Options exist for those shopping for a better home loan

Community First Financial, LLC is giving potential homebuyers in Maricopa a new option when it comes to choosing a loan.

This new loan is available only through the Scottsdale mortgage broker and is aimed at getting potential first time buyers with less than desirable criteria approved.

Requirements for this new loan program are a minimum credit score of 550, a minimum of $500 in available funds in one or more bank accounts and 3 percent of the closing cost covered by the seller.

“This new program is aimed at people who want to buy a home and live in it, not turn around and sell it for an investment,” said Troy Schuricht, an agent at Community First Financial.

The new program is similar to an FHA loan; however, the credit requirements are not as stringent, and the home purchaser is not required to carry mortgage insurance.

Mortgage insurance is a requirement that lenders often put on loans that protects them if the property goes into foreclosure.

“This coverage typical costs the borrower $50 per $100,000 of home value,” Schuricht said.

Besides not requiring the borrower to carry mortgage insurance, this new program sets limits on the amount of income a family can make in order to qualify.

The limit on a single dependent family is an annual income of $59k and, as dependents are added, the income limit increases.

If the homebuyer is approved, the loan is a fixed rate 30-year mortgage.

“The interest rates for this loan have been hovering around the 6.5 percent mark,” Schuricht said.

Documents the buyer will need to have prepared when applying for this loan are pay stubs, w-2s and a recent bank statement showing a balance of $500.

“I’m not saying that we can get everyone qualified, but we will do our best,” Schuricht said.

For more information on this new loan program contact Troy Schuricht at (480) 305-8905.

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