USDA Loan Programs
USDA Home Loan Program
What is a USDA Loan?
A USDA Guaranteed Loan is Government insured
100% purchase loan. These Loans are only
offered in rural areas and serviced by direct
lenders that meet federal guidelines. To qualify your income is limited to $76,600 for a family of 4. Qualifyin gproperties are found in Surprise, Buckeye, Goodyear, Litchfield Park, Queen Creek, SanTan Valley, etc. USDA Loan Limit - $ 210,500
America’s men and women who have served their country may be eligible to use the VA Loan program. A VA Loan can be made to purchase single-family dwellings, condos, or cooperative units. VA Loan Limit - $ 417,000. You must obtain a Certificate of Eligibility in advance as this may take some time to process-The lender can help!
Good Neighbor Homes! Available to Teachers, Fireman, Police Officers occupant home buyers when purchasing certain property . Ask us how. Click the link to see what is available.
FHA guaranteed loans have become the most common loans in Arizona in the last few years. Most Home Buyers will end up using this type loan. FHA Loan Limit for Central AZ are now $ 346,250. We have selected lenders that can get buyers pre-qualified in a matter of days. This type load generally requires a FICO Score of 620+ and proven income to support repayment.
HomePath® Mortgage Financing: This special financing is available on Fannie Mae homes with the HomePath logo and include:
* Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
* You may qualify even if your credit is less than perfect
* Available to both owner occupiers and investors
* 3% (min.) Down payment can be funded by your savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
* No mortgage insurance
* No appraisal fees
* Also eligible for HomePath Renovation Mortgage
* HomePath Mortgage financing is available from both local and national lenders. (Ask Us)
Note: We are authorized by HUD to make offers on your behalf to buy a HUD home. Ask us about authorized HUD lenders.
Your Way Home AZ is the one-stop location for purchasing foreclosed homes through the state, county and local governments. Funding is available to qualified buyers who are interested in purchasing foreclosed homes in select areas throughout the state.
Neighborhood Stabilization is a part of $39 billion source of assistance delegated to the city of Phoenix. Buyers of properties within city limits can obtain up to $15,000 toward down payment and closing cost on properties that have previously been foreclosed upon within certain guidelines and restrictions. Click here for details.
"Home in Five" offers buyers in Maricopa County Arizona (Central AZ/ Phoenix Area) assistance funds up to 5% of the purchase price for FHA/VA financing. Click here for information.
When you can't get a loan, seller financing may be possible. The "lease purchase option" is a landlord-tenant relationship until the purchase is complete. The "contract for deed" is a sale at the inception of the agreement.
5%-20% Down Conventional Loans
Loans that are able to “conform” to the underwriting guidelines of Fannie Mae or Freddie Mac are called “conforming” or “conventional” loans. Loan limit is $417,000 for Central Arizona. Conforming loans are probably the “most popular” option for people with decent credit, a job and a “normal” house because in order to get a conforming loan, you need all three.
* 1-unit properties : $417,000
* 2-unit properties : $533,850
* 3-unit properties : $645,300
* 4-unit properties : $801,950
Loan amounts over $417,000 are considered an Arizona Jumbo Mortgage Loan. There are many different lenders offering jumbo loans – even though the credit crunch may be in full swing, people with good credit and who can document their income can qualify for a jumbo loan. Rate and terms vary considerably, so it is wise to shop around. Call us it your property falls into this loan category and we will help with your options.
For more Information on Buyer Assistance Programs and Loans please fill out the form below.
Loan Pre-Qualification Help for Arizona
Why get prequalified and then preapproved for a mortgage before you begin your search for a home? Because there are 3 people who will benefit from your preapproval: You, your Agent, and the seller from whom you eventually buy a home! You: The most important beneficiary, of course, is you. One of the most common questions we get from users of this site goes something like "Please let us know how much house we can afford." There are simply too many variables--credit history, income, debt, special mortgage programs and variations in qualifying guidelines between different mortgage types--to answer that question. The only sure way of getting the question answered is through prequalification. The mortgage prequalification step is a relatively simple one. It begins the process of formally applying for a mortgage, and it gives everyone involved--especially you--a clear sense of the direction you should be headed. It positions you to be able to make an offfer when you find the right property.
Your Agent: By knowing what your financial parameters are, your Agent can spend more time looking for houses that "fit" and less time pursuing dead ends. No matter how much you might want a 4000 square foot home for $275,000, if your qualifications say $125,000 that is reality!
The Seller: Want to strengthen your bargaining position? Want to be able to make an offer? Get prequalified. Sellers often won't thak an unqualified buyer. Want your offer to stand out in a case of multiple offers for the same house? Get prequalified. Look at it from the seller's perspective. If you had 2 offers on the table for your house, one from a fully prequalified buyer and the other from an "I'll get around to that soon" buyer--to which offer would you devote the most attention? Even if the prequalified buyer's offer was $1000 less, would you take the chance on the buyer that perhaps may not be qualified? When it comes to a seller evaluating offers, "a bird in the hand..." definitely applies.
It is important to remember that the amount of mortgage you will qualify for is the maximum . It is the amount that the lender feels you can afford , but it is not necessarily the amount that you want to pay . It is advantageous sometimes to be conservative here. For example, if you qualify for a $100,000 mortgage and you have $15,000 available in cash for down payment and closing costs, you are qualified to buy homes with a maximum selling price of $115,000. So as to not push yourself to the limit, you may want to look at homes that sell in the $100,000 to $110,000 range. Too many buyers simply rush off to the $115,000 level and some find themselves strapped and unable to pay closing costs which can amount to 3-6% of the purchase price. It also does not include money to purchase necessary items (such as refrigerators, washer/dryers, draperies, additional furniture, lawn and garden tools, for example). And forget to factor in increases in monthly expenses (for example home owner association fees, utilities, pool chemicals, and maintenance and repair costs).
Our lender partners can answer these critical questions and guide you to the loan that best fits your qualifications!
Do you have need for home loan financing services for Buckeye, Carefree, Cave Creek, Litchfield, Fountian Hills, Gilbert, Glendale, Goodyear, Peoria, Paradise Valley, Peoria, Buckeye, Goodyear, Avondale, Sun City West, Buckeye, or Tempe? If so, please use the simple form above.
Home financing is a critical first step of any real estate transaction. Below you will find some outstanding mortgage information that may be able to help you with the purchase of your next home in Buckeye, Avondale, Litchfield, Gilbert, Peoria, Tempe or other surrounding Maricopa and Pinel County, AZ areas.
USDA - Rural Housing Development Financing (0% Down) The United States Department of Agriculture has for years made ZERO down financing for homes located in rural areas. While this "rural" location may not sound appealing at first, the areas depicted on their maps have, in many cases, crept into suburban metropolitan areas. In the Buckeye metro area, Goodyear, San Tan Valley, Buckeye, Goodyear, Buckeye and even Maricopa have addresses that qualify. I and your lender have access to the USDA website to determine if the property you're considering qualifies for this loan program. With NO MONEY DOWN, a buyer can purchase a home and possibly finance even their closing costs!
FHA - Federal Housing Administration (3.5% Down)
FHA is an old, but now popular option to consider when purchasing a home with little money down. Currently, FHA requires a down payment of 3.50%. While it isn't ZERO down, it is definitely an affordable option for homes located in a metropolitan area. The maximum available FHA loan size is currently $346,250 for Maricopa County Arizona. Benefits of FHA financing include reduced monthly mortgage insurance and low market interest rates. Also, FHA allows the borrower to obtain their down payment from a gift. These gift funds can come from a relative, church, non-profit entity or even an employer. To further reduce required funds, the seller is allowed to contribute to the buyer's closing costs as well.
Special 1% Down FHA - Available only in Arizona (1% Down) Please ask us for details and the lender contact.
VA - Veterans Administration
The VA allows a qualified veteran to purchase a home with ZERO down as well and has offered this program for years! Interest rates for VA loans may be slightly higher than FHA loans, but they are well within market guidelines and offer veterans a terrific opportunity to finance their home. Check with your lender to find out details on the VA guidelines to be sure.
Conventional Loans
Convential loans are available up to $417,000 generally with 20% down. Interest rates are attractive.
Jumbo and Super Jumbo Loans
A jumbo mortgage is a mortgage with a loan amount above the industry standard definition of the conventional, conforming mortgage loan limit maximum ($346,250 for Buckeye, Avondale, Peoria, Maricopa and Pinel County Region) . This maximum is set by the largest secondary loan market lenders. Not all lenders are positoned to handle these loans.Downpayments can range from 20%-35% depending on the lender and borrower's FICO score and documented income. Interest can be higher than a conventional loans by 0.25% to 1.5%. These loans need to be shopped to get the best deal. Please inquire.
Other Down Payment Assistance Programs As a result of the mortgage meltdown and government stimulus programs that have sprouted, there are many agencies that offer assistance to help you in your home search and reduce your down payment requirements. While these may reduce the funds you need out of pocked, some place a 'silent second' on your home, meaning they may be required to be repaid at a later date. Examples are: Neighborhood Stabilization, Home Path, Home Free, American Dream, CAMP, Home in Five, HUD Repossessions
For assistance on these program requirements, contact your lendertoday or call us for assistance. You'll be glad you did!
