Arizona FHA Loans >> FHA Mortgages

What is an FHA loan?

An FHA loan is a mortgage that is insured by the FHA, or the Federal Housing Administration. The FHA does not actually loan (provide mortgages) to borrowers-- the FHA provides insurance to the lender - National Wholesale Mortgage.

This way, if the borrower was to default on their FHA mortgage (foreclose) and National Wholesale Mortgage was the lender, then the FHA would cover most losses that the lender would incur.

This makes banks eager to lend FHA mortgage money.

The government gives the bank a guarantee and thus, the banks are far more likely to lend to you. In fact, the requirements for an FHA mortgage are often easier than they are for people with "perfect credit." Again, this is because the government is willing to stand behind your loan and insure the bank.

FHA Loans are not only for "first time homebuyers."

This is a myth. Anyone can secure an FHA mortgage. However, because there are limits to FHA loan amounts, oftentimes it is the first time homebuyer that ends up taking out an FHA loan. Usually, people that are selling a home to buy another are "upgrading." Plus, the equity from their previous sale will usually give them a large downpayment for their new home, so an FHA loan is not necessary.

Who doesn't qualify for an FHA loan?

Remember, an FHA mortgage is a very nice gift from the government for people who would otherwise be unable to qualify for a mortgage. Nonetheless, we occasionally take a phone call from somebody who wants to buy a vacation home using the FHA mortgage program.

So, even though most of this is common sense, we should tell you that: 1.) You can not use an FHA loan to buy an investment property or a second home; 2.) You can not take out an FHA loan if you have unpaid judgments on your credit report, haven't paid your income taxes, or have defaulted on your student loans; 3.) You must use "full documentation" for an FHA mortgage. (This means that you have to prove your earnings; there is no such thing as a "stated income" FHA mortgage.)

More advantages to FHA mortgages:

Your credit score can be as as low as 550. The national average credit score is 675 (at this time of this writing).
What if you don't have any credit? Not a problem. We can use alternative examples of credit. For example, we can get a letter from your landlord stating that you have paid on time for the past 12 months.
Zero Down FHA Loans - yes, you can get a zero-down FHA loan. This means that you can have a low credit score or no credit at all and still buy a house with zero down. There are more details to this however, and you should either email us at karen.george@azwm.com or call us at 877-551-8188.

At National Wholesale Mortgage, we love the FHA loan! It allows us to help worthy families fha loans are american who do not meet requirements for conventional loans. FHA loan programs are particularly beneficial to those buyers with less cash in the bank. Plus, the rates on FHA loans are normally general mortgage market rates.

Closing costs can be financed on FHA loans!
Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
Much more flexible underwriting than with conventional loans. (In other words, "easy to qualify.")
FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).

We suggest that you visit the home of the FHA.

National Wholesale Mortgage, Inc. operates as Arizona Wholeasale Mortgage, Inc. in Arizona.