Buying a home using a Purchase FHA Mortgage is a great way to become a home owner with very little costs out of pocket. Most home buyers these days do not have money saved for large down payments that are sometimes required for conventional financing. Buying a home with a FHA purchase mortgage will allow you to have only 3.5% as your down payment. FHA mortgages also allow for the seller to pay up to 6% of your prepaid items such as home owners insurance and taxes as well as your closing costs.
Purchase FHA Mortgage loans are insured by the Federal Housing Administration. Ask your Riverbank loan officer about current lender fee options and how seller concessions can help cover your closing costs. FHA loans have flexible credit guidelines, so a lower credit score does not automatically rule out approval — a loan officer can review your full application to see what you qualify for.
For more information on a new home purchase FHA Mortgage, call 800-555-2098 or apply online today!
What Is a New Purchase FHA Mortgage in Michigan?
Purchase FHA Mortgages are home loans that are becoming one of the most popular purchase mortgages available. Because the FHA, Federal Housing Administration, insures the mortgage lender against loss if the borrower is unable to pay their mortgage payments, purchase FHA mortgages are very flexible and easier to qualify for than a conventional mortgage.
In many cases it is not realistic for a buyer to have 20% of the purchase price available for a down payment. For these borrowers we recommend using a purchase FHA mortgage, which requires only 3.5% down with a qualifying credit score. FHA mortgages carry competitive interest rates as well, which can help you save money over time. Our loan officers at Riverbank are experienced with Purchase FHA Mortgage loans and offer competitive FHA mortgage rates, including:
- First time home buyers FHA mortgage
- Purchase FHA Mortgages
- 30 year fixed FHA mortgage
- 15 year fixed FHA mortgages
Benefits of Purchase FHA Mortgage Loans
- Buy a home with as little as 3.5% down payment
- Flexible qualifying guidelines compared to conventional loans
- Credit scores from 580 for 3.5% down (500–579 requires 10% down)
- Seller can pay up to 6% of your closing costs
- No prepayment penalties
What credit score do I need to buy a home with an FHA loan?
You'll need a credit score of at least 580 to qualify for the 3.5% down payment option. Scores from 500–579 may still qualify with a 10% down payment.
Can the seller help pay my closing costs on an FHA purchase?
Yes. FHA guidelines allow the seller to contribute up to 6% of the purchase price toward your closing costs and prepaid items.