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Mesa, Tempe, Chandler, Gilbert Arizona Mortgage Programs

December 3, 2009 By Leave a Comment

As we start working with you to buy a home in Tempe, Gilbert, Mesa, or Chandler we recommend that you get familiar with the different types of mortgage programs that are available. We work with highly skilled loan officers from locally based Arizona mortgage companies.

Mortgage financing requires competent and skilled loan officers – we know and work with some of the best. Just let us know that you want to talk to a loan officer and we’ll get you several names.

Arizona Loan Programs

Advantages

Disadvantages
Fixed Rate Mortgages
There are many traditional, fixed-rate mortgage programs available for home buyers in the Mesa, Tempe, Chandler, and Gilbert areas. Fixed interest rate programs are the most popular mortgage program available. Terms include 10, 15 20 and 30-years thus allowing any of these to be tailored to fit your specific needs and long-term financial goals.
  • Your monthly payments never change since the Interest rate is fixed
  • Easy to budget for your housing payment
  • You never have to worry about what interest rates are doing
  • Widely available Fannie Mae and Freddie Mac
  • Programs for first time home buyers
  • Slightly higher interest rate than higher risk ARM
  • Slightly higher mortgage payments than higher risk ARM
  • If rates goes down, only way to get better rate and lower payment is to refinance unlike the ARM where the Interest rate fluctuates with the market.
Adjustable Rate Mortgages
There are quite a few adjustable rate mortgage programs (ARM’s), ranging from 1 month to 10 years. Due to being a higher risk mortgage, ARM’s typically offer lower interest rates and lower payments than fixed-rate mortgages.
  • Lower initial monthly payment
  • Lower payment over a shorter period of time
  • Rates and payments may go down if rates improve
  • May qualify for higher loan amounts
  • Exposure to interest rate risk
  • Payments may change after fixed period
  • Potential for high payments if interest rates increase
First Time Buyer Programs
Arizona mortgage lenders have a variety of programs to meet the unique needs of Arizona’s first time buyers, including competitive costs and below market interest rates for qualified buyers. One program is called the Your Way Home.
  • Low to no down payment options available
  • Less stringent guidelines
  • Lower interest rates available with certain programs
  • May be subject to income and property value limitations
  • Some government subsidized programs may have a recapture tax if the home is sold too soon in certain geographic areas
FHA/VA Loans
FHA home loans are the perfect home loans for first time home buyers. Credit guidelines are more lenient than traditional Fannie Mae and Freddie Mac conventional loans.

With a large military and ex military population in the greater Phoenix Metropolitan area, Veterans Administration (VA) loans are a perfect loan program for home buyer in Phoenix.
  • Require little or no down payment
  • Competitive interest rates
  • Can be forgiving of less than perfect credit
  • Insured by the Federal Government
  • Must meet certain guidelines
  • Lower loan limits
Filed Under: Home Buyer Info

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