Home Loans Arizona - California - Nevada - Utah

Phoenix AZ FHA home loans, who does them

October 2nd, 2019 11:39 AM by Nathan Rufty

Phoenix AZ FHA mortgages offer a wide range of benefits and consumer protection that conventional loans may lack. Some of the most attractive things about an FHA mortgage are the low down payment and more lenient credit requirements. FHA loans are, simply put, easier to qualify for than conventional mortgages.

FHA loans in Phoenix AZ are insured by the Federal Housing Administration. FHA does not lend money or issue credit, so the first requirement of the FHA loan program is to apply for the FHA mortgage through a participating licensed FHA lender.

Phoenix AZ FHA Home Loans Benefits

  • Smaller Down Payment
  • Flexible Qualification Guidelines
  • Lower Credit Scores and Debt Ratios
  • Easier ‘Streamlined’ Refinancing
  • Down Payment Gifts
  • FHA Loans Are Assumable

When you apply for an FHA loan in Phoenix AZ to purchase a new home, you’re required to submit detailed information on your existing credit, employment history, and current income.

FHA lenders in Phoenix AZ evaluate this information based on something called “the four C’s”  

  • Credit history
  • Capacity to repay
  • Cash assets available to close the mortgage, and
  • Collateral

According to the FHA, the lender must evaluate all FHA loan applications by:

  • Considering the type of income the borrower needs to qualify
  • Analyzing the borrower's liabilities to determine creditworthiness,  
  • Reviewing debt-to-income ratios and compensating factors.

Phoenix AZ FHA loans for single-family homes can be used to purchase suburban homes, condos, multi-unit properties (subject to certain rules) and other eligible properties. Borrowers are permitted to use an FHA loan to buy properties with a business or non-residential space as long as that space remains subordinate to the “residential nature of the property” according to FHA loan rules and does not take up more than 25% of the total floor space of the home.

But that’s not all you can use an FHA home loan to do. Buyers can also apply for FHA loans to simultaneously purchase and remodel or rehab a property, such as a fixer-upper home. FHA loans are also available to refinance from conventional mortgages to FHA loans, and to
refinance existing FHA loans. 

How to Apply for an FHA Loan in Phoenix AZ
There are two basic ways to apply for an FHA home loan. One is to find the home you want to buy, make an offer, and apply for the loan. Another way -one recommended by many personal finance experts- is to get pre-approved for a loan amount before committing to a particular home.

Either way, you’ll need to be prepared for an FHA home loan application with the following information:

  • Social Security numbers
  • Checking and savings account information (including account numbers)
  • Information on all open lines of credit including credit cards, student loans, auto loans, etc.
  • Complete information on any real estate you currently own
  • Approximate value of your personal property
  • Gross monthly income amounts for all current employment
  • Your addresses for the past two years
  • The name and addresses of your employers for the last two years

Ready to get started with your FHA Home Loan in Phoenix AZ? Call Nathan Rufty at (623) 850-1210.



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