Buying A House In Arizona

How to Buy Your Home in Arizona with No Money Out of Pocket

The number one obstacle to buying a house in Arizona is not having enough money for a down payment.

These top 5 strategies will help you buy a house in Arizona with little to no money out of pocket.

1) See if you qualify for one of the various down payment assistance programs currently available in Arizona.

You can get the money you need for down payment and closing costs. Depending on where you are buying, you could receive as much as $20,000. Arizona down payment assistance programs are available with easy qualifying criteria and you typically do not have to be a first time home buyer.

2) Apply for a Zero-Down or Low-Down mortgage program.

There are a handful of home loans in Arizona that are currently available that require no money down or low money down. Each has different qualifying criteria, but they are not as difficult as you might think. They can be combined with Arizona down payment assistance to pay for your closing costs. This includes programs guaranteed or insured by the federal government and offered by local approved lending institutions.

3) Get seller concessions that will pay your closing costs.

Your down payment isn’t the only thing you have to consider; there are closing costs too. Many home buyers don’t know that it is customary for most mortgage programs that allow down payment assistance to also let the seller pay your closing costs. A savvy real estate agent knows how obtain seller concessions for you.

4) Look at the HOA contract before you make your offer.

It is common for homes in Arizona to belong to a homeowner association (HOA). HOAs establish rules to help maintain the community. Homeowners in the HOA pay fees to help pay the expenses related to running the HOA and maintaining common areas (ex. private parks). These fees are typically charged monthly, quarterly or annually. Some HOAs charge transfer fees or other miscellaneous fees when you buy your home. If you want to buy a home with little to no money out of pocket, you need to check to see if the home you are buying requires you pay these HOA fees upfront.

5) Shop around for cheaper homeowner’s insurance.

When you buy your home, you will have to obtain a homeowner’s insurance policy. It will pay off to shop around with different insurance agents to see who will offer you the lowest plan. This will save you money upfront and also lower your monthly mortgage payment. Like many different services, homeowner’s insurance plans are offered at different prices by different companies. Also, there are strategic ways to lower the cost of your insurance policy such as bundling it with your other types of insurance policies you are paying (ex. car insurance).

Limited or no savings doesn’t have to stop you from buying a house in Arizona. The first step is to find out what assistance options and loan programs you qualify for.