Arizona Mortgage Overview
Arizona ranks 6th in land
measurements in the United States and is the 14th most populated
state. Today there are more than 7 million people that live in the home of the
Grand Canyon, enjoying its incredible beauty and beautiful weather.
If living amongst the beauty of the Grand
Canyon interests you, there are many loan options to help you:
Arizona conventional loans
If you have great
credit (660+), low debt-to-income ratios, and at least 3.5 percent to put down,
a conventional loan offers the lowest rates and best terms. Conventional loans
require PMI until you owe less than 80 percent of the home's value, but then
you can cancel it.
Arizona FHA loans
FHA loans have the most
flexible guidelines and are great for first-time homebuyers. With a 580+ credit
score, you need just a 3.5 percent down payment and average debt ratio. FHA
loans also allow credit scores as low as 500, but with a 10 percent down
payment. They allow 'negative credit' in the past, and allow compensating
factors to make up for any negative issues.
Arizona VA loans
Veterans of the military have
a great program available. The VA loan offers 100 percent financing (no down
payment), and the most flexible guidelines. As long as you make enough money to
support the payment and your current debts, you're on your way to buying your
first home with the help of the VA.
Arizona USDA loans
If you prefer rural living
and make less than 115% of the area's median income, the USDA loan offers 100
percent financing for borrowers with at least a 640 credit score. You must live
in the home as your primary residence and buy a 'reasonable home' for the area.
First-Time Homebuyer Programs in Arizona
Home PLUS Down Payment Assistance
The Home Plus program offers a low-interest
30-year fixed loan and down payment assistance up to 5 percent that you can use
for your down payment and/or closing costs. You'll need at least a 640 credit
score and max debt-to-income ratio of 45-50 percent to qualify.