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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

 

• 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.

FHA Home Loans in Surprise, Arizona

The American dream of owning your own home is live and well in the Surprise AZ because of the FHA Home Loan Program. The market for FHA Home Loans is booming and it is now the largest supplier of home mortgages. You can make your dream of owning your own home come true now!

The Federal Housing Administration (FHA) has many loan programs available that will help you achieve your goal of owning your own home.

What Is A FHA Home Loan?

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?

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.

What Are The Benefits Of A FHA Home Loan in Surprise AZ?

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.

With the low interest rates in the market and the abundance of homes on the market, now may be the time for you to persuade the American dream of owning your own home by financing it with a loan form the FHA Home Loan Program!

Ready to get qualified for an FHA Loan in Surprise AZ please call Nathan Rufty at 909-503-5600.