Whether you are shopping for a home in Michigan or any of the other states we serve, one way to purchase a home with flexible and affordable terms and conditions is with an FHA mortgage.
This product attracts many first-time homebuyers, and is also available to repeat home buyers.
What is an FHA Loan?
An FHA mortgage is one that is backed by the Federal Housing Administration.
This backing reduces the risk associated with the mortgage, allowing lenders to offer features such as easy credit qualification and affordable rates.
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Benefits of FHA Mortgages
Here are a few reasons to consider buying a home with an FHA mortgage:
- You may be eligible for this type of home loan even if your credit score is not perfect.
- FHA mortgages feature affordable interest rates.
- Small down payments between 3-5 %.
- You can buy a home with low or no closing costs with this type of mortgage.
- FHA home loans are available for home purchase, construction, refinance, renovation, and debt consolidation.
- You can decide whether to get an FHA mortgage that features a fixed or adjustable interest rate.
Eligibility for an FHA Loan
Here are the basic eligibility requirements you need to meet:
- MMS offers FHA home loans for borrowers with credit scores as low as 580. But with a credit score of 600+ better rates and terms are available.
- You will need to show a debt-to-income (DTI) ratio of no higher than 43-45%.
- You must be steadily employed, and this must be the case for the past two years.
- A clear Credit Alert Verification Reporting System (CAIVRS) is required.
- Following a bankruptcy, a 12- to 24-month waiting period is required before you can successfully apply for an FHA loan.
- Following a foreclosure, a three year waiting period must elapse before you can qualify for an FHA mortgage.
There are also a few requirements for the property itself that you are buying:
- It must be on a permanent foundation.
- It must have been constructed on or after June 15th, 1976.
Single-family homes, 2-4 unit multifamily homes, and HUD-approved condos all are allowed.
Buy a Home Now With an FHA Loan
We also can help you out with the MSHDA MI Home Loan program for down payment assistance in Michigan.
MMS is licensed in Michigan, Alabama, Colorado, Connecticut, Florida, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Michigan, New Hampshire, North Carolina, Ohio, Pennsylvania, Rhode Island, and Tennessee. We would love to help you apply for an FHA mortgage in any of those states.
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