The thought of buying a whole house on your own, first time or not, can be downright SCARY! 😱 What’s the first step? What do I google? How do I save money? What if I am paying more than I should?
Whether you’re buying a home in Arizona for the first time or if you’ve done this before, let’s start by taking that pillow out of your mouth and breathe. We got you! We are going to BREAK IT DOWN so YOU become the expert home buying connoisseur you were always meant to be!
The whole process of finding the best Arizona home buying programs can be intimidating to say the least. However, with proper guidance, you can have the best experience ever.
To get you started, here are the most important things about Arizona home buying programs.
- Bad Credit? It’s okay!
If you are a first time buyer and you have a bad credit score, you are not alone. There are hundreds of borrowers with low credit scores. Remember those days when you needed a 20% down payment and a super perfect credit score to qualify for a St George Home loan? Well, those days are long gone!
Luckily, programs like USDA and Federal Housing Administration home buying programs help those with low credit scores buy a home.
For instance, FHA loans require 580 credit score while the down payment requirement is 3.5%.
Therefore, if your credit score isn’t high enough to pre-qualify for a conventional home loan, consider:
- FHA loans – credit score of 580 and 3.5% down payment
- VA loans – For veterans providing up to 100% financing and has no monthly insurance premiums
- USDA Mortgage – Available for rural and suburban homebuyers and come with zero down payments.
Therefore, if your credit score is worrisome and you do not have enough down payments, the above options could be great options!
2. Not all mortgage lenders offer all types of home buying programs
It is important to find out which lenders provide particular home buying programs you’re most interested in applying.
Remember that it is only conventional loans that are most common across all lenders. Therefore, when finding your best mortgage lenders in Utah, check whether they provide a suitable program.
Match your Budget with your Perfect Home
3. Arizona home buying programs have specific qualification guidelines
Know that various home buying programs have different guidelines and requirements.
Therefore, while you qualify for one, you may or may not qualify for the other.
- For instance, a Veteran buying a property in urban centers can choose to apply for FHA or VA loans.
Better yet, before starting the application journey, check with a loan officer to discuss the various alternatives you might qualify for.
4. Shop around for lower mortgage rates
There’s nothing wrong with shopping around to make sure you get the best home loan experience. Get a quote from at least three of the best mortgage lenders in Utah or Arizona. Check the interest rates and the additional costs to determine the total cost of the particular loan.
This should guide you when choosing the most affordable Arizona and Utah home buying programs.
5. Housing Assistance Programs
If you are buying a home in Arizona or Utah for the very first time and you qualify under the low-to-moderate income, you may qualify for the housing assistance programs. These are the programs that are meant to assist with the down payment or the closing costs. Therefore, it takes off the financial load. If you qualify for either, it makes the process of owning a home much easier.
6. No down payment? No problem
If the down payment requirement is a problem for you and you don’t want to apply for the housing Assistance programs, then you still have the no down payment home buying programs.
However, be aware that most home buying programs with no down payment requirements, will have a higher minimum FICO score. We advise that
7. Get pre approved before starting your house hunting journey
We know you want to starting searching for your dream home but let’s put a healthy pause on that. Just until you get pre approved first!
Although you may qualify for the no down payment home buying programs or even the low credit score Arizona home buying programs, it is important that you secure the preapproval letter.
Remember that the document will assist you when negotiating for a house you are interested in buying.
Now you know the important facts about the Arizona home buying programs. Make sure that you choose the best mortgage lenders.
We hope this blog eased any home buying worries you’ve had! Get excited about purchasing your dream home and don’t let unnecessary fears keep you from enjoying that.
If you’re looking for a top-notch mortgage team to work with, get in touch! Sun American Mortgage has been one of the top mortgage companies in the Valley for over 30 years and now we have office in Utah!
Thanks for reading, until next time!
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