April 30th, 2020 9:22 AM by Nathan Rufty
Owning your own home in Peoria Arizona is still possible because of the FHA Home Loan Program.
The Federal Housing Administration (FHA) has many loan programs available that will help you achieve your goal of owning your own home.
What is FHA Purchase Home Loan in Peoria Arizona?
FHA does not loan you the money to buy a house, what it does do is guarantee the loan. If the mortgage is defaulted then FHA will pay the lender.
This helps the lender because they will not have to write off the mortgage and suffer all of the loss.
Because of the FHA guarantee, lenders are certainly more willing the make more loans, and they will make them for larger amounts and also they will make them easier to get with fewer requirements.
Can You Qualify For The FHA Home Loan Program in Peoria Arizona?
Of course, there have to be some limitations and requirements in order to get a FHA Home Mortgage. Here are a couple of restrictions:
Debt To Income Ratio
There is not an income limitation but you do have to have a certain debt to income ratio. This means your debt can not exceed a certain percentage of your income.
Limit On Amount Of Mortgage
Also, there is a restriction on the amount of the mortgage based on the area that you live in. Each area or region is different, you need to check with your FHA lender to see what the limit is in your area.
Top FHA Home Loan Benefits in in Peoria Arizona
1. You finance home improvements or repairs using a Streamlined FHA 203K Loan.
2. All FHA mortgages can be assumable. This can be a great benefit in the future if you want to sell your home and the interest rates are high.
3. The down payment is just 3.5% of the purchase price of your home. Most conventional home loans require at least 20% down payment.
4. Your down payment can be gifted to you.
5. Seller can pay your closing costs.
6. Low Credit Score requirements
7. Interest rates are low and very competitive with other types of mortgage loans. Because of the FHA guarantee most lenders will offer low interest rates.
Ready for your FHA purchase home loan program in Peoria Arizona? Call Nathan Rufty at (623) 850-1210.