What Are The Pros And Cons of FHA Loans in Cave Creek, AZ
If you want to live life at a slower pace amidst a rural setting, then moving to Cave Creek, AZ, is a good option for you. The cost of living here is lower than the national average, which is something to consider when moving to a new location.
When looking for home financing, an FHA loan is one of the more popular choices nowadays. Finding out if you qualify for an FHA loan in Maricopa County before you go house hunting would be an advantage when you make an offer for your new home.
Here are some pros and cons of getting an FHA loan to buy a Cave Creek home.
The Pros of getting an FHA loan in Cave Creek
Here are the potential benefits you can get when you apply for an FHA loan in Cave Creek:
Low Down payment
One of the reasons why an FHA loan is a popular choice is the small down payment required, where you only need to put down 3.5%.
More Lenient Credit Requirements
It’s easier for buyers with low credit scores to qualify for an FHA loan than conventional mortgages.
Get approval even with a higher DTI
You may get approval even with a higher DTI ratio versus a conventional loan.
Get more favorable interest rates
Interest rates with FHA loans are the same regardless of your credit score.
The Cons of getting an FHA loan in Cave Creek
No loan product is perfect, and FHA loans do have their drawbacks. Here are some reasons why FHA financing may not be the best option for you, Remember, for the most personalized home loan guidance, contact us, your local Cave Creek mortgage advisor.
Pay higher mortgage insurance
Unlike PMI where you can remove payments once you reach 20% home equity, you pay insurance for the life of the loan with the FHA.
Buy only FHA-eligible Cave Creek properties
An FHA loan can only be used on FHA-eligible properties
Fewer loan types are available
If you are looking for an adjustable-rate mortgage you won’t find one with an FHA loan.
If you are looking for other alternatives to an FHA loan, you can inquire about a home loan from Castle Rock Mortgage.
Are you ready to apply for an FHA loan?
At Castle Rock Mortgage in Arizona, we match loan products with our client’s financial situations and recommend the best loan product that fits their needs.
Home buyers have unique financial situations. While an FHA loan may be a good choice for one doesn’t mean it would also benefit the other. If you’re undecided on whether an FHA loan is the best option, ask our loan specialists to review your options.
If you want to know how much you can get from your FHA loan, using an FHA mortgage calculator can give you the necessary information.
Give us a call or send us a message to learn more today.
* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.