 Arizona FHA home loans have become one of the most popular options for buying a family home, especially for those who have a limited budget and simply cannot afford large down payments. This is the best method to use if your want to get more home than what you could afford with Fannie Mae or Freddie Mac.
The debt to income ratio to qualify for a loan is at 55%, which means that much of your income can be used to qualify for an FHA loan. With Fannie and Freddie, the DTI is capped at 40%, which means you can get quite a bit more home with an FHA loan.
Arizona FHA home loans simply make the entire process easier, especially for those who have a difficult time qualifying for other loans. For instance, if you owe medical bills it is not required that they be paid, and your credit score does not have to be perfect. If you have had a verifiable job for at least two years, you most likely meet the requirements as this is the most important one.
Another benefit for you as a consumer is that these loans are allowed for purchasing bank owned homes, or homes that may have been foreclosed upon. What does this mean for you? That you may be able to purchase a home at a fantastic price. The only exceptions here is that if you do buy an REO listed home, you must live in it within 60 days of closing, and stay in it for at least one year.
The current economic conditions have left many people short on money and wondering how they can pay their bills. Buying a home is completely out of the question for many people, but this is an affordable way to get a great home if you qualify. The truth is, prices will never be lower and in fact will be higher in the near future as the economy improves.
If you are looking for a home for you or your family but don’t know if you qualify, learn for about Arizona FHA home loans. You just may be the new owner of a beautiful home of your own sooner than you think! Interest rates are low, and it is super easy to find out if you qualify. Don’t wait any longer, you may not be able to afford as much home one year from now as you can while prices are at rock bottom!
Also be sure to check out the Your Way Home AZ Program and the Arizona state housing tax credit that is potentially available!
The Federal Housing Administration has many mortgage and loan programs that are designed to help people buy and improve their homes. While most FHA loans have requirements to ensure that homes bought with FHA loans are energy efficient and conform to safety standards, the Energy Efficient Mortgage Loan program is specifically designed to help homeowners lower monthly utility bills and make energy improvements that will make a significant impact on our planet.
The FHA EEM Loan makes it easier for homeowners who would like to make their current or new home more energy efficient by eliminating the need to get an additional mortgage loan to cover the cost of improvements. Homeowners can access EEM loans through an Arizona FHA mortgage lender either when they purchase a new home or by refinancing the mortgage on their current home. According to the Joint Center for Housing Studies, over 250,000 more homeowners could qualify for a home loan if the amount of savings on utility bills is considered when deciding on the amount of the mortgage.
How an FHA Energy Efficient Mortgage Loan Works
Like any other FHA mortgage loan, the EEM Loan helps people who may not have qualified for a home loan under conventional underwriting guidelines. The FHA insures loans made by qualified lenders to qualifying borrowers on properties that include single family homes, manufactured homes and some multi-family properties.
FHA EEM loans are available to borrowers who qualify for a fixed rate mortgage loan under the FHA 203(b) mortgage loan and are able to make monthly mortgage payments. The program allows home buyers to roll closing costs and other costs into the total loan amount. In addition, the cost of adding energy efficient features and an estimate of energy savings are determined by an energy consultant. The cost of the energy inspection report can be included in the mortgage amount. Finally, a lender may take energy savings costs into account when determining the size of a mortgage for which the buyer qualifies.
What Can Be Covered Under an Energy Efficient Mortgage Loan
A homeowner can use an Arizona FHA EEM loan to make changes and repairs that improve the energy efficiency of a home as long as the total cost of those improvements is less than the total dollar value of the energy that will be saved during their useful life. There is a limit of either 5% of the property’s value up to $8,000 or $4,000, whichever is greater. So if your property is valued at $100,000, the limit of the financing allowed is $5,000 since 5% of the property value is greater than the $4,000 limit.
In addition, an EEM can be used to allow a home buyer to qualify for a larger mortgage if the property meets certain energy efficiency standards because the lender can offset energy savings against traditional mortgage costs.
Who qualifies for an FHA EEM?
Any buyer who qualifies for a FHA home loan qualifies for an EEM. The Energy Efficient Mortgage is meant to give a buyer additional benefits on top of a traditional mortgage deal. It can be used with an FHA loan, an FHA 203(k) loan, a VA loan or any conventional loan.
Because of the recently passed 2009 federal housing tax credit, many people are taking advantage of the opportunity to purchase a home this year and save money. The bill states that you can receive a tax credit of 10% of the purchase price of your home up to $8,000. The money you’ll save by purchasing a home this year will give you the opportunity to pay for additional expenses you may have in the short-term.
In addition to saving homebuyers’ money in the short term, the 2009 federal housing tax credit is also saving homebuyers’ money for the future as well. Unlike the 2008 tax credit that Congress passed for housing, the 2009 housing tax credit does not have to be repaid. You will not be charged later on in your taxes or through any other means. This is a true tax credit in that the government is giving you, risk-free, the opportunity to purchase a home for a better price this year alone. All you have to do is purchase the home before the first of December this year.
If you’re unsure of whether or not the home you buy will make you eligible for the tax credit, you likely have nothing to worry about. The tax credit works for any type of home you purchase this year so long as you will be using it for your principal residence. You can only have one principal residence, so any other homes you may purchase in addition to your first this year will be counted as secondary properties. It isn’t uncommon for real estate investors to purchase multiples homes in a year in order to earn a profit from resale or renting. This may be a wonderful opportunity for you to make extra money, but just keep in mind that you can only be eligible for the tax credit for your principal residence.
All types of homes purchased for principal residence this year are eligible for the 2009 federal housing tax credit. Some of these homes may include single family residences and condominiums. Others might include trailer homes or even house boats. The home you purchase does not have to be new. You may be purchasing a Victorian style residence that dates back hundreds of years. No matter what type of home you purchase this year and no matter where it is located, it will be eligible for the 2009 federal housing tax credit.
The only thing you’ll have to determine is whether or not you are eligible for the tax credit. In order to determine your eligibility for the 2009 federal housing tax credit, you should speak with a mortgage expert in your area for all the details. You aren’t required to have a high credit score in order to receive the tax credit. Many first-time homebuyers are taking advantage of this great deal while they can. One of the only universal factors that could affect your eligibility for the tax credit the amount of income you make each year. The income limits for married taxpayers is $150,000 between the two. For single taxpayers, it’s $75,000.
If you are an Arizona resident, consider getting your Arizona home loans from Mani at FHALoanAZ.com. He is an experienced loan officer that can find discounts and benefits to ensure you get the best mortgage for your money.
Article by Dataflurry Arizona website marketing
If you invest in real estate, there are many good reasons why private money loans may be the solution to funding your projects. While there are quite a few options available, you should be aware that many are either hard to obtain, require tons of paperwork, or qualifying.
Private money loans are preferred rather than conventional financing for most real estate investors. Conventional financing requires a good deal of paperwork and are your standard fixed-rate loans that you obtain from your bank. These can be very time consuming.
Why are private money loans the best option for real estate investors? You, as the borrower, are able to custom fit an agreement that will meet your needs and the needs of the individual that lends the money. A little research will help you find potential lenders you can meet with to discuss your needs and theirs.
When you meet with a group that offers private money loans, they will want to know how you will put their money to work as well as how safe their money will be in your possession. Have a plan ready, so that you can inform them of what they can expect to get back. If you are prepared with a solid plan, they will feel secure in loaning you their money.
Another good fact about choosing this option is that your credit is not put at risk, and you don’t have to deal with the banks. There is no qualifying as there is with a conventional loan, and the entire process is much simpler, without all the hassles of waiting for paperwork to come through.
When you invest in real estate, it requires fairly quick action, which is something you don’t often see when dealing with the bank. There are plenty of other good reasons to deal with private lenders, other than real estate dealings. Building a good relationship with your lender can be very beneficial for other reasons.
If you have a good, long-standing relationship with your investor, it will benefit you later on when you want to borrow for another reason. Suppose you want to buy a boat or RV? Your credit record is clean, making it much easier to obtain a loan when you visit the loan officer at your bank.
Real estate investing is a great way to earn an income, but you can make the entire process much easier. Learn more about why private money loans are a good option, and will help you avoid some of the problems that typically occur when using other methods.
If you are looking for investor loans, private money loans or FHA Loans, consider Mani Bongiovanni. Contact him at 480-390-2123
FHA loans have become one of the most popular types of financing that both new and veteran homebuyers are using to buy houses in Arizona. In addition, the current low in real estate prices is making it an ideal time for many to buy homes, often for thousands less than you would have paid only a few months ago. Buying your own home can also potentially save you thousands of dollars in the future, and perhaps even the present.
One of the more significant benefits of buying a home with an FHA loan in today’s real estate market is the incredibly low prices for which many homes are now selling. It isn’t hard to find houses in the Phoenix metro and other areas of Arizona that were previously selling for $400,000 – $500,000, now priced at $300,000 and under. With homes prices being offered at such low costs, it could potentially be more expensive to rent than to buy.
Renting may seem like the only viable choice you have when it comes to your living arrangements, but that might not be your sole option anymore. With homes priced so low in Arizona’s current real estate market, the dream of buying your own home could come true more quickly than you realize. Buying your own home can help you build equity, increase your credit score, and acquire better financial standing overall. Renting does not allow you to build any type of equity to your name and may do substantially less to help your credit score and financial standing than buying can. Banks and other financial officials often view homeowners as being more financially stable and responsible than those who rent and have never owned their own property. If you want to be recognized by your potential lenders as a responsible and stable person, worthy to be offered other loans and incentives for the things you need, you should consider buying now while the real estate market continues to favor new buyers.
Rental payments are usually more expensive than regular mortgage payments unless you sacrifice quality for quantity. For example, in today’s market you may be able to find a beautiful, four-bedroom, three-bath home to buy that, on average, may require $1,000 rent each month for the mortgage. In order to only pay $1,000 per month for a rental property however, you would likely have to sacrifice one or more of the bedrooms, as well as one of the bathrooms in the home. Renting a four-bedroom, three-bath home, would likely increase your payments to $1,500 per month. When you pay rent, you pay the mortgage and accumulating interest, just as you would a home you bought yourself. But when renting, you also pay additional funds each month to give your landlord incentive to keep renting. Buying a home entails repaying your lender with an accumulated interest; renting a home also requires that, plus some extra for your landlord. Is it really worth it to pay extra for a rental property when you won’t even be able to claim it as your own once the mortgage has been entirely paid? Will you even know when that happens? Likely not, because you will always be paying payments to your landlord, regardless of whether any of that amount is being paid toward the mortgage.
http://www.fhaloanaz.com
FHA loans are going to continually increase in popularity with many new homebuyers in Arizona. Most of the homes for sale in this sunny state are selling for a better price now than they have in the past two decades, making it an ideal time for many who previously could not afford to buy a home, to dive in take advantage of the lower costs. There are many reasons why buying a home is a wise and prudent option for many residents here, the most popular of which is the fact that owning your own home provides stability and peace of mind that perhaps no other major investment can surpass.
The benefits of buying a home are substantial, the first of which is that the home becomes yours. When renting a house, you may feel cozy and at home while you’re living there, but once your lease is up for good, you have virtually nothing to show for the time you spent there. You pay the monthly mortgage payments and care for the home, but all the while you recognize that it’s not your home in the long run. You acquire no equity in a rental property, and you therefore do not exhibit any ownership over it other than the fact that it is a place in which you dwelt for a time. Owning a home changes all that. Although you are paying monthly payments, just as you did in your rental property, these monthly payments are going towards your ownership over your property. And unlike a rental property, at a future date and time you will no longer have a monthly mortgage payment to worry about in your own home.
Another benefit of buying your own home with an FHA loan is that it could be less expensive in both the short-term and the long-term to buy, rather than rent. If you buy a three-bedroom, two-bathroom home in the same neighborhood in which you were previously renting one of equal size and value, you will almost certainly pay less in the monthly mortgage payments. This is because rental properties are used by real estate investors as an investment property. They will not simply charge you the amount due by them every month for the mortgage payment. Rather, you will be paying above and beyond the mortgage payment to a certain extent each month so that your landlord can acquire a profit from his or her rental property. This means that despite closing costs and down payments that are required with the purchase of a home, you may still be saving money in both the short-run and the long-run by buying instead of renting.
Your home can truly be all yours with no strings attached once you’ve paid off your mortgage. You may discover that owning your own home and accumulating equity in it is one of the best decisions you’ll ever make in your lifetime. But home ownership is an incredible investment that you may not only be making for yourself; you could potentially pass your home on to your children and even your grandchildren, spanning much farther than your own lifetime to help your posterity for many generations to come.
Joel McLaughlin
Serving major cities including: Scottsdale, Glendale, Mesa, Tempe, Phoenix & More
If you’re a seasoned real estate investor in Arizona, you already know how beneficial an Arizona investor loan can be when you’re purchasing a secondary residence. Secondary residences are generally used by Arizona real estate investors as investment properties, and can potentially add a hefty amount of new income to your portfolio, depending on what you want to do with it once you’ve bought it. Arizona is a particularly popular state in which to invest in secondary properties because of the growing number of new residents that move here each and every year.
Many real estate investors choose to get an Arizona investor loan in order to purchase a rental property. Rental properties are becoming an increasingly popular investment for many real estate gurus because many homes are priced lower now than they have been in nearly twenty years. Rental properties are also popular investments because there are some people who for one reason or another do not wish to buy a home, despite the excellent prices on many properties right now. Perhaps the most significant reason for this is the summer heat. Many people enjoy Arizona during the moderate winter months, but few nonresidents can reconcile with the sizzling summers. For many people, renting in the winter is a great counter-option to buying a home in Arizona and living year-round.
Turning your secondary residence into a rental property can be incredibly beneficial investment. The winter months in Arizona are an especially advantageous time to rent because of the number of snowbirds that travel to this warm and sunny state. Retirees and warm weather seekers flock to our state by the thousands throughout the months of October and November, and typically stay until at least the late part of April or early May. Many of these snowbirds, wishing to remain in the same home winter after winter, will opt to rent a home throughout the summer months as well, even though they aren’t in the house during that time. They do this for stability purposes and because many landlords allot year-long leases on their rental properties.
Another reason Arizonans are buying secondary residences is to refurbish the property and rent it out for a higher amount than their payments. There may be certain restrictions that apply to investor loans when the property is intended to be used as a flip project, so you need to discuss all of your investor loans questions with a well-informed and knowledgeable investment loan officer. In order to determine what, if any, restrictions apply to obtaining an investor loan, you should speak with an experienced and reputable real estate loan officer and investment specialist. He or she will be able to inform you of the specifics of any type of investor loan you may need to finance your secondary property in Arizona.
Joel McLaughlin – Article written & distributed by Dataflurry
Many residents of Arizona are realizing the overwhelming benefits that can come with financing a home mortgage using an FHA mortgage loan. Just some of these advantages include lower down payments, small closing costs, cost-effective mortgage insurance, and virtually no requirements on your credit score. Many find that for several years following a bankruptcy or home foreclosure, they’re unable to get traditional mortgage financing for a home. However, it only takes two to three years following a bankruptcy or foreclosure to qualify for financing with an FHA loan.
FHA loans are not provided by the government, but rather are insured by the government. The FHA guarantees that a home mortgage loan won’t default if the borrower is unable to continue making payments. This insurance dramatically reduces the risk that lenders face when advancing a mortgage loan. Because of this reason and others, the down payment on an FHA loan requires a certain percentage of your total loan down. Typical mortgage loans can require up to 20% down, but with FHA there is some leniancy, you should contact a loan specialist to find out the exact amount required as a down payment. The great news is that right now several large benefits are offered by the government to make it easier to get in to a home! When you’re buying a home for potentially hundreds of thousands of dollars, you can experience major savings financing with an FHA mortgage loan.
One of the most common reasons why so many people are unable to become homebuyers has to do with their credit score. Virtually every traditional mortgage loan requires that a potential homeowner have a decent credit score before they can qualify to buy a house. This makes sense, of course, but it can be very discouraging for those who, though they’ve been through rough water financially, are working to create a better credit score. This process can take time, and being unable to finance a home for your family and to help your credit score rise further can be frustrating. Luckily, with an FHA loan, your credit score doesn’t have to be perfect. In fact, most of the time there are no credit requirements at all to consider in qualifying for an FHA loan.
Although there are typically no credit score requirements to consider when applying for an FHA loan, there is still the typically debt-to-income ratio to consider. Although having proportionately balanced levels of debt and income is ideal when qualifying for any type of financing, FHA loans are more relaxed in debt-to-income ratio requirements than regular mortgage loans. So although the ratio is still important, again, you don’t have to have perfect financial standing in order to finance using an Arizona FHA loan.
If you already own a home and would like to experience the benefits that have just been described, it isn’t difficult to refinance with an FHA mortgage loan. It is even possible in certain cases to refinance two separate mortgage loans into one FHA mortgage loan. Since these loans are regulated by a government agency, it’s only possible to finance with one of these loans at a time. For secondary residences and such, you will either have to go with a traditional mortgage loan or an investment loan.
Also, investors should check out http://www.investorloans.org
With a plethora of lenders and loans to choose from here in Arizona, it may seem intimidating to some to apply for an investor loan. What qualifications do you need to finance with an investor loan? What types of loans are the best, and how do you determine that you’re being offered a premium interest rate? These are just some of the questions that both seasoned and potential investors face in today’s real estate market. Before contacting a lender, you should perform some of your own research to get an idea of what you can expect from real estate investments.
Find the Right Lender
There are many investment loan lenders in Arizona, but it doesn’t necessarily have to be a chore to find the right one for you. You simply have to know what to look for. Experience is an essential characteristic of a lender, so make sure you find one with background that demonstrates his or her success, as well as the success of past borrowers. Your lender should also be incredibly knowledgeable about the types of loans that are available to you for financing your secondary property.
Determine a Premium Rate
With the help of your lender, determine the best rate that is available to you for your secondary property. Interest rates for secondary properties are based on a rates-and-points system. Points represent the interest payments you advance for your loan, with one point being equivalent to one percent of the total loan. The more points you pay up front, the better rate of interest you will acquire on the overall loan. For example, if you decide to pay one point of a $200,000 loan up front, you will be paying advanced interest on the loan to lower your interest rate. The more interest you pay in advance, the lower your interest rate will likely drop. You will be able to more accurately determine the best interest rate and points payment for your loan by first determining the type of loan with which you will finance your secondary residence. Often times, points are beneficial if you plan on keeping the property for an extended period of time.
Get the Best Loan
The most popular types of loans that investors use in Arizona are fixed-rate mortgage loans and ARM (adjustable-rate mortgage) loans. ARM loans are typically used by those who do not plan on keeping their secondary residence for longer than a few years. Fixed-rate loans, on the other hand, are typically used by those who plan on keeping their secondary residence as a long-term investment. Your investment lender will be able to help you determine which of these loans is best for your property.
Qualify and Apply
To qualify for an Arizona investor loan, there are certain restrictions that may apply aside from the basics you’ll need to apply for any type of loan. A good credit score is always helpful in applying for mortgage loans, and your debt-to-income ratio will also be reviewed by your lender before you are approved. In addition, you will need to discuss the aspects of your employment history with your lender, as well as your current income and some of your long-term financial goals. Once you’ve been cleared by your lender as being qualified for financing with an Arizona investor loan, all you will have left to do is apply.
Did you know that with the recent economic downtown in the United States, it’s more affordable than ever to buy a home in Arizona? It’s true. Many people don’t realize how affordable homes really are now in this sunny state. In fact, many homes here have become more affordable than condominiums, townhomes, and even apartments. If you’re interested in investing in Arizona real estate for a profitable future, you need to know as much as you can about investor loans.
Regardless of what type of home or homes you’re looking to buy, you will likely need help from an Arizona investor loan to finance your properties. Most people choose to invest in real estate in order to turn a potential profit. For this reason and others, investor loans are used simply for that—investing. These loans are not applicably used for primary residences as a normal mortgage loan would be. They are ideal for secondary residences for a variety of reasons.
First, there is an assortment of investor loan lenders out there to choose from. It’s important that you shop around for the best interest rates and points available to you. There will also be several loans types that you will likely be able to choose from, so it’s important for you to plan ahead for the future of your investor loan. That plan will determine which type of loan is best for your needs.
If you plan to buy a secondary property for the sake of renting it for a profit, your best choice is probably a fixed-rate mortgage loan. Fixed-rate mortgage loans are great for long-term financing because the interest rate remains constant throughout the loan period. Theoretically, if you begin with a 7% interest rate on your fixed-rate mortgage loan, the mortgage payments will also end at 7% interest. It really is that simple.
For other plans for your secondary property that don’t include renting it out, you may be better off getting an ARM (adjustable-rate mortgage) loan. An ARM loan is especially beneficial for those looking to keep their secondary residence for a short time; a few years, at the most. This is because ARM loans begin with a fixed-rate for the first few years of the loan. The starting rate is usually substantially smaller than that of a fixed-rate loan, which is why many choose to go this route. For example, if the average interest rate on a home is 7% with a fixed-rate loan, it probably wouldn’t be unusual to see an ARM loan with a beginning rate of 4%. Once the first few years have passed, you will periodically see an adjustment to the rate in correlation with the economy and the rest of the real estate market.
In short, now is a great time in the Arizona real estate market to buy both primary residences and secondary properties. With the vast amount of homes to choose from on the market today, as well as the historically low prices, it’s no surprise that many people who previously dwelled in apartments and the like are turning to Arizona investor loans to buy homes for the first time.
Joel McLaughlin
Learn more about Arizona Home Loans & Mortgages
Learn more about Investor Loans
Article written & distributed by Dataflurry
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