The Federal Housing Administration (FHA Mortgages) helps you cross the bridge.
Designed with you in mind, Michigan Home Finace is comprised of experienced mortgage coaches and processors who work to close your FHA mortgage quickly and easily.
Curious about how the FHA came to be and whom it can help? Wondering if you're qualified for an FHA loan? Please explore these details, and then if you have any further questions feel free to contact us. You can also complete the simple FHA Mini Application today. We'll be in touch.
Something just for you: information about a mortgage loan from the Federal Housing Administration (FHA)
FHA beginnings
The
FHA, or Federal Housing Administration, is part of the Department of
Housing and Urban Development (HUD). The FHA was created in 1934 to
provide relief during the Great Depression, when families couldn't make
payments on debts, the banking system collapsed, and as a result, many
people lost their homes. FHA stepped in with loans that were designed
for struggling families who found it difficult to purchase or make
payments on their homes.
The FHA loan, clarified
With
FHA loans, the government does not actually give you the mortgage loan;
rather, it is given by a lender (often through an institution or
broker.) The federal government simply insures the loans so lenders
feel more at ease when lending to certain people.
Since these
were created in 1934, the intent of FHA loans has essentially remained
unchanged. These loans still provide families and first-time home
buyers, whether the income level is very low, very high, or anywhere in
between, with the opportunity to be awarded a low fixed-rate loan, even
if credit is less than perfect.
Benefits of an FHA Mortgage
No credit score requirements
Low closing costs
Only 3% down payment when you buy a home
Seller concessions allowed up to 6%
Lower monthly mortgage insurance
Loan-to-value rate of up to 97.75%
Chapter 13 bankruptcy doesn't bar you from qualifying
Release from an adjustable rate mortgage loan before it adjusts
Cash-out refinance of up to 95%
Profile of the average FHA loan recipient
Low to moderate income
Frequently a first-time home buyer
History of credit problems
Seeking up to 97% financing
Targeting a home purchase that is below the FHA maximum
