Must have Information on Michigan FHA Home Loans

Are You Looking to Purchase a Home Using The Michigan FHA Home Loan Program?

Michigan FHA Home loans offer some unique advantages for prospective home purchasers looking to apply. Like conventional loans, FHA insured loans offer attractive fixed rates for 10, 15, 20 and 30 year terms. Unlike their conventional counterparts, FHA home loans are insured by HUD.

This insurance is funded by borrower paid premiums that are collected on every FHA loan. This premium is partially financed (included in the borrowers loan amount) when a new FHA mortgage is originated, and partially collected as an annual premium that is paid monthly in the borrower’s mortgage payment.

Important Requirements for FHA Home Loans in Michigan

An FHA insured home loan will  allow purchasers to buy a primary residence with a low 3.5% down payment. While FHA guidelines do not have an explicit minimum credit score requirement, most FHA lenders in Michigan require that the credit score be at least 580 when they apply. Compared to a conventional home loan with a similar down payment, these credit requirements are quite lenient.

In fact, a borrower with a credit scores less than 680 will generally find FHA financing as their best option for a home loan. This is because government backed loan programs like FHA typically have lower interest rates and lower monthly mortgage insurance for borrowers with a 680 or lower score.

Other unique highlights of Michigan FHA Home Loans include:

Shorter waiting period for eligibility after a significant negative credit event such as a bankruptcy (2 years) or foreclosure (3 years). With the effects of economic down turns, inflation and raising interest rates still lingering, this is an important feature, as it can allow someone who, perhaps, lost a home years ago or was forced to file bankruptcy apply sooner. However, there will still be a minimum credit score requirement so it is essential that the score has recovered from the negative credit event.

Down payment can be 100% gifted. None of the funds used for down payment or other transaction costs have to be the borrower’s own funds. This allows a prospective borrower to have little or no savings and still be eligible to purchase a home if they have a family member or close friend willing to give them the funds needed to close.

Another benefit is that non-occupant co-borrowers can be added to help qualify. Michigan FHA loans allow the addition of a non-occupant co-borrower to offset a primary borrower’s non-qualifying debt ratios. In other words, if an otherwise eligible borrower doesn’t qualify due to excessive debt obligations or insufficient income, a non-occupant co-borrower can be added to the transaction to supply additional monthly income for qualifying.

Some FHA loans are assumable. This may turn out to be the best feature of them all. With historically low interest rates, using an FHA loan to finance your home purchase may become a future selling feature. FHA loans can be assumed, in other words, a future purchaser can take over the existing mortgage obligation from a seller. With rates in the low 4% range, it is not hard to imagine a future marketplace with markedly higher rates and would-be purchasers competing for a house that offered a low rate FHA loan to assume.

Michigan Mortgage Solutions is Dedicated to Making Your FHA Home Purchase as Easy & Stress Free as Possible!

As one of several FHA lenders in Michigan, we would love to help you apply for your FHA financing. We have over 30 years of mortgage lending experience and Michigan Mortgage Solutions is fully licensed to originate FHA loans in Michigan. We look forward to earning your business and helping you with any mortgage needs you may have. To apply simply click the button below for your Free No obligation Home Loan Discovery Call.

Your 5-Star Mortgage Experience Includes…

  • A no-cost/no-obligation pre-approval…
  • Find out how much you can borrow…
  • Start house shopping today…
  • Answers to all your questions 24/7…
  • Access to the lowest rates possible…
  • We help buyers with credit issues…

Call (248) 674-6450 For an Instant Pre Approval

Michigan Mortgage Solutions

Michigan Mortgage Solutions

Michigan Mortgage Solutions offers a variety of mortgage programs to suit your needs. FHA Loans, Conventional Loans and VA loans are just some examples. For experienced homeowners looking for cash out or refinancing options there is help available as well with the offer of an FHA streamline loan option that can be completed in 10 days! Michigan Mortgage Solution has something to offer every customer; whether you’re a first time home buyer or seasoned veteran our team will find the right Michigan mortgage solution for you!

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