Michigan FHA Loan
Property in Michigan is highly coveted for high-value condominiums, permanent homes and summer homes centered on lakefront lots-great for fishing, swimming, boating and asserting your dominance over the neighborhood. If you're ready to make your way up the social step ladder you'll want to bring a Michigan FHA mortgage along for the ride.
Home sales are on the rise in Michigan, but if you act quickly, you'll find yourself getting the best prices available on some of the most beautiful properties available. Currently the market is in favor of the buyers but it won't be that way for long and either way, home prices are high enough in the state that you'll need to secure an excellent loan rate just to make your monthly payments. This will affect not only those with poor credit and first time home buyers but everyone else looking for prime real estate in Michigan.
But there is hope. Michigan FHA home loans can help you afford to live in some of the most posh pads in whatever area you choose and at a price you can afford.
FHA home loans in Michigan aren't easy to qualify for, however. There are restrictions on FHA home loans in MI that include the following:
- Credit-in Michigan more than most other places, having fair to excellent credit is a key factor in deciding whether or not you will qualify for an FHA mortgage. If you have terrible credit, you'll need to contact a housing counselor to help you decide how to proceed and to suggest ways you might fix your credit.
- Steady work history-Lenders in Michigan require you to have been at the same job for at least two years and prefer that you have been in the same profession at least five years.
- Ability to pay back loans-if your salary has been steady over the last two years or has risen, you'll be more likely to get a loan, but if you salary has decreased substantially you may have a much harder time securing the assistance of the FHA.
Despite the heavy restrictions on qualifications for FHA assistance in Michigan there are plenty of benefits that outweigh the restrictions and you'll want to apply for the loan. The benefits of having an FHA loan in MI include:
- Generous debt and payment to income ratios
- No prepayment penalties
- Liberal treatment of credit history in some cases
- Case-by-case analysis
- Low down payments
One of the greatest benefits of obtaining a MI FHA loan in Michigan is that each case is reviewed individually. This means that if you have some major strength and some weaknesses they will balance each other out and you will still be able to qualify for the loan. This is different from regular loans because they require you to meet all of the standards before you can be approved.
One of the most important issues in obtaining a loan is finding a fair and competent Michigan FHA mortgage lender. There are literally thousands of them spread out across the state of Michigan and finding one that is FHA approved won't prove to be difficult. But you will want to make sure that your lender is offering you the most competitive Michigan FHA mortgage rates available. The current FHA rates in Michigan are at a high of 8% and a low of 6%. The average annual interest rate in Michigan is 6.5%.
Other characteristics of FHA mortgage lenders in Michigan that you will want to look for are:
- They should tell you the difference between variable and fixed rate mortgages
- They should tell you all of your other options in case you don't qualify for an FHA mortgage or there's been an enhancement you might qualify for
- They should tell you that FHA loans are not insured by the FHA and you will be responsible for closing costs and origination fees in addition to other fees incurred.
Once you have found the best lender for your dreams and your needs, you'll be ready to venture out in the hot Michigan summer or the cold Michigan winter and make your mark on society with the most beautiful home on the lakefront.