If you are looking for an Arizona mortgage for a second home, vacation home or investment property, there are still some good products available. You will need at least a 10% down payment for a second home or vacation home. For investment property loans, figure between 20% to 25% down payment. FHA and VA mortgages are not available on these types of properties.
Many properties in the Arizona area are bank owned properties and short sales. For instance, if you are looking for foreclosure deals, according to RealtyTrac's data, there are still thousands of foreclosure sale auction properties available to purchase, as well as government owned foreclosure properties and thousands of bank owned REO's. Investors and first time buyers have been finding great bargains in all neighborhoods and price ranges.
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Now is a Good Time to Buy
If you have been waiting, it's a good time to buy now with low interest rates and affordable inventory. Rental properties are in high demand because may displaced homeowners who lost their homes to foreclosure need to rent a home. Rents are expected to go higher this year so if you are planning on renting out your investment property, you should be able to get a fair price for your rental home. Many investors/buyers are purchasing foreclosures and rehabbing them to either rent out or turn around and sell.
So no matter what your intended use, you might want to consider buying a foreclosure or a short sale because they are sold at discounted prices, and you get a property with built in equity. Short sales take longer to close because you have to wait for the seller's lender to approve the transaction.
Benefits of Working with an Arizona Mortgage Broker
It is a good idea to work with an Arizona mortgage broker who can help you sort out all the Arizona mortgage products on the market today and help you with finding the best Arizona mortgage rates. The mortgage broker can shop rates for you because they work with many different lenders. This saves you the time and money of having to look for a mortgage or having to drive to your local bank branch. The mortgage broker can assist you with your loan from beginning to end. Ask your Realtor for a referral if you do not have a mortgage broker. Realtors work with mortgage brokers on a daily basis.
The mortgage broker will qualify you for a loan so you and your Realtor know how much home you can afford. The Realtor can then show you those properties that fall into that price range. The broker will also provide you with a pre-qualification letter so you can give it to the seller at the time you make an offer. This way the seller knows you will be able to close on the home. The pre-qualification letter makes your offer stronger.
Once you and the seller agree on the terms and sign the contract, the mortgage broker will coordinate the loan processing with the lender to make sure you close your transaction on time. The broker will keep your Realtor advised as well as the title closing agent. The broker can explain the loan documents to you when they are ready to sign so you understand the terms of your mortgage.
If you have any questions about this or if you have any questions you'd like us to answer on our podcast, you can submit your questions using our contact form or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We'll personally work with you and help you through the whole process.
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Be sure to ask us for a free quote on your next mortgage. We'll personally work with you and help you through the whole process.
Mortgage Brothers LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Mortgage Brothers NMLS 1007154, NMLS #210917 and 1618695. Equal Housing Opportunity.
Explore the ins and outs of vacation and investment home mortgages in Arizona. To get a full view of your financing options, learn about how high a lender will allow your deductible to be on our deductible limits guide and discover the impact of car loan payments on your mortgage in our article on car loan payment effects.