When thinking about getting an FHA loan in Arizona, there are several things to consider – one of which is the maximum loan-to-value that you can finance. In other words, how much money you have to put down for an FHA loan (or how much equity you need to have).
Maximum LTV on FHA Purchase Transaction
- 96.50% of the lesser of the appraised value or adjusted sales price.
- 90.00% of the lesser of the appraised value or adjusted sales price when buying new construction property that does not meet all HUD new construction requirements.
FHA No Cash-Out Refinance
- 97.75 % of the appraised value if the property was acquired > 12 mos. prior to loan application;
- The sum of the loan payoff and all allowable costs or
- If the property was acquired 12 mos. prior to application date the original purchase price, plus allowable costs.
FHA Streamline Refinance With An Appraisal
- The sum of the existing 1st mortgage outstanding principal balance, closing costs, prepaids, and up to a maximum of 30 days interest accrued for current month on old loan and subtract any refund of upfront MIP, if any. (May not include delinquent interest, discount points, escrow shortages or late charges); OR
- Appropriate LTV ratio of 97.75% of the appraised value, plus the new MIP that will be charged on the refinance.
FHA Streamline Refinance Without An Appraisal
- Primary Residence: Limited to unpaid principal balance, maximum 30 days of interest accrued on old loan, minus any refund of UFMIP, if any.
- Investment Property & Second Homes: Limited to unpaid principal balance, minus any refund of UFMIP.
When getting an FHA loan, the exact loan-to-value that you can qualify for financing for is only one of the important things to know — be sure to speak with your loan officer about this in as much detail as you need to be comfortable with the guidelines.