FHA Loan

FHA (Federal Housing Administration) loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA).  Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.

What is a FHA Loan?

Typically the borrower can be approved with 3.5% Down vs 20% that is required on other loan programs. Federal Housing Association loans can be good tools for first time home buyers or people who are in the process of repairing their credit. We have done FHA loans for 20 plus years everywhere in the state of Michigan and other licensed states, we can put you in the house of your dreams today. We have access to several FHA lenders that will do loans down to 580 credit scores and some times even lower. With Federal Housing Administration loans we focus on: Macomb County, Oakland County, and Wayne County.

Benefits of FHA Loans

  • Credit scores allowed start at 580
  • FHA loans allow seller concession’s up to 6%. Click here to learn more.
  • FHA loans offer shorter waiting periods for significant events like bankruptcies or foreclosures.
  • FHA will allow you to finance a property 2 years after a bankruptcy and 3 years after a foreclosure.

FHA Mortgage Insurance Premiums

FHA Loans have more flexible requirements than a traditional conventional mortgage. but they also Require MIP.

For mortgages of more than 15 year terms:

LTV (loan to value) less than 90% = 80 bps, Duration of 11 years.

LTV Greater than 90% and less than or equal to 95% = 80 bps for the life of the loan.

LTV Greater than 95% = 85 bps for the life of the loan.

For mortgage terms of less than or equal to 15 years.

LTV less than or equal to 90% 45 bps, duration of 11 years.

LTV greater than 90% is 70 bps for the life of the loan term.

FHA Loan Limits

Different counties have different limits on how much you can borrow for an FHA Loan.

For 2018:

Tri County Area,

Wayne, Oakland and Macomb counties the limit for single family is $294,515.00 and Two Family is $377,075.00.

3 units $455,800.00 and 4 units $566,425.00

Monroe, Lenawee, Washtenaw, Livingston, Genesee, Lapeer and Saint Clair counties are single family $294,515.00 and two family $377,075.00

3 units $455,800.00 and 4 units $566,425.00

 

Get Pre-Approved for a FHA Loan

If you are looking for your first house or even your last in Southfield, Macomb Township, Clinton Township, Chesterfield Township, Harrison Township and St. Clair Shores, or anywhere in Michigan, give us a call and one of our FHA experts will see if this or one of our other mortgage products would be right for you! This is the second most common type of mortgage loan, behind Fannie/Freddie and there is about 250 Billion dollars owed in FHA loans across the United States.