September 13th, 2018

Finance

Buying the home of your dreams is one of the most exciting and rewarding things that you can do. It's also likely to be the biggest investment of your life. It can also be incredibly confusing for some home buyers who are trying to find the right loan. Shopping for your home is hard enough. Shopping for a mortgage loan can be more complex and far less fun.

FHA Loan Basics

For many, shopping for their dream home the FHA loan is the best option available. It offers a great path to home ownership and is more attainable than ever before. Learning a few facts about it is important. FHA loans are backed by the Federal Housing Administration. This guarantee from the government allows lenders to extend loans with less stringent qualifications and with better terms. In turn, the FHA borrowers will pay for mortgage insurance that protects the lender from a loss.

Top Things To Know

Here's a look at qualification requirements and other info worth knowing.

The Minimum Down Payment Is Lower

Unlike traditional loans that require as much as 20% down, FHA loans require only that you have 3.5% of the home's total purchase price as a down payment.

Your Credit Doesn't Have To Be Perfect

In fact, your credit score can be as low as 580 in order to secure the 3.5% down payment option. You can actually secure an FHA loan with a score as low as 500, but your down payment must be 10% if this is the case.

Your Lender Must Be Approved

The FHA doesn't actually provide the loans. They only secure them. As such, you'll have to get your FHA loan directly through a lender that offers FHA loans and that has been approved by the FHA.

Closing Costs Could Be Included

FHA loans do allow you to include closing costs in the loan total. However, in these instances, you may end up paying a higher interest rate.

Home Repairs Can Be Included As Well

The FHA has a special program that allows you to take out a 203K loan. This includes money that can be used to repair and remodel a home that is being purchased.

Mortgage Insurance Is Required

If you pay less than 20% down on your home, you'll have to pay mortgage insurance including an Upfront Premium paid when you get the loan and an annual premium that is paid over the course of the loan.

Loan Limits Change

Every year the FHA adjusts the maximum and minimum loan amounts. Currently, FHA loans can be between $294,515 and $679,650.

Getting Your Loan

Getting the perfect loan isn't always easy, but local experts exist to help. 

Deb Klein Team

3115 South Price, Suite 115, Chandler, AZ 85248 480-550-0211
The Deb Klein Team is the preferred home mortgage consultants located in Chandler, AZ. They are dedicated to finding great rates and loan options for their customers while providing fast turn times. The Deb Klein team has helped over 2000 customers achieve their dream of homeownership, and they are ready to assist you with your home financing.

Kassie Rosenow

We can't say enough about Deb and her compassion and expertise in the mortgage world. We've faced challenges for a while trying to buy a home, and while most other brokers would write us off Deb was able to use her extensive knowledge to find the right mortgage for us as well as a lender to approve it. Thanks to her diligence we've won a lottery and are now on our way to building our very first home! Thank you Deb for everything you helped get started for us, we are forever grateful to you!

04-19-2021

Trevor Cuicchi

The BEST mortgage team in Arizona! Very professional in their approach and communicative throughout the entire loan process. The Reliability in Lending team kept the most money in my pocket and put me in the best financial position possible for my home purchase. HIGHLY reccomend using this team for all of your purchase and refinance needs !

03-23-2021

Nicole Millspaugh

Trevor was amazing with helping us with all our questions and needs as we purchased our new home. Very professional and efficient with what they do would highly recommend to anyone looking for a lender!

03-23-2021

Kyle Bambu

Deb and her team are fantastic at what they do! I worked primarily with Jake Mullins who knew the inside and out of the loan process. He was very accommodating and worked with me despite not knowing if he would get a deal or not. I originally had planned to go with a different lender, but in the end, Jake was able to get me a much better offer while also providing MUCH better service. He kept me informed throughout the entire process and got personally involved when issues arose so that he could keep my loan on track for closing. Highly recommend whether you are a veteran in RE or a first time home buyer!

09-16-2020

Charles Cox

Whenever we are considering a purchase or refinance of our personal properties; we immediately contact Deb Klein because she is our all time favorite mortgage Loan Officer professional. Deb is currently representing Primary Residential Mortgage Inc (PRMI) NMLS ID # 595188. Coincidentally, Deb is a Michigan native and also shares our midwestern values and interests. Thus far Deb has completed four of our mortgage finance transactions since we moved back to Arizona. And last but not least, we have always remained loyal to Deb despite the fact we have access to other mortgage loan discounts and incentives.

03-14-2021

Mohamud O.

Going through Deb's team made the home buying process seamless with all the portal instructions and easy navigation. Jake helped my fiancée and I buy our...

2020-07-05

Kassie Rosenow

We can't say enough about Deb and her compassion and expertise in the mortgage world. You will not find another team who cares more about getting you the best mortgage possible. We've faced challenges for a while trying to buy a home, and while most other brokers would write us off Deb was able to use her extensive knowledge to find the right mortgage for us as well as a lender to approve it. Thanks to her diligence we've won a lottery and are now on our way to building our very first home! Thank you Deb for everything you helped get started for us, we are forever grateful to you!

2021-04-20

Roy J. DuPrez

Deb was SUPER helpful and was able to tactfully assist through some obstacles that enabled me to access the home I love living in today!

2018-09-18

Brian Lombardi

Deb has done several mortgages for me in the past. There's no one better when it comes to working on your behalf and her follow-up is impeccable. If you have a mortgage need, she's the one to go to.

2018-03-07

Ryan Hall

2017-02-15

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