Federal Housing Administration loans, or FHA loans in Prescott, AZ, are a type of home mortgage option guaranteed by the government. The goal of its establishment is to help low-to-moderate-income families realize homeownership. FHA loans are specifically popular for those buying a home for the first time. Because they usually do not require a downpayment and can accommodate even those with lower credit scores, FHA loans have become more and more attractive.

FHA eligibility requirements

You increase your chances for approval if you meet the following requirements:

• FICO® score at least 580 = 3.5% down payment.
• FICO® score between 500 and 579 = 10% down payment.
• MIP (Mortgage Insurance Premium ) is required.
• Debt-to-Income Ratio < 43%.
• The home must be the borrower’s primary residence.
• Borrowers must have a steady income and proof of employment.

FHA loans are a good option for first-time homebuyers who may not have saved enough for a larger down payment. Even borrowers who have suffered from bankruptcy or foreclosure may qualify for an FHA-backed mortgage.

FHA Loan Limits

Much like other states, FHA limits in Arizona vary based on several factors, such as housing types, location, and the cost of local housing (Check out the  FHA limits for 2024)

Choosing the right mortgage company

Plenty of mortgage companies offer FHA loans in Prescott, AZ, today. The question is, how can you find one that delivers its promise? Here are some tips:

• Make sure you are dealing with a licensed mortgage company.
• Consider those with long industry experience (decades in business preferably)
• Read reviews to get insights into the company’s reputation as a lender.
• Include in your list of prospects recommended by reputable institutions in the mortgage industry (you can start by scouring the ranking provided by some online finance websites like Bankrate, LendingTree, and NerdWallet).
• Check on how much the mortgage company charges

—

Are you looking for a reputable company that offers FHA loans in Prescott, AZ? Look no further than Homeplus Mortgage. Call us today at 800-810-PLUS (7587) for inquiries.