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.
Ready for to get qualified for a Jumbo Home Loan in Surprise Arizona? Call Nathan Rufty at (623) 850-1210
What is an FHA Loan in Surprise AZ?
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
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.