The Federal Housing Administration is an important part of the U.S. Department of Housing and Urban Development. They help people all over the country, including those looking to buy a home in Phoenix, Arizona, get affordable mortgages. With an FHA loan, you can qualify to buy a new home even if you have less than perfect credit or only a small amount of money saved up for closing costs and your down payment. This is a great way to get that Arizona home you've always wanted. After all, why rent when you can put the same money towards a mortgage payment instead and build equity?
If nothing else, FHA loans are flexible. With an FHA loan, you aren't directly lending money from the FHA. Instead, you are still working with a traditional lenders, but the government insures your loan so that you get a better deal. That way, instead of paying a high down payment to ensure that your equity will cover a lender's loss should you default, the federal housing administration guarantees that amount of money. With an FHA loan, your down payment could be as low as 3.5% without paying sky-high interest rates.
An FHA loan also can help you get the money you need for a home that is currently in poor shape. Instead of purchasing the house with one loan and then applying for a second loan for the costs of the repairs, the FHA will allow you roll all of these repair expenses up to $35,000 into a single loan. In addition, they can add closing costs and fees to the loan, making it even less expensive upfront for you to purchase a home in Phoenix.
New in recent years has been the FHA's policies on energy efficiency. Like with repairs, they are willing to insure this money along with your mortgage because it will, when complete, add to the value of your home. Arizona is a great place to explore solar options, as well as other renewable energy equipment, and with an FHA loan, these things are possible. Over time, you'll save thousands of dollars on your heating and electricity bills.
Not everyone qualifies for an FHA loan to purchase a Phoenix home. Due to the recent swing in the housing market, families applying for assistance typically have to meet reduced standards to qualify. Still, this is a great way to afford a home, even if your savings account is smaller than you'd like it to be. Don't let the down payment and closing costs stop you from house hunting. With the FHA, home ownership could be possible for you.
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