There are many great Phoenix area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a Market Analysis so you know what buyers will pay for your home in today's market. You may also call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions.
Today I am here with my preferred lender, Tom Ross, and we are going to be talking about some typical loans that you might run into. We want you to be prepared to make informed decisions when you decide to participate in the Phoenix real estate market.
First off, there are 4 main loan types: FHA financing, conventional, VA financing, and there is also jumbo financing. - FHA Loans: This loan requires the smallest minimum down payment of 3.5%. It will cap at $271,050 dollars, so buy whatever you want, but you're going to have to put down whatever it takes to get to that $271,000 mark.
- Conventional Loans: You can get this financing for as little as 5% down. The loan amount is up to $417,000 dollars, and the cost of conventional mortgage insurance at 5% down is typically cheaper than FHA mortgage insurance.
- With a 680 credit score, conventional should come out to cheaper monthly payments than FHA. If your credit score is under 680, FHA may be the best way to go.
- VA Loans: This is Tom's favorite loan product because they have a $417,000 dollar loan amount for 100% financing. There is no mortgage insurance and you also get better rates than conventional loans. They also have a great jumbo loan product available.
- Jumbo Loans: If you're in a situation where you need to finance a house that is worth more than $417,000 dollars, you will generally need to put down at least 20%. There are also other products that will get you in there for 10% down.
Hopefully this information has been helpful to you. If you have any questions about loans, then please give Tom a call at (602) 791-5861 or email him at tom.ross@novahomeloans.com. I refer all of our clients to him, and they are always satisfied with his services.
As always, if you have any comments or questions, please feel free to contact me. I am always willing to help with any of your Phoenix real estate needs.
