When you’re looking to buy a home in Arizona with an FHA loan, it’s important to know what types of properties qualify.
FHA loans are mortgage loans insured by the Federal Housing Administration (FHA) and provided to potential homeowners by approved lenders. This product is more lenient to lower credit score borrowers or those just establishing credit. One of the key components to qualifying for FHA financing is that the home must be your primary residence.
If you are a first time homebuyer or don’t have a large savings for your down payment, FHA loans may be perfect for you as you can put as little as 3.5% down pending on your credit score!
When you are thinking about your next home in Arizona and utilizing FHA financing, here are the different types of properties that are eligible:
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- Single-Family Homes: These are your typical standalone houses. They’re the most common type of property that people buy with an FHA loan. If you’re dreaming of a white picket fence, this might be your go-to option!
- Condominiums: Condos can also qualify, but they have to be on the FHA-approved condo list. This list ensures that the condo community meets specific FHA guidelines, like financial stability and proper insurance.
- Townhouses: Similar to single-family homes, townhouses are eligible. They often come with the bonus of less maintenance since you usually don’t have a big yard to take care of.
- Multi-Family Homes: If you’re thinking about becoming a landlord, FHA loans can be used to purchase 2-4 unit properties. The catch is that you have to live in one of the units as your primary residence. It’s a great way to start investing in real estate while getting help with your mortgage from rental income.
- Manufactured Homes: These are eligible too, but they must meet certain criteria. For instance, they need to be on a permanent foundation and comply with specific building codes. Plus, the land under the home must be included in the loan.
- Planned Unit Developments (PUDs): These are communities with a mix of housing types and shared amenities. If you like the idea of a neighborhood with shared parks, pools, or clubhouses, a PUD might be perfect.
FHA loans in Arizona can be used for a variety of property types, as long as they meet FHA’s guidelines. Whether you’re looking for a single-family home, a condo, or even a multi-family property, there are options out there for you. Just make sure the property you choose is FHA-approved, and you’re good to go!
Ready? Let’s Get Started!
An FHA mortgage is a long-term commitment, just like any other home loan, so it’s helpful to know what you’re getting into and that’s where your local home lender can help you to get across the finish line.
Completing the application, documents required, understanding the approval processes and timelines are so important. Mohave Mortgage is here with you every step of the way for FHA loans in Arizona. Get to know our team better on our about page here.
