Buying a home in Arizona is always a dream come true. However, the process involved can be scary. Besides, the investment required can be significant. But did you know that Arizona home buying programs help first-time buyers save a considerable amount of money?
In this post, we analyze how to save money with Arizona home buying programs. Therefore, if you plan to purchase a home, but the finances require the dream to feel impossible, find out why you need to consider Arizona home buying programs here.
Requires A Lower Initial Investment
Arizona home buying programs often go by the name “down payment assistance programs.” These home buying programs feature low to zero downpayment requirements. Therefore, the homebuyer is relieved from saving money to reach the 20% downpayment requirement, familiar with the conventional home mortgage.
Offer Lower Interest Rate Compared To Conventional Home Loans
When applying for a mortgage, an applicant is likely to consider the interest rate. The conventional home loans charge a high-interest rate, making it difficult for most homebuyers to afford a home. Eventually, the total cost of buying a home is too high, and some willing buyers are forced to keep renting.
However, Arizona home buying programs feature a lower interest rate. In that regard, the homebuyers pay lower interest on the mortgage, making the overall cost of a property much affordable.
Provide Closing Cost Assistance To Homebuyers
The VA home loan is one good example of the Arizona home buying loans that roll on your closing cost into the loan balance. Therefore, the homebuyer can save money right now to buy furniture or property maintenance.
With VA home loan, the qualified borrowers can take up to 100% financing, hence roll the closing costs into the loan balance so that the closing fee is paid monthly.
Are you a serving or retired service member and planning to buy a home? Does the closing cost seem unaffordable right now? If you are looking for a home buying program that can roll closing costs into monthly mortgage repayments, check out the VA home loan and apply.
Easier To Qualify
Conventional home loans that feel so challenging to qualify can end up taking so much time and money, shopping for a mortgage lender. However, with a home buying program that is easier to apply, you can save time and money. Arizona home buying programs are easier to qualify. Therefore, whether it is the less-than-stellar credit score or a lack of enough down payment, you do not have to sell or spend so much time borrowing from friends to qualify for the home mortgage.
We have looked at different ways to save money through Arizona home buying programs. Now, let us look at various home buying programs available in Arizona.
FHA Loan Program:
Sponsored by the Federal Housing Administration, this loan allows borrowers to finance homes with a down payment of as low as 3.5%. The FHA home loans are incredibly popular with first-time homebuyers. The loan is available to borrowers with a credit score of 580 and above. However, with a down payment of 10%, borrowers with a credit score of less than 580 but higher than 500 can apply for the mortgage. Besides the credit score requirements, the FHA home loan requires mortgage insurance, while the debt to income ratio should be less than 43%.
USDA Home Loan
The second mortgage option in our list of Arizona home buying programs is the USDA home loan. Backed by the United States Department of Agriculture, this is a zero down payment home mortgage available to buyers in particular regions. The USDA mortgage is meant for the moderate-income homebuyers, allowing them access to lower interest rates. The Federal Government started the USDA home loan to encourage homeownership and economic developments within the rural areas.
The VA Home Loan
Available to service members, veterans, and eligible surviving spouses, the VA home loan is part of the federal government’s plan to support affordable housing for all. The VA home loan is backed by the Department of Veteran Affairs and helps the qualifying applicants buy, build, repair, retain, or adapt a home for their occupancy.
The VA home loan is another zero down payment home mortgage and allows borrowers to roll the closing costs into the mortgage repayments.
Concluson
The low downpayment and zero downpayment options we have looked at here help the homebuyers put up a home or buy a home in Arizona. As illustrated, they are available through different mortgage lenders and feature other qualification criteria.
