Capital Home Mortgage Prescott

Prescott home purchase loans

Home Purchase lender Prescott Arizona

Home Purchase Loans In Prescott

Potential home buyers in Prescott, Arizona, should expect a competitive atmosphere in the present housing market. The median sale price of a property in Prescott increased by 0.8% over the previous year. Prescott real estate sells typically after 49 days on the market. Buyers should be prepared for a market in which the supply of homes exceeds the demand and a little increase in the time residences stay on the market compared to last year.

Purchase Loan Programs in Prescott

Prescott home buyers have plenty of options when financing a home purchase. The most common programs are the following:

  • Conventional Loans

As you begin the exciting adventure of homeownership in Prescott, Arizona, you will come across many loan options. The conventional loan is one of the most popular, thanks to its low-interest rates and flexible conditions. Understanding the complexities of conventional loans, particularly the distinction between conforming and non-conforming loans, is essential for making sound financial decisions.

A conventional loan is not guaranteed by a government agency, such as the Federal Housing Administration (FHA) or the Veterans Administration (VA). Private lenders primarily provide these loans and require a minimum down payment of 3 – 5%. Conventional conforming loans follow strict rules established by Fannie Mae and Freddie Mac, government-sponsored enterprises that assure mortgage market liquidity. These recommendations include loan limitations, debt-to-income ratios, and credit score criteria. The conforming loan limit for a single-family residence in Prescott in 2023 is $726,200.

Non-conforming loans exceed the conforming loan limits. In Prescott, any loan over $726,200 falls into this category. Non-conforming loans, while providing more flexibility for borrowers who require larger loans, can have higher interest rates and stricter underwriting standards.

  • VA Loans

If you are a United States military member in Prescott, Arizona, a VA loan, guaranteed by the United States Department of Veterans Affairs, is a substantial option in your homebuying process. This loan is a benefit available to service personnel, veterans, and qualifying surviving spouses, and it is notable for its favorable terms. A VA loan in Prescott allows for 100% financing, which means there is no down payment required, and it does not require private mortgage insurance (PMI), which is usually required for loans with less than a 20% down payment. Furthermore, VA loans sometimes have reasonable interest rates and low closing fees, making them an appealing alternative for qualified Prescott homeowners.

You must meet specific service requirements to qualify for a VA loan in Prescott. These include 90 consecutive days of wartime active service, 181 days of peacetime active service, or six years in the National Guard or Reserves. Spouses of service members killed in the line of duty or who have a service-related disability are also eligible. In addition to service requirements, you’ll need a Certificate of Eligibility (COE) to show lenders you’re eligible for a VA loan. Individual lenders in Prescott determine credit and income standards, although the VA’s support frequently results in more flexible criteria than other loan kinds. Understanding these qualifying standards is critical as you explore the numerous mortgage alternatives in the Prescott real estate market.

  • FHA Loans

As a prospective homebuyer in Prescott, Arizona, you should be familiar with an FHA loan, a form of mortgage insured by the Federal Housing Administration (FHA), part of the United States Department of Housing and Urban Development (HUD). An FHA loan is intended to lessen the barriers to homeownership, which is especially helpful if you have a low credit score or have limited funds for a down payment. These loans are distinguished by their lenient credit standards and modest down payments of as little as 3.5% of the home’s purchase price. In Prescott, where house costs vary, an FHA loan may represent an affordable way to become a homeowner, mainly if you are a first-time buyer or have limited financial resources.

Various types of FHA or HUD loans are available in Prescott, each customized to unique homebuyer needs. The Basic Home Mortgage Loan 203(b) is the most prevalent and is suitable for purchasing a new or existing one-to-four-family home in Prescott. Suppose you want to buy a fixer-upper or need to do major renovations. In that case, the FHA 203(k) Rehabilitation Mortgage Insurance program may be right for you because it combines the cost of home modifications and the home purchase into one loan. The FHA offers the Home Equity Conversion Mortgage (HECM) to persons aged 62 and up, which is a reverse mortgage program that allows you to convert a portion of your home value into cash. Finally, the FHA’s Energy Efficient Mortgage program encourages the acquisition of an energy-efficient house in Prescott or one that can be made so through renovations. 

The HUD Section 184 loan program, which is expressly established for American Indian and Alaska Native families, appears to be a viable choice. This program, supported by the United States Department of Housing and Urban Development, provides flexible underwriting rules and low down payment requirements, making homeownership more accessible to qualified individuals and families in Prescott.

Each program focuses on a different part of home financing and remodeling, making them essential options to consider during your Prescott home-buying process.

  • Jumbo Loans

When you find your dream home in Prescott, Arizona, and the price exceeds the conforming loan limit, a jumbo loan may be a viable option. Jumbo loans are designed exclusively for customers looking for financing for high-value properties that exceed the standard limit, which is presently set at $726,200 in Prescott.

While jumbo loans provide greater flexibility in purchasing your preferred property, they have stricter eligibility restrictions than conforming loans. To qualify, you must show a credit score of at least 700, preferably above 720, which is usually necessary for Prescott jumbo loans. A debt-to-income ratio (DTI) of less than 43%, preferably closer to 36%, suggests your capacity to handle existing debt while making mortgage payments. Jumbo loans frequently require a 20% or higher down payment, depending on the lender and your financial profile. Lenders will want proof of your income and employment stability to guarantee you can afford the loan installments easily. Extra assets like savings or investments strengthen your application while providing lenders more confidence.

If you meet these jumbo loan requirements, you can use the power of a jumbo loan to buy your ideal home in Prescott, Arizona, regardless of its valuation.

  • Construction Loans

As you plan to build your ideal residence in Prescott, Arizona, a construction home loan can help you bridge the gap between your vision and reality. These specialty loans provide the necessary financing throughout construction, making your dream home a reality.

Construction home loans are classified into two types: One-Time Close and Two-Time Close construction loans. The one-time close simplified strategy combines construction and permanent finance into a single loan. The loan immediately converts to a permanent mortgage upon completion of construction and appraisal, eliminating the need for a second loan application and closing costs.

Two-time close requires two distinct loans: one for construction and one for permanent finance. Following the completion of construction, you will close the construction loan and finalize a permanent mortgage with a separate lender. While this option requires more steps and may incur additional costs, it may provide better options regarding interest rates and loan terms.

  • Non-Qualified Mortgage Loans

As you look into different mortgage alternatives in Prescott, Arizona, it’s critical to comprehend non-qualified mortgage (non-QM) loans, especially if you have an unusual income or credit history. Non-QM loans do not meet the Consumer Financial Protection Bureau’s demanding criteria for a Qualified Mortgage (QM). This implies that whether you’re self-employed, have unpredictable income, a high debt-to-income ratio, or a less-than-perfect credit score, a non-QM loan may provide you with the flexibility you need for home finance. These loans are intended to assess your ability to repay using other means and documentation, giving a path to homeownership that traditional loans may not allow.

In Prescott, there are numerous types of non-QM loans available. One type is the bank statement loan, which is especially useful if you are self-employed. Lenders will check your bank statements instead of traditional income documentation to determine your financial stability. Another form is an asset-based loan, in which lenders look at your liquid assets rather than your income to determine your loan eligibility. This can be advantageous if you have significant assets but inconsistent income. Non-QM loans include interest-only loans, in which you pay only the interest for a fixed length of time before beginning to pay down the debt. These are appealing if you anticipate a growth in your income in the future. Furthermore, loans with larger debt-to-income ratios than permissible under QM loans are available to persons with higher debt levels. Understanding these Prescott possibilities is critical because they provide alternate paths to homeownership for folks who may need to fit the standard loan mold.

Apply for a Home Purchase Loan in Prescott

Capital Home Mortgage is a mortgage company that provides a wide range of services to consumers in Prescott, Arizona. We offer various mortgage loans, including FHA, VA, Conventional, USDA, Jumbo, and HUD 184 loan programs.

Contact a Prescott Home Loan Specialist at (480) 360-6650.

Why Prescott HomeBuyers are Choosing Capital Home Mortgage
Close On Time

Complete Control from Application to Funding

Low Rates & Low Fees

Direct Lender with Competitive Rates & Low Fees

Exceptional Service

7  Day a Week Support Application to Final Mortgage Payment

Prescott Arizona Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Prescott Home Purchase Loans

Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.

  • Primary, Secondary, Investment
  • FHA, VA, USDA, Native American
  • Conventional, Jumbo, Non QM
  • Reverse, Renovation, Manufactured

Prescott fixed rate Mortgage Loans

All Fixed Rate Mortgage Loans are designed to have equal payments for the specified term. These loans offer predictability and are deemed to be less risky for borrowers. Fixed Rate Mortgage Loans are available with all mortgage products and are typically offered in 15 year and 30 year terms. However, Fixed Rate Mortgage Loans are also offer in 10 year, 20 year and 25 year terms although less common due to demand.

Prescott Adjustable Rate Mortgage Loans

Adjustable Rate Mortgage Loans known as ARM’s are  available with most mortgage products although limited with FHA, VA and USDA. ARM’s are great fit for homebuyers who plan to sell or refinance their home between 1 and 10 years and are looking for the lowest possible payment.  ARM’s offers lower rates during times where fixed rates are higher. An adjustable rate mortgage is fixed for a specific time then adjusts on a predetermined time period and a predetermined amount based on a financial index and a fixed margin.

Prescott Mortgage Programs

Prescott Home Purchase

Thinking of Buying an Prescott Home?

Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.

  • Primary, Secondary, Investment
  • FHA, VA, USDA, Native American
  • Conventional, Jumbo, Non QM
  • Reverse, Renovation, Manufactured

Prescott renovation home loans

Looking to Rehab an Prescott Home?

Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not look at a renovation loan?  Purchase the Perfect Home and make it your own. Call today.

  • Remodel, Renovate or Repairs
  • FHA 203K Streamline or full
  • fannie mae homestyle reno
  • freddie mac home choice reno

Prescott FHA Home Loans

Great for 1st Time Prescott Homebuyers

FHA Home Loans are great for first time home buyers, buyers with less than perfect credit, or buyers needing less out of pocket.   Call today to get started.

  • Smaller Down Payment
  • Flexible Underwriting
  • Higher Debt to Income Ratios
  • Lower Credit Scores OK

Prescott VA Home Loans

100% Financing for Prescott Veterans

Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.

  • Simply Qualifying for Veterans
  • No Down Payments Requirements
  • Lower Credit Scores Accepted
  • Manual Underwriting Allowed

Prescott Conventional Home Loans

Flexibility for Prescott Homebuyers

Conventional Home Loans are the best option for flexibility of property types and for mortgage loan terms. Call today to get speak to a Loan Officer.

  • Primary, 2nd Home, Investment
  • Great Rates & Low Fees 
  • Single Family and Multi-Family
  • Renovation Loan Programs

Prescott Jumbo Home Loans

Prescott Non Conforming Loans

Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits.  Call today to speak to a loan officer.

  • Primary Residence and 2nd Homes
  • Higher Loan Amounts – 3 Million
  • Great Interest Rates
  • Investor Specific Guidelines

Prescott USDA Home Loans

100% Prescott Rural Home Loans

USDA Loans are a great option for families wanting to live outside of the city.  Call today to speak with a loan officer to discuss your personal loan options.

  • Rural Properties Only
  • Primary Residence Only
  • Geographic Restrictions
  • Income REstrictions

Prescott Native American Home Loans

Prescott HUD 184 Home Loans

HUD 184 Home Loans are solely for Native American and offer a variety of benefits.  Call today to speak with a loan officer to find out more.

  • Primary Residence Only
  • Manual Underwriting for All Loans
  • No Credit Score Requirements
  • Tribal Grants Allowed

Prescott Manufactured Home Loans

Great Alternative Prescott Housing

Prescott reverse mortgages

Your Prescott Home at Work

Reverse Mortgage Loans offer seniors options to use their home’s equity for cash or to eliminate payments. Call today to get speak to a Reverse Loan Officer.

  • primary residence only
  • simple qualifying – equity based
  • credit scores not applicable
  • Minimum age 62

Prescott Non QM Home Loans

Making Prescott Mortgages Possible

Looking for Non Traditional Home Mortgage Loan?  Contact a Loan Officer Today to discuss the alternative mortgage options currently available.

  • Purchase, Rate and Term & Cash-out
  • Primary, Secondary and Investment
  • Full Doc & Bank Statements Programs
  • Corporations OK

Prescott One Time Close mortgages

Build Your Prescott Dream Home

Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan.  Call today to see how a OTC loan works.

  • Primary Residence Only
  • Close Once
  • Lock Rate at Contract
  • Traditional Final Mortgage

Prescott Refinance Mortgage Loans

Prescott Rate & Term Refinance

Refinancing can be a hard decision and the payback can sometimes be confusing.  Call today and let our Loan Officers walk you through the process.

  • Reduce Mortgage Term
  • Lower Monthly Payments
  • Appraisal Waivers
  • Streamline Options Available

Prescott Cash-out Home mortgages

Prescott Equity Mortgage Loans

Cash-Out Mortgage Loans make use of the equity in your home by allowing you to refinance the current mortgage and access this equity to use as you see fit.

  • Debt Consolidation
  • Investment Opportunities
  • Home Improvement
  • Vacation or Education

Prescott Arizona Mortgage Team

Dale Gremillion

Sr Loan Officer
NMLS #210325

Conor Hayhurst

Branch Manager
NMLS #743506

Sam Klaburner

Sr Loan Officer
NMLS #140132

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