Over the last few years, FHA loans have been a popular choice with many home buyers looking for Phoenix, Scottsdale or Paradise Valley homes for sale. The ease of credit guidelines, a limited amount of down payment and low rates made this a common loan program. However, an FHA loan is not as attractive to buyers as it once was due to a few factors:
1). FHA loans have an increased funding fee of 1.75% of the loan amount which is rolled into the loan. A conventional loan does not.
2) FHA loans now have an increased mortgage insurance premium, which is at a quite high at 1.35% of the loan amount, and is on for the LIFE of the loan. In the past, mortgage insurance would get removed within 5-9 years on average. A conventional home loan does NOT have a lifetime requirement.
3) FHA loans require a 3.5% downpayment whereas a conventional loan can be as little as 3%.
So before you start your search for Phoenix, Scottsdale or Paradise Valley AZ. real estate give me a call at 480-703-8088 or email me at email@example.com or complete a Secure Online Application today!
Remember, I’m here to help…
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Joe Janus – Metro Phoenix AZ Realtor – 602.620.6267 (cel) or contact me.
Contemporary and Modern Homes, Spanish Style Homes, Tuscan/Santa Barbara, Sante Fe and Territorial Style. And neighborhoods such as Willo Historic District, Arcadia and North Central Phoenix.