Real Estate

The Ultimate Guide for Home Buying programs in Arizona

You have probably spent a hundred of thousands of dollars renting a home in AZ, and now feel that its time to become a homeowner. The dream of buying a home in Arizona remains in the mind of many people.

Buying a home in Arizona is an intricate process and requires professional assistance. From choosing the best real estate agent to choosing the best mortgage lender up to the last stage of moving in, you need to make the right choices. However, for most homebuyers the issue lies in ensuring they choose the right home buying programs.

In this post, I present the ultimate guide for home buying programs in Arizona. Thus, if you are interested in knowing the best home buying programs for beginners, here we will guide you through the available options.

The first step when buying a home in Arizona is searching which home buying programs you qualify to apply. Therefore, take the time to research the available home buying programs available in Arizona. Here are some options you may want to look out when searching for a home in Arizona.

  • Conventional Home loan:

If you have a good credit score and you can raise the 20% down payment, Arizona conventional home mortgage is a viable option. The Arizona home mortgage lenders offer different rates and terms to those applying for conventional home loans.

The conventional home loans could have fixed interest rates or an adjustable interest rate. Sun American Mortgage offers 25 years, 20 years, and 10 years fixed interest rate options. Note that conventional home buying programs require a high down payment, which is usually 5% to 20%.

However, under special arrangements you could apply for a conventional home mortgage with as little as 3% down. Talk to your mortgage lender to find out about this option.

  • The FHA Home Loan

Federal Housing Administration is the largest insurer of residential mortgages in Arizona. Compared to the conventional home mortgage, the FHA offers less stringent requirements when it comes to applying for a home loan. In that regard, if you think you do not qualify for a conventional mortgage because you have a poor credit score or you cannot raise the 205 down payment, consider the FHA backed home loan.

The FHA home loan comes with the requirement to pay a mortgage insurance premium on your loan. Through the insurance premiums, the FHA can guarantee the mortgage lenders that they will cater to any unpaid mortgages.

  • The USDA Homebuying Program

If you are looking for a no down payment home buying program, the USDA is a good option. Backed by the US Department of Agriculture, the USDA home mortgage provides up to 100% financing to eligible suburban and rural homebuyers. The USDA home mortgage is intended to help moderate-income families and those having annual household income at or below 115% of the median income for the area. Thus, via the USDA home loan you can achieve the dream of buying a home in Arizona.

  • The VA Home Loan

The US Department of Veteran Affairs provides VA loans designed to help the active-duty military or the veterans to become homeowners. The VA home loans are available at zero percent down and do not require mortgage insurance. The flexible guidelines help homebuyers to achieve the dream of owning a home. However, the VA home loan is available to veterans, active military, and surviving military spouses.

Therefore, if you are ready to pursue the dream of homeownership in Arizona, consider either of the above home buying programs. However, there are a lot of important things you need to consider when it comes to buying a home through either of the above programs. Let us evaluate the important things you need to bear in mind.

  1. Focus on Improving Your Credit Score

 If borrowing a mortgage to build a home is the only left option, you need to make sure your credit score meets the minimum requirements. Although we have mentioned that different home buying programs provide less stringent requirements, you will need a good credit score to be considered by the mortgage lenders.

  1. Seek Preapproval

A mortgage preapproval is an important step in your home buying process. It guides you when it comes to determining your affordability. You can apply for mortgage preapproval from different mortgage lenders.

  1. Shop for Mortgage Lenders

Although different home buying programs are backed by institutions, mortgage  lenders have the privilege of setting mortgage interest rates. Shopping for mortgage lenders in your area helps to choose the best one among the rest.

  1. Work with a Reputable Realtor

An experienced real estate agent will help you to understand the different Arizona home buying programs. It is important that you search for the best real estate agents who understand the market well.

Are you applying for a home buying mortgage? Explore the possibilities of different Arizona home buying programs available at Sun American. Talk to our loan officer today for good advice when it comes to home buying programs in Arizona.