Arizona home loan
Introduction:
Whether you are looking forward to buy a new home in Arizona or relocating to Arizona from another state, you would be better advised to make a detailed study about the home loan market in Arizona before you decide to shop for one.Of late, cost of homes in Arizona has been more than double the national average. The median price of a home being $211,500, not too many can afford to purchase a median-priced home with a conventional loan. It is found that at many parts of Arizona, people pay more than the recommended 30% of their income towards housing. Also, in Arizona there is appreciable variation in the prices of homes in different parts of the city. For instance, in Scottsdale, the median price of a home is around $650,000, while in places like Tucson, it is much lower at around $350,000. Although the average interest rates in Arizona are below the national average, Arizona is among those places in the country where the affordability of homes is low.
Rules and regulations:
in Arizona, the real estate agent should present the buyer with a completed Real Estate Transfer Disclosure Statement, before the buyer puts forward an offer on a home. In this document, which is filled by the seller of the property, should have details of all items that will be included in the purchase (like TV, refrigerator, alarm system etc). The document also requires the seller to disclose any potential problems regarding the home and the included items that may cause any harm to the buyer in the future.
Arizonas Civil Code Provision of the Real Estate
Act regulates the issuing of variable interest rate loans for the purchase of real estate. As a result of which, those borrowers who have taken large mortgage amounts are guaranteed a fixed rate mortgage. In Arizona, charging of interest more than one day prior to the recording of the mortgage is prohibited by the law.A set of anti-predatory lending laws was enacted in Arizona in 2002, aiming to protect Arizona homebuyers from predatory lenders. It includes the prohibition of a lender from charging points and fees in excess of 6% of the total principal financed amount. It also prohibits a mortgage company from issuing an amount as a loan to a borrower who cannot be expected to be able to repay it on time. Another important clause in the set is regarding the prohibition of single premium credit insurance financing.If you are buying a home in Arizona, you qualify for both the federal and state loans. Those who are buying their first home, qualify for Arizona FHA loans with interest rate lower than that in the market, and depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals, who work in an educational institution, may qualify for Arizonas Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.
Government sponsored loan programs in Arizona:
1) FHA Loans: The FHA (Federal Housing Administration), which is a part of the U.S. Department of housing and urban Development (HUD), administers various mortgage loan programs. FHA loans, having lower down payment requirements and are easy to qualify for when compared to the conventional loans. The FHA loans also have a statutory limit which cannot be exceeded. Some of the FHA loan programs are given below.FHA Mortgage Insurance Program, which helps low and moderate income families to buy homes.
FHA Mortgage Insurance Costs: An FHA loan borrower will be charged a mortgage insurance premium equal to 1.5% of the purchase price of the property and a renewal premium of 0.5% in subsequent years.
FHA Mortgage Closing costs: closing costs can also be financed to reduce the upfront cost of buying a home.
FHA Streamline Refinance Loan: A program which makes the loan process simpler by reducing the amount of documentation that needs to be done by the mortgage company.
FHA Single Family Rehab Mortgage: it is a single family home rehabilitation program that enables to finance both the purchase and refinance of a house and/or the cost of its rehabilitation through a single mortgage.
2) VA Loans: VA loans are guaranteed by the U.S. Dept. of veteran affairs. The guarantee helps veterans and service persons to obtain affordable loans, usually without a down payment. The VA loans are also easily accessible than the conventional loans. Generally, the maximum limit for VA loans is $203,000.
3) RHS Loan Programs: The Rural Housing Service of the U.S. Dept of Agriculture guarantees loans for rural residents with minimal closing costs and no down payment.
Eligibility to get a loan: the lenders generally demand a proof of your income, that is your most recent pay stub and also the proof of your tax payment as well. Another factor that will be considered by the lender is your job stability, and you must be at least two years at your current job. Another fact that the lender will consider is your credit score, as it helps him know about your ability to repay the loan.In addition to the above, the documents such as your current balances for the bank accounts you have, information regarding debt, if any, value of items that are under your personal possession.
Licensed home loan lenders in Arizona: The following is a list of licensed lenders in ArizonaAdvanced Mortgage 2921 N.
Tenaya Way #124, NV,Las Vegas,
NV 89128702-807-4313Community First Bank1145 Artesia Blvd #202Manhattan Beach,
Ca 90266888-851-1866
Courtesy Mortgage Company2615 Camino Del Rio S # 400San Diego ,
CA 92108619-228-2000 Liberty Mortgage110 Pine Ave, Suite 240Long Beach,
Ca 90802800-377-7960 Maricopa Mortgage,
LLC4647 N. 32nd St. Bte: B-180Phoenix,
AZ 85018602-522-4224 Sterling Home Mortgage1600 N McCulloch Blvd Ste 4B4 Lake Havasu,
AZ 86403928-208-8407
Other Articles
