Purchase Arizona Real Estate with Oggy Karchev of Realty ONE Group

While Arizona FHA home loans still remain an attractive option for many Arizona home buyers, conventional loan down payment percentage minimums continue to decrease.

In fact, in today's market in Arizona, while an FHA loan will require a 3.5% down payment, and is also a much more unattractive loan for the seller, now a conventional loan with mortgage insurance for as little as a 3% down payment is available to home buyers. 

Arizona conventional loans do require a buyer to have solid debt to income ratios and a good credit score. However, for certain buyers, there may be some advantages to looking at a conventional loan, as opposed to an FHA loan. This program is only available to owner occupant buyers not Investors adding to a Phoenix Investment Property Portfolio.

First, on a conventional loan, the debts of a disclaiming spouse, or in other words a spouse who chooses not to have ownership in the property, are not counted against the borrower. Nor is negative credit from a spouse who is not on the conventional loan with a spouse.

For instance, if you have a couple who was recently married and one of the two of them recently had a foreclosure or short sale under their name, then when attempting to obtain an FHA loan, both spouses would have difficulty qualifying because of an issue that occurred to one spouse prior to the marriage. However, in the case of a conventional mortgage, if one spouse can qualify on their own, than the other does not have to be on the home loan.

In addition, conventional loans do allow for higher loan limits, up to $417,000 and thus allow someone looking at a higher price range to still purchase an Arizona home with a smaller down payment.

Phoenix homebuyers with good credit and debt to income ratios, Arizona Conventional loans are now available again for those who qualify. Interest rates are still record low and Arizona buyers can still purchase a home and own for less than leasing similar properties from Arizona Investors.