One of the most flexible mortgage products available today are FHA Mortgages. As sub prime loans faded away, the government filled in by loosening the lending guidelines for FHA mortgage loans. To qualify for a FHA Mortgage you will need a 3.5% down payment on a purchase and a 580+ credit score or 10% down with a 560-580 credit score. Our loan officers at Riverbank are experienced in mortgage lending services and offer the lowest FHA mortgage rates available.
Michigan FHA Loan Requirements and Eligibility
A FHA loan may make home buying easier than a Conventional Mortgage. This loan option is popular among first time home buyers because the minimum down payment is only 3.5% of the purchase price. This is smaller than the 5% minimum for a conventional mortgage. The low FHA loan requirements opens the door to home ownership for low income families as well as families that have recently moved to the United States. FHA loans may be available for immigrants that currently hold a Green Card or Visa.
Buying a home after a job loss or a job gap may be a major obstacle with a conventional loan however with a FHA purchase mortgage you may simply provide a letter of explanation as well as documentation to explain the reason you were off work for a period of time. Acceptable reasons to have job gaps when buying a home include maternity leave, caring for a family member, illness or rare occurrences such as acts of God. Be sure to check you a loan officer to see if you qualify for a FHA purchase mortgage.
Can I get a FHA loan after bankruptcy?
Another benefit of a FHA Loan is that it is easier to qualify after bankruptcy. Getting and FHA loan after bankruptcy can be done with only 2 years time under you belt from your bankruptcy discharge date while a conventional loan requites 4 years. A chapter 7 bankruptcy involves liquidation of your debts to creditors. It allows people to wipe the slate clean and start fresh. Getting a FHA mortgage after bankruptcy for a chapter 7 requires 2 years from the discharge date while getting a FHA mortgage after bankruptcy for a chapter 13 requires only one year. Some banks and mortgage companies may even allow a person to buy a house or refinance their FHA mortgage while in a chapter 13 bankruptcy. For these reasons, may people choose a FHA mortgage after bankruptcy.
Can I get a FHA loan after foreclosure?
You may be eligible for a FHA loan after foreclosure with 3 years from your sheriff sale date. This is an important date that officially transfers the property being foreclosed from you to the bank or purchaser. Once the sheriff's sale occurs, 3 full years must pass before you apply for a FHA loan. Other mortgage types such as conventional loans require 7 years after foreclosure.