Arizona HUD Loans

A number of would be homeowners may have heard something about Arizona HUD Home loans but are not quite sure exactly what they are, or how they might differ from other private mortgage loans. These are just a few of the basic facts about HUD loans, and why they might be the right home loan for you.

What exactly is an HUD Loan?

The FHA – The Federal Housing Administration – was created as a part of a piece of legislation called the National Housing Act of 1934.

The purpose of the creation of the FHA was to help provide more Americans with the chance to own their home by insuring loans that offered lower down-payment options and reasonable monthly mortgage rates.

Essentially the intent behind an FHA loan has changed very little over the years and it is the FHA that now insures the HUD loan products.

By insuring the loan against loss to the lender should a buyer default the FHA offers a guarantee to private lenders on a HUD home loan that make them far more willing to make mortgage loans that come with a lower down payment attached and to those a private mortgage banker might consider too high of a risk to grant a mortgage loan to.

Who Can Get an HUD Loan?

The Department of Housing and Urban Development (HUD) strives hard to promote homeownership for  families in all income brackets. As a part of its main mission though FHA insured, HUD loans are designed for families with poor credit or who have faced previous financial struggles.

There are several different types of FHA insured HUD loans available. The best person to discuss a specific FHA loan type based suited to a home buyers individual needs an FHA/HUD  mortgage specialist, who has the knowledge and experience with all of the loan offerings available.

What are The Advantages of an HUD Loan?

Perhaps the most obvious advantage of an FHA insured HUD loan is the fact that a home buyer needs only to find a down payment of approximately 3.5% of the purchase price of the home instead of the more usual 6% required when taking out a private mortgage. But there are other advantages as well. These include:

The option of more easily using financial gifts towards a down payment. This can be a big plus for young, first time buyers or families with relatives willing to help them.

  • There is no prepayment penalty, which can add up to big savings over time.
  • Often lenders will show greater leniency if a borrower runs into temporal financial problems.

What the Basic HUD Loan Qualification Requirements?

The ability to come up with the required down payment is one. A demonstrable steady income is another must, although credit rating may be considered more favorably if it has been poor in the past by a HUD loan lender.

The Mark Taylor Team can help you get an Arizona HUD Loan!

Mark Taylor’s 13 years in the Mortgage industry and his $3/4 of a billion funding give Mark the experience and YOU the confidence that every deal he does is a sound investment. Mark has earned numerous awards by helping structure the intricacies of his client’s real estate portfolios to best set up their investment and retirement needs. This has resulted in numerous awards, but more importantly, thrilled clients.

His primary role is the facilitation of clients’ needs regarding mortgages, while balancing their goals and objectives with sound financial and mortgage planning to ensure the loan they choose is the correct product for their circumstances – currently and into the future. He also trains and educated Realtors® in ethics, contract law, and short sales offering continuing education hours in those areas to ensure we raise the standard of care to our community. What more could you want from a Mortgage Planning Hero? Wings? He’s probably working on that right now.

Contact the Mark Taylor Team today to get started on your Arizona HUD Loan.

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