Top 5 Benefits Of Getting An Arizona FHA Mortgage Loan

There are “Top 5″ lists all over the internet so I thought I would create one for the Arizona FHA Mortgage Loan showing the overall Top 5 Reasons people use AZ FHA Mortgage Loan financing over conventional.

Here is my Top 5 List for the AZ FHA Mortgage Loan:

1. A Low Down Payment – AZ FHA Mortgage Loans only require a 3.5% down payment.  And what makes that even more attractive is that it can be a gift from a relative.  Do you have a parent or sibling who would “Gift” you some money for a down payment?  If so, it could be time to apply for an AZ FHA Mortgage Loan.
2. Flexible Credit Qualifying – HUD did NOT set a credit score requirement for qualifying for an AZ FHA Mortgage Loan.  However many lenders in the market today have drafted “Overlays” that set minimum credit score requirements.  Most lenders like to see a minimum 620 credit score, but don’t get discouraged if you are not there yet.  If you are close to 620, it is often just as simple as reviewing your credit to determine how to quickly raise it.  If you are not close to 620, ask your FHA Mortgage Loan Originator if they have a program for you.  Chances are, there is!  Bankruptcies and prior foreclosures do not automatically disqualify you either.
3. The Seller Can Pay Your Closing Costs – That’s right.  You need to have a quality Realtor who will help you negotiate not only the best price for the home, but also that the seller will pay your closing costs.  HUD allows AZ FHA Mortgage Loans to have the seller pay up to 6% of the purchase price.  Sounds good so far, a down payment gift and seller paying closing costs!
4. Flexible Income Qualifying – The standard for income qualifying ratios is 31/43 which means that up to 31% of your monthly income can be used to pay your monthly household mortgage payment; and up to 43% of your monthly income can be used to qualify for ALL monthly expenses.  Those ratios can go up to 55% if you have good credit and a good income history allowing you to qualify when others might not.
5. Qualify Without Your Spouse’s BAD Credit – This is a tricky one but it is also not well known.  You can effectively qualify for an Arizona FHA Mortgage Loan without your spouse’s Bad Credit.  FHA will look at your spouse’s credit but cannot decline your loan due to your spouse’s debt or credit score.  So if you have a spouse with a crummy credit profile, you should take a look at AZ FHA Mortgage Loans to see if it will work for you.

Thanks for reading my list of the Top 5 Benefits of the AZ FHA Mortgage Loan.

I would LOVE to hear your comments or suggestions for this list, so please feel free to leave a comment below.

Apply online for an Arizona FHA Loan and get pre-qualified today. Or click the Get Started tab above, to get started today!

Have you read the 5 secrets to getting an FHA mortgage loan for home ownership published by HUD? There’s a secret out there about FHA mortgage loans that HUD wants you to know about. It’s so secret, that they published
an informational brochure but didn’t tell anyone about it.

The Secret Is OUT!

That’s right, HUD’s little secret about FHA mortgage loans is
out. And I’m proud to say that I bring the 5 Secrets to you now… so
buckle up, hold on to your seat… wake the neighbors and call the kids…

HUD’s 5 Secrets To HomeEconomics

Secret #1 – Organize

Set money goals and develop a plan to meet them. Decide what is
important to spend money on, and then save the rest for a down payment
(3.5% now). Basically, set a goal to save a certain amount of money
each month and then stick to it.

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Just when you thought it was safe to go out and buy a new home HUD has changed the FHA mortgage rules with Mortgagee Letter 2008-25 which is a response to the “Walking Buyer” and “Buy and Bail” trends in Arizona as well as the rest of the country.

A Walking Buyer (or Buy and Bail buyer) who has a home they cannot sell because they are upside down on the mortgage simply finds an affordable home and rents the current home. This helps them to qualify for the new home and then, once they move into the new home… they let the old one go into foreclosure.

Additionally, this fraudulent practice put yet ANOTHER FORECLOSURE HOME on the market and we just don’t need additional foreclosures out there bringing property values down further.

Under the old rules (up until a few days ago) it was acceptable to use rental income on your existing home to qualify for your new Arizona FHA Mortgage Loan.

There are certain circumstances in which the new rental income may be used to qualify for the new Arizona FHA Mortgage Loan.

There are 6 things FHA home buyers need to know about this change:

1. It is temporary
2. To use the income the home buyer must be moving to a new city
3. To use the income the new home must be outside reasonable commuting distance from the old home
4. To use the income the old home must be leased for at least one year
5. To use the income the home buyer must document the receipt of the security deposit
6. To use the income the existing home must have a 25% equity position

Apply for an Arizona FHA Mortgage Loan Now.
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FHA Loan Requirements have changed for borrowers who do not have an established credit history or do not have a credit score to qualify for conventional mortgage financing. The Federal Housing Administration (FHA) has allowed for borrowers who lack a credit profile with Experian, Trans Union or Equifax to use other types of credit to qualify for FHA mortgages. Other types of credit includes: rent, phone bills, cell phone bills, cable and utility bills, payments to local rent-to-own stores, etc. These changes will impact the ability for buyers to obtain FHA mortgage loan financing who lack a traditional credit history.

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