FHA Mortgages
FHA home loans are an ideal way to qualify for a mortgage with low down payments and credit scores if you’re a first-time homebuyer or have a unique financial credit history.
What is a FHA Loan?
FHA mortgages are insured by the Federal Housing Administration (FHA) and are popular among first-time homebuyers or those with financial challenges. While these are government loans, they are underwritten and serviced by the majority of mortgage lenders.
Benefits of Applying for a FHA Loan
Benefits of Applying for a FHA Loan
Benefits of Applying for a FHA Loan
FHA loans in Michigan require lower down payments and credit scores than other loan options, so they’re a great mortgage option if you need the flexibility to qualify. Here are a few additional benefits:
- Consistent monthly payments through the life of the loan
- More lenient credit histories and higher debt-to-income (DTI) requirements
- Lower interest rates than other loan programs
- Shorter time constraints after adverse credit events
- Lenient gift fund rules
- Accepts non-occupant co-borrowers
- 15-year and 30-year fixed terms
Qualifying for a FHA Mortgage
Benefits of Applying for a FHA Loan
Benefits of Applying for a FHA Loan
Whether you’re a first-time homebuyer or unsure if you even qualify for a mortgage, an FHA loan could be the answer. Here’s how to qualify:
- Downpayment as low as 3% on your primary residence
- A credit score of 580+
- Verifiable employment history for the last two years
- Verifiable income through bank statements, tax returns, and pay stubs
- Appraised by an FHA-approved appraisal to meet HUD standards
While the qualifications are flexible, those with an FHA loan must pay private mortgage insurance (PMI), mortgage insurance premiums (MIPs), and adhere to more strict inspection standards. Our experienced team of loan officers will walk you through these items to ensure you’re confident with your home loan.
Getting Started with Align Lending
Ready to purchase or refinance your home? Apply today with Align Lending to learn more about your options!
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