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Starwest Mortgage Corporation
1818 E. Southern Ave, Suite 15C
Mesa, AZ  85204

Arizona: (480) 962-5665
Tucson: (520) 303-9406
Utah: (801) 214-1777
Colorado: (720) 644-8078
Fax: (480) 545-0586

NMLS 164496 Arizona MB
0905975 Utah 5941296-NMLC
Colorado Registered MB

FHA Financing

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The Federal Housing Administration (FHA), which is a part of HUD, insures this loan so the lender can offer a more competitive deal. This type of loan is popular among first-time homebuyers. However, being a first-time buyer is not a requirement. FHA loans are normally restricted to a primary residence and only one FHA loan per person, unless the borrower or borrowers can prove that their family has outgrown the current residence or if an employment relocation is taking place. Either way, these circumstances are up to the lender and underwriter’s discretion.


FHA’s minimum requirement for down payment for a purchase is 3.5% or $3,500 on a sale price of $100,000. Technically, FHA does not require a minimum credit score; however, lenders have what are called “lender overlays”, which usually require a credit score of at least 640. Other conditions can apply to credit scores down to 500. FHA programs come in a large assortment (e.g., 30-year, 30-Year 2/1 Buydown, 15-Year, 3/1 and 5/1 ARMs).
The advantage of doing an FHA 15-Year loan with 10% down payment or equity is that the consumer may not have to pay monthly mortgage insurance. This may change with new rules in 2013. All Conventional loans require a 20% down payment to eliminate mortgage insurance.


On a 30-Year fixed loan with 3.5% down payment, FHA requires that you pay a monthly mortgage insurance fee. Worth mentioning is that the mortgage insurance fee factor will decrease with a 5% plus down payment. Loan amounts are restricted to county loan limits, which vary from state to state.

Per FHA guidelines and in addition to the monthly mortgage insurance, the borrower or borrowers will pay an upfront mortgage insurance fee. This fee can be financed or paid in cash, but this means that interest on that fee is paid over the term of the loan.

With Conventional loan programs, the borrower or borrowers can appeal to have the mortgage insurance removed once the property’s loan-to-value ratio reaches 80%. With FHA mortgages, depending on when you closed your FHA loan, the mortgage insurance premium may apply for the life of the loan.

Refinancing FHA

When refinancing with FHA, you may refinance up to 97.75% loan to the value of the home.  You may only receive up to $500 cash back at closing.  This is called a Rate-and-Term Refinance.  The new loan can only refinance the existing FHA-insured first lien, closing costs, and prepaid expenses.  You must obtain an appraisal on this loan.  You will also pay monthly mortgage insurance and an up- front mortgage insurance premium when you do a refinance.  Although, you may be eligible for a refund of a portion of your original up front mortgage insurance premium paid at the time you last refinanced or purchased.  Qualifications are similar to when your purchased your home.

If you have paid at least 6 payments on your mortgage and it’s been more than 210 days, you may qualify for a Streamline Refinance.  The Streamline Refinance, which does not require an appraisal, has far less stringent requirements.  Visit our streamline refinance page for more detailed information.

If your property was purchased more than one year prior to the refinance, you can refinance the existing mortgage up to 85 percent of the appraised value plus the allowable closing costs, which may vary from state to state.

FHA Loan Highlights

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Payment Amortization Calculator

Learn about alternative loan programs that may fit your goals.

Conventional Mortgage

FHA Streamline

VA Loan

Why you should choose Starwest Mortgage for your home purchase:



Starwest pays for all the closing costs associated with the transaction. None of these fees are rolled onto the loan balance. Learn More

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