Home Loans-Phoenix, AZ
Arizona is a beautiful state for prospective homebuyers to achieve their goals of ownership, particularly in and around the vibrant city of Phoenix. The market here brims with opportunities for the right buyers, even if affordability is a question that stays on your mind.
Fortunately, with the help of home loan programs at District Lending, buying your dream home can become a reality with a mortgage.
Loan Options
A mortgage loan is borrowed money that the home buyer agrees to pay back to the lender, in addition to interest, over a set period. The loan amount allows the borrower to cover the cost of the home they are purchasing, which would otherwise be unaffordable. Depending on your circumstance, you may qualify for specific types of mortgages. Not all Arizona lenders provide the variety of home loan options that District Lending can offer you.
FHA Loan
FHA loans are insured by the Federal Housing Administration. This program allows first-time home buyers with limited income to afford their new houses. An FHA loan typically helps those who cannot afford a large down payment or have average credit scores. If these circumstances describe your status, then FHA loans were made for buyers like you.
Conventional Mortgage/Jumbo Mortgage
Conventional loans include any type of mortgage that is not subsidized by a government entity. This option works for many home buyers and District Lending has helped thousands of dreamers achieve homeownership with a conventional mortgage.
A jumbo mortgage loan refers to any conventional mortgage that is past the limit set by Fannie Mae and Freddie Mac, two real estate organizations that are regulated by the federal government. In 2023, that limit in most markets is around $726,200. Any conventional mortgage amount above that number is considered a jumbo loan.
A jumbo mortgage loan refers to any conventional mortgage that is past the limit set by Fannie Mae and Freddie Mac, two real estate organizations that are regulated by the federal government. In 2023, that limit in most markets is around $726,200. Any conventional mortgage amount above that number is considered a jumbo loan.
Calculating Your Payments
District Lending wants to make it easy for you to make a decision in the mortgage process. You can get a quick idea of what mortgage loan amount you can afford with our mortgage calculator. The mortgage calculator can give you an estimate of your monthly payments. Several factors will play a role in this number.
Down Payment
One of the biggest benefits of acquiring this type of mortgage is that it does not require mortgage insurance. A conventional loan or even an FHA loan will usually require private mortgage insurance premiums to be paid unless the borrower puts down a significant down payment. However, the backing from the Department of Veterans Affairs reduces the risk to VA-approved lenders, paving the way for private lenders like brokers, credit unions, and mortgage companies to offer loans without mortgage insurance requirements.
Private Mortgage Insurance
This insurance often applies when buyers cannot afford a high enough down payment. for conventional mortgages, the minimum is usually 20% of the total loan amount. If you can manage that level, then you won’t have to pay monthly insurance premiums.
Credit Score
Better credit scores indicate that you are a reliable borrower. As a lender, we love to see that borrowers are able to cover the cost of a mortgage loan. A higher score means better interest rates.
Interest Rate and Closing Fees
Speaking of interest, your rate will also determine your monthly payments and total mortgage cost. The interest rate you can obtain is influenced by loan type, loan amount, occupancy, credit scores, down payment, term and market.Â
The cost at closing can include payments to an attorney, title company, lender, and other parties when the contract is signed. There are ways to reduce your costs at closing as well.
You can customize a lot of components of your loan. Make sure your loan officer understands your wants and needs.Â
The District Lending Difference
Free Quote
District Lending will let you request a free quote without even running a credit check that can ruin your score. This will give you a more accurate picture of how you can achieve your dream of homeownership.
Get a quote
Pre-Approval
District Lending will let you request a free quote without even running a credit check that can ruin your score. This will give you a more accurate picture of how you can achieve your dream of homeownership.
Get Pre-Approved
Mortgage Calculator
As mentioned previously, this tool can help you evaluate what kind of loan you can afford and what the payments would look like. Feel free to play around with the slide bars to test out different scenarios.
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