Michigan FHA Loan Requirements – Credit Score
FHA loans are known for their more lenient credit score requirements, making them a popular choice for first-time homebuyers and those with less-than-perfect credit. While most conventional loans require a credit score of at least 620, you can qualify for an FHA loan with a score as low as 500. However, if your credit scores fall below 580, a larger down payment of 10% would typically be required. It’s important to note that while the FHA sets these basic guidelines, individual lenders may have their own credit score criteria. Therefore, it’s advisable to consult with a trusted lender, like Michigan Mortgage Solutions, to understand your options better.
Michigan FHA Loan Requirements – Income
Certainly! FHA loans are designed to be accessible, and that extends to income requirements as well. While there’s no minimum income threshold to meet, borrowers must demonstrate a stable employment history and the ability to make consistent mortgage payments. Lenders typically look for a debt-to-income ratio (DTI) of less than 43%, although this can be stretched beyond 55% with high credit scores of 720+. This ratio compares your monthly debt payments to your gross monthly income, helping lenders assess your ability to manage the loan. Additionally, you’ll need to provide proof of income through documents like pay stubs, tax returns, and W-2 or 1099 forms. At Michigan Mortgage Solutions, we guide you through these requirements to ensure you’re well-prepared for the Michigan FHA loan application process.
Michigan FHA Loan Requirements – Down Payment
When buying a home with a Michigan FHA mortgage, the buyer will need a down payment of just 3.5 % of the purchase price. However, the down payment requirements related to the Michigan FHA loan can change based on the borrowers credit score. Those with scores below 580 will likely need a 10% down payment or even more to qualify.
Michigan FHA Loan Down Payment Assistance
One of the unique characteristics of FHA Loans in Michigan is that they can be paired with down payment assistance programs. There are more and more of these programs available now and it’s hard to know which is best. Therefore, it’s advisable to consult with a trusted lender, like Michigan Mortgage Solutions, to understand your options better.
Down Payment Assistance Programs For Michigan FHA Loans
Many lenders offer in house down payment assistance programs which can be used to cover your down payment and closing costs. Some of these programs require a monthly payment and others do not. This is not free money as a second lien is placed on the home and will remain there until it is paid off when the home is sold or refinanced. Give us a call at (248) 963-1894 to find out which Down Payment Assistance program will be best for you.
Government Assistance Programs For Michigan FHA Loans
The Michigan State Housing Development Authority offers more relevant info for Down Payment Assistance here – https://michigan.gov/mshda
If you would like even more information on Michigan first time home buyer programs you’ll most likely enjoy our blog as well as our videos for Michigan first time home buyers. The information we share can help you find clarity and peace of mind when making this big financial decision.
Nevertheless, if you happen to have any questions relating to Michigan first time home buyer programs or FHA loans, do not hesitate to reach out and we will get you on your way to owning your first home.
Your 5-Star Michigan FHA Loans Experience Includes…
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- Answers to all your questions 24/7…
- Access to the lowest rates possible…
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Michigan Mortgage Solutions is Dedicated to Making Your Home Purchase as Easy & Stress Free as Possible! Take our 45 second First Time Buyer Quiz to find out what mortgage program will work best for you. Find out if you can qualify for a $0 down program today!
Cheryl S05/01/2024Jason was phenomenal to work with during my mortgage process. He guided me with ease from beginning to end . He had patience when I had questions and explained everything so clearly. I am thankful to Jason and the entire team for making this a pretty stressful free experience!! New Year, New Home! Thanks Jason!!
miss renee03/01/2024Trevor was very knowledgeable and his expertise was Super helpful in putting me in the right direction!
Jillian Mitchell17/11/2023Great experience all around. Jason, Trevor and Yolanda are a great team and always are reassuring and helpful.
Reel Champs23/10/2023Jason and the Michigan Mortgage solutions team was amazing. I ran to them out of desperation because I had a terrible experience with a bigger mortgage company. It was the best decision of my life and Jason worked with me seamlessly and got my family into our dream house in less than 45 days. Highly recommend them as your FIRST STOP, you won’t regret it.
Michael Cordell17/10/2023I had a wonderful experience. The communication at every step along the process was exceptional. My contact went above and beyond and answered my questions at all times. Thank you,
Sanya Ross29/09/2023Jason was knowledgeable and always available. Made me feel at ease with such a huge purchase, I asked tons of questions and he never made me feel like it was a problem. I appreciate everything he did to make my first home purchase a success and I will refer all my friends and family to Michigan mortgage solutions!! Thank you again!
Jack Condrige26/09/2023Great experience. Very personal service.
Kyla Wilberding20/09/2023Can't say enough good things about Jason and his team. They made my first home buying experience quick, easy, and stress free. They communicated flawlessly and explained every step of the process, would recommend to anyone! Closed on my house in less than a month.
Tony Pliva25/08/2023Worked with Jason and his team for about a year before we found a home we wanted. The whole process was smooth and easy. Definitely recommend to anyone getting a mortgage!
