Three cities just outside Phoenix are loaded with FHA and VA loans from the low-rate years that a qualified buyer can take over, rate and all. Most buyers don't even know to ask.
Everyone's watching Phoenix. But three cities just outside it are quietly loaded with something investors haven't seen in years: homes for sale with assumable mortgages at rates nobody can get anymore.
If you don't know what an assumable mortgage is, here's the short version. When a home was purchased with an FHA or VA loan, a qualified buyer can take over that loan, the same balance, the same terms, and critically, the same interest rate. In a market where today's rates are in the mid to high 6% range, finding a seller who locked in at 3 to 4% means you're not just buying a house. You're buying their old rate.
Here are the three Arizona cities where we're seeing this the most right now.
1. Buckeye
Buckeye has been one of the fastest-growing cities in the entire state. That growth happened during the low-rate years, which means there's a real supply of FHA and VA loans out there from 2020 through 2022 that a qualified buyer can literally take over, rate and all.
If you can find a seller who financed at 3% to 4%, you're assuming a monthly payment that's dramatically lower than what you'd get financing the same house at today's rate. With today's rates sitting in the mid-to-high 6% range, taking over a loan from the low-rate years can mean a meaningfully lower monthly payment on the assumed balance.
“If you can find a seller who financed at 3 to 4%, you’re not just buying a house. You’re buying their old rate.”
2. San Tan Valley
San Tan Valley has a similar story. A lot of newer construction is financed with government-backed loans, and prices that are still more accessible than the East Valley cities right next door.
For investors, that combination of an assumable low rate and a growing rental market is hard to find anywhere else right now. You're looking at a property where the payment is based on a rate from three or four years ago, in an area where rental demand is climbing. The cash flow math on that is significantly better than anything you'd pencil out with a new loan at today's rates.
3. Maricopa
Maricopa has been one of the most talked-about growth corridors in the state, and it's got the same pattern. A lot of FHA and VA-financed homes from the past several years are now hitting the resale market.
For an investor, assuming one of these loans can mean a monthly payment that's dramatically lower than financing the same house at today's rate. For an owner-occupant, it means locking into a payment that most people assume no longer exists. Either way, the opportunity is real, and it's sitting right there for the buyers who know to look for it.
Why most people miss this
Assumable mortgages aren't advertised the way they should be. They don't show up with a flag on the listing. There's no filter for them on most search sites. Most buyers don't even know to ask, and most agents don't know how to structure the deal. The process is different from a standard purchase. It takes longer, it requires lender approval, and the paperwork is more involved. But the savings can be substantial enough to make it more than worth the extra effort.
Whether you're an investor looking for better cash flow or someone looking to occupy the home you buy at a rate that doesn't exist anymore, we can help you find what's actually available right now. Give us a call at 480-267-9368, email us at Office@GoodCompanyRE.com, or visit goodcompanyre.com. We'll walk you through it.
