FHA Mortgage Arizona

FHA Mortgage Arizona loans are often used with down payment assistance and first-time home buyer programs because they have flexible qualifying criteria and great interest rates. FHA loans are intended to help people overcome the barriers to homeownership and finance their first house. As such, they are popular with recent college graduates, newly formed households, low-to-moderate income earners, first-time home buyers, and those who have had past credit challenges.

These barriers include:

• saving for a down payment,
• a new job or career,
• or past credit problems

Perhaps you have been through a financial crisis in the past such as a bankruptcy, foreclosure, or short sale. FHA mortgages are still a viable option. As a reminder, you don’t have to be a first-time home buyer to qualify for an FHA loan with down payment assistance in Arizona. Depending on your personal situation (foreclosure, short sale, etc.), the waiting period will be different. However, FHA loans are known for offering shorter waiting periods than traditional conventional loans.

It should be noted that FHA loans are not strictly for first-time home buyers. They can be used to buy a second house (so long as it is used as the primary residency) or to refinance. Depending on the buyer’s credit, down payments can be as little as 3.5%.

FHA loans are advantageous for the following reasons:

• great interest rates,
• no income limits
• flexible qualifying guidelines
• seller can pay closing costs (up to 6% of sales price)
• gifts are allowed
• no prepayment penalties

FHA Home Plus Program

The FHA Home Plus program is offered anywhere in Arizona other than Maricopa and Pima Counties. Many Arizona home buyers choose the FHA Home Plus Program with down payment assistance because they are typically easier to qualify for than conventional mortgages. They have many advantages that make them attractive to Arizona first-time homebuyers.

Program Highlights:

• Down payment assistance options between 2% and 5%. You can choose what is best for you based on your loan scenario.
• Minimum FICO score is 640.
• If using an FHA loan with Home Plus, the maximum loan amount depends on the FHA loan limits in your county
• Maximum income of $136,609
• Maximum debt-to-income of 45% and 50% if your FICO credit score is above 680. 

FHA Home In 5 Program

You should consider the FHA Home In 5 program if you are buying a house in Maricopa County and need help with down payment and closing costs. This program has been very popular for the past few years because it is a great down payment assistance program.

Program Highlights:

• Assistance for down payment and/or closing costs up to 5% of the mortgage balance. 6% for qualified Veterans, active duty Military, active Reservists, active National Guard, First Responders and Teachers.
• The assistance money is actually available. Many down payment assistance programs run out of funds within a short period of time.
• You do not have to be a first-time home buyer.

How to Qualify:

• Buy a house anywhere in Maricopa County, including in the City of Phoenix.
• New or existing single family homes, 2 to 4 unit homes, condos, town homes, and manufactured homes.
• Minimum FICO score is 640.
• If you are buying a manufactured home, the minimum FICO score is 660.
• Income from all borrowers may not exceed $138,600.
• Qualify for an Arizona FHA loan with a maximum debt-to-income ratio of 50%.
• Take an easy online homebuyer education course.

FHA Mortgage Pima Tucson Homebuyer’s Solution

The Pima Tucson Homebuyer’s Solution can be used with an Arizona FHA mortgage and has benefits similar to those offered by the programs listed above, offered in all of Pima County, including the City of Tucson.

Program Highlights:

• Down payment assistance options available 0% and 4%. You can choose what is best based on your loan scenario.
• There is no first-time homebuyer requirement.
• The money is available and has continuous funding.

How to Qualify:

• Buy a house anywhere in Pima County, including in the City of Tucson.
• Minimum FICO score is 640. Different loan and dpa amount scenarios may require a higher score.
• Income from all borrowers may not exceed $126,351.
• Qualify for an Arizona FHA loan with a maximum debt-to-income ratio of 50%.
• Take an easy online homebuyer education course.

FHA Loan Limits Arizona

It is important to know the Arizona FHA loan limits because they impact a variety of down payment assistance programs offered in Arizona.

You can view the FHA limits in Arizona here.

Waiting Periods – Arizona FHA Home Loans

The following are the standard FHA waiting periods for the major derogatory credit events. Many home buyers seeking to obtain a FHA mortgage in Arizona may see or hear that there are shorter waiting periods due to the FHA Back to Work program. However, because of the restrictive circumstances needed, it is best to know the typical FHA waiting periods.

• Arizona FHA home loan after bankruptcy: The waiting period for getting an FHA loan after a chapter 7 bankruptcy is 2 years. The waiting period for getting an FHA loan after a chapter 13 bankruptcy is 1 year.
• Arizona FHA home loan after foreclosure: The waiting period for getting an FHA loan after a foreclosure is 3 years after the foreclosure.
• Arizona FHA home loan after short sale: The waiting period for getting an FHA loan after a short sale is 3 years.

Do you still want to know more about FHA loans?  Find out everything you need to know about FHA loans in Arizona here.

The lenders that are authorized to offer FHA loans that accept down payment assistance in Arizona are FHA-approved lending institutions and are not acting on behalf of or at the direction of HUD/FHA or the Federal government.

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