Arizona Home Loan Products Explained Here:

We explain Arizona home loan requirements in this article? We offer numerous loan products to suit your home mortgage loan needs.  These products range from no money down loan programs to low fico score borrowers.  To us, it doesn’t matter.  We have a loan program to suit you and or your families needs.

No Money Down Loan Programs:

On an Arizona home loan we offer the following no money down loan programs:

  1. VA Loans
  2. USDA Rural Housing Loans

Low Fico Score and No Reserve Programs:

  1. VA Loans
  2. FHA Loans

High Debt To Income Programs:

  1. VA Loans
  2. FHA Loans

CONVENTIONAL LOANS:

Most borrowers with a fico score over 620 and 5% for their down payment obtain a Conventional loan.  Conventional loans require less paperwork.  Interest rates are about the same as an FHA loan but the mortgage insurance premiums at this time are much cheaper.  If you have money, you might want to think about a Conventional loan rather than an FHA loan.  However, if you have any credit issue then an FHA loan is better suit for you because FHA allows you to have some credit issues.

INVESTMENT LOANS:

We offer financing on Investment property loans with unlimited properties for both purchases and refinances.  The debt to income ratio is based on your properties cash flow not your tax return.  If you write everything off on your tax return, that’s not an issue with this new loan product.  What’s the catch to this loan product?    Otherwise, the lender will not lend.  The lender will lend up to 75% maximum based on a maximum debt to income ratio of 80%.  However, because the debt to income ratio includes the borrowers total mortgage payment and the hoa fee most of our loans are capped at 65%-70%.  Very few borrowers are able to obtain a 75% loan to value ratio at this time because HOA fees in Arizona are high.  This loan program does not require the borrowers W-2’s, tax returns, or paystubs.  However, the lender will be pulling your 4506-t transcripts to verify your tax returns for the last two years.  Borrowersneed a high fico score.  Reserve requirements at this time are subject to 18 months on the subject property.  Then, let’s say you decide to refinance another property with this same lender, then you would be required to have a total of 24 months worth of reserve requirements.  Yes! They will be verifying your reserve requirements.  The funds must be in your bank account when the application is started.

INTEREST ONLY LOANS: 

Interest only loans are available but on non-qualified loan programs.  Therefore, the interest rate is going to be higher.  Interest only loans are not like they were prior to 2010.  Because new federal guidelines came out stating that all borrowers are to be fully qualified for the entire mortgage payment so that people do not default or go into foreclosure on any new loans, these loans now fall under the non-qualified mortgage program.  That means this rule doesn’t apply which then means lender have the right to charge more for this loan product because the risk is higher.  As a result interest only loans programs normally aren’t more affordable to borrower.  However, one still has to do the math to see if the cost savings is there for you or not because every single borrower has a different loan amount. If your loan amount is higher, it might be worth it.

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Article 1:  Arizona Home Loan