Types of Home Loans Available

The Arizona real estate market has been growing rapidly with the increased need for people to get their own homes. Surveys show that with the many mortgage options available, a large percentage of people are finding it easier to start their homeownership journey. This has also created a lot of demand for different types of properties. If you want to find the right home loan, it’s essential to compare multiple options. Here are the main types of Arizona home loans:  

1. VA Home Loans

VA loans are guaranteed by the Veterans Affairs department. This means that if a borrower defaults, the government is responsible for paying back the defaulted debt. The best thing about VA loans is that no down payment is needed, unlike other conventional mortgage options. These loans are specifically made for the veterans, military personnel, and surviving spouses of those who died in service. The VA loan limit in Arizona is currently $548,250.  

2. Home Equity Loans

They’re also known as second mortgages. You can qualify for a home loan through your existing home equity. Home equity loans are mainly used for home improvement. These loans usually have a shorter duration (10-15 years) and come at pretty higher interest rates.  

3. FHA Home Loans

These loans are used to buy, renovate or refinance a property. The FHA has some limits on how much money you can get as a borrower to reduce the risk to the lender. FHA home loans have a favorable down payment (3.5%) and credit score (500) requirements. These loans also don’t have prepayment fees meaning that you can pay earlier than the scheduled duration.  

4. USDA Home Loans

These loans are offered by the US agriculture department. They’re specifically made to help low to average income earners, especially those in rural areas, to acquire their dream homes. USDA home loans generally have low closing costs and don’t require down payments like conventional home loans. Apart from buying a new home, a USDA home loan can also be used to renovate an existing home.  

5. Jumbo Loans

These loans are made for homebuyers looking for luxurious and highly-priced homes. Jumbo loans aren’t offered by all mortgage lenders since they possess a high credit risk. Jumbo loans also have a higher interest rate compared to standard Arizona home loans.   These are some of the types of home loans in Arizona. You can also get HELOCs and zero-down mortgages.  

A Lending Hand for Financing Home Mortgages

Spire Financial (A Division of V.I.P. Mortgage, Inc.) brings lending expertise to you. All of our loan officers offer personalized communication for every client, guiding them through the process. We can show you ways to maximize your finances and unlock future opportunities. Spire Financial keeps you in control of refinancing, debt consolidation, and home equity. Together, we can achieve your financial goals.



V.I.P. Mortgage, Inc. DBA Spire Financial does Business in Accordance with Federal Fair Lending Laws. NMLS ID 145502. For state specific licensing, visit www.vipmtginc.com/national-licenses/. V.I.P. Mortgage, Inc. is not acting on behalf of or at the direction of the FHA/HUD or the Federal Government. This product or service has not been approved or endorsed by any governmental agency, and this offer is not being made by any agency of the government. V.I.P. Mortgage, Inc. is approved to participate in FHA programs but the products and services performed by V.I.P. Mortgage, Inc. are not coming directly from HUD or FHA. Information, rates, and programs are subject to change without notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions may apply. This is not an offer to enter into an agreement. Not all customers will qualify.

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