FHA Loans

Federal Housing Administration Mortgage Loans 

Affordable Lending Options for New Home Purchase and Mortgage Refinance
Each year the Federal Housing Administration (FHA) helps more than a million Americans achieve their dream of homeownership. Typically, an FHA loan is one of the easiest to obtain as it requires minimal down payment (only 3.5%), has lower closing costs (FHA limits the amount lenders can charge) and borrowers with credit scores as low as 500 can qualify. A variety of lending options help meet diverse needs; whether you are a first-time homeowner or want to refinance your existing conventional or FHA mortgage.

Types of FHA Home Loans

FHA is the largest insurer of mortgages in the world, insuring over 47.5 million properties since its inception in 1934. Designed for low to mid-income borrowers, even individuals with questionable or no credit history may qualify. Being backed by the FHA lowers the risk for lenders allowing them to relax credit qualification standards. 

Standard FHA Loan

This fixed-rate loan is very popular with first-time homeowners. Unlike conventional mortgages, the FHA program allows you to finance up to 96.5% of your home loan. An additional benefit is that 100% of the closing costs can be a gift from a relative, non-profit, or government agency.

FHA Renovation Loan

If you have seen an affordable fixer-upper Michigan home that you want to buy, the FHA 203K might be ideal. Also called a Rehab Loan or FHA Construction loan, it allows you to finance the house as well as any repairs that may be required. 
While there is no minimum income requirement to qualify for an FHA loan, debt-to-income ratio rules are in place to prevent borrowers from making a new home purchase they cannot afford. The good thing is that having no credit history, or even a bankruptcy or foreclosure on your credit record does not mean you cannot qualify. Re-establishing good credit and a solid payment history demonstrated through paid up utility bills, rents, student loans, etc. contribute to a general pattern of reliability.

If you are a first-time homeowner, an FHA mortgage loan might be just what you need. Talk to us at Dividend Mortgage to find out more about the requirements to see if you qualify. We offer a wide range of mortgage loan programs for homeowners in the state of Michigan and can help you find the best fit. 

Call 269-321-8950 or contact us online to set up a consultation for an FHA mortgage loan.