Phoenix home loans offer low rates and flexible terms. The City of Phoenix has several programs designed to help first-time homebuyers. What options are available to those who don’t qualify for conventional loans?
For decades, homeownership has been the American Dream. Homeownership provides stability, financial security, and pride in ownership. In recent years, however, rising rents are causing some families to choose rental housing over purchasing a new home. While renting is often seen as a temporary solution until they save enough for a down payment, owning a home can provide lifelong benefits.
There are various ways to finance a home purchase, including conventional mortgages and government-backed programs such as FHA loans. A wide range of options can make sense by contacting Aaron Kerscher from Fairway Mortgage (NMLS #1012304). If you are looking to purchase a home, check out these options and see what might work for you.
Top Low-Income mortgage loan options
- 30-year fixed-rate mortgages are still a good choice despite the recent rise in interest rates
There are three types of home loans that can help borrowers get into their first home. These loans include a 15-year fixed-rate mortgage, a 20-year fixed-rate mortgage, and a 5/30 adjustable-rate mortgage (ARM). Each type has its own pros and cons.
- A 30-year fixed-rate mortgage is usually the best option if you want to pay off your mortgage faster
A 30-year fixed-rate home loan offers a lower monthly payment than other types of mortgages and provides a longer repayment term. This means you’ll have more time to save money before paying down your mortgage. However, the higher initial cost of borrowing may make it harder to afford a 30-year fixed-rate loan over the long run.
- If you plan to stay in your home for less than five years, then a 5/30 ARM might be better suited for you
If you plan to move out of your home in less than five years, a 5/30 adjustable mortgage is a great choice. This type of loan allows you to decide how much you want to pay each month without locking yourself into a set rate. You can choose whether or not you want to pay extra towards your principal at any point.
Making the Homebuying process easier for you no matter the housing market
Low-income borrowers make up about 40 percent of all mortgages in the U.S., according to the Federal Reserve Bank of New York’s triennial Survey of Consumer Finances. In 2017, this group was defined as households that had an annual income below $34,000 for a family of four. They were not required to have any kind of credit history when they applied for a home loan either, so owning a home is possible!
If you are looking for honest and reputable lenders, Aaron Kerscher from FairWay Mortgage wants to help you get started with your loan application. He knows that the mortgage industry has changed drastically over the past few years, and he wants to show you that there are many options available to you when you are ready to apply for a mortgage.
