FHA loans are popular among Arizona homeowners because they are insured by the Federal Housing Administration.
Here are a few things to know about FHA loans if you are shopping for a new home loan in Mesa:
- Lower down payment requirement
- Fixed-rate and adjustable-rate loan terms
- FHA loans are typically capped, but some counties targeted for development qualify for a higher amount
- Buyers must meet a minimum credit rating to qualify
Some home buyers prefer FHA home loans because they sometimes have lower down payment requirements, and banks favor this mortgage option because there is less risk if the borrower defaults. FHA loans also offer more flexible terms for those who don’t have as much saved for a down payment or who don’t have phenomenal credit. Fortunately, the Arizona mortgage brokers at KHoward Mortgage Team can help determine if this is an option for you!