FHA Loans in Royal Oak
Imagine buying a home with a low down payment and affordable rates, even if you do not have a perfect credit score.
Those are the benefits that you can look forward to when you apply for an FHA mortgage.
In fact, FHA loans are popular with both first time and returning homebuyers. Is an FHA loan right for you? Let’s find out.
What is an FHA Mortgage?
An FHA loan is a special mortgage product that is insured by the Federal Housing Administration (FHA).
Insuring your loan makes it less risky to your lender. That means that lenders can offer you better rates and terms than would be possible with a conventional loan.
Benefits of FHA Loans in Royal Oak
If you are eligible for an FHA mortgage in Michigan, here are the advantages that await you:
- You can move into a home in Detroit, Royal Oak, or anywhere else in Michigan with a down payment as low as 3.5%.
- Qualifying for affordable interest rates does not require a high credit score.
- You can choose an FHA mortgage with a fixed interest rate or an adjustable interest rate.
- If the seller does not pay for the closing costs, they will not exceed an affordable cap.
- Whatever your plans, you should be able to get the financing you need with an FHA loan. You can build, buy, upgrade, repair, refinance or consolidate.
Do You Qualify for a Detroit FHA Mortgage?
To be eligible for an FHA mortgage in Michigan, you need to meet these requirements:
- If you want to buy a home with a 3.5% down payment, your credit must be a minimum of 580. If your credit score is between 500 and 579, you still may qualify for an FHA loan, but your down payment requirement will be 10%.
- Your debt-to-income ratio must be 43-45% or lower.
- Over the past two years, you must have documentation of steady employment.
- Your Credit Alert Interactive Voice Response System (CAIVRS) must be clear.
- You need to be purchasing a primary residence.
You will notice that we did not say you need to be a first time homebuyer to get an FHA loan.
You can be buying your first home or any subsequent home and still qualify.
You will also notice that we did not mention anything about foreclosures or bankruptcies.
There is a required waiting period in each case, but once it passes, you can qualify for an FHA loan.
How long do you need to wait? If you had a bankruptcy, two years. If you had a foreclosure, three years.
Move Into a Home With 3.5% Down With a Michigan FHA Mortgage
You are closer than you think to moving into a home in Michigan with a low down payment and affordable rates.
To find out if you qualify for an FHA loan today, please give us a call at (248) 930-8709 to schedule your consultation. We also can connect you with an FHA mortgage if you live in Florida.
