a government agency, so the lender will require private mortgage insurance (PMI). The cost of PMI varies but is often between 0.5% and 1% of the loan amount. You can typically request to have your PMI dropped once you have at least 20% equity in the home.

Do you have more questions about purchasing a house with 3% down in Surprise AZ? Call Nathan at (623) 850-1210

3% down payment home loan surprise az, low downpayment home loan surprise Arizona
Posted by Nathan Rufty on June 19th, 2019 2:59 PM

Home Ready loan program in Surprise AZ

Who does the Home Ready loan program in Surprise AZ
Fannie Mae's HomeReady mortgage is designed for the diverse needs of Surprise AZ borrowers with greater flexibility than other conventional mortgage products. What does that mean for Surprise AZ residents?


HomeReady mortgage addresses common financial challenges and offers expanded eligibility guidelines, such as:

  • Offers a 3% down payment option. First-time and repeat homebuyers can purchase a home in Surprise AZ with a down payment as low as 3% of the purchase price.
  • Supports extended families in Surprise AZ. Income from a household member who is not a borrower (i.e., they won’t be on the mortgage) will be considered. This means—in multi-generational Surprise AZ households, the income of children, grandparents, or other extended family members may help buyers qualify for a HomeReady mortgage.
  • Allows co-borrower flexibility. All borrowers do not have to reside in the property. For example, parents, who won't be living in the home can be co-borrowers on the loan to help their children qualify for a mortgage and purchase a home.
  • Accepts additional income sources. Rental payments may be considered as another allowable income source to help qualify a buyer (i.e., rental payments from a basement apartment). Income limits may apply.
  • Surprise AZ HomeReady Loan Rates
  • For Surprise AZ homebuyers, the HomeReady mortgage also has rates comparable to conventional mortgages and has cancellable mortgage insurance, unlike other low down payment mortgage options.

A HomeReady mortgage requires borrowers to complete an online home ownership education course to help prepare for the responsibilities of buying and owning a home.

Contact Nathan Rufty today to learn more about HomeReady and other mortgage loan products in Surprise AZ.
Posted by Nathan Rufty on June 12th, 2019 12:14 PM

Jumbo Home Loans Surprise AZ

 

A jumbo mortgage is different than a conforming loan. A jumbo loan amount exceeds that limit set by FNMA. That limit can change every year, but is around $453,100. With a jumbo mortgage, the interest rate is a little higher than other similar mortgage loans that are for smaller amounts. The reason the rate is higher is because the loan has a perceived higher risk by lenders.

 

A jumbo loan is considered a non-conforming loan. Conforming mortgage loan programs have perceived less risk by lenders and have lower interest rates. Most mortgage loans that are done by lenders are conforming loans. Jumbo loans are a small percentage of the mortgages that are done.

 

Although most mortgage loans that are done in Surprise AZ, are smaller loan amounts than those limits set by Fannie Mae and Freddie Mac for jumbo loans, in Arizona, home prices are so high, that there are many jumbo home loans done there.

 

If you live in Surprise AZ and/or are looking to get approved for a jumbo loan, the internet is a great place to apply to get a jumbo loan for a few reasons. First of which is that there are so many lenders online competing for your business, that lenders are forced to offer their lowest possible rates in order to get your business. For example, a local broker, who has a steady client base, may not be motivated to offer the lowest rate or the lowest closing costs, when the competition is only local. However, when you have the largest group of lenders online competing for your business, you can get a much better offer.

 

Where is the best place to apply for a jumbo loan in Surprise Arizona? There are many mortgages companies online who can provide you quotes from multiple lenders. These companies will be able to provide you with quotes for usually up to 4 different lenders. This is a great way to make sure to get competitive offers. However, make sure you still ask each competing mortgage lender about the points they will charge, their closing costs and any other fees, to make sure you are getting the best loan you can.

 

Getting the lowest interest rate does not always make the loan you want, the best deal. The lender can charge more in other places that you might not catch until closing.

 

Jumbo Home loans in Surprise AZ, who does them

Ready for to get qualified for a Jumbo Home Loan in Surprise Arizona? Call Nathan Rufty at (623) 850-1210

Posted by Nathan Rufty on June 5th, 2019 9:46 AM
USDA Home Loans In Surprise AZ
One of the little known benefits of buying real estate in the Surprise AZ, is that homes in some of these areas qualify for the USDA-Rural Development Zero Down Payment Home Loan. That means that under the guidelines of this government-backed mortgage program, the Arizona home buyer buy a home without having to make a down payment nor are they required to have a large monthly private mortgage insurance premium payment.

USDA Home Loans program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.

Applicants Income Eligibility

  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have the legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner
  • Purchase a property that meets all program criteria
  • What is an eligible area?
  • Check eligible addresses for the loan guarantees.

How may USDA Home Loans funds be used?

  • New or existing residential property to be used as a permanent residence.  Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction
  • A site with a new or existing dwelling
  • Repairs and rehabilitation when associated with the purchase of an existing dwelling
  • Refinancing of eligible loans
  • Special design features or permanently installed equipment to accommodate a household member who has a physical disability
  • Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable
  • A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing.  Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums
  • Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling
  • Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)
  • Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling
  • Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

USDA Home Loans In Surprise AZ, Who Does Them?

Ready to get qualified for a USDA Home Loans in Surprise, Arizona? Call Nathan Rufty at (623) 850-1210
Posted by Nathan Rufty on May 29th, 2019 10:43 AM

What is an FHA Loan in Surprise AZ?

fha home loan surprise ca

FHA stands for the Federal Housing Administration, a Government agency created in 1934 by HUD, the U.S. Department of Housing and Urban Development to increase homeownership in America. The FHA insures loans offered by private lenders, and do not offer mortgage loans directly.

 

The low credit score and down payment requirements allow more homebuyers to qualify for home loans.

 

Borrowers are required to pay mortgage insurance (MIP) monthly, usually around 0.85 percent of the loan amount annually.

 

If a borrower defaults on an FHA mortgage, it is foreclosed on and HUD will pay the balance to the lender and take possession of the property.

 

 

Surprise AZ FHA Loan Requirements

 

  • 500-579 FICO score requirement with a 10% down payment
  • 580+ FICO score requirement for borrowers with at least a 3.5% down payment
  • 43% maximum debt-to-income ratio (50% in some cases)
  • An appraisal must be done by an FHA-approved appraiser.
  • 2 year waiting period after a bankruptcy (3 year waiting period for foreclosure)
  • Mortgage insurance (MIP) is required
  • Steady employment and be able to prove income with recent tax returns, W2’s, and paycheck stubs
  • Two years of employment history
  • Non-occupying co-borrowers allowed
  • At least 18 years of age
  • Must occupy the home as a primary residence
  • Student loan payments are factored into debt-to-income ratio

 

First-time Homebuyers in Surprise AZ

 

First-time home buyers love FHA loans because of the low credit and down payment requirements.

 

In 2017 approximately 46% of first-time buyers used an FHA loan to buy their first home.

 

However, you do not need to be a first-time homebuyer to qualify, you can use FHA loans multiple times.

 

But since they are only for owner-occupied residence, you cannot have two FHA loans open unless you must move for work or your family outgrows your current home.

Posted by Nathan Rufty on May 22nd, 2019 2:43 PM

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