Homes for sale Chandler, Gilbert and Mesa AZ continue to increase in value.Rising Arizona home prices require higher loan limits to make them affordable

 

CONFORMING CONVENTIONAL HOME LOANS

Higher Conforming Conventional First Trust Deed Loan Limits in Arizona as of 1/1/2017

  • 1 Family - $424,100
  • 2 Family - $543,000
  • 3 Family - $656,350
  • 4 Family - $815,650

Conventional Loan Characteristics Remain Unchanged

Conventional real estate loans require at least a 5% down payment with a maximum loan of 95% loan to value. Private Mortgage Insurance (PMI) protecting the lender against borrower default is no longer charged borrower when the remaining loan balance is 78% or less of the original loan balance. This is different than an FHA loan requiring Mortgage Insurance Premium be paid for the life of the loan until loan balance is repaid.

 

CONFORMING VA HOME LOANS

Higher VA First Trust Deed Loan Limits in Arizona as of 1/1/2017 are available to qualified military veterans to purchase their principal residence.

  • 1 Family - $424,100
  • 2 Family - $543,000
  • 3 Family - $656,350
  • 4 Family - $815,650

VA Loan Characteristics Remain Unchanged

VA real estate loans require NO DOWN PAYMENT with 100% of the purchase price of VA approved principal residences financed up to the maximum loan limit, as long as the veteran is approved for the loan per VA loan underwriter guidelines. VA allows the veteran to purchase a multi-unit building as long as the veteran's principal residence is one of the units purchased.

VA FUNDING FEE
An eligible military veteran may also finance their one time VA funding fee at time of purchase. Additionally, there are no VA annual or monthly mortgage insurance charges.

VA ELIGIBILITY REINSTATEMENT
The veteran may reinstate their VA loan eligibility to purchase a new principal residence once the previous VA insured loan is repaid in full, providing the veteran is approved for the loan per VA underwriting guidelines. While a veteran may be allowed to reuse their VA loan eligibility, the veteran is required to pay a slightly higher one time VA Funding Fee at closing for the privilege.

Borrowers with higher credit scores, lower debt to income ratio, sufficient reserves for higher down payments than the Conventional minimum and/or borrowers purchasing residences priced above the maximum Conventional or VA loan amount should compare conventional second trust deed loans to find the best combined first and second trust deed loan(s) and terms that meet their needs. Contact Sam for trusted lender recommendations.

Review of Arizona Maricopa and Pinal County 2017 FHA Loan limits 

Sam has 25+ years of full time real estate experience assisting buyers and sellers transact homes for sale in ChandlerGilbertMesaPhoenixScottsdaleTempe AZ and investment property.

Sam Elam - Associate Broker with Berkshire Hathaway HomeServices Arizona Properties serving Chandler, Gilbert and Mesa AZ
Author: Sam Elam,
Arizona Associate Broker, GRI, e-PRO, SFR
Berkshire Hathaway HomeServices Arizona Properties

Call: 480-213-1799 or Contact Sam to discuss your Arizona home sale and purchase plans and schedule an appointment to see how he can help you achieve your real estate goals.