A Michigan FHA loan is a home loan that is insured by the Federal Housing Administration. Home buyers are able to purchase a home with a low down payment as low as 3.5% of the purchase price.
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The government insures the lender against losses so banks are able to offer you the low FHA mortgage rates. This flexible home loan option is perfect for first time home buyers that have no established credit or little money for down payments.
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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 an FHA Mortgage you will need a 3.5% down payment on a purchase and a 620+ credit score. Our loan officers at Riverbank are experienced in mortgage lending services and offer the lowest FHA mortgage rates available.
An 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 an 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 an FHA purchase mortgage.
Another benefit of an FHA Loan is that it is easier to qualify after bankruptcy. Getting an 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 an FHA mortgage after bankruptcy for a chapter 7 requires 2 years from the discharge date while getting an 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 an FHA mortgage after bankruptcy.
You may be eligible for an 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 an FHA loan. Other mortgage types such as conventional loans require 7 years after foreclosure.
To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.
Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided the existing foundation system remains in place. In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.
A Conventional loan may be harder to qualify for than an FHA mortgage. A conventional mortgage typically requires only a 5% down payment however to avoid mortgage insurance you will need 20% equity in your home. FHA mortgage loans require only a 3.5% down payment so it may be more affordable for home buyers that are short on cash.
Another reason to choose FHA vs conventional mortgage loans is because FHA is more forgiving for credit issues. With an FHA mortgage you can buy a house with only 3 years after a foreclosure while conventional loans require 7 years to have passed. Both loan options are great types for first time home buyers and repeat buyers but it is important that you review both home loan options to make sure you find the right one for your situation. Our mortgage professionals will review both options to find your largest savings!
FHA mortgage rates are typically lower than the conventional loan program. With FHA loans being insured by the federal government, banks and mortgage lenders have less risk offering loans for home buyers and for FHA refinancing. On average, current FHA mortgage rates are a quarter of one percent lower than conventional home loans. To get today's FHA Mortgage rates, get a free mortgage quote and see what your FHA loan rate will be for your next home purchase or FHA refinance.
An FHA refinance is a great way to refinance up to 97.75% of the value of your home. This mortgage programs allow you to choose a cash out refinance to pay off debt or do home improvements or simply lower your interest rate and payments. Do not wait to take advantage of your refinance savings by refinancing your FHA mortgage today.
An FHA mortgage refinance is a home loan available to refinance a home you already own. There are two main types of FHA mortgage refinance loans, the rate and term refinance and the FHA cash-out refinance.
A rate and term refinance is refinancing your current mortgage to a lower interest rate or changing the term of your home loan. Typically a rate and term refinance limits the cash a borrower can receive at close.
An FHA cash out refinance is refinancing your current mortgage to get cash from the equity of your property. A cash-out refinance allow a home owner to consolidate debt, pay off credit cards, pay off auto loans, do home improvements or even get cash at the loan closing.