Buying a Home Near Phoenix?

What You Need to Know About Mortgages

Buying a home is an exciting milestone, but figuring out how you'll pay for it can be one of the most difficult parts of the process. Even experienced home buyers can have questions about finding the right mortgage—and that's why we're here to assist you every step of the way.

Try crunching some numbers with our handy mortgage calculator and let us know if you have any questions. We'd be happy to help you choose the right type of loan or recommend a top-rated local lender!

How to Choose the Right Mortgage

Get recommendations

Your real estate agent, mortgage broker, or even your loved ones may be able to recommend a great lender. You can even look up reviews of certain lenders on the internet as a starting point.

Talk to lenders

Consider picking up the phone and calling a lender directly to learn about their specific programs, incentives, and current offers. They'd be more than happy to talk to you about your options.

Get pre-qualified

If you want to see how much a lender will approve you for without a hard credit inquiry, consider getting pre-qualified for a mortgage. From there, you can get a more concrete offer through pre-approval.

Determine How You'll Pay Interest

Fixed-rate

  • Your interest rate never changes
  • Payments stay the same
  • Very predictable
  • Most common type of rate

Adjustable-rate

  • Interest rate changes with the market
  • Can start out low and increase over time
  • Payments will fluctuate
  • Less predictable

Common Mortgage Options in Phoenix

Conventional loan

  • Lasts from 15 – 30 years
  • Fixed-rate or adjustable
  • Requires an established financial history
  • Most buyers need a 20% down payment

VA loan

  • Available for active, retired, or veteran members of the armed forces
  • Low down payment requirements with no mortgage insurance
  • One-time funding fee may be necessary
  • Only available for primary residences

FHA loan

  • Less strict income and credit requirements
  • Lower down payment options
  • Requires mortgage insurance
  • Can have higher interest rates

USDA loan

  • Only available in rural areas
  • Low down payment requirements
  • Targeted towards buyers with a modest, steady income
  • Check USDA map for eligibility

Balloon mortgage

  • Payments are based on a 30-year loan but are paid over 5 – 7 years
  • At the end of the term, borrower must pay off the balance or refinance
  • Lower interest rates
  • Does not require a high credit score

Arizona Home Plus

  • Available to Arizona buyers
  • Various types of programs
  • Conventional or "soft" second mortgage
  • No first-time buyer requirement

Lender-specialty loans

  • Offered by certain banks
  • Lower interest rates
  • Lower down payment requirements
  • Helpful for lower income or fist-time buyers

Other Programs

  • Section 32 Homeownership Program
  • Open Doors Homeownership Program
  • Both offer down payment assistance

Ready to Calculate Your Monthly Payments?

Now that you're armed with everything you need to know about home loans in the Phoenix area, it's time to start calculating! Try plugging some numbers into our mortgage calculator to estimate your monthly mortgage payments at various home price points, interest rates, down payments, insurance and tax costs, and more. And if you have any questions, we're only a phone call away!

Start Your Calculation