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