Overview of Loan Programs Available to AZ Real Estate Buyers

Overview of Loan Programs

Here is a brief synopsis of the various loan programs available to buyers:

Jumbo Loans- loan amounts of $417,000 or higher. 25-35% down payment required. Interest rates on a Jumbo loan are 1% higher than conforming rates.

Conventional Loans-10% minimum down payment required. 5% of the down payment can be gifted to the purchaser, and 5% can come from 401K or IRA accounts. Seller can contribute 3% to closing costs.

FHA Loans- Purchase price of $346,250 or under. 3.5% down payment required- can be gifted from family or pulled from 401K or IRA accounts. Seller can contribute 3% towards closing costs.

VA Loans- for military personnel only. No down payment required. Buyer does pay VA funding fee. Seller can contribute 3% towards buyer closing costs. Purchase price of $417,000 or under.

 

Credit score requirements for all programs are a minimum FICO score of 620.

You can obtain your FICO score at www.myfico.com

 

Costs to the buyer up front:

Earnest Money- due at contract acceptance. Generally 1% of purchase price. Will be held with the title company and is applied to buyers down payment or closing costs.

Home/Termite Inspections- due within 10 days of contract acceptance. Cost varies- on average $350-$500 depends on size of home.

Appraisal fee- cost varies- $200-$350.