How to Make Money with Arizona Mortgage Loans

Investing in real estate is a great way to build your investment portfolio and make money. If you have bad credit, you may think that real estate investing is beyond your reach. However, there are several Arizona mortgage loans programs geared towards bad credit borrowers. Finding the right program can help you qualify and start building your investment portfolio.

In Arizona, it is a buyer’s real estate market. An increase in housing inventory combined with low prices make now the perfect time to purchase a home or investment property. Many sellers are willing to negotiate and buyers can get great deals. In addition, interest rates are low and approval for lender financing is up. The time to buy is now. However, if you have bad credit you may not think it is feasible to purchase a home, especially if you would be doing so as an investment property. This is simply not true. With a variety of loan programs to purchase first homes as well as investment properties, you can find a program that will work for you and your credit score.

Types of Arizona Mortgage Loans That Can Help When You Are Eager to Start Investing

One program you will want to consider, particularly for an investment property, is an adjustable rate mortgage or ARM. An ARM is a loan that has a fixed interest rate for 1 to 7 years. The rate is usually quite low, often lower than the prime rate you would get with a traditional mortgage. This will keep your monthly payments low and helps borrowers with higher debt to income ratios or bad credit qualify. Keep in mind that once the loan term ends your rate will go up and so will your monthly payment. An ARM is ideal for an investment property that you are planning on owning for a short term, fixing up, and flipping for a profit.

Another Arizona mortgage loans program you may qualify for, even with bad credit, is a hard money loan. A hard money loan is not backed by a bank, but rather a group of investors. Since the loan is not funded by the bank, the merit of the investment property is more important than you credit score. Hard money loans are usually short term loans designed to last from a few months to a few years. Be aware that you will usually pay a higher interest rate with a hard money loan but if the investment is worth it, this is negligible.

A third type of program that can help you qualify for an investment loan with bad credit is an FHA loan. An FHA loan is a loan that is backed by the federal government and you can qualify for the loan with a credit score of 580 and 3.5% of the purchase price down. If your credit is even lower, you can actually still qualify for an FHA loan with a score as low as 500 but will need to put about 10% down. The interest rate is fixed for the life of the loan so your payment will not go up drastically. If you are looking at the home as more of a rental investment (long term) than a short term fix and flip, an FHA loan may be a good option for you.

Other less common types of Arizona mortgage loans that can help borrowers with bad credit are rent to own programs and seller financing. These are usually better options for a home that will be your primary residence, rather than an investment property.

Finding a Arizona Mortgage Broker is an important first step in purchasing your investment property.

In order to purchase a home with bad credit, it is important to have a mortgage broker that will work for you. Ask your broker about his experience with investment loans as well as bad credit loans. The more experience he has, the more likely he will understand how and when to be aggressive with lenders to help fight for your interests. Many borrowers with bad credit may be automatically turned down for a loan by an automatic underwriting program based solely on their credit score. An experienced broker knows how to get the underwriter to manually review the application and take other factors, like income, investment potential, and savings into account to help outweigh your bad credit.

Stop letting bad credit keep your from investing in real estate. Find a broker today to start having your money work for you.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Bad Credit Home Loans Arizona Mortgage Brokers Recommend

If you have bad credit and are in the market for a home, you can qualify for a loan. Here are some bad credit home loans Arizona mortgage brokers recommend you look into and advice on how to qualify.

If you have bad credit, you probably believe that it will be impossible to buy a home. You are not alone in this belief. In fact, many financial experts claim that since 2008 there has been a rumor circulating that you have to have pristine credit in order to qualify for a home loan. While this is categorically false, it has created a bit of a self-fulfilling prophecy in that the rumor is widespread enough to keep sub-prime borrowers from even trying to find home loans for bad credit borrowers. If you are looking for bad credit home loans, Arizona mortgage brokers can help you find the right loan product to fit your needs.

The most important first step in finding a loan product is to find a mortgage broker that you can trust and who will work for you. When you are looking for your bad credit home loans Arizona mortgage broker, you need to make sure that your broker has experience with sub-prime borrowers and loans. The more experience your broker has, the more likely he is to be aggressive to secure funding on your behalf. In addition, he will know what you need to have to qualify and will be able to convince a lender to look at your application manually if it fails underwriting due to your credit.

Secondly, make sure that your mortgage broker is honest and up front with you. He should be transparent about any fees you may be charged and should be able to explain why you are being charged them. In addition, your broker should be able to explain the terms of all loans he recommends including monthly payments and any possible fluctuations. He should also be willing to go over all of the numbers with you so you know exactly how much you will be paying each month and what the cost of your credit is in terms of interest and other loan fees.

Types of  Arizona Home Loans That Can Help Make Your Dreams Come True

Once you have found a Arizona Mortgage Broker, you will begin learning about different bad credit home loans Arizona borrowers can qualify for. One type that you will learn about is a traditional loan. While many people believe that a home loan is out of their reach if they don’t have excellent credit, this is simply untrue. You can qualify for a traditional loan with a credit score as low as 650, far less than perfect. A traditional loan is a 15 or 30 year loan with a fixed interest rate and monthly payment. Your payment will only fluctuate minimally based on property values due to property taxes. Traditional loans require a down payment between 5 and 20 percent depending on the specific loan program, cost of the home you are purchasing, and your credit score.

A second program your broker will recommend is an FHA loan. An FHA loan is a loan secured by the federal government to protect the lender from default. Like a traditional loan, the interest rate is fixed for the loan term which can be anywhere from 15 to 30 years. An FHA loan requires anywhere from 3.5 to 10 percent down depending on your credit score. Your monthly payments with an FHA loan will be slightly higher than a traditional loan because you have to make monthly mortgage insurance premium payments. This insurance helps insure against loan default. Some of the insurance can be paid upfront and you can even negotiate with the seller to pay a part or all of it, depending on your sale terms.

A third program your broker will suggest is an adjustable rate mortgage or ARM. An ARM is a mortgage with a fixed interest rate for 1-7 years. After that point the rate resets to a higher rate and increases your monthly payment. At first, your payments will be low because the initial interest rate is usually lower than prime rates. Once the rate resets your payment will increase. It is important to make sure that you will be able to afford not only the low payment, but also the higher monthly payments once the rate resets. You may also be interested in an ARM if you plan to sell the home before the loan resets. An ARM requires a minimum down payment of 10 percent in Arizona so make sure you have the savings to qualify.

Call a Arizona Mortgage Broker today to learn all of the 

benefits of various bad credit home loan programs.

Stop letting bad credit stand in your way and call a broker for advice and to help you purchase the home of your dreams. 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Arizona Home Loans: Choosing the Right Loan Product

Arizona home loans are in high demand as interest rates are dropping and housing inventory is increasing. A mortgage broker can help you choose the best loan for your financial situation and make your homeownership dreams come true.

The real estate market in Arizona is booming. With gorgeous spring temperatures, and plenty of ways to beat the summer heat, it is easy to see why. Arizona has a lot to offer to individuals and families. Whether you are moving to the Grand Canyon State for work, the weather, or for all the family friendly activities and destinations, there is something in Arizona for everyone.

If you have bad credit, you may think that a move into or around Arizona is impossible. You may think that Arizona home loans for bad credit don’t exist. This has been a widespread and false rumor since the housing crisis of 2008. Many people believe that it is impossible to get a home loan without perfect credit. In a way, this has become a self-fulfilling prophesy because many individuals and families with bad credit won’t even apply for a loan for fear they will just be turned down by the bank. However, there are many programs in Arizona that can help sub-prime borrowers meet eligibility requirements for home loans.

Types of Arizona Home Loans

The most common type of Arizona home loans is a traditional mortgage. Most people with bad credit automatically assume they cannot qualify for this type of loan. While a traditional mortgage does have the most stringent credit requirements, they are not as high as many people believe. If you have a score of at least 650 you have a chance to qualify for a traditional loan. A traditional loan is a fixed 15 to 30 year loan with payments that will remain roughly the same for the entire loan term. Payments may fluctuate slightly based on property tax amounts but they principal and interest will remain the same. In order to qualify for a traditional loan you will need to put between 5 and 20 percent of the loan amount down.

If your credit score is less than 650, you can still find Arizona home loan that you can qualify for. One of the main types of loans that can help sub-prime borrowers is an FHA loan. An FHA loan is a loan that is secured by the federal government. You will pay a fixed rate for principal and interest for a 15 to 30 year loan term. You will also pay mortgage insurance in the amount of 80 to 200 dollars each month, depending on the amount of your loan. You can qualify for an FHA loan with a credit score as low as 500 as long as you have between 3.5 and 10 percent of the loan value to put down.

If you find that you cannot qualify for a traditional loan or an FHA loan, there are some less common programs that may be able to help you buy a home in Arizona. One is a rent to own program. When you rent to own, you pay rent that for the first 18-24 months goes towards making a down payment on the home. Your rent payments will be higher than if you were just renting the home but you will be making progress towards owning it. Another way to purchase a home with bad credit is with seller financing. This is most common if the seller owns the home outright or owes a very small amount left on the mortgage. The seller carries the debt for you and you make monthly payments, including interest to the seller. Often you will need to put a large chunk down so that they seller is assured that you have a vested interest in paying the loan in full by the agreed upon time period. Finally, you may also want to have a family member with higher credit cosign for you. This will help you get a loan and be on track to rebuilding your credit. However, be aware that any late payments will also affect the credit of your cosigner.

Regardless of which loan product you choose, an Arizona mortgage broker can help you reap the benefits of Arizona home loans.

An aggressive broker is key when securing a home loan with bad credit. A licensed broker can negotiate with various lenders to help get them to see you as more than a credit score. In fact, many people who have gotten home loans with bad credit claim that they owe their success to a broker who was working for them. Call a broker today to start the process of owning your own home. You will be glad you did. 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Can Arizona Mortgages for Bad Credit Benefit Prime Borrowers?

For some borrowers, an Arizona mortgages for bad credit program is the only option they have to purchase a home. However, some of these bad credit loans can benefit traditional borrowers as well.

Sub-prime lending is making a comeback in a big way. With rising interest rates and a large percentage of borrowers with bad credit, many banks and mortgage brokers are back in the business of giving out sub-prime loans. In Arizona, mortgages for bad credit borrowers are on the rise with a number of equity firms, private investors, banks, and mortgage brokers giving out loans to sub-prime borrowers.

Some experts are leery of this trend, blaming sub-prime lending practices for the housing collapse in the mid-2000s and the subsequent economic recession. Because of this, restrictive mortgage regulations went into effect which have all but crippled the housing economy. With a decline in housing purchases and virtual shut out for bad credit borrowers, the government has loosened some regulations and in Arizona mortgages for bad credit are starting to resurge. But, it is not only bad credit borrowers who can benefit from sub-prime lending. Many borrowers with excellent credit can still take advantage of bad credit loans to maximize borrowing potential and minimize interest rates.

Types of Sub-Prime Loans in Arizona

One type of loan that is available for people with bad credit is an adjustable rate mortgage or ARM. An ARM is offered to subprime borrowers who would not qualify for a traditional loan. It offers a low interest rate at first but then resets to a high interest rate after a specified period, usually 1 to 7 years. Once the rate adjusts your mortgage payment will increase due to the higher interest rate. This can be a good option if you only plan on owning the property short term or if you know you will be able to qualify to refinance your loan at the end of your low rate period. Although an ARM is a type of Arizona home loan for bad credit, it can also be beneficial for borrowers with good credit. Specifically, when interest rates are high, an ARM can get you a lower rate and therefore a lower monthly payment. Once the rate resets you can either sell the property for a profit or you can refinance to a traditional mortgage.

A second type of Arizona home loans for bad credit that is available is a hard money loan. A hard money loan is secured through a mortgage broker but is backed by investors instead of a bank. This is especially beneficial for people looking to do a fix and flip or short term purchase. Depending on the merit of the property you are purchasing as well as potential for income, investors will often invest capital, even if your credit score is lower than what is ideal. It should be noted that hard money loans are short term loans only. They cannot be used to purchase a home you plan to live in for any significant amount of time. These are designed primarily for real estate investors. A hard money loan is a good option for borrowers with good credit but a high debt to income ratio or who own additional property. Hard money lenders do not have as strict of debt to income ratios as traditional banks.

A third type of loan is a type of FHA loan. An FHA loan is backed by the government and will allow you to borrow about 96.5% of the value of the home you are purchasing. This means that you won’t have to come up with a large chunk for a down payment. In addition, the government backing means that you will be more likely to qualify, even with less than stellar credit. You will pay monthly insurance on your loan. In addition to you principle and interest payments, you will also pay a PMI insurance payment. This will increase the amount of your monthly mortgage payments until you pay off 20% of the loan amount. You can also couple FHA loans with different federal programs that offer down payment assistance or cash back at closing like Home in 5. These programs are constantly evolving and changing, so make sure to talk with a mortgage broker about what you may qualify for. FHA loans are a good loan for prime borrowers who want to keep more cash in their pocket with lower down payments and cash back programs.

Make sure to choose your loan carefully and 

weight the risks and benefits of your options.

The loan types mentioned above are some examples of sub-prime loans that can benefit prime borrowers. It is important to be aware of all risks associated with loans and to know that not all lenders are created equal. There are still predatory firms that will raise interest rates and give out irresponsible and risky loans. Find a licensed mortgage broker and a real estate agent you can trust to help you navigate the world of sub-prime lending. 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Arizona bad credit mortgage lenders: Risk Less with a Qualified Lender

If you have bad credit and want to purchase a home, you will find yourself looking for Arizona bad credit home mortgage lenders and banks that specialize in bad credit loans. There are a number of types of lenders as well as loans that can help individuals and families find the right home loan. With every loan product there is some risk but finding the right lender can help minimize investment risks.

If you have bad credit and want to buy a home, you may think it is an impossible goal. Bad credit can make you feel isolated and alone. A FICO score of less than 620 gives you a label of a “sub-prime” borrower with rotten credit. Banks and credit companies may label you as “irresponsible” or “too risky” of an investment. Although this may make you feel alone, rest assured that there are many Americans in the same position as you. The average credit score in the United States is 640, meaning that most borrowers have less than perfect credit. In addition, nearly one quarter of all credit using Americans are classified as sub-prime borrowers. If you have bad credit, it is possible to secure a home loan, you just have to find the right lender.

With many Americans falling into the “fair” or “poor” credit classifications, there are many Arizona bad credit home mortgage lenders that can help sub-prime borrowers secure a home loan to purchase a residence or investment property. If you are searching for a bad credit home loan, it is important to know all of your options as far as lender types and institutions. If you have bad credit, you may end up paying higher interest rates and could end up with a more risky loan type. It is important to find a lender you trust to help minimize the risk associated with many bad credit loans.

Types of Arizona Home Loan Lenders to Help 

Make You Home ownership Dreams Come True

The most common type of lender is a traditional bank. A bank gives mortgages loans and uses its own criteria along with federal guidelines to determine if a borrower has the FICO score and debt to income ratio necessary to qualify for a home loan. The bank uses market conditions to set interest rates and only offers their own interest rates and loans. Although a bank does have some options for bad credit borrowers, it is usually the entity that turns down sub-prime borrowers. It is not ideal as far as Arizona bad credit mortgage lenders go because it has strict guidelines regarding credit scores as well as income qualifications.

Another common type of lender is a Arizona Mortgage Broker. A mortgage broker is an individual or firm who operates under a state license to help individuals qualify for home mortgages. Like a bank, you can get multiple loan types but, a mortgage broker is not locked into one interest rate or one lender. The broker or broker company will basically shop loans for the borrower to find the best interest rate and loan terms based on current market conditions. In addition, a mortgage broker can find loans that banks may not be able to give because the borrower or loan type is too “risky” for a traditional lending institution. This makes a mortgage broker a better choice for borrowers with bad credit.

A less common type of lender is a private investment firm. These private investment firms are run by a licensed broker who is up to date on mortgage and real estate laws, programs, and terms. The loans are funded by private investors rather than a bank. As a group of private investors, these types of lenders are more likely to look at the merit of the property as well as the potential to make money as compared to exclusively the credit score of the borrower. This makes them a good option for Arizona bad credit mortgage lenders. One example of a private mortgage investor is a company like Level 4 Funding which is run by a licensed financial professional. This is an important characteristic to look for to make sure that you are working with a legitimate firm that will help minimize your financial risk. If you want to look into private mortgage investors, a mortgage broker can help you find a good company, but most likely you will have to ask for it. In addition, you can ask an investment banker or realtor to point you in the right direction.

Arizona Bad Credit Home Mortgage Lenders Are the Real Deal

The bank is not the only place to get a home loan. If you have been turned away by a bank due to bad credit, there are other options. Make sure to do your homework and thoroughly check credentials but once you find a lender you can trust, they can help you find many different options to lead you to homeownership. 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

How to qualify for Arizona Home Loans with Bad Credit

Subprime mortgages in Arizona have been considered a predatory lending practice by many law makers. The facts show otherwise as Arizona home loans with bad credit programs have typically been used by investors as a money making strategy, not by people who have been taken advantage of by banks.)

A subprime mortgage is a lending practice that can benefit borrowers with low credit scores. Typically, subprime mortgages are given to borrowers with a less than stellar credit history or to borrowers with other financial factors that make them too much a liability for a traditional loan. Based on these factors, the borrowers would not qualify for a traditional mortgage so banks give them a subprime loan with a higher than average interest rate. Because subprime borrowers represent a higher risk for the lender, most lenders charge a higher than prime interest rate.

The most common type of subprime mortgages that are offered are adjustable rate mortgages or ARMs. An adjustable rate mortgage initially offers a very low interest rate, usually below the prime rate offered by a traditional loan. For an informed investor who intends to fix and flip or only own a home for a short period of time, an adjustable rate mortgage can be a great investment tool. However, an ARM is somewhat misleading to uninformed borrowers as it initially charges a lower interest rate. After the ARM period the rate adjusts to a significantly higher rate and higher monthly payment. These types of mortgages were given out frequently by banks to un-creditworthy buyers in 2005 and 2006. Once the loan reset to the higher interest rate, many borrowers were unable to afford their new monthly payments and defaulted on their home loans. ARM were largely responsible for the increase of subprime mortgage foreclosure increases in the mid-2000s.

In addition to ARMs, many private equity firms and hedge funds also give subprime loans. Interest rates are usually higher for these loans because the borrowers represent a higher credit risk to the lender. Although there have been some predatory lenders, the majority of these firms want to help create a win-win situation. Investors make money and borrowers are able to purchase homes.

In response to the foreclosure crisis, may law makers want to eliminate Arizona home loans with bad credit programs entirely. They cite these types of loans as being predatory lending practices as the interest rates can reach as high as 9% when a traditional loan hovers around 4%. They also claim that these loans are disproportionately given to people who make less than the median level of income and there is also fear that subprime mortgages could hurt minorities or young people.

The Truth About Subprime Home Loan Arizona

As stated above, there is concern among law makers that Arizona home loans with bad credit are designed by banks to gain the most money from groups who have the least. The foreclosures of the mid-2000s helped fuel this fire. Politicians and loan reform groups make a variety of claims about the unsavory nature of subprime lending in Arizona, however, many of these claims have been proven inaccurate when the numbers are examined.

The first claim by politicians looking to discredit subprime lending in Arizona is that it would unfairly discriminate against low income borrowers. This claim is categorically false. In fact, most subprime borrowers in Arizona are above the median income line. Most subprime mortgages tend to be second mortgages that are purchased as investment properties. Subprime borrowers also tend to own fewer low value homes than traditional mortgage holders.

A second claim against sub prime mortgages Arizona is that subprime loans are unfairly given out to borrowers who are young without a substantial credit history. Subprime mortgages are not given out to mostly young borrowers. In fact, the average age of a borrower for a subprime mortgage was between 35 and 55 years of age. This indicates that subprime mortgages are not being used to penalize borrowers with insufficient credit history due to age.

Finally, another criticism is that minority borrower will be discriminated against and only offered high interest loans. A demographic study indicates that this is untrue. By analyzing zip codes and demographics, it was concluded that subprime mortgages are not more common in zip codes with a Hispanic population concentration.

Subprime mortgages are not being used by banks to unfairly discriminate against borrowers, rather than are a valuable tool for borrowers with low credit scores or as a means to purchase an investment property.

Since subprime mortgages often charge higher interest rates, they have unfortunately been lumped into the same category as title or payday loans. Some politicians see them as predatory practices without having all the facts. Arizona home loans with bad credit programs and loans are not a predatory lending practice by banks. Rather they are a tool that can be used for borrowers that would otherwise not qualify for a mortgage. Whether you are purchasing a second home as investment, or buying a home for your family to live in, don’t let a low credit score determine your fate. Contact a local mortgage broker to determine your options and see if a subprime loan is a good option for you.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Home Loans
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Aizona Home Loan: How to Buy a House with Bad Credit in Arizona

If you have a bad credit but are eager to buy your own home, you may be finding that traditional banks and loan types are standing in your way. However, many investors and mortgage brokers are here to lend a helping hand to turn your homeownership dreams into a reality by helping you figure out  how to get an Arizona Home Loan with bad credit in Arizona.

Bad credit can create a situation that feels almost hopeless. You will be judged by loan officers and potential employers before you even walk in the door. If you have rotten credit, chances are you have been denied a home loan, credit cards, car loans, and even jobs.  Many people and companies will stereotype you as being lazy or irresponsible based on your credit number. The truth is, bad credit can happen for a variety of reasons. Divorce, job loss, injury, or illness can cause your credit score to go down. In the current economy the average credit score is in the 600s, meaning that bad credit is more common than you may think. High fuel costs, increased taxes, inflation, and falling housing prices have put a financial strain on many Americans.

If you find yourself in the unfortunate situation of having bad credit, you may think that purchasing a home is impossible. However, there are many loans that you may be able to qualify for, even with rotten credit. If you find yourself wondering how to buy a house with bad credit in Arizona, there are a few things you need to know. First and foremost, it is possible to qualify for a home loan with bad credit. There are a number of programs and loan types geared towards sub-prime or bad credit borrowers. Secondly, there are specific benefits and risks associated with each type of loan. Knowing all the benefits as well as the risks can help you make an informed credit decisions.

Arizona Home Loan Types that Benefit Bad Credit Borrowers

One type of loan that can benefit you if you have bad credit is an FHA loan. An FHA loan is a loan type that is insured by the federal government. In order to obtain an FHA loan, you need to work with an FHA accredited lender. The lender will approve you for the loan based on your income and credit score. Each month you will pay extra in the form of a monthly insurance premium or MIP. The MIP will vary based on your loan amount and the value to debt ratio of the property you purchase. The reason you pay this insurance premium is to insure you loan against default. If you default on the loan, the FHA will pay the bank back. This is why an FHA loan is an ideal loan type for borrowers wondering how get a Home Loan with bad credit in Arizona. Since the loan is insured by the government, the bank is more likely to give a loan to a borrower that it views as being higher risk. In order to qualify for an FHA loan, you will need to have at least 3.5% of the purchase price to put down so make sure you save accordingly. Not having this could delay your loan.

 Another type of loan that you will want to look into if you have bad credit is an adjustable rate mortgage or ARM.  An ARM is a mortgage that has a fixed interest rate for a set period of 1 to 7 years. During that period you will pay a relatively low interest rate, usually lower than the prime rate. After the initial fixed period, the rate will reset to a higher rate and your mortgage payment will increase. Borrowers with bad credit can take advantage of this program as a way to own a home because the initial payments are low due to the low interest rates. Keep in mind that after the rate resets your payment will increase significantly. An ARM is a good option for borrowers who plan on either selling or refinancing before the rate resets. In order to qualify for an adjustable rate mortgage, you will need to have at least 10% of the purchase price to put towards a down payment. If you are buying a home for $200,000, this means that you will need at least $20,000 in savings.

To help figure out how to buy a house with bad credit in Arizona, contact an Arizona Home Loan broker.

A mortgage broker can help you analyze each loan type available to you with bad credit. A broker can help you navigate constantly changing loan programs to choose the best loan for your financial situation. Owning a home is a great first step in rebuilding your bad credit. Stop waiting, and find a broker to help make your dreams come true. 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Home Loans
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027