Arizona Mortgage Loans:

Mortgage loans are our specialty at Arizona Wholesale Mortgage Inc. in Phoenix Arizona.  We offer low rates on mortgage loans everyday on all our loan products throughout the state of Arizona and coming soon California.

No Money Down Loan Programs:

No money down mortgage loans are available on the VA loan, USDA Rural Housing loan, and FHA loan with grant programs if available.  VA mortgage loans  do not require any down payment money and  do not have any monthly mortgage insurance at all.  That is a huge advantage to this loan program.  This program is only available to Veterans who have serve or have served our country.

Secondly, the USDA Rural Housing mortgage loans are another loan option but they are only available in rural areas.  To see if a home qualifies as a USDA Rural Housing loan one must go to the USDA Rural Housing website and enter the property address.  This program also has income, fico score, and debt to income requirements.

Thirdly, FHA grant programs are down payment assistance programs sponsored by your local cities.  Every single City has different programs and requirements.  Down payment funds are available on a first come first serve basis.  That means funds tend to run out towards the middle or end of the year.  Most of these programs require borrowers to attend a First Time Home Buyer 8 hour counseling class. You need to meet with a counselor to see if you qualify.

Income Restrictions:

These programs have income restrictions.  They gear towards the First Time Home Buyer who does not make a lot of money.  If you have been in the work force for ten years and have a decent paying job chances are you won’t qualify.  You will be over the income requirement.  These programs tend to put a silent second on  your mortgage.  That means you can’t move or refinance before a certain time period.  Otherwise, you will have to pay the entire grant money back to the City.  The City also charges a fee for their service which is payable at closing.  The disadvantage to this program is  not all lenders approve this program.  That means your interest rate is higher than if you had just put the full 3.5% down payment amount down on your home.  Make sure you read the fine print with each City.

Conventional loans:

Currently, we have either the 3% or the 5% down program.  The 3% down programs all have income, fico, and debt to income ratio requirements.  It’s hard to qualify for these programs.  The 5% down program typically requires a middle fico score of 620 or higher since you have to qualify for mortgage insurance.  One need to have reserve requirements to qualify as well as a two year work history.  Being self-employed is not a problem as long as you can show income.  For example, receiving a weekly paystub, being 1099’d, or receiving a year end K-1 distribution.  If you receive a K-1 distribution then the lender will take a 24 month average to determine your gross monthly income.  If you write everything off on your taxes and do not receive a year end W-2 or 1099 then you would need a stated loan.

Interest Only Loan:

Interest only loans used to be a hot commodity about eight years ago when interest rates were really low.  However, due to all the strict government intervention in the mortgage industry interest only loans are not what they used to be.  With that being said, interest rates on these mortgage loans are higher.  It is not always cost beneficial to obtain one of these mortgage loans.  Since guidelines change constantly it would be best to call in and talk to a licensed loan officer and do the math to see if there is a cost savings.  Sometimes, it’s just better to obtain a traditional 30 year fixed rate where the rate is lower and the terms are locked in for 30 years.

 

 

http://www.azwm.com

Article 1:  Mortgage Loans