Home Loans-Tucson, AZ

Where is your next home going to be located? If you want to move to a beautiful city in the Southwestern region of the United States, then you and your family should consider a home in Tucson, AZ. Plus, this area has a lower cost of living than most major cities in Arizona, so you can save even more money once you move in.

The right type of home loan can help you secure your next home purchase, even if affordability seems like a big obstacle to ownership. The team at District Lending can help you find a path to home ownership.

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What Type of Home Loan is Best?

Many factors impact what type of home loans you may qualify for, as well as the structure of the loan itself. Since loans are designed to provide more money for prospective buyers that need assistance financing their home purchase, you need to know your options whether you are in the market for manufactured homes, older homes, or new constructions. District Lending is a Scottsdale, AZ, mortgage lender that can provide the right type of loan that you need for your purchase.

Conventional Loan

The majority of homebuyers will seek a conventional mortgage to finance their purchase. Conventional simply refers to the fact that no government entity will back a particular loan. Fannie Mae and Freddie Mac, two real estate organizations that set conventional loan limits, will back these mortgages unless they exceed those limits, at which point it is considered a jumbo loan.

FHA Loan

If a borrower has a poor credit history or a higher debt-to-income ratio, they may not be able to qualify for a conventional mortgage for their new home. FHA loans are backed by the Federal Housing Administration, allowing lenders to lower their standards for approval. Keep in mind that home prices in Tucson are about 16% lower than in nearby Phoenix, so affordability is more accessible than in similar markets, no matter your credit score or income.

VA Loan

VA loans are available to active-duty service members in the military, eligible veterans, and surviving spouses. Since they are insured by the government, the lender can approve a mortgage with no down payment and more competitive interest rates.

The best rates come with the best deal.

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Determining Monthly Payments

Several factors will impact the amount of each monthly payment for your dream home. If you are a first-time homebuyer, then you should become familiar with these variables.

Credit Score
If you have a higher credit score, meaning you have a history of paying debts on time, then you are eligible for more favorable mortgage programs, mortgage rates, and monthly costs.
Down Payment
If you have money to pay upfront for the cost of your first home, this is known as a down payment. The more you pay now, the lower the amount of money you will have to borrow. This will also affect whether or not you have to pay for mortgage insurance. Homes in Tucson are eligible for down payment assistance through the HOME Plus state program or the Pima Tucson Homebuyer’s Solution program, which we are happy to give you more information about.
Closing Costs
Before the transaction process is complete for your Arizona home, there will be multiple fees included when it is time to close.