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First time home buyer programs Arizona

Are you looking to buy your first home in Arizona but, like most other buyers, you don’t have enough money to pay the full cost up-front? Don’t worry! There are first time home buyer programs Arizona to help you sort out this problem.

Financial institutions want you to buy a home, so they offer first time home buyer programs Arizona and additional loan programs to assist you with buying a home with as little as $0 out of pocket!

If you’ve been looking for information on first time home buyer programs in 2022 or just general information for first time home buyer programs Arizona, you are in the right place. We will be discussing first time home buyer programs in Arizona (2022) today.

How Do First Time Home Buyer Programs Work?

Not only are we going to tell you what first time home buyer programs are available in Arizona, we’re also going to answer the question “how do first time home buyer programs work?” for people who do not know about the stages of the entire process.

Yearly, more people are moving to the Phoenix Arizona area and to make the transition easier, they tend to be forward-thinking by looking at homes they can buy even before there move.

Programs are systems set in place to help people buy homes faster. Especially first-time home buyers. You can count them among the benefits of being a first time home buyer.

Some of these programs are available to first time home buyers and previous homeowners while others come along as benefits of first time home buyer programs in Arizona.

These programs provide from 0-5% of the total cost of the home. The assistance is what you’re receiving from the state in the form of a grant. And the grant is forgiven after you have lived in the home for 36 months (3 years) and you don’t have to pay it back. But if you sell the house or tamper with the mortgage arrangement before 3 years, then you have to pay back some amount. The amount you receive will determine your interest rate.

Let’s go through these programs and see what options are available to you as a home buyer living in Arizona.

  1. Conventional mortgage

This is a national program that is best for people who have low down payments and limited mortgage insurance premiums.

It is important to know that this mortgage is a home loan that is not insured by the federal government. Some of them allow down payments as low as 3% for a first-time homebuyer or a home buyer with a low income. If you put at least 20% down, you may be allowed to cancel your mortgage insurance.

2. VA loans

This is another one of the first time home buyer programs in Arizona. It is so a national program for the military that requires a low down payment.

This program is quite lavish but was established by the U.S. Department of Veterans Affairs to assist veterans, service members, and their surviving spouses to buy homes.

VA loans provide competitive interest rates, many times, requiring no down payment or mortgage insurance. To qualify, you may need to have at least 640 as your credit score.

3. FHA loans

This program is one of the benefits of being a first time home buyer with a low credit score and a little money for down payment. It is a national program that allows down payments as low as 3.5% for people with credit scores of 580 or higher.

The FHA loan grants insurance on loans for borrowers with scores as low as 500 but it requires a 10% down payment for a score that low.

You need mortgage insurance for an FHA loan and it cannot be canceled.

4. USDA loans

This is another program you should look into if you’re looking for first time home buyer programs in 2022. This is a zero down payment program for people who are eligible.

This loan is issued by the United States Department of agriculture through the USDA Rural Development Guaranteed Housing Loan Program.

If you have a credit score of 640 and above, your processing will be streamlined. If it is lower, you must meet stricter underwriting standards.

Looking to buy a house in Arizona for the first time?

If you are in the market for a new house and are searching for the perfect agent to make those dreams come true, you’re in luck; Tammy Gazda is the right agent for you.

With over 20 years of sales experience in the Metro Phoenix area, Tammy is smart, knowledgable, experienced, and attentive. She has a wide real estate network, and she will put all these advantages to work on your behalf.

You can give her a call at (480)-848-7173  or click here to take a look at some of our exclusive property listings.

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