What are Michigan FHA loans?

In 1934, the newly-formed Federal Housing Administration (FHA) began offering long-term mortgage loans insured by the federal government.  The result was that millions of people could get long-term mortgages with little down, that would allow them to ride out tough times.

FHA mortgages have some advantages over conventional mortgages.  Since the government insures Michigan FHA mortgages, they generally have more lenient qualification and requirements, lower down-payment requirements, and they may be assumable.  They also offer loans to those whose credit may otherwise disqualify them for a conventional mortgage.  In addition, the interest on Michigan FHA loan is typically lower for those with less than perfect credit, than it would be through a conventional loan program.  For these reasons, FHA loans in Michigan are very popular with first time home buyers.

Contact me to see if you qualify for a Michigan FHA home loan.  I am fully licensed as one of the premier FHA lenders in Michigan and can work with anyone, anywhere in the state.

Caila said this in her thank you note:

“Thank you so much for all your help in getting my house.  I appreciate everything.”

More about Michigan FHA loans

FHA loans do have their drawbacks, and are not for everyone.  For instance, the FHA sets loan limits, to ensure the program serves low to moderate income families.  You may find these loan caps, that you will need to apply for a conventional or jumbo loan, to purchase your home.

It is important to know that the FHA itself does not lend you the money for the home, and it does not set the interest rates on the loans.  The FHA is actually insuring the loan you are getting from a traditional lender.

FHA’s requirements are:

  • A down payment of 3.5%
  • The home must be under the FHA’s set loan limit
  • An acceptable credit rating
  • A two year employment history

The process of applying for a FHA loan is pretty much the same as applying for a conventional mortgage.  you will need to provide verified proof of your income over the past two years.  What qualifies as income is a bit relaxed; Social Security, Disability, alimony, child support, can all qualify as income under the FHA program.  In addition, short-term debt may not count against you (short-term is defined as being able to be paid off in less than 10 months with a payment under $100/month).


Call me to discuss a Michigan FHA loan

To get started, or if you just want Michigan mortgage refinance help and have a question, call me at 989.245.2230 or drop me an e-mail at kdais@newexecmtg.com.

Click on the links to learn more about Conventional Michigan home loans or Michigan Rural Development loans.  Click this link for Michigan Refinance options.


Kelly Dais
989.245.2230 or