Introduced by the Federal Housing Administration (FHA), the FHA loans serve to benefit both the home buyers and lenders in several US states, including Michigan. By insuring home loans, the FHA helps buyers avail exceptional rates with flexibility of credit score while protecting lenders from fallout of non-timely payments—ultimately improving the housing buy-and-sell system.
The Michigan FHA loan programs includes a variety of options for financing and re-financing purchases, special finances for renovations, and reverse mortgage. At e-Finance Mortgage LLC, we provide exceptionally competitive FHA loans rates throughout the state.
Michigan FHA Loan Requirements
- The minimum credit score to qualify for down payment and required eligibility is 580. Those with a credit score of over 500 but no higher than 579 could still apply, but up to 10% of down payment may be required.
- We offer 3.5% of the purchase price to be paid as minimum down payment available, providing that the credit score is not less than 580. Lower credit score will require higher down payment.
- 43% of debt-to-income (DTI) ratio is a qualification requirement for the Michigan FHA loan, although 50% of DTI ratio may be approved under certain circumstances.
- All properties in Michigan must satisfy structure condition standards with regard to safety and soundness.
The extents of loan limits differ according to counties. For instance, high-cost areas in Michigan have loan limits that amount between $271,000 and $636,500.
In Michigan, FHA loan borrowers have to pay two mortgage insurance premiums (MIP):
- The up-front premium, which amounts to 1.75% of the purchase price. FHA automatically adds this to your total mortgage amount.
- Monthly premiums – serving as parts of total mortgage payment. Monthly premiums range between .45% and 1.05% of the annual mortgage balance. The loan amounts, FHA loan-to-value (LTV) ratio, as well as your mortgage length are encompassed in factors determining these premium
Michigan FHA Loan Benefits
First-time home buyers in Michigan benefit from minimum requirements of low credit score and down payments. A home homebuyer with 580 credit score can qualify for FHA loan with only 3.5% down payment.
We also offer cash-out refinance loan and streamline refinance options for homeowners requiring money for additional expenses.
The FHA 203k loan can be acquired by a homebuyer who wants to take on a rehabilitation project – this allows the borrower to combine purchase and renovation expenses into single mortgage.
e-Finance Mortgage LLC provides FHA loans for first-time homebuyers, as well as refinance for current home owners throughout Michigan.
We offer some of the lowest rates and terms on various Michigan FHA loans. You can contact us today to start the loan qualification process.